Mortgage repurchase

clear thinking

So NAMA has been a resounding success. Its basically going to break even and there'll be no more "shock losses".

This should be applied to domestic mortgages. Before it went wrong Fannie Mae did the same thing in the US to get the situation stabilised in the 1930's. Obviously it should have been wound down a little sooner. However it acchieved aim before losing its way so the lesson is there.

So what are peoples thoughts on a state agency on the same lines refinancing the banks bloated mortgage books and winding them down?

If it works properly it should get credit flowing. The downside is that the state would effectively have to convert ECB two week money into 20-40 year bonds. However the state would only need to take on the performing loans as the aim is to shrink balance sheets rather than absorb losses that are presumably properly impaired in the banks anyway.

RichardAnd

clear thinking wrote: »

So what are peoples thoughts on a state agency on the same lines refinancing the banks bloated mortgage books and winding them down?

Refinancing them with what?

ei.sdraob

clear thinking wrote: »

So NAMA has been a resounding success. Its basically going to break even and there'll be no more "shock losses".

wait! wha?

later12

ei.sdraob wrote: »

wait! wha?

I presume the poster is referring to the fact that NAMA is meeting its objectives and has reduced its debt burden by €1bn so far.

http://www.irishtimes.com/newspaper/finance/2011/0526/1224297786948.html

Interestingly, just spotted in the news this morning that the chief executives of NAMA and the NTMA have not forgone bonus payments.
http://www.independent.ie/business/irish/nama-and-ntma-chiefs-waive-bonus-payments-2660333.html

OP to go back to your post, I wouldn't be supportive of a NAMA esque solution for the residential property market. NAMA itself is likely to establish a listed REIT vehicle to improve investment in Irish property (perhaps later this year). That should improve the NAMA balance sheet even further and be of a boost to property prices.

lmimmfn

The agency has approved the sale of €3.3 billion worth of property assets since March 2010, the proceeds from which have been shared with non-Nama banks.

what? so NAMA profits are funding ILP and the likes when they are raiding pension funds to 'create' jobs.