Dáil Éireann Debate, Thursday - 20 December 2012
77. Deputy Michael McGrath asked the Minister for Finance the number of regulated financial institutions that have sold all or part of their mortgage loan books in the past three years; the protection that mortgage holders are entitled to when such sales occur to institutions that are not covered by the mortgage arrears resolution process; and if he will make a statement on the matter. [57591/12]
View answerThe Central Bank has advised me that the sale of a mortgage book is a commercial matter for the financial institutions concerned. However, I have been informed that Allied Irish Bank and Bank of Ireland have sold all or part of their loan book in the past three years. In relation to other financial institutions which provide mortgages, the Central Bank has advised me that the information requested by the Deputy is not available.
The Central Bank has also advised me that the Code of Conduct on Mortgage Arrears (CCMA) applies to the mortgage lending activities of all regulated financial institutions except credit unions, operating in the State, including:
- a financial services institution authorised, registered or licensed by the Central Bank of Ireland and
- a financial services institution authorised, registered or licensed in another EU or EEA Member State and which has provided, or is providing, mortgage lending activities in the State.
Where regulated financial institutions sell part, or all, of their mortgage book to another regulated financial institution, the same protections apply to borrowers, namely, the CCMA and the Consumer Protection Code. Where a regulated financial institution outsources part, or all, of their mortgage book, the same protections apply to borrowers and the institutions have responsibility for ensuring that these protections are applied by the outsourced company. Where a regulated financial institution sells part, or all, of a mortgage book to an unregulated institution, then the borrower will not be afforded the same level of protections. In their case, the conditions of the original contract will apply.
