I think it would be interesting to construct a letter to the financial regulator from pinsters. What do you think? Can’t do any harm. Someone like OW could be trusted to collate it from this thread?
Can he push to get the law changed to convict people for the sins they committed retrospectively as they did in the UK so none of this shower get off the hook.
That would be my choice as Im not one of these fucking “we are were we are” gobshites. I want retribution and I want it in public. Wheres that guillotine we borrowed from the French?
How about some sensible limits on mortgage lending (as they have in other countries like France & Canada)?
Maximum multiple of salary that can be borrowed (and using only base salary not commissions, bonuses and other variable income). The old formula of 2.5 x the bigger salary + 1 x the second salary seemed to work well before the bubble?
Ban on 100% mortgages, and maybe a limit of 80% LTV as a good buffer against future negative equity.
Ask the regukator what has been done to prevent another collapse from happening.
What *specific *safeguards have been put in place ?
Because as far as I can see, other than a €50+ billion band aid being applied to the wound, nothing of substance has been done to prevent this from happening all over again.
Is there some reason you can’t write on your own behalf?
There is no collective view of pinsters. There are some common points but I would shoot down any attempt to write on behalf of the community as a whole. It’s a discussion forum, not a lobby group.
I cant see any sensible limits put on mortgage lending or any safeguards put in place until the Govt / NAMA have as many sheep as possible down from the mountain and in the pen. They want to at least break even on the NAMA project so we shouldnt expect them to do anything sensible like putting the interests of FTB’s first. In fact their view of protecting the taxpayer and themselves ( through massive investment portfolio’s ) is screwing the FTB.
I would urge the regulator to consider implementing the following:
- By law, all new mortgages in Ireland must be non-recourse for PPRs, can be limited to 1 house per individual if desired.
- Maximum LTV of 85%, Loan ammount for this calculation must include all personal debts, not just mortgage, value may include other assets.
- Teaser rates and interest only made illegal
- Maximum allowable interest rate of Libor + 4%
- Mortgage insurance compulsory for the buyer to cover 1 year of mortgage in case of lost employment
- Simplify reposession laws to allow banks to reposess non-recourse mortgaged properties within 1 year from default by borrower
- Criminal offence for banks to mis-sell mortgage produsts, also default to non-recourse if proven to be mis-sold.
- Equity release on non-recourse mortgages limited to topping up to a maximum of 75% LTV
- Capital adequacy rules strengthened for banks, criminal offense for directors to allow bank to breach capital rules
- Propose revised bankrupcy law allowing debts to be settled aka US system and 3 year period to emerge.
- All recourse mortgages with maximum LTV of 80%
- Commercial development loans subject to capital requirements for borrower
- Limited liability companies limited to a maximum of 3 subsidiaries
- Personal guarantees allowed only with cash deposits of 10% of ammount guaranteed
- Covenents required on all loans above certain capital limits.
this alone would have made a huge difference for Irish banks.
Work away you have your thread