NIB Trackers write down

handlemaster

Just wonder if anyone else had notice this excerpt in the NIB press release yesterday.

'Part of the loan portfolio has been transferred to a separate, new business unit, Non-core Ireland, which is responsible for the controlled exit of these loans.'

What loans are they specifically talking about ? Could there be a an offer for customers to move off trackers. These have got to be losing NIB serious money.

homer911

I'm pretty sure this relates to their commercial loan book only

chris85

This relates to non performing debt anyways. They have wrote the majority of the debt off and transferring it to another unit to try recover. This is fairly impaired debt.

There wont be any offers to get people off trackers. The regulator has made that clear to the banks.

handlemaster

Hi Chris: I don't remember reading the regulator saying to banks you cannot write down mortgages for tracker holders. Would like to see that. Do you have a link ?

chris85

handlemaster wrote: »

Hi Chris: I don't remember reading the regulator saying to banks you cannot write down mortgages for tracker holders. Would like to see that. Do you have a link ?

This was last year. banks were offering thousands for people to come off their tracker. Central bank told them to stop doing it. Basically people would take the cash and then be on a SVR and end up paying a lot more back to the bank and thus CB gave them a slap on the wrist about it. Banks will not offer an incentive. Not on residential mortgages anyways.

handlemaster

chris85 wrote: »

This was last year. banks were offering thousands for people to come off their tracker. Central bank told them to stop doing it. Basically people would take the cash and then be on a SVR and end up paying a lot more back to the bank and thus CB gave them a slap on the wrist about it. Banks will not offer an incentive. Not on residential mortgages anyways.

I have read some articles on it now. It appears the regulator stated that the banks should provide in writing what the cost would be to the customer. There was no mention of stopping them from doing it. Just the customer should be made aware of the cost implications in a clear and concise manner.

chris85

handlemaster wrote: »

I have read some articles on it now. It appears the regulator stated that the banks should provide in writing what the cost would be to the customer. There was no mention of stopping them from doing it. Just the customer should be made aware of the cost implications in a clear and concise manner.

Yes but the cost is terrible for the customer and thus the banks arent doing it. its basically saying to the banks that you can offer and incentive to get off a tracker but you must tell them its a really bad idea and will cost them a lot more in the long term. Hard sell :rolleyes:

handlemaster

True enough. But there is a bigger picture with NIB. It belonging to the Danske group. Their rating was down graded recently by Standard and Poor credit agency because of poor performance of NIB. This has an added cost also, with higher borrowing costs associated. There is a view that it might be best to cut the arm off and save the body. The pain and loss in the short term would out weight the longer term uncertainty and confidence of share holders.

http://www.reuters.com/article/2012/05/30/us-danske-rating-idUSBRE84T0A820120530

handlemaster

http://www.independent.ie/business/personal-finance/property-mortgages/fresh-hope-of-deal-for-those-struggling-on-100pc-mortgages-3302196.html