Prime Time will feature sub-prime mortgages tonight

There is plenty of legislation in this area however if our Central Bank and Financial Regulator choses or fails to see risky behaviour what can you do?
 
Afuera said:
It would also seriously call into question the quality of the loan book of the Irish banks.
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In the US, the war of words over who is to blame - lender or borrower - turned into a massive class action lawsuit against one of the major banks (Washington Mutual) on the basis of inflated appraisals.

Shareholders who lost money are claiming that inflated appraisals resulted in the banks financial results being mistated.

And of course house buyers are suing are because they were misled about the value of their properties, which are now worth a far less than what they paid.

Evidence emerged in the form of emails that the bank was colluding to inflate the appraisal values of houses so that they could close larger loans.
 
There is a vast difference between the irish market and the US market. In the US, subprime mortgages actually moved the market due to the percentage of total loan market made up of subprime loans.
The market share of such loans in Ireland was infinitely smaller and did not move the market in the same way - mainstream borrowers made up the majority of the market, they determined price in the market. Subprime in Ireland simply couldn't break price barriers like in the US for a number of reasons:

  • Smaller share of the market

  • Timescale - subprime came to Ireland much later than US

  • Maximum LTV of 90% in Ireland (at peak) vs 100% in US

  • Self Certification in Ireland required soem level of proof (bank statements) vs No documentary proof in US

  • Extemely limited number of subprime Buy to let "BTL" loans max 80% LTV vs widespread incidences of 100% LTV BTL loans in US

  • Stamp duty in Ireland vs none or next to none in US
 


not only did they say she paid off the arrears, they said that she paid off the bulk of the loan! made a joke of the whole story imo.
 
podgerodge said:
not only did they say she paid off the arrears, they said that she paid off the bulk of the loan! made a joke of the whole story imo.
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Exactly. Who we should we complain to about this programme? Is there a standard authority that RTE has to adhere to? I remember RTE had a prorgamme High Society which was based on what they claimed was a taped conversation that actually did not exist. I would like to see this programme also scrutinised.
 
My brother is looking to buy an apartment in Tallaght and Irish Mortgage Corporation is being pushed by the developer. They have some sort of package and it seems like an easy option to go with them but I have my misgivings. How do other posters feel about using IMC at the moment? Thanks.
 
The company Moneyzone which was an entity of IMC are no longer in operation. IMC would be one of the biggest brokers in the country howeer there are plenty of brokers in Tallaght who could assist in the application.
 

Alot of developers have agreements with Mortgage brokers, its not that unusual.

Shop around if you are not sure. You are not obliged to take out a mortgage with anybody, nor are you obliged to use any specific broker. If you know of a friend or family mortgage broker, consult them . .
 
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