Details of ptsb sale of mortgages

Discussion in 'Mortgage arrears & negative equity case studies' started by Brendan Burgess, Mar 22, 2018.

  1. Brendan Burgess

    Brendan Burgess Founder

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    ptsb gave more information today. There was a submission and I will try to get a copy of that. But I picked this up through watching it.

    1,300 Buy to Lets have been surrendered recently and the shortfalls written off. Of these, 2/3rds are still occupied by the tenants. 400 are empty and are for sale.

    Up to 1,000 borrowers may benefit from Mortgage to Rent with iCare and Home for Life.

    There are 10,400 untreated and non-performing loans (which are being sold?)
    4,900 did not meet the revised arrangements
    1700 refused the treatmentoffered
    1100 no sustainable treatment possible
    2700 no engagement at all ( Average for this group 5 years or €50,000)

    The average arrears for the 10,400 is €30,000 or the equivalent of 3 years
    30%(?) paid nothing at all in 2017. Not sure 30% of what?

    Total NPLs - €5.3 billion -
    Mortgages to be sold: €3.7 billion about 50% provision made

    4,300 performing splits will be sold (despite ptsb not wanting to sell them.)
    1,000 (?) non peforming splits being sold
    1,000 splits not being sold (eligible for MTR, tracker reviews,insolvency, deaths.)

    6,279 splits in total

    Average warehouse on a split mortgage: 51% [ By comparison AIB warehoused 50% maximum]


    It takes 32 attempts on average to get a non-engaging customer to take a call.

    10,000 properties - not engaged or failed treatment
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    I prepared this table from the original press statement

    upload_2018-3-22_16-3-36.png

    “good” non performing loans

    Project Glas also includes some loans which are currently subject to agreed forbearance measures,

    but which remain categorised as NPLs and which, therefore, we are required to address.


    Ulster Bank

    Selling 7,000 out of 20,000


    Sold 3,000 back in 2016 - €600m - €400m buy to let- €200m home loans or 1,000


    Total mortgages over 2 years in arrears: 26,000 - ptsb seems to have 40% of them.
     
  3. Brendan Burgess

    Brendan Burgess Founder

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    A very interesting table from their opening statement

    upload_2018-3-22_16-22-36.png
     
  4. Andy836

    Andy836 Frequent Poster

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    I presume the 81% still considered NPLs are mostly split mortgages?
     
  5. Brendan Burgess

    Brendan Burgess Founder

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    No.

    The EBA's stupid rule is that a loan which is not adhering to its original loan terms is non-performing. It's madness.

    So if you have a mortgage of €200k remaining on a house worth €400k and the term was extended 5 years ago, it's an NPL.

    Brendan
     
  6. RedOnion

    RedOnion Guest

    That's not entirely correct Brendan. An NPE loan can be 'cured' and can exit NPE status after 12 months if it's performing to new agreement and is not otherwise impaired.
     
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  7. Brendan Burgess

    Brendan Burgess Founder

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  8. Brendan Burgess

    Brendan Burgess Founder

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    Red Onion

    That makes a lot more sense. Have you a link to the rules?

    Brendan
     
  9. RedOnion

    RedOnion Guest

    Last edited by a moderator: Mar 22, 2018
  10. Brendan Burgess

    Brendan Burgess Founder

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    Thanks Red.

    A bit of light reading

    upload_2018-3-22_19-11-2.png
     
  11. RedOnion

    RedOnion Guest

    Indeed. Luckily it's not my area, so I only need to know a few key terms from it.
     
  12. RedOnion

    RedOnion Guest

    Hi @Brendan Burgess

    In terms of loans which are classified as NPLs indefinitely, in the case of PTSB this includes those loans which have a portion warehoused, regardless of how the 'good' portion performs.

    PTSB has sought regulatory approval from ECB for a proposal that if they write off the warehoused portion, and the remaining loan is performing to agreement, that these can reclassified as performing loans.

    As it currently stands, PTSB could sell these loans to a fund, the fund agree a debt forgiveness with the borrower's writing off the warehoused portion, and then sell the loans back to a bank as performing loans. But PTSB can't just do this themselves, which is what they want to do.

    https://www.irishtimes.com/business...eprieve-for-thousands-of-homeowners-1.3426878
     
    RETIRED2017 likes this.
  13. Brendan Burgess

    Brendan Burgess Founder

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    PTSB has announces that they are not selling the split mortgages

    PTSB will confirm at 7am this morning that it is withdrawing approx. 4,300 PDH homes linked to performing Split Mortgages from the Project Glas Loan Sale and that the number of properties now included in the sale is approximately 11,200 – down from 18,000 originally.

    Here is a link to a short audio clip of Jeremy Masding commenting on the decision to remove the split mortgages from the loan sale....no restrictions on use.

    https://soundcloud.com/gordon_mrm/ptsb-ceo-jeremy-masding-on-removal-of-splits-from-loan-salemp3



    Quote from Jeremy Masding below.


    Speaking today Jeremy Masding, CEO of Permanent TSB said: “Since the launch of Project Glas there have been some developments including engagement with the Regulatory Authorities on the treatment of Split Mortgages and the emergence of solutions which could enable us to maintain the day-to-day relationship with the account holders. Therefore, we have decided to withdraw mortgages linked to about 4,300 homes (par value of approximately €0.9 billion) from the Project Glas sale process. We will continue our engagement on the regulatory classification of these mortgages and, at the same time, we will explore different options including ones that enable us to maintain the day-to-day relationship with the account holders.”

    “The particular make up of loans included in portfolio sales like Glas always evolves as the process moves forward. As a result of the removal of PDH3 Split Mortgages and other decisions we have taken, the number of properties linked to loans remaining in Project Glas has reduced from an initial 18,000 properties to approximately 11,200 properties. The value of the loans remaining in Project Glas is approximately €2.2 billion and we believe it will complete in the current year”.
     
  14. Duff123

    Duff123 New Member

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    Delighted to read this today Brendan. Thank you for the update.