Vulture funds have around 38,000 mortgages, 50% of which are in arrears

[Brendan Burgess]

From the Central Bank's Quarterly Arrears stats for 31 March 2015

• Non-bank lenders now hold almost 46,000 mortgage accounts for PDH and BTL combined. Of this number, 19,818 are in arrears of more than 90 days.

46,000 mortgage accounts equates to around 38,000 mortgage holders.

These are presumably the bad loans from Irish Nationwide, GE Capital, Dankse and Bank of Scotland.



They account for 5% of the mortgage accounts in total, but 22% of the arrears cases over 2 years.

Brendan

 

[Sarenco]

Would non-bank lenders not also include the various sub-prime lenders (where you would expect the arrears levels to be particularly high)?

 

[Daffodils]

Would a vulture fund be classed as a non-bank lender? My understanding would be that vulture funds generally don't lend and therefore not be classed as a non-bank lender. I don't think unregulated funds would report to the Central Bank and loans bought by such funds wouldn't be included in those figures although I may be wrong.

 

[Brendan Burgess]

Would non-bank lenders not also include the various sub-prime lenders (where you would expect the arrears levels to be particularly high)?

Hi Sarenco. They do indeed. In fact, I put GE Capital in my list, but should have included Start Mortgages.

But the bulk would be BoSI , Danske and Irish Nationwide.

 

[Brendan Burgess]

I don't think unregulated funds would report to the Central Bank and loans bought by such funds wouldn't be included in those figures although I may be wrong.

The CB excluded the loans which were sold by BoS at one stage, but I gather that they now include all mortgages, irrespective of the identity of the lender.

The sub-prime lenders are actually regulated by the CB. The vulture funds which did not issue the loans in the first place, are not.

Brendan