Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Irish House Price Fall May Push Loan Losses to 70%, Moody’s Says

Don't Miss Out —
Follow us on:

May 16 (Bloomberg) -- The steep fall in Irish house prices may drive losses on foreclosed home loans to as high as 70 percent, according a Moody’s Investors Service report based on mortgage-backed securities it tracks.

“Over half the loans in even the best pools are in negative equity, whereas nearly every loan is in negative equity in the worst pools,” analysts Maria Divid and Barbara Rismondo in London said in a report today. “There is little chance that distressed borrowers will be able to significantly increase their debt service abilities; or materially reduce their negative equity.”

House prices dropped 49 percent from their high in 2007, Ireland’s Central Statistics Office said April 26. Prices may decline as much as 60 percent from that peak, Moody’s said.

To contact the reporter on this story: Esteban Duarte in Madrid at eduarterubia@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.