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RollingNews.ie

PTSB transfers thousands more of its customers to vulture fund servicer

Many of the mortgage-holders sold today had engaged with the bank and reached arrangements.

PERMANENT TSB HAS transferred thousands of mortgages in its second major loan sale, which amounts to a gross value of €1.3 billion.

The Project Glenbeigh portfolio contains 6,139 home mortgages (known as principal private residences), as well as 133 buy-to-let loans. 

The ‘securitisation agreement’, which is similar to a sale of a mortgage book, will see thousands of loan holders moved to a special purpose vehicle which will be financed on the bond markets.

The mainstream bank has dubbed these customers’ mortgages to be non-performing loans. The loans will now be serviced by Pepper Finance Corporation (Ireland) DAC (Pepper Ireland) on behalf of vulture funds, which are not regulated in Ireland. 

Under the deal, six months from now, customers will no longer deal with PTSB. Instead, all communications and payments will go through Pepper.

Despite the bank and other commentators concluding that non-performing loan holders do not engage with their lender, many of the mortgage-holders sold today had engaged with the bank. 

According to a statement from PTSB on the loan sale, the bank stated:

These loans have been restructured and are operating in line with
restructuring arrangements agreed between PTSB and the relevant account holders.

Of the customer accounts PTSB transferred today, 4,046 were in split mortgage arrangements with the bank. 

A total of 2,226 were in part-capital and interest-only arrangements, but which the bank said today all had an outstanding sum still due at the end of the term. Even for those who did continue to engage and meet arrangements, they continued to be classified as non-performing loans (NPLs).

The bank stated today that the terms of the existing restructuring arrangements – including alternative repayment arrangements agreed between customers and PTSB – will be unchanged. This will remain the case if the customer’s circumstances do not change, said the statement.

This will remain Pepper’s position until the arrangement is up for review. 

PTSB said it has received confirmation from Pepper Ireland that when reviews are taking place it will “engage with customers to review their individual situations, will work with them to understand if their circumstances have changed (i.e. improved or dis-improved) and, where possible, identify the best long-term sustainable solution in a way that is right for their situation”.

Earlier this year, the pillar bank, which is 75% State owned, sold its controversial Project Glas loan portfolio to an affiliate of the so-called vulture fund Lone Star for around €1.3 billion.

Within that loan book, a total of 7,400 were owner-occupier mortgages, while 3,300 were buy-to-let properties. 

Similar to today’s sale, after the Project Glas sale was announced it emerged that a number of people who struck deals with PTSB, who had agreed to split mortgage arrangements with the bank, and who had engaged with the bank, found themselves sold to the vulture fund.

Permanent TSB chief executive Jeremy Masding said the sale today “enables Permanent TSB to reduce its Non-Performing Loan ratio and, to ensure it can grow and compete in the years ahead. Whilst this has been a necessary step, we have sought to ensure that the protections of customers will be maintained as part of this transaction”.

Cormac Ryan, CEO of Pepper in Ireland said Pepper now manages over 8% of the outstanding residential mortgages in the Irish market, the majority of which are performing loans.

“This reaffirms our long-term commitment and ambition for the Irish market and cements our position as the leading residential mortgage servicer in Ireland,” he said.

The transaction will further reduce the bank’s level of non-performing loans to less than 10%.

The chief executive of Permanent TSB and the chief executive of Pepper Ireland have today jointly written to the Joint Oireachtas Committee on Finance, Public Expenditure and Reform and Taoiseach Leo Varadkar to outline the details of the transaction and to confirm their willingness to meet with the committee to discuss it. 

The move to sell off thousands of mortgages has already sparked outrage among opposition politicians. 

Sinn Féin’s Pearse Doherty said on Twitter this afternoon that the government has abandoned 6,000 families today.

He added in a statement that he will be tabling legislation in the coming weeks “to put an end to the era of the vultures and protect family home loans”.

“Banks should be made work through their individual loans and prevent them from selling them to vultures without the borrowers’ permission. I am disgusted at the attitude of Permanent TSB only a short time after their last sale was announced.

“Their arrogance and contempt for their customers is growing because they know this government is on their side,” he said.

Fianna Fáil’s finance spokesperson Michael McGrath said he will be asking Pepper to outline the suite of mortgage restructure solutions they offer to borrowers in difficulty and to provide details of how their relationship with the securitisation vehicle will work.

“Pepper will need to outline how they will approach the review of mortgage restructure arrangements on their expiry,” he said.

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    Mute Annette
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    Dec 28th 2019, 8:35 AM

    Something seriously wrong here, this poor woman and her surviving daughter what she must have gone through!! Unimaginable

    400
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    Mute Bernard Kilmurray
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    Dec 28th 2019, 8:37 AM

    Where were the lifeguards?

    133
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    Mute John Horan
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    Dec 28th 2019, 8:46 AM

    @Bernard Kilmurray: There is a minimum size rule before you need a lifeguard.

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    Mute CC
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    Dec 28th 2019, 9:54 AM

    @John Horan: yeah I think of the pool is bigger than 200/250 sqm ? Read someone’s comment on another article. Just heartbreaking.

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    Mute Paddy Dunne
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    Dec 28th 2019, 10:04 AM

    I think the question has to be asked is what kind of pool is this ,is this a normal pool or is there some wave making mechanism in it to say that they were pulled into the deep part of the pool and not able to get out sounds sinister to me ,
    God bless that poor woman a holiday that cost her husband and children unimaginable

    139
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    Mute Rory J Leonard
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    Dec 28th 2019, 9:58 AM

    Tragic, whatever the cause.

    More unroped easily accessible Lifebuoys, positioned adjacent to entry points / steps and to the side, should be mandatory for hotel pools.

    Buoys being too far away and all tied up seems the norm, which is no good in a panic scenario – likely with the story here.

    It’s a bit unrealistic to expect lifeguard cover at a hotel 24/7. Costs would be too prohibitive for all but very top end of the market.

    A small floatation device attached to a foot, no matter how good the swimmer, especially if not a regular, should not take from the enjoyment of a dip.

    One can’t be too careful with children near water.

    51
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    Mute Dave Hammond
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    Dec 28th 2019, 11:35 AM

    @Rory J Leonard what a tragedy – poor family –

    I dont know why you speculate about buoys being likely far away – the pic of the pool in the article shows a large orange rung buoy right beside the pool ??

    Something doesn’t add up here ??

    49
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    Mute Dublin
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    Dec 28th 2019, 6:32 PM

    I almost drowned in a hotel pool in Tenerife (Gran Tacande in Costa Adeje resort).
    My sister and mum came to save me but they too immediately began to struggle. They’re both better swimmers than me. There were TWO lifeguards on duty, both sitting atop a high chair supposedly looking out for this sort of thing. None of them saw or helped. It was only when I went to the bottom my mum screamed to the top of her lungs. She was screaming before but people though she was playing. When they realised it was serious, 3men dived in to immediately save me and pull me to the size where I had CPR.
    The lifeguards watched, then came down to inspect what was going on. They were almost EXACTLY useless. Never visiting the hotel again. Don’t underestimate how easy it could be to drown in shallow-is water.

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    Mute Marie Broomfield
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    Dec 28th 2019, 11:33 AM

    Some news media mad to add the non swimmers element . First it was possibly non swimmers, then it came as a direct quote from surviving child. As for the official report, BBC news said the pool was investigated and found not at fault but then added, the pools pumping system was being examined. So the pool is not in the clear yet. The state broadcasters are the only news media that can be trusted because they don’t have any reason to make a story juicier. Imo

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    Mute Bernard Kilmurray
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    Dec 28th 2019, 8:39 AM

    Where were the lifeguards???

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    Mute Breda Clarke
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    Dec 28th 2019, 5:52 PM

    So very sad but I can’t help but think why the dad used the steps to get into the pool. I know I’d jump in if my child was in difficulty as I can swim. I think a person who is not a confident swimmer would be inclined to use the steps.

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    Mute Barry Evans
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    Dec 28th 2019, 8:46 PM

    @Breda Clarke: that’s what you took from this? That he didn’t dive in like some movie action hero??

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    Mute Bopper Bops Holland
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    Dec 28th 2019, 1:34 PM

    What time did it happen

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    Mute nelliekel
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    Dec 28th 2019, 4:16 PM

    Doesn’t seem to be a run down flea pit of hotel so why is there no cctv as most hotels have it now if only for the compo culture

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    Mute Dublin
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    Dec 28th 2019, 6:40 PM

    Testing if my comments ever show up !

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    Mute Dublin
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    Dec 28th 2019, 6:36 PM

    Don’t underestimate

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