KBC Exiting the Irish Market

Allpartied said:

So, why not give people the choice. A higher interest rate, but knowing that only the asset will be surrendered to meet their obligations.

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I thought about this.

Is it possible?

Have two types of mortgages?


(A) repossession happens at max 12 months from default date

(B) other mortgage type is as now.

Allpartied said:

As I understand it, there are a number of high population states that only offer Non-Recourse loans.

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Texas and California, which have a high population. But not a majority of the US by population.

Allpartied said:

So, why not give people the choice. A higher interest rate, but knowing that only the asset will be surrendered to meet their obligations.

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Adverse selection. Groucho Marx once said he wouldn't want to join any club that would have him as a member

Protocol said:

Have two types of mortgages?

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I doubt that the Irish legal system would cope with this very well. As I understand it County Registrars are generally slow to grant posession orders in order to provide a level of minimum protection to borrowers in distress. I doubt that they would move any more quickly if the borrower had signed something at origination to make repossession quicker.

One thing I know about the US mortgage market is that it's a lot easier than it is here for even middle-aged people to get very long (e.g. 30-year) mortgages and almost always at rates fixed for the length of the term. I imagine this has to do with non-recourse loans: if the mortgage attaches only to the asset, the borrower's age matters less (right?).

With an aging population over here and young people having to wait longer and longer to get on what I refuse to call the 'property ladder' (oops, just did), the rigidity of lenders here--where you generally can't have a mortgage term that lasts past your retirement age--will have to be addressed. Especially as fixed 'retirement ages' are progressively abolished.

camlin90 said:

The ECB have a digital euro in the pipeline, so the days are numbered for banking as we know it, and these moves by privately owned banking firms make total sense.

Long term, everyone will have an account with the ECB with an app for deposits and loans. Most people will think this is great. The digital euro will allow all transactions to be centrally tracked - negative interest will also be a lot easier to apply.

Worth having a "google" of "digital euro" if you're sceptical - also have a look at what the People's Bank of China are doing.

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Conflict of interest. One of the biggest challenges