Peter Mathews
Question:69 Deputy Peter Mathews asked the Minister for Finance his views on a matter regarding financial regulation (details supplied); and if he will make a statement on the matter. [10000/12]
View answerWednesday, 22 February 2012
Questions (69)
Written answers
The Central Bank wrote to all mortgage lenders in 2010 to ascertain whether they were offering, or intended to offer, a mortgage product that would allow home owners to sell their existing home and transfer the negative equity portion of the original loan to the new loan. In order to ensure that proposals in relation to such mortgages are consistent with the Central Bank's consumer protection and prudential policy objectives, the proposed criteria for any such facility would need to be agreed in advance between mortgage lenders and the Central Bank. In response to that letter, only a small number of mortgage lenders said that they would consider offering such a facility. The Central Bank continues to engage with lenders on these products.
Products involving the transfer of the negative equity portion of loans need to be introduced in a careful and controlled manner having regard to the long term interests and indebtedness positions of the consumers involved given the lack of certainty concerning future property prices. In this context, I am informed by the Central Bank that any institution offering such a facility may only do so in accordance with criteria agreed in advance with the Central Bank.