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Thread: Mortgage end-game? Government 'plan' due at 2pm, today, 13 March 2013.

  1. #1

    Default Mortgage end-game? Government 'plan' due at 2pm, today, 13 March 2013.

    Well, folks, today might be a bit of a mixed bag for lots of posters here.

    We might finally be getting to the end of all the mortgage related threads on P.ie . And as one of the biggest culprits on the 'mortgage moan' front, I've decided to set up one last, hopefully consolidated, thread.

    The price of an end to all these threads and moaning, might be an increase in your feelings of disgust, anger or frustration at what you might consider an over-reaction by the government, or the creation of a massive moral hazard.

    Equally, this might be another big damp squib, and another can-kicking exercise.

    Come 2pm, we should know all. One thing is for sure, this will be the main news tonight [unless a new Pope is elected, in which case RTE will clear its schedules for a lot of white noise about white smoke - hopefully the Vatican won't want that announcement to clash with a Champions League night, and will hold off until tomorrow].

    I'll update the OP as and when the details are known, but in the meantime, here are a few hints:

    One of those who has been briefed said: "The Government is not forcing the banks to write down one cent of mortgage debt.

    "Instead, people in mortgage trouble will be offered to have half of the debt parked, or the term of the mortgage will be elongated, or the interest rate will be reduced.

    "But the full burden of the debt will stay on people's backs."
    Borrowers who genuinely can't pay will get debt deals from banks - Independent.ie

    OP UPDATE (2pm): http://www.rte.ie/news/business/2013...e-write-downs/

    Banks will be forced to reach sustainable solutions with 20% of borrowers in arrears by the end of July.

    That figure will increase to 30% by the end of the third quarter of 2013 and 50% by the end of the year.

    The Central Bank has also published a new code of conduct on mortgage arrears.


    Significantly, as part of the new targets for banks, regulators are openly asking lenders to include debt forgiveness if it is appropriate.

    In the Central Bank's definition of a sustainable solution, it includes repayment of "a revised principal sum" - in other words some of the debt being written down if the bank offers a deal to a customer.

    The Central Bank hopes to increase the use of split mortgages. This would see a home loan divided into two parts with the customer paying the first part and the second part would be parked without interest accruing in some circumstances.

    In some cases the second part would be written off at the end of the term of the home loan. However, it would be up to individual banks to determine if this would be appropriate.

    UPDATED at 2.12pm: Central Bank statement:

    http://www.centralbank.ie/press-area...geArrears.aspx
    Last edited by ShoutingIsLeadership; 13th March 2013 at 04:12 PM.
    I have no money, but I love my life.

  2. #2
    Politics.ie Member Crazy horse 6's Avatar
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    I should put in another can kicking gif but i could'nt be arsed. We all know what this is, a PR exercise and nothing more.

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    Politics.ie Member hammer's Avatar
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    Maybe Noonan will turn around now and ask the banks to increase all variable rates now that he feels he can cut salaries.

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    Politics.ie Member hammer's Avatar
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    BTW. Best of luck SIL

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    Quote Originally Posted by hammer View Post
    Maybe Noonan will turn around now and ask the banks to increase all variable rates now that he feels he can cut salaries.
    Increase???
    I have no money, but I love my life.

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    Politics.ie Member hammer's Avatar
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    Quote Originally Posted by ShoutingIsLeadership View Post
    Increase???
    The agenda seems to have changed.

    Increase profitability so the banks can be sold and the exchequer recoups as much as possible so we can put the proceeds back into the "pot" used to over-spend

  7. #7

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    Quote Originally Posted by hammer View Post
    The agenda seems to have changed.

    Increase profitability so the banks can be sold and the exchequer recoups as much as possible so we can put the proceeds back into the "pot" used to over-spend
    I thought the ending of the bank guarantee and the reduced staff costs was aimed at avoiding imminent rate rises.
    I have no money, but I love my life.

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    Politics.ie Member Happytolearn's Avatar
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    Kick the can - c'mon kick the can baby - kick the can - you're drivin me crazy .....
    I'm a better man now than I was that day

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    Politics.ie Member hammer's Avatar
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    Quote Originally Posted by ShoutingIsLeadership View Post
    I thought the ending of the bank guarantee and the reduced staff costs was aimed at avoiding imminent rate rises.
    Hopefully, but I think its to increase PROFITABILITY so the Government can sell its stakes.

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    I'm more inclined to think that this paves the way for more cuts in pay and SW. For those that rightly point out that reductions in income will force more people into arrears they now can pretend to have an answer.

    Nothing announced/leaked so far that suggests the banks should also take a hit for reckless lending, it all sounds very one sided which is only to be expected.
    Once your ability to function within society depends on a government controlled ID card then you are no longer a free citizen.

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