7,000 more mortgages thrown to the vultures by bankers
Fury as second lender puts families at risk of homelessness
ULSTER Bank is set to become the latest Irish lender to leave thousands of families at the mercy of vultures, it has emerged. Permanent TSB’S books are being flogged to vulture funds, which has sparked fury. Sinn Fein’s finance spokesman Pearse Doherty said: “First Permanent TSB and now Ulster Bank are flagging up a massive sale of loans while AIB are likely to look to make more sales.
“This all points to the banks consciously using vultures as a get-out clause with the Government refusing to shout ‘stop’. For some families, things have begun to turn around and there is light at the end of the tunnel.
“To hear of banks lining up sales of loan books is a cruel blow to families doing their best and making progress on their mortgage arrears.
“After a decade of austerity some now find the rug pulled from under them as they enter a new period of uncertainty.”
The Fr Peter Mcverry Trust works Ulster Bank tirelessly with the homeless and the charity was also extremely critical of the latest move from Ulster Bank.
Spokesman Pat Doyle said: “We understand the need for banks to have better-performing loan books but our concern right now is the timing of these moves and the impact it will undoubtedly have on people who currently live in these properties.
“Peter Mcverry Trust is worried the bulk-sale of distressed loans may cause disruption to a housing system that has not yet found stability since the financial crash.
“We believe that now is not the time for this to happen because not only will it have a negative impact upon people living in these homes but also on broader efforts to tackle homelessness
PETER MCVERRY TRUST, LEFT, YESTERDAY
and stabilise the system. The announcement by Ulster Bank is concerning because those 25,000 homes represent a much larger number of home occupiers, be they homeowners or tenants in buy-to-let properties.
“Even if these funds do take every appropriate step in line with legislation it would not be a shock to see 10% of these homes repossessed, that’s 2,500 families pushed into the rental sector or the homeless sector and neither sector can cope with that influx.”
Fianna Fail’s finance spokesman Michael Mcgrath has a Bill coming before the Dail next week that would ban banks from selling mortgage portfolios to unregistered vulture funds.
He said: “The case for full regulation of these vulture funds is compelling.
“If the fund buys a mortgage, farm loan or an SME loan, it makes all the crucial decisions about the future of that loan.
“Despite this, the vulture fund is untouchable, unaccountable and entirely beyond the reach of the Central Bank.”
Our concern is the timing of these moves and the impact on people
PAT DOYLE