IBRC Mortgage Loan Book

Dáil Éireann Debate, Tuesday - 26 November 2013

Tuesday, 26 November 2013

Questions (155, 167)

Catherine Murphy

Question:

155. Deputy Catherine Murphy asked the Minister for Finance the reason the right of first refusal was not offered to the 4,000 Irish Bank Resolution Corporation performing mortgages at or above the valuation level; the consideration that was given to this; the reason it was not decided to proceed in this way; the conditions that have been built into the sale that comparable lending rates and conditions will apply; the way such conditions are guaranteed to be legally enforceable; and if he will make a statement on the matter. [50209/13]

Clare Daly

Question:

167. Deputy Clare Daly asked the Minister for Finance regarding Irish Bank Resolution Corporation mortgage holders, if he will ensure transparency and information on the potential buyers and the price the mortgages are being sold at, proper communication, and not letters from the liquidator which are impossible to understand for ordinary consumers; for persons to be allowed to match the best offer being made for mortgages by any third parties and for those with unsustainable mortgages to be allowed to sell their home and have any mortgage shortfall written off or settled over a very short period. [50354/13]

Written answers

Minister for Finance

I propose to take Questions Nos. 155 and 167 together.

I have been informed that the Special Liquidators have corresponded with all IBRC borrowers 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. Consideration was given to Borrower representations and the Special Liquidators are in the process of responding to these Borrower representations.

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.

Borrowers will be kept fully up to date on the sale of their IBRC loans and collateral obligations. The Special Liquidators do not intend on disclosing the valuation of IBRC assets as it is commercially sensitive information which could potentially have a detrimental impact on asset recovery from the impending sales process.

I am advised by the Special Liquidators that the decision to offer the residential mortgage book in portfolios 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.