Irish get tough on dead beat mortgages

NAMA chairman Frank Daly said the plan confirmed that the five institutions covered by NAMA had not disclosed or had been unaware of the extent of the financial crisis afflicting their borrowers. He said the banks had shown 'remarkable generosity' towards their borrowers, adding that NAMA had no intention of maintaining that approach. 'To say the least we are extremely disappointed and disturbed... [more]

NAMA chairman Frank Daly said the plan confirmed that the five institutions covered by NAMA had not disclosed or had been unaware of the extent of the financial crisis afflicting their borrowers. He said the banks had shown 'remarkable generosity' towards their borrowers, adding that NAMA had no intention of maintaining that approach. 'To say the least we are extremely disappointed and disturbed to find that, only months after being led to believe that 40% of loans were income producing, the real figure is actually 25%. We are equally taken aback to learn that the banks were not even using the full range of legal options available to them in order to secure income in respect of troubled loans,' he added. Finance Minister Brian Lenihan said the Government would recover any loss made by NAMA through a surcharge on the banks. NAMA said it would pay fees of around €215m in 2011, but these were expected to decline 'significantly' as its property portfolio reduced in size. Fees are estimated to amount to €1.6 billion over the whole life of NAMA. The 2011 fees include €51m to the financial institutions for the administration of the loans, and €25m each for legal fees and payment to the NTMA. It is envisaged that NAMA will eventually have a staff of 90. http://www.rte.ie/business/2010/0706/nama.html [less]