AMENDMENTS:FINE GAEL will launch 99 amendments to the National Asset Management Agency (Nama) which will protect homeowners facing repossession, the party says.
The party’s finance spokesman, Richard Bruton, said homes in danger of repossession would become a category of loan that Nama could acquire at market value.
Under the scheme, nonperforming mortgages on primary residences facing repossession would become a new class of eligible asset for compulsory acquisition at market value by Nama from participating financial institutions.
Homeowners facing repossession proceedings from a mortgage provider because they could not meet repayments could apply for support under the scheme.
A financial adviser appointed by Nama would commission a market valuation of both the property and the mortgage loan.
The adviser would calculate the level of equity in the property Nama should offer to buy in order to reduce the homeowner’s mortgage to a manageable level.
Nama would then make an offer to the homeowner. If the homeowner accepted it, Nama would buy the entire mortgage loan from the lending institution at current market value and write down the mortgage loan to its current value.
Nama would then offer to purchase up to 75 per cent of the equity of the house, with the proceeds to be used to reduce the remaining mortgage.
The homeowner would service the remainder of the mortgage loan and also pay a rental fee to Nama, with the rental yield capped at 4 per cent of the house equity purchased by Nama.
On sale of the property, Nama would receive its share of the price. The homeowner would have the option of buying back the equity stake owned by Nama after a three-year period.
