We know that NAMA developers and receivers have rented 9,200 Irish residences. In addition, NAMA has control over a further 4,000 Irish residences but the asset management agency doesn’t know the status of these properties – for sale, rent, vacant, whatever. Yesterday we found out that the 9,200 properties are generating “of the order of” €9m a month, €108m annualised or just under an average of €1,000 per month. Minister for Finance, Michael Noonan was responding to a question from the Sinn Fein finance spokesperson Pearse Doherty as follows:
“Deputy Pearse Doherty: the 9,200 residential properties that the National Assets Management Agency says it is now renting in the State, if he will confirm the monthly rent payable on these properties and that all of this rent is being applied to pay down outstanding loans due by borrowers to NAMA. [27948/12]
Minister for Finance, Michael Noonan: I am advised by NAMA that the units to which the Deputy refers are under the control of NAMA debtors and receivers. As I stated in my response of 22 May {PQ 24849/12}, NAMA is currently engaged in an extensive analyses of the residential portfolio under the control of its debtors and receivers. Whilst this analysis is expected to continue for some time, initial findings indicate that the total monthly rental income generated by residential properties rented by NAMA debtors and receivers in Ireland is of the order of €9 million. NAMA continues to be engaged in an exercise to put legal documentation in place to capture all rental income so that it will be applied to service the loans. This control was not in place when the loans were acquired from the participating institutions.”
You may be alarmed to see that NAMA is still continuing “to be engaged in an exercise to put legal documentation in place to capture all rental income so that it will be applied to service the loans” or in other words, developers whose loans may be completely underwater may still – more than two years after NAMA started transferring the loans – be pocketing rent receipts. I don’t recall the Comptroller and Auditor General uncovering that little nugget in its recent report on NAMA’s management of assets.
NAMA Wine Lake 
Simply unacceptable,any competent PE people would produce this at first meeting with borrowers,if it was not already on file,day 1 first meeting.
Failure to execute,no further meetings.Schocking indictment of the failure at NAMA to collect rental income on behalf of the Irish Taxpayer,often wondered who was funding the numerous legal challenges…it’s the Irish Taxpayer !
“The General Assignment of Rents can be defined as an Agreement, where the landlord or borrower (assignor) assigns the rent from the tenants of his leased property, to the lender (assignee) as a security for a mortgage loan or other monies, being advanced by the lender. Through such Contract, the tenant directly pays the rent to the landlord. In case of any default by the borrower, the lender can take certain step just short of foreclosure. By virtue of Assignment Contract, the lender gets the right to contact all tenants and advice them to pay rent directly to him.”
http://www.legalwebreview.com/assignments/general-assignment-rents-additional-security-lending/
Eh try form 6.2 basic loan manual…
“Assignor hereby assigns to Assignee all Assignor’s right, title, and interest in the Rental Payments; Assignor hereby grants to Assignee the right to enforce, at the sole discretion of Assignee, all Assignor’s rights under the Lease, including the right to sue for and collect unpaid Rental Payments. In the event Assignee elects not to enforce Assignor’s rights under the Lease, Assignee agrees to enforce promptly all of such rights.”
Click to access assignrents.pdf