Bank of Ireland securitises non-performing buy to let mortgages

[Brendan Burgess]

https://www.bankofireland.com/securitisation-announcement/

Securitisation of a portfolio of Non-performing Buy-to-Let ROI mortgage loans:
Bank of Ireland has announced that it will securitise a portfolio of our non-performing buy-to-let ROI mortgage loans.

Customers do not need to take any action. Bank of Ireland is continuing to manage these mortgage accounts and remains the point of contact for customers in all queries regarding their loan as is the case today.

 

[Brendan Burgess]

This seems to be another example of profitable loans being stupidly classified as non-performing.

https://www.irishtimes.com/business...-to-refinance-375m-of-problem-loans-1.3841862

The proposed portfolio includes loans secured on buy-to-let properties and the bank said the majority of loans involved have been restructured and are performing in line with the agreed restructuring arrangements.


A special purpose vehicle called Mulcair Securities DAC has been created to hold the 1,730 loans with an average size of about €217,000. The loans pertain to 790 different customers. The weighted average remaining term on the portfolio is just over 14 years and the bank has held the mortgages for an average of 12.5 years.

 

[Jim2007]

This seems to be another example of profitable loans being stupidly classified as non-performing.

No it makes perfect sense if you understood something about the construction of financial products! You have to put something into it to make it worth investors while to invest in it.

 

[RedOnion]

No it makes perfect sense if you understood something about the construction of financial products! You have to put something into it to make it worth investors while to invest in it.

No, which you'd know if you understood something about capital adequacy rules.

The only reason these are being sold is because of the amount of excess capital that they are being forced to hold against them.
The rules make them more profitable to a non-bank than a bank.