Labour Subprime Anyone ?

jmayo

Looks like Labour party are planning a NAMA of their own.

http://www.irishexaminer.ie/ireland/labour-to-reveal-state-backed-mortgages-plan-131891.html

A RADICAL plan for state-backed mortgages to help struggling borrowers buy their own home is expected to be revealed by the Labour Party in the coming weeks.
...
TD Ciarán Lynch, who has drawn up the Principle Residence Ownership Plan (PROP), said the absence of government plans and fear among buyers and lenders had brought house-buying to a halt.
...
Labour is proposing that a body called the National Home Mortgage Agency (NHMA) would operate between the PROP mortgage holder and lending institutions to guarantee repayments.
...
Crucially, under the scheme, if borrowers default on repayments, the planned agency would continue to meet the payments while an assessment is carried out on rearranging the loan.

As part of the proposed Labour policy, pools of mortgages would be sold as bonds on the international markets thus promoting international investment in Ireland.
...

Does anyone think the last part reminds them of Fanny Mae/Freddie Mac ?

We have enough problems selling our existing bonds nevermind trying to sucker somebody into buying subprime mortgages.

Yet another quangoe to run this.
Although Labour were always just as good as ff at making sure there were enough jobs for the boys.
Hell they politicised the public service the last time they were in power so here we go again.

Amhran Nua

Is there not already an agency that does this? I forget the name now but the uptake on the loans was remarkably low.

meditraitor

jmayo wrote: »

Looks like Labour party are planning a NAMA of their own.

http://www.irishexaminer.ie/ireland/labour-to-reveal-state-backed-mortgages-plan-131891.html


Does anyone think the last part reminds them of Fanny Mae/Freddie Mac ?

We have enough problems selling our existing bonds nevermind trying to sucker somebody into buying subprime mortgages.

Yet another quangoe to run this.
Although Labour were always just as good as ff at making sure there were enough jobs for the boys.
Hell they politicised the public service the last time they were in power so here we go again.

"and that ends the party political broadcast on behalf of FG"

good night and god bless

SkepticOne

Amhran Nua wrote: »

Is there not already an agency that does this? I forget the name now but the uptake on the loans was remarkably low.

http://www.homechoiceloan.ie/

jmayo

meditraitor wrote: »

"and that ends the party political broadcast on behalf of FG"

good night and god bless

So do you have any thoughts on fact that they plan on possibly bailing out mortgage holders in default, using taxpayers money first and foremost, with idea of packing up possible subprime loans and trying to flog them on as bonds ?

Perhaps you can tell us what the plan is rather than just being flippant ?

BTW I am not member of FG nor ever have been and have always included Labour in my voting where possible, as in when they have candidates running.

jmayo

Amhran Nua wrote: »

Is there not already an agency that does this? I forget the name now but the uptake on the loans was remarkably low.

I don't recall homechoice loan offering to take over defaulting mortgages ?
Acording to the article this includes a BAIL OUT of mortgages that are in arrears.
This plan sounds like a bailout of private sector mortgage holders and guess who will be carrying the can, yes the taxpayers.

Also according to the article...

To offset risks for the state, the property, while it could be old or new, must be within a price range set by the agency, thereby ruling out excessive lending that led to the property bubble burst.

It sounds like price fixing and providing another way of maintaining a floor on property prices.

Isn't it bad enough we have NAMA and rent supplements to this already.

Amhran Nua

jmayo wrote: »

It sounds like price fixing and providing another way of maintaining a floor on property prices.

Yup. The only thing they need to do to get the housing market moving again is to sit on their bums and let the market find its own level. That won't win them any votes of course, but why should the good of the country get in the way of vote purchasing?

Crucially, under the scheme, if borrowers default on repayments, the planned agency would continue to meet the payments while an assessment is carried out on rearranging the loan.

My god.

I have to close this thread before my head explodes from rage. Fianna Fail have taken us to the very edge of the toilet bowl, Labour it seems are planning on taking us the rest of the way.

OMG more madness!!!!!

johnnyskeleton

I want a no repayments government backed mortgage please.

Justin Collery

PROP, love it. But maybe it could be

Cringeworthy Reselling of Abandoned Properties

CRAP

RichardAnd

Hmm. NAMA for the little guy?

Count Dooku

jmayo wrote: »

I don't recall homechoice loan offering to take over defaulting mortgages ?
Acording to the article this includes a BAIL OUT of mortgages that are in arrears.
This plan sounds like a bailout of private sector mortgage holders and guess who will be carrying the can, yes the taxpayers.

Somebody must replace FF in populism niche

meditraitor

jmayo wrote: »

So do you have any thoughts on fact that they plan on possibly bailing out mortgage holders in default, using taxpayers money first and foremost, with idea of packing up possible subprime loans and trying to flog them on as bonds ?

Perhaps you can tell us what the plan is rather than just being flippant ?

BTW I am not member of FG nor ever have been and have always included Labour in my voting where possible, as in when they have candidates running.

Can you show me this document? I would be one of those people that actually waits to see a peice of proposed legislation before I start to rip it to streds.... imaginary enemies dont bother me.

jmayo

meditraitor wrote: »

Can you show me this document? I would be one of those people that actually waits to see a peice of proposed legislation before I start to rip it to streds.... imaginary enemies dont bother me.

This is the link to the article.

http://www.irishexaminer.ie/ireland/...an-131891.html

Here is link to another article about the idea.

http://www.herald.ie/national-news/state-help-mortgage-promise-by-labour-2354431.html

This is being discussed on other politics forums and that is why I posted it here, you know so that it could be discussed.

Now perhaps you can go talk to the Irish Examiner and ask them to provide you with the actual Labour headed paper from Lynch.
Maybe this is someone flying a kite in which case it is one kite I want to see discussed.

Are we now only able to discuss actual policies written on headed paper and backed by the party leader or can we discuss ideas mooted/suggested by members of political parties that may become policy ?

ei.sdraob

Jebus are they for real, bad enough we have NAMA, Anglo and the deficit crisis we dont need another NAMA like hole added to our list of problems ffs

grr i am just lost for words now
madness

gurramok

"National Home Mortgage Agency (NHMA) would operate between the PROP mortgage holder and lending institutions to guarantee repayments"

Where is the money to come from to socialise mortgage losses?

Oh yeh, thats right, its through further borrowing where the taxpayer is screwed again.

meditraitor

jmayo wrote: »

This is the link to the article.

http://www.irishexaminer.ie/ireland/...an-131891.html

Here is link to another article about the idea.

http://www.herald.ie/national-news/state-help-mortgage-promise-by-labour-2354431.html

This is being discussed on other politics forums and that is why I posted it here, you know so that it could be discussed.

Now perhaps you can go talk to the Irish Examiner and ask them to provide you with the actual Labour headed paper from Lynch.
Maybe this is someone flying a kite in which case it is one kite I want to see discussed.

Are we now only able to discuss actual policies written on headed paper and backed by the party leader or can we discuss ideas mooted/suggested by members of political parties that may become policy ?

Why should I go to the Examiner, you posted it on a public forum.... you should defend it.

There is no labour document and only a few soundbites from the examiner, what I am pointing out is that he has made no official statement about this plan and most of it is guesswork, below is the current list of press releases made by Ciaran Lynch. Have a read.

http://www.labour.ie/press/listing.html