IBA: Irish lenders stifling recovery
The current "life sentence" approach taken by the banks is unreasonable and untenable in the post-Nama property market environment, the Irish Brokers Association claimed today.
"The full recourse mortgage lending that operates here in Ireland has undoubtedly resulted in imprudent lending by our financial institutions," said Ciaran Phelan, CEO of the Irish Brokers Association.
"With a full recourse mortgage the mortgage holder is fully liable for the total debt due on the loan agreement over and above the realization of the actual value of the property.
"The situation now is that due to the crash in property prices thousands of people are left owing much more than their property is worth and by law the bank can sue for access to their other assets or funds to recover the debt."
