Dáil Éireann Debate, Thursday - 20 February 2014
48. Deputy Joanna Tuffy asked the Minister for Finance the steps he will take to protect mortgage holders with Irish Nationwide Building Society in the event that their mortgages are sold to institutions not covered by the mortgage arrears resolution process; and if he will make a statement on the matter. [8613/14]
View answerI am fully aware of the concerns raised by the IBRC mortgage holders regarding continued protection for those customers following the sale of the loan book by the Special Liquidators. The continued applicability of the Code of Conduct on Mortgage Arrears (CCMA) depends on the regulatory status of the ultimate acquirer of the IBRC portfolio which will not be know with certainty until that process is completed next month.
However, given the concerns raised by IBRC customers I have instructed my officials to examine the issue fully with a view to bringing forward a solution if required. This matter is legally complex as it could affect contracts already entered into. It needs careful consideration. For that reason, my officials are currently examining the issue with their colleagues in the Central Bank and in the Attorney General's office.
It is important to note that in the event that NAMA acquire the IBRC residential mortgage book they are likely to apply best practice in relation to CCMA and they have confirmed that no borrower will be in any worse a position. Furthermore I am also pleased to note that a number of unregulated firms have indicated that they intend to voluntarily adopt the CCMA in order to manage acquired loans as they believe that following CCMA is in the best interests for both them and their customers.
