Fears bank could sell ICS mortgages to funds unregulated in Ireland

Knuttell

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Bank of Ireland yesterday confirmed it has agreed to sell its ICS Building Society’s distribution platform as part of its EU

restructuring programme. Under the deal, Bank of Ireland will sell a €250m mortgage asset pool to Irish financial services company Dilosk Limited, which is seeking regulation from the Central Bank.

All of the loans in the portfolio are performing and none is in arrears. It is thought that up to 2,000 mortgages have been sold.
http://www.independent.ie/business/...-in-bank-mortgage-sales-warning-30388935.html
Heard about it this morning on the radio!!

Just off the phone with them now,very poor form,released to the media while the customer hasn't even been afforded the decency of a letter in advance of the announcement apparently the letters were sent out Wed evening.

The rep I spoke with was next to useless,all I could glean off her was that if the letter (haven't received it yet) has ML1 at the top of it then you are staying with BOI.

If it has ML2 in the ref title then your loan is very likely going to be sold on to this unregulated company but you will not know for definite until September.

This has been handled in an extremely poor fashion.
 
I'm surprised no one has commented on this. What is likely to happen to both groups and what are the implications for mortgage holders in other banks? why are the ICS selling off performing loan books?
 
The European Commission insisted that Bank of Ireland sell its mortgage business as part of the penalty for receiving state aid.

They are banned from taking on mortgage business through brokers, although I am not sure how long.

The new company bought only the performing, variable rate mortgages.

The new company is applying for authorisation for new business, so borrowers will be covered by the Mortgage Arrears Code

Bank of Ireland is an expensive lender anyway, so being taken over by a new company which wants to lend in the Irish market is unlikely to make matters worse for existing customers.
 
There are, but they will be regulated this week, and so they will no longer be an unregulated fund.


Brendan

This.

A lot of scare mongering going on to grab the headlines. The Central Bank would have to be completely inept to allow regulated products to be owned by an unregulated company with no protection. I'm sure there is also something in the contract that home owners sign about regulation too.


Steven
www.bluewaterfp.ie
 
Isn't that inevitable. They can't get blood from a stone (trackers).

So VR holders are over a barrel as its unlikely they'll be able to negotiate a better deal/rate with another bank/fund.
 
This.

A lot of scare mongering going on to grab the headlines. The Central Bank would have to be completely inept to allow regulated products to be owned by an unregulated company with no protection. I'm sure there is also something in the contract that home owners sign about regulation too.

This is clearly the legal situation at the moment.

It has nothing to do with the Central Bank. It is the law. They simply do not regulate mortgages which are sold to an unregulated institution and they cannot stop the Bank of Ireland selling them either.

However, this is a side issue as the buyers of ICS will be regulated shortly. If you want to discuss this further, please do so in one of the other threads on the topic.
 
Isn't that inevitable. They can't get blood from a stone (trackers).

So VR holders are over a barrel as its unlikely they'll be able to negotiate a better deal/rate with another bank/fund.

It is argued that the reason the main banks charge such high SVRs is that they are subsidising the trackers. I don't necessarily agree with this.

But anyway, the new company has acquired no trackers and no mortgages in default, so they will not have to cross subsidise loss making business.
 
I would have assume that increasing VR even marginally would be to simply to increase profits.
 
ICS are transferring all loans that are going to Dolisk from the 1st September,I have one mortgage with ICS that they flagged had a possibility of being sold on,the rest of the mortgages I have are trackers and are going to BOI.

Anyone heard anything?The ICS site is down and as per previous form no communication from the bank.
 
Rang them this morning and "it's been transferred to diolosk and you'll get something in d post about it in a bit"That's great,no need for concern as I'll get something in the post about it in a while.phew that's a weight off.
Funny the reward for paying your mortgage in full every month is you get flogged off to some company you never heard of who may of they feel like it ramp up the interest rates.
 
Ics

since Bank of Ireland sold theICS good mortgages to Dilosk
anyone know what happened to ICS mortgages in default?
 
...Bank of Ireland sold the ICS good mortgages to Dilosk...

I think you are making an assumption there that might not be entirely true. Someone told me their VR mortgage never in arrears, went to BOI. I would assume it is older mortgage too.
 
Default Mortgages, Fears bank could sell ICS default mortgages to funds

Hello has anybody any information regarding ICS default mortgages, I know they sold the mortgages in good standing to Dilosk
 
Thank you, regarding Dilosk, i was just going with newspaper reports, which only mention purchasing Mortgages in good standing from BOI, there is no talk about if a vulture fund bought the ICS mortgages in arrears/default
 
From my reading was BOI sold a block of performing mortgages to Dilosk. I don't think it was ever said it was all their good mortgages or what was happening with those that were left (performing and non performing I assume). I would assume is they (the remainder) are all still with BOI.

Unless you have a link to some other information?

I would be careful when reading newspaper information. Its often written to create a good headline, and clarity of the information is often quite poor as a result.
 
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