Dáil Éireann Debate, Wednesday - 5 March 2014
58. Deputy Willie Penrose asked the Minister for Finance if in the context of the correspondence furnished to him (details supplied), if cognisance is taken of the submission made therein in respect of this person's mortgage which is fully performing and the impact the proposed sale of the mortgage held with INBS; and if consideration will be given to the circumstances outlined therein; and if he will make a statement on the matter. [11147/14]
View answerThere is an obligation on the Special Liquidators to ensure that maximum value is extracted from the loan sales process for the benefit of all the creditors of IBRC including the State. The sales process plan and timeline for the sale of the residential mortgage portfolio has been developed following professional advice and in light of requirements for a robust and credible sales process in that context. Neither I nor my officials had any role in the development of the sales process plan for the residential mortgage book.
The Special Liquidators have given significant consideration to and have sought independent advice from PWC in relation to how the residential mortgage portfolio is to be dealt with. Following that independent advice, the Special Liquidators have decided that the residential mortgage book would be sold in portfolios with a view to maximising market interest and return within the timelines set out in the Ministerial Instructions.
I am advised that it is for this reason that the Special Liquidators have decided not to accept any bids from individual mortgage holders, however mortgage holders are permitted to buy out their mortgage at par value and that there are no legislative barriers for such Borrowers to do so.
In relation to the loss of protections under the Code of Conduct on Mortgage Arrears (CCMA), I have instructed my Department to examine the issue, in consultation with the Central Bank, with a view to bringing forward a solution, if required. Given this is a complex legal issue, it requires careful consideration so as not to put at risk the general applicability of the CCMA.
I welcome the voluntary agreement that has been reached between the Special Liquidators of IBRC and the bidders for the IBRC mortgage book in relation to the application of the 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 in the event that they acquire these loans.
