Dáil Éireann Debate, Thursday - 27 February 2014
53. Deputy Stephen S. Donnelly asked the Minister for Finance if the measures currently being worked on by his Department to protect mortgagors whose loans are sold to unregulated institutions as part of the winding up of the Irish Bank Resolution Corporation will be extended to all mortgagors whose loans are with unregulated institutions (details supplied); and if he will make a statement on the matter. [9981/14]
View answerAs the Deputy is aware, my officials and officials in the Central Bank are in communication in relation to the application of the CCMA to entities that are not regulated by the Central Bank of Ireland. I also welcome the voluntary agreement reached between the Special Liquidators of IBRC and the unregulated bidders for the IBRC mortgage book in relation to the application of the Code of Conduct on Mortgage Arrears (CCMA). This is an important and timely development and will ensure that mortgage holders in arrears will be serviced in line with the CCMA and the customers will continue to be protected by the code. The application of the code by unregulated entities is a positive development and is in the best interests of both borrower and lenders. However, as I have previously stated, if it becomes evident that the voluntary application of the code is not delivering the requisite protections for mortgage holders in arrears, I will bring forward the required legislation.
The firm to which the Deputy refers is registered as an insurance intermediary under the European Communities (Insurance Mediation) Regulations, 2005 (as amended) since 10 August 2005. The following is a link to the relevant Central Bank register: http://registers.centralbank.ie/Home.aspx. The Central Bank has informed me that firms that are already authorised or registered with the Central Bank for other regulated activities do not require a separate authorisation to provide retail credit. The Consumer Protection Codes, including the Code of Conduct on Mortgage Arrears apply to the regulated activities undertaken by regulated entities and the Central Bank supervises lenders compliance with those provisions and financial services legislation generally.
