Joan Burton - making her first appearance at this committee that I have seen. (She actually told me that she was not on the Committee and that the website saying she was a member was wrong.)
Kicks off with a constituent's ptsb case.
ptsb has miscalculated her arrears.
ptsb included the Domiciliary Care Allowance in her income. But all the banks have stepped back from that.
Are Pepper seeking to write off the warehouse or are you seeking to recover them in full?
It seems from your presentation that you are not going to write them off even though you bought them at a heavily discounted value - maybe 100% discounted.
How often do you intend to review the splits?
Will the investors have any role in the management of the loans?
Does ptsb remain anyway involved?
Eamon Crowley FD of ptsb
It was a bundle and there was one price. Splits and reduced capital. Trackers and non-trackers. There was no special price for the warehouse.
The deal is closed. We are sub-servicing for the first 6 months. Legal Title will change in 6 months. At that stage, we are out of it.
We have a legal obligation to retain 5% of the holding.
The full amount is due, although we have sold the loan at net book value.
We have already reviewed split mortgages
- some have remained the same
- Some have moved from the warehouse into the main loan
- Some are not performing in accordance with the split. They are not in this portfolio. They were sold as part of Glas.
Pepper
We would flag that customer as a vulnerable customer
Glenbeigh is now the beneficial owner. But Pepper is the legal title holder. Glenbeigh bought the loans and passed the legal title to us.
There is a mechanism of eligible debt forgiveness outlined in the Prospectus. It is in very exceptional cases e.g. insolvencies.
There is no change to the review process. It is often in the best interests of the customers to have regular reviews. It is done "up to triannually". They can be done up to two years or up to one years. We don't plan to do them more than once a year. We must review them in accordance with the CCMA e.g. we must give one month's notice.