Dáil Éireann Debate, Thursday - 13 March 2014
46. Deputy Brian Stanley asked the Minister for Finance the measures that will be put in place to protect the 13,000 approved mortgage holders with Irish Nationwide Building Society whose loans are being sold to the Irish Bank Resolution Corporation; and if borrowers should be allowed to buy out the remainder of their loans. [12520/14]
View answerI am fully aware of the concerns raised by the IBRC mortgage holders regarding continued protection under the Central Bank's Code of Conduct on Mortgage Arrears (CCMA) for those mortgage holders following the sale of the loan book by the Special Liquidators. The Sale of Loan Books to Unregulated Third Parties Bill which is listed in the Government legislative programme was always intended to address concerns surrounding the continued applicability of the code after the sale of loan books to unregulated entities.
The Government is committed to bringing forward legislation to protect mortgage holders and will work with other interested parties to achieve the best solution for consumers. The Department is examining this issue fully with the Central Bank and the Attorney General's Office. Given that this is a complex issue, it requires careful consideration to ensure the general applicability of the CCMA is not put at risk.
In relation to the sale of mortgages to individual mortgage holders, I am advised that the Special Liquidators have, following due consideration, decided that the sale of the residential mortgage book in portfolios was the best method available to maximise market interest and return within the timelines set out in the Ministerial Instructions. It is not possible for me to interfere in the sales process developed by the Special Liquidators as to do so would have had a negative impact on the return achievable by the Special Liquidators. Such action would have left me open to challenge by other creditors of the bank.
