Results 2,301-2,320 of 49,836 for speaker:Stephen Donnelly

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: I thank Mr. Masding. My final question is about mortgage to rent which is not working. I was disappointed to see that permanent tsb does not have any mortgage to rent, neither does Bank of Ireland or Ulster Bank. Mr. O’Sullivan mentioned that the levels are wrong for Dublin. There has to be more than that to the problem. I will not get into the specifics of the case but I am...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: I thank the gentlemen present for their time. While we are discussing the mortgage arrears process, I acknowledge the improvement in the underlying performance generally in the bank, which was referenced in the presentation. On the previous occasion Mr. Duffy appeared before the committee, he signalled that the bank had made a provision for approximately €2.5 billion to deal with the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: Am I correct that this amount will be a combination of voluntary surrenders, debt write-downs, costs incurred through a 0% rate on split mortgages, etc.?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: I refer to an inconsistency within the bank that Mr. Duffy might examine. I have dealt with a case in Wicklow where a split mortgage was offered but the couple were told that they would probably have to surrender the house on retirement. I asked them, based on Mr. Duffy's presentation to the committee on the previous occasion, to go back and say to the officials that AIB had changed its...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: I thank Mr. O'Connor. It is disappointing that in the figures that have been presented assisted voluntary sales and legal proceedings combined amount to 8,200 of the offers made by the end of last year, which means, therefore, that almost 60% of the offers the bank has made are either to leave the house with the homeowner's co-operation or to initiate legal proceedings of some description....

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: With regard to the 8,000 legal proceedings initiated, does the bank have an estimate of how many will end up in repossession?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: The number of letters indicating court proceedings in the residential category is approximately six times higher than that in the buy-to-let category, which is very small. Why is there such a great difference between the two portfolios?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: I would like to move on to split mortgages and debt-for-equity procedures. Mr. O'Connor and Mr. Duffy have stated they offer split mortgages were there is equity in the home but do not offer any debt write-down. Where there is negative equity, however, it may be considered. Is that the position?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: Does the delegation have an estimate of the percentage of splits carried out for properties in negative equity as opposed to positive equity?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: I have heard allegations from reputable sources that AIB is not offering splits where there is positive equity. I take the delegates at their word but ask them to send to the committee the percentages in order that we can see how many of the splits offered relate to positive equity and negative equity.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: I was very happy to see the debt-for-equity arrangement. Am I correct in believing that when Mr. O'Connor stated "right of tenure," he essentially meant a debt-for-equity swap?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: Consider the case of an individual at the point of retirement who still owes €100,000 on a house worth €200,000. If he or she has no ability to pay on retirement, the bank must deal with the full €100,000. Am I correct in believing it would park the €100,000 until the retiree's death, at which time it could be claimed from the house? Is this the process?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: That is what I want to check. How much interest?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: AIB could make the assessment that the prospective retiree whose income is about to halve will have no income left to service interest or capital. On this basis, if €100,000 is owed, the bank would take a stake in the individual's estate to this value, subject to interest at 3% or 4% per year, or whatever the standard variable rate was. Thus, it would not return to the retiree while...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: What happens if it does?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: I would very much like AIB to consider the broader use of the debt-for-equity facility. While the facility is essentially the same as the split mortgage, it removes the fear and the borrower's disincentive to earn more money. It means that AIB will not knock on the borrower’s door after the Government has just taken 52% of his or her wages and take another one quarter on foot of the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: At any point.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: Can I pursue this issue?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: That is good to hear. Let us assume ten years remain on a mortgage. Is the split offered until the end of that period? Is it capped based on a three-year or a five-year offer? How does it work?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Stephen Donnelly: Great.