Banks to get 'nothing' on loans if they don't clarify key criteria
NAMA is preparing to pay nothing for some loans where banks have failed to provide enough clarity on three key criteria.
Those working on valuations for the "bad bank" are obliged to look at loans under three criteria: the properties' title deeds, bank security, and whether there are any legal actions outstanding on the assets.
The entire project has been beset by delays over the last number of months, as some lenders struggled to gather the necessary data on loans and carry out effective due diligence.
It had originally been envisaged that NAMA would begin taking over banks' risky property loans last December and that the process would be finished by the end of June.
The agency is now working towards a deadline of completing the transfers by the end of this year.
Brussels, which is overseeing the project, has set an absolute deadline of next February.
Separately, it is understood that NAMA was preparing yesterday evening to send out fresh guildelines to the Construction Industry Federation on how its members must make plans on how they aim to come through the biggest property collapse in the history of the State.
Developers must produce a credible three-year business plan within a month of their loans being taken over by the agency -- though this could be stretched out to 45 days in certain circumstances.
NAMA staff will then decide within three months whether individual borrowers have a chance of making it through the downturn, or whether the "bad bank" should move to liquidate.
Information from borrowers will be closely checked against details provided by banks, which have to fill out 337 pieces of data on each loan facility for NAMA.
Although NAMA's business plan, unveiled last October, did outline liquidation costs for 2010, it is understood that the agency will begin court proceedings on insolvent borrowers this year.