Results 6,161-6,180 of 16,492 for speaker:Ciarán Lynch

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: I've the reference for that there if you want to bring it up.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: I have it here. It's Vol. 2, core documents, IPAV, Jones Lang LaSalle valuation report Project Atlas, pages 11 to 21.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: These would be a sample of valuations that would have been provided to yourself, Mr. Davitt, in preparation for you coming before the committee today.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Sorry, it's Vol. 2, my apologies.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Thank you very much. The next questioner is Deputy Eoghan Murphy. Deputy, you've five minutes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Final question, Deputy.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Thank you very much, Deputy. Senator Sean Barrett. Senator, five minutes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: You're next, Senator Barrett.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Okay, Senator, so be brief.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Thank you very much. Can I just deal with one question there before I bring in, before I invite Senator O'Keeffe? It just comes back to your own opening statement there Mr. Davitt. Can I ask you if, overall in your assessment, how robust were the checks and balances in dealing with potential conflicts of interests in the pre-crisis period?

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Okay. But in a very, very simple fashion. Let's say, during the period of time when house prices were escalating very, very rapidly, coming up to 2007. If somebody, let's say, was selling a house-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: -----and they were going to buy another house.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: The first thing that they may do is that they would ring up a valuer. Now, where would they find a valuer? Would there be an office that just has valuers inside in it, or would it be an estate agent or an auctioneer they would be calling to find the valuer?

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Now, as I understand it, the practice at the time, it may not be the practice anymore, but the practice at the time was, is that the auctioneer at the estate agent selling the house would set their fee on a percentage of the sale value. So let's say if I was selling my house for €100,000, the auctioneer, the estate agent would get 2% of that, which would be €2,000 and if my...

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: How much would a valuation cost? Approximately, a standard?

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: €150? And 1% of the sale of a house for €100,000. How much would that be?

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Okay, so it is about seven or eight times the cost of a valuation, yes?

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: So in profitability terms, there is a ... the profit margin on a sale or a valuation, which provides a greater potential for profit?

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Okay.

Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)

Ciarán Lynch: Okay, I want to talk about the kind of ... the particular years when we saw massive house price inflation, here it was going up multiples over a period of time. What was the ... what would be the standard percentage rate on a sale from an auctioneer or an estate agent? How much ... would it be 1%, 2%, 3%?