Dáil Éireann Debate, Thursday - 3 October 2013
13. Deputy Michael Moynihan asked the Minister for Finance if he will address the concerns of former Irish Nationwide Building Society customers, who have been advised that their mortgage is being sold, that they may be adversely impacted by the sale; and if he will make a statement on the matter. [41467/13]
View answerI am advised that the contractual terms and conditions of customer mortgages and other borrowings have not changed as a result of the appointment of the Special Liquidators nor will they change as a result of the ultimate sale of these obligations to a third party. The Special Liquidators are still in the process taking professional advice on the appropriate method of disposing of loan assets and on the appropriate criteria for determining who should qualify to bid for loan assets. As part of this process the Special Liquidators have written to all IBRC borrowers to update them on the sale of their IBRC Loans and Collateral Obligations and providing them with an opportunity to make written representations on the method of disposal of their loans and the criteria for determining who may bid for loan assets.
I am advised that the Special Liquidators of IBRC are maintaining contact with its mortgage holders and with the Central Bank (as part of its overall Mortgage Arrears Resolution Strategy (MARS) process) with a view to appropriately dealing with INBS mortgage holders in arrears on their mortgage. The Special Liquidators also confirm that the residential mortgage customers of IBRC (in Special Liquidation) continue to enjoy the protection of the Central Bank Code of Conduct on Mortgage Arrears and other protections in Irish consumer law.
The Central Bank’s Code of Conduct on Mortgage Arrears, which applies to all mortgage lending activities of all regulated entities, except Credit Unions, operating in the State, remains a key protection for those cooperating INBS/IBRC mortgage holders who are in difficulty in meeting their mortgage commitments. The Code provides, inter alia, that mortgage lenders should allow for a flexible approach in the handling of arrears and pre-arrears cases and that they should aim, as far as possible, at assisting the borrower who is in genuine difficulty having regard to the specific circumstances in individual cases.
The continued applicability of the Central Bank Code of Conduct on Mortgage Arrears and Mortgage Arrears Targets Programme will depend on the regulatory status of the ultimate acquirer of the portfolio which we will not know until the sales process has concluded. In the event that NAMA ultimately acquires this portfolio, the NAMA Board will determine its strategy at that stage. In doing so, NAMA will be mindful of its legal obligations and general market norms. The Special Liquidators are under instruction to ensure that the valuation of all IBRC assets is completed by 30 November 2013 and that the sale of all IBRC assets is agreed or completed by no later than 31 December 2013 or as soon as practicable thereafter.
