The no insurance debacle........... … 97852.html

Brilliant innit.

So we would have 6 broke banks and one broke insurer. Oh wait…

So, who’s holding the insurance bag for EBS?

Well, not us at least.

I think.

They do have insurance…it’s us the citizens / taxpayers… They always knew we would backstop them… :frowning: :frowning:

Why am I not surprised. They probably didnt have it because they couldnt pass the cost on to the borrower or maybe they’re just stupid. :unamused:

I doubt it’s an Irish-based company. At a guess, I would say it’s a US-based insurer that specialized in mortgage insurance (Ambac, MBIA, etc.).

Hopefully not Ambac…

Quinn? :laughing:

This Mortgage Indemnity Insurance was a lump sum paid for by the mortgagee and which typically insured the portion of the loan between 70% and 90% of LTV. It did not insure the other 70% of the LTV.

Wouldn’t that be one third of the potential loss though? (potential loss of 70%ish with insurance of 20% and equity of 10%)They can’t have been expected to anticipate the full extent of the wipeout.

Yes, one third max. The rest was uninsured seeing as nobody thought property would fall by more than 30% and anyway the insurance dates back to the days of repayment mortgages.