"Central Bank urged to row back on proposed mortgage rules "

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Just a thought.
Permit lenders to give 100% mortgages if they believe 100% is viable.
Do not give any borrower any Mortgage Arrears Resolution Process (MARP)protection until their Loan to Value( LTV) is down below say 75%.
In that way those who feel they can afford up to 100% are under no illusion on the Risk they carry, and are well aware if they cannot repay =repo.
Have a legal document to the effect if they can,t pay =repo.
Run this rule for say 5 years.
I just don,t see lenders/borrowers running mad for another 5 years..

I admire your belief in your fellow citizens Gerry! As far as I'm concerned, in South Dublin area where I'm looking to by, they've gone mad the past 2 years!

I can also see the 1st sob story making the front of the Indo/IT when the Bank tries to repossess 1 of these 'risk-known, 100% mortgages'. DDI, Land League incl that fella Constant Markievicz rocking up to protect the family being harassed by the big bad banks.
Simply won't work.

The sooner Honohan brings this in, the sooner the interference from all quarters will stop. I even see Jack O'Connor ridiculing the proposals today and asking they be brought in over a 20-25 yr periods.
 
I admire your belief in your fellow citizens Gerry! As far as I'm concerned, in South Dublin area where I'm looking to by, they've gone mad the past 2 years!

I can also see the 1st sob story making the front of the Indo/IT when the Bank tries to repossess 1 of these 'risk-known, 100% mortgages'. DDI, Land League incl that fella Constant Markievicz rocking up to protect the family being harassed by the big bad banks.
Simply won't work.

The sooner Honohan brings this in, the sooner the interference from all quarters will stop. I even see Jack O'Connor ridiculing the proposals today and asking they be brought in over a 20-25 yr periods.
I hear you loud and clear Delboy.

Just wonder though; if it is very CLEAR on Risk , sob-tales should get short shrift.
In any event the whole premise should in Mortgages as in most things .ie
{BUYER BEWARE}

I am sympathic to poor souls who were misled in (fluffy) times but surely that reason can,t apply to New Debt.!
 
In fact while Honohan is at it he should ban any mortgage over 92% of the value of a property.
 
For the past number of years we have had the Central Bank villified (rightly) for their inaction prior to the "bank collapse". They were rightly criticised for their lack of oversight of lending practices, for allowing 100% mortgages etc? Furthermore, the CB was accused of not being sufficiently independent of Government, politicians, Union leaders etc. And finally, the media were not shy in vilifying the CB.

So now we have the CB taking an independence stance in relation to mortgages (reverting to the position common in the 70's, 80's etc) and guess what happens? The CB are again villified for taking independent action so as not to encourage another property bubble. And all those who criticised their inaction in the past are now criticising the CB for taking preventive action.

Amazing!
 
Hi Conan

I have just sent an article on this very point to the Indo. It should be in tomorrow's paper.

Brendan

Conan/Brendan.

To compare 70,s /80,s to fluffy times and /or today is (in my thoughts) not a fair comparison.

I think we all accept the Central Bank up to crash did not do a good job.
Only time will tell if they are up to the job today.(I have my doubts)

I also think that if Lenders/Borrowers are still so-enamoured with up to 100% lending , then leave them at it !
What the Central Bank can do, is clearly enact that such 100% type Borrowing is not covered by things like Mortgage Arrears Resolution Process (MARP).
That will make borrowers think.
Also that the 100% lenders will be asked hard questions on any Repo type case as to why they lent 100% and be put through the hoops before any Repo type scene concludes.
That will make lenders cautious.
We all know the issues, and these long winded consultations just give the appearance of fairness.

Given the known shuffling on deposits/valuations/income etc Banks and borrowers got up to in fluffy times, the 20% rule will, given both Banks wish to get Market share, borrowers wish to get a house, be circumvented in some way!
Banks do not change !
 
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