Tuesday, 11 March 2014

Questions (92)

Billy Timmins

Question:

92. Deputy Billy Timmins asked the Minister for Finance the position regarding former customers of Irish Nationwide Building Society which was transferred to the Irish Bank Resolution Corporation, now in liquidation, who are concerned about what the future holds for them regarding the sale of their loans; the current position on the code of conduct on mortgage arrears that has been applied to the purchasers of these loans in order that the mortgage holders will have some protection; and if he will make a statement on the matter. [11835/14]

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Written answers (Question to Finance)

The Special Liquidators have confirmed that a voluntary agreement has been reached with the potential bidders for the IBRC mortgage book in relation to the application of the Code of Conduct on Mortgage Arrears. This is an important and timely development and will ensure that mortgage holders in arrears will be serviced in line with the CCMA and that customers will continue to be protected by the code in the event that they acquire these loans.

The Government is committed to bringing forward legislation to protect mortgage holders and will work with the Central Bank and the Attorney General to achieve the best solution for mortgage holders. Given that this is a complex legal issue, the legislation will require careful consideration to ensure the general applicability of the CCMA is not put at risk.

It is important to highlight that the contractual terms and conditions of all customer mortgages and other borrowings have not changed as a result of the appointment of the Special Liquidators nor will those terms and conditions change as a result of the ultimate sale of these obligations to a third party. Purchasers of mortgage loans will be required to honour the legal terms of the loan agreements.