Another NAMA Question

Pull_a_tition

Following the establishment of NAMA it is envisioned that NAMA will take over the loans (mortgages) where the value of the security is far less than the lone amount.

NAMA will then be the lender, owning loans secured on lands of lesser value.

NAMA will pursue the debtors to recover the loans, if they cannot recover the loan amount they will foreclose on the loan and take full possession of the lands.

Example:
'Grand Land'
Value - €10M
Loan - €25M
NAMA Purchases the Loan from bank - €17M
(The bank looses €8M in the transfer - but is not showing a paper loss of €15M)

NAMA now owns property worth €10M that it has paid €17M

BUT...!!!

There is a corner of the site that over looks a pretty bay and would make a great retirement home for a 'good friend'

The Questions

Q1: What safeguards/regulations are proposed to stop the NAMA lads selling off this portion of the site to the 'good friend' at a silly low price??

Q2: Similarly what safeguards are going to be in place to prohibit NAMA selling of the site for less than €17M (i.e. below cost (to nama) selling)?

Skrynesaver

Q1. was the first thing that occured to me when I heard the outline of this legislation, a lot of shady land deals will be done under it's auspices.

optocynic

Hey, don't ask me man.... I just work here!