Mortgage Arrears Proposals

Dáil Éireann Debate, Wednesday - 12 December 2012

Wednesday, 12 December 2012

Questions (56)

Gerry Adams

Question:

56. Deputy Gerry Adams asked the Minister for Finance further to Parliamentary Question No. 70 on 28 November 2012, if in view of the changed banking environment in Ireland since 1991 he intends to legislate to protect homeowners in the event a financial institution in Ireland does not comply with the voluntary code in the transfer of its residential mortgages; if he is concerned that the transfer of buy to let residential loans or owner occupier residential loans to a foreign capital provider runs the risk of that capital provider being more aggressive in repossessing people’s primary residences than would be the case with a traditional bank; and if he will make a statement on the matter. [55915/12]

Written answers

Minister for Finance

As I stated, on 28 November 2012, in reply to a question regarding this matter, 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 on residential property. For the purposes of this Code, residential property is not limited to the principal private residence of the mortgagor. I have been advised by the Central Bank that, to date, the Bank has not received complaints regarding non compliance with this Code.

The Deputy mentions concerns regarding foreign capital providers being more aggressive than traditional banks in the repossession of primary residences. The Central Bank has advised me that, to date, no complaints have been made to the Bank in this regard. I have no proposals to recommend to Government that legislation affecting this Code be introduced.