ptsb at the Oireachtas Finance Committee on the sale to Start

Discussion in 'Mortgage arrears & negative equity case studies' started by Brendan Burgess, 11 Oct 2018.

  1. Brendan Burgess

    Brendan Burgess Founder

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    Masding: What is a performing loan ?

    Even if it's meeting its restructuring agreement, it's not performing because it's not in line with the original contract. That is the ECB definition.

    We have seen no evidence that any of the cases highlighted in the media should not have been included in the sale.
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    Pearse

    A loyal customer who banked with you for 20 years. Continued to meet their repayments. But this year fell on harder times and was restructured. Met it for 6 months. She informed you that she had identified cancer cells in her body. Three days later you wrote to her telling her that her mortgage was sold.
    Despite the fact that she was only €1,800 in arrears.

    How can you sit there with a straight face saying that?

    Masding
    You would expect a lot of repossessions.
    We are a regulated entity.

    We spent many hours trying to get the right mix. We have a high level of exclusions.

    Pearse
    Do you think that you were responsive to that person?

    No other banks are doing what you are doing.

    How many of the 7,400 are currently meeting their restructuring arrangements

    Masding
    The least compassionate response would have been to repossess the homes
    We did remove vulnerable customers from the sales process

    The sale does not affect her rights.

    Pearse
    Repeats the question: How many of the 7,400 are currently meeting their restructuring arrangements?

    Jeremy
    There are no performing loans in Project Glas.
    They are either restructured or associated with a BTL which is not-performing

    Pearse
    Did you not tell us that 1,500 were performing according to their restructure

    Jeremy:
    Three groups
    1) Not sustainable
    2) Long term arrears and unlikely to pay
    3) Can't remember the third group.
     
  3. Brendan Burgess

    Brendan Burgess Founder

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    Shane: We wrote of €150m on surrendered buy to lets

    Pearse: How much have you written off on commercial lending?

    Shane: We don't do commercial lending.

    Pearse: You are taking the easy option. You are pathetic.
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    Shane:

    We have more reschedules than any one else.
    We have 40% of all split mortgages

    Pearse
    But you know that when the temporary arrangements are up,the vulture won't renew them.

    How many of the 7,400 have arrangements?
     
  5. Brendan Burgess

    Brendan Burgess Founder

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    Michael McGrath:

    When will this be executed?

    Shane: towards the end of November

    McGrath
    Is there any scope to remove loans which have cured since you announced the sale to be removed from the sale?

    Masding: No - there will be no further exclusions or inclusions.

    McGrath
    What if you find errors - where you included a loan which should not have been included.

    Masding

    We have received information since the date of the sale from customers. And we look into them.

    McGrath
    There is a mixed message there.

    Masding.
    There were no mistakes. We have checked them. All the loans were NPLs - either 90 days past due or unlikely to pay.

    McGrath
    Have you agreed any new restructures of loans in the sale since the end of March?

    ptsb: Yes. But we are making the decisions in conjunction with the new owner. It's ultimately their decision.

    McGrath: So they could veto any restructure.

    Are restructures being agreed?

    ptsb: Yes, short term and long-term. Broadly as they always have done.

    McGrath: Has Start vetoed any restructure which you recommended

    ptsb: not that we are aware of.
     
  6. Brendan Burgess

    Brendan Burgess Founder

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    Did the Minister object to the sale?

    ptsb: No

    McGrath: What about the split mortgages? Are you securitising them?

    Masding: Since the announcement of Project Glas, there has been a definite increase in the engagement of customers with the banks and the amounts they pay.

    We can't talk about securitising as it's market sensitive.
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    Masding

    A loan which has never missed a repayment but where we deem it unlikely to be repaid is classified as non-performing. But that is the rule of the ECB and Central Bank