Thursday, 24 October 2013

Questions (66, 69, 80)

Arthur Spring

Question:

66. Deputy Arthur Spring asked the Minister for Finance if persons with mortgages with the Irish Bank Resolution Corporation are being offered the opportunity to purchase the mortgages at a discount. [45389/13]

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Brendan Griffin

Question:

69. Deputy Brendan Griffin asked the Minister for Finance his views on correspondence (details supplied) regarding the sale of a loan to a third party; and if he will make a statement on the matter. [45425/13]

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Heather Humphreys

Question:

80. Deputy Heather Humphreys asked the Minister for Finance with regard to the pending sale of the Irish Bank Resolution Corporation mortgage loan books, if individual mortgage holders of the former Irish Nationwide Building Society will be permitted to buy out their mortgages; if there are any legislative barriers for such individual mortgage holders to do so; the process of the sale of such mortgages; and if he will make a statement on the matter. [45517/13]

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Written answers (Question to Finance)

I propose to take Questions Nos. 66, 69 and 80 together.

The Special Liquidators have given significant consideration to and have sought independent advice from PWC in relation to how the residential mortgage portfolio and other loans in IBRC are to be dealt with. Following that independent advice, the Special Liquidators have decided that the residential mortgage book would be split into four segments consisting of performing, non-performing, owner occupier and buy to let mortgages. The Special Liquidators have confirmed that all Borrowers are permitted to buy-out their mortgage at par value and that there are no legislative barriers for such Borrowers to do so. The Special Liquidators have also confirmed 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.

I am advised by the Special Liquidators that the decision to offer the residential mortgage book for sale in this way was arrived at having regard to the scale of the process and size of the IBRC loan book. Furthermore the Special Liquidators have confirmed that the decision to sell these loans as part of a portfolio is the most efficient method of disposal and the one which is most likely to maximise ultimate sales realisations for the Special Liquidators having regard to the public interest. The decision concerning how the loans will be packaged for sale and what bidders constitute qualifying bidders for the purposes of the sales process is to be made by the Special Liquidators and I will not intervene in this matter.