A compromise solution to the controversial sale of Permanent TSB loans could be on the cards.
Some 5,000 Permanent TSB loans due to be put up for sale could be bought by an Irish consortium. Efforts are being made to avoid the loans ending up with vulture funds.
The loans are being sold in a bid to reduce the number of non-performing loans at the bank. Irish holders mortgage association founder David Hall is teaming up with international financers to bid for around 4,300 of the state-backed bank’s split loans and 1,000 of its non-restructured loans.
Split mortgages are put in place when a property owner enters financial troubles. A percentage of the loan is ‘warehoused’. That’s in an effort to make monthly payments more manageable.
Permanent TSB has said that under European rules, the split mortgages are classed as underperforming with no regard to the fact that the customers are meeting their payments.
The bank says European regulations require it to include the split mortgages in its sale in order to reduce the level of non-performing loans it has on its books.
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