THE IRISH MORTGAGE Holders Orangisation (IMHO) has today sharply criticised Permanent TSB for its decision to sell two loan books of impaired mortgages worth some €488 million.
Earlier today, Bloomberg reported that the Permanent TSB group hired Morgan Stanley to sell its commercial property and subprime residential mortgage loan books, which have a combined value of €2.6 billion. This includes the two loan books of impaired mortgages.
It is reported that the loans are mainly non-performing and are valued at a discount. Commenting on the news, IMHO Director David Hall said this action is being taken despite the “unfulfilled promise by the Department of Finance to bring in legislation to protect consumers when mortgages were sold”.
He described it as a “cynical exercise” and said it takes advantage of the ‘heads up’ given by the government that this legislation is on the way.
Once again consumers are losing out and the banks win.
“It also shows the cosy relationships that exists between government and the banks, where the banks are being favoured over citizens who have found themselves in severe difficulty,” he said. “I am now calling on the government to immediately bring in the promised consumer protection legislation.”
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