Dáil Éireann Debate, Tuesday - 22 October 2013
130. Deputy Olivia Mitchell asked the Minister for Finance if any protections, in terms of future rates and conditions, will be offered to residential mortgage holders with the former Irish Bank Resolution Corporation when the mortgage loan book is sold on by the liquidator; and if he will make a statement on the matter. [44136/13]
View answerI am advised that the contractual terms and conditions of customer mortgages and other borrowings will not change as a result of the appointment of the Special Liquidators or the ultimate sale of the obligations to a third party. 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 and will, in doing so, be mindful of its legal obligations. The Special Liquidators confirm that all Borrowers can re-finance their borrowings at par with other lending institutions. The Special Liquidators confirm that the residential mortgage customers of IBRC Limited (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 Special Liquidators are 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. The Special Liquidators have begun writing to all IBRC borrowers to update them on the sale of their IBRC Loans and Collateral Obligations. Borrowers were presented 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. Decisions concerning the sale and disposal of loan assets are a matter for the Special Liquidators and I have no role in the process.
Should a bid not be received by a qualified bidder that is equal to or in excess of the Valuation Price, then the asset/portfolio will transfer to NAMA. The valuation of all IBRC assets is to be completed by 30 November 2013 and the sale of all IBRC assets agreed or completed by no later than 31 December 2013 or as soon as practicable thereafter.
