Dáil Éireann Debate, Thursday - 23 January 2014
47. Deputy Michael McGrath asked the Minister for Finance the number of properties purchased under the National Asset Management Agency deferred payment initiative since its inception; the number of applications received; the costs incurred in operating the scheme; the reasons it is being discontinued; and if he will make a statement on the matter. [3227/14]
View answerI am advised by NAMA that, as per its public statement of 16 January 2014, which is available on its website, www.nama.ie, 224 homes with a combined value in excess of €44m that were included in the 80/20 Deferred Payment Initiative have been sold since launch. Of those properties sold to date, 50% or 112 have been sold to purchasers availing of the 80/20 Deferred Payment Initiative through one of the participating mortgage providers. NAMA does not, nor could it have, details relating to the number of applications made to the participating mortgage providers for mortgages under the Initiative. All such applications were made to the participating lenders and NAMA was not notified until the individual loan was approved by the relevant participating lender. NAMA advises that its decision to close the Initiative to new purchasers from 31 May 2014 was informed by feedback from buyers suggesting that the fear of falling prices is no longer a significant factor in their decisions to buy and accordingly were no longer seeking protection from price falls such as that offered by the 80/20 Initiative. The Initiative will have been operational for two years by May 2014. NAMA advises that it incurred costs of approximately €20,000 relating to the operation of the Initiative.
