Tag Archives: debt forgiveness

TV3 The Morning Show 6th September 2011

Our regular piece on The Morning Show with Sybil & Martin was about debt forgiveness this week, great conversation in an easy to interpret manner.

Independent: Forgive them lender

Our thoughts on Debt Forgiveness have been a source of debate and while we accept that there are cons to the idea there are also sound reasons.
The Independent looked at this topic today and mentioned Karl Deeter in the piece

Sunday Independent: Government must react or face the living dead

In answer, let me quote Irish economist Karl Deeter, who recently said: “I think debt forgiveness is generally a terrible idea, and have only become an advocate as I watched a system evolve whereby investors have been insulated from taking loss at the expense of largely innocent bystanders [taxpayers]. In chasing the crisis down this rabbit hole we have perhaps avoided creating zombie banks, but we are creating zombie households in their wake.”

He continued: “The idea that this is a ‘punishment to the prudent’ [debt forgiveness] is a mistake. If so, then where is the ‘prudent rage’ against people receiving taxpayer-funded Mortgage Interest Supplement, which is paid to more than 18,000 households, while on the same street another person slaves to make their payments?

“Or the ‘prudent backlash’ by people who stayed out of the market entirely, against taxpayer money spent on rent supplement, which allows a person around the corner to enjoy a similar property for free?”

TV3 ‘The Morning Show’ on Debt Forgiveness

We were pleased to cover the topic of Debt Forgiveness with Angela Keegan, MD of MyHome.ie on ‘The Morning Show, with Sybil & Martin’ on TV3.

Sunday Business Post: Opinion piece ‘Banks must learn to forgive and forget’ 25th April 2011

When a bank holds a loan worth €200,000 it is an asset valued at that figure. Even if the security for the loan is a property that has fallen in value to €100,000.
So it is no surprise that banks will do whatever it takes in order to avoid turning their asset into a 50 per cent loss. In fact, even if the loan getting into trouble it doesn’t get written down to €100,000 -that only happens after the asset value has been realised. This is in part why we have three repossessions per 100,000 mortgages, while Britain has 65 times more, at about 200 per 100,000. At the same time, there has been huge political pressure via politicians and the Central Bank (formerly the Financial Regulator), via the thrice reworked Code of Conduct on Mortgage Arrears to ensure that we don’t allow people to get their homes repossessed as long as they engage’ with the lender.

Irish Times: Karl Deeter & Jim Power mentioned in reference to their Pat Kenny show appearance

Wednesday’s Today with Pat Kenny (RTÉ Radio 1, weekdays) provided a more less heartening illustration of contemporary mores. The economist Jim Power and the mortgage broker Karl Deeter were in the studio to discuss AIB’s tentative debt-forgiveness proposals for distressed mortgage holders.

Midweek on TV3: Debt forgiveness?

Midweek on TV3 had a segment on debt forgiveness and it featured some commentary from Karl Deeter of our company. The piece is above, the topic is provocative!

Today with Pat Kenny on RTE1: 13th April 2011 on Mortgage debt forgiveness

The enormity of the black hole facing banks and taxpayers is summed up by Economist David McWilliams today who says that “the banks will take €500 million a week out of the economy for the next two years”. It is a gloomy summary of our predicament – and a crisis that has squeezed homeowners, taxpayers and businesses. One sector has been given a glimmer of hope by AIB. The bank yesterday suggested that it might write off the debt of struggling borrowers. Debt forgiveness for those with mortgages they can’t repay. Joining Pat was Karl Deeter, Operations Manager with Irish Mortgage Brokers and Jim Power Chief Economist with Friends First.