Home Solutions Initiative Consortium’s Acquisition of 620 Mortgages

Arthur Cox have advised Everyday Finance and LCM Partners, part of the Home Solutions Initiative (HSI) consortium, on the purchase of approximately 620 mortgages in long term arrears from AIB.

AIB has sold a portfolio of underperforming loans to an “ethical” investment consortium, the first such transaction undertaken by a lender in the Republic.

The bank’s Project Iris portfolio, which contains 620 owner-occupier mortgages in long-term arrears, has been sold to the Home Solution Initiative group, which has pledged to find borrower-friendly solutions to the outstanding arrears problem.

The loans had an original book value of €150 million. The discount involved in the sale was not disclosed. AIB said around 95 per cent of the loan book first entered default over five years ago.

Most of the households are expected to end up in the Government’s mortgage to rent scheme – whereby borrowers agree to surrender their homes but remain in the property as social housing tenants.

The Home Solutions Initiative consortium comprises debt collection agency Everyday Finance, London-based investment group LCM Partners, Arizun Assessment Management which offers a private rental scheme and the Irish-based Home for Life (HFL) group. Home for Life is backed by AIB.

The Arthur Cox team was led by Cormac Kissane (Picture, Partner, Finance) and included Ronan O’Keefe (Associate, Finance). David Kilty (Partner, Tax) advised on tax.

Involved fees earner: David Kilty – Arthur Cox; Cormac Kissane – Arthur Cox; Ronan O’Keefe – Arthur Cox;

Law Firms: Arthur Cox;

Clients: Everyday Finance; LCM Partners Ltd;