The no insurance debacle...........

[The_Naked_Chef]

independent.ie/business/iris … 97852.html

Brilliant innit.

[DSE3Br]

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

[yoganmahew]

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

[The_Naked_Chef]

@yoganmahew

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

Well, not us at least.

I think.

[Clancy_Wiggum]

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

[spqr64]

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.

[HouseBuyer]

@yoganmahew

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

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.).

[yoganmahew]

@HouseBuyer

@yoganmahew

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

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…

[jake76]

@HouseBuyer

@yoganmahew

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

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.).

Quinn?

[2Pack]

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.

[DSE3Br]

@2Pack

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.

[2Pack]

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.