Mortgage Applications Approvals

Dáil Éireann Debate, Wednesday - 28 November 2012

Wednesday, 28 November 2012

Questions (70)

Gerry Adams

Question:

70. Deputy Gerry Adams asked the Minister for Finance the penalties the Central Bank of Ireland impose for regulated entities here breaching the Central Bank of Ireland code of practice on the transfer of mortgages; if he will detail if the code of practice concerns all loans secured on all residential properties in this jurisdiction here irrespective of the owner of the loan; if he will detail the total number of regulated entities here in which the Central Bank of Ireland code of practice on the transfer of mortgages applies; and if he will make a statement on the matter. [53215/12]

Written answers

Minister for Finance

I have been advised by the Central Bank that the ‘Code of Practice on the Transfer of Mortgages’ is a voluntary code. The Code was issued by the Central Bank in 1991 to financial institutions involved in the provision and transfer of mortgage credit. A copy of the Code and a list of regulated financial institutions are available at www.centralbank.ie. As the Code is voluntary in nature, it is not subject to the Central Bank’s administrative sanctions procedure.

The Code states that it applies to a loan secured by the mortgage of residential property. For the purposes of this Code, residential property is not limited to principal private residences of the mortgagor.

The ‘Code of Practice on the Transfer of Mortgages’ may be applied, on a voluntary basis by all financial institutions involved in the provision and transfer of mortgages. Notwithstanding its voluntary nature, I expect that best practice dictates that it be applied by all such institutions.