NAMA has hired outside agency Capita to handle billions of euro worth of property loans that Irish Bank Resolution Corp (IBRC) was being paid to manage.
Capita will now manage loans with a face value of €41bn that 200 staff at IBRC had been overseeing for NAMA since the agency bought the loans back in 2010, at a substantial discount.
The National Asset Management Agency (NAMA) is now also seeking agents to manage what could be a further €27bn of loans currently caught up in the special liquidation of IBRC, in case they also end up with the toxic debt agency.
The decisions are the first major steps taken by NAMA since special liquidators were appointed to quickly shut down the former Anglo Irish Bank last month. The liquidators have been told to sell what they can on the markets, and hand the balance over to NAMA. The loans that are being moved over to Capita were originally made by Anglo Irish Bank and Irish Nationwide Building Society, when they were merged to create IBRC. Staff at the bank continued to manage the loans on a day-to-day basis for NAMA. until now.
Capital Asset Services has already been working for NAMA under what is called a 'master servicing' contract – it includes everything from routine processing of interest payments to tough negotiation with delinquent borrowers.
The new deal extends Capita's contract to include the NAMA loans that had been managed by IBRC until now.
Capital is expected to take on a significant number of staff from IBRC to help manage the loans.
Separately, NAMA has now advertised for agents who could be hired to manage loans with a face value of €27.6bn that are now controlled by the special liquidators of IBRC.
The loans are actually valued at just over €16bn.
NAMA will only know how much if any of the loans it is getting next July, once a formal sale process is closed.
Loans that have not been sold by then will transfer to the agency.
It has already taken a decision to split loans it does take on into two portfolios.
The larger, of up to €25.7bn will include property loans, business loans and property development debts. A smaller portfolio of home loans could total €1.9bn.
NAMA will take on some staff from IBRC to help oversee whatever outside agency get the contracts to manage the loans, and anticipates that the new service providers will also need to hire staff from the liquidated bank.