Dáil Éireann Debate, Thursday - 10 April 2014
38. Deputy Michael McGrath asked the Minister for Finance if the National Asset Management Agency has adequate processes and procedures in place to deal with the Irish Bank Resolution Corporation mortgages transferred to it; the number of staff who will support this work; and if he will make a statement on the matter. [17048/14]
View answer39. Deputy Michael McGrath asked the Minister for Finance if the National Asset Management Agency board has considered the way mortgage holders from the Irish Bank Resolution Corporation will be treated in relation to the code of conduct on mortgage arrears; and if he will make a statement on the matter. [17049/14]
View answerI propose to take Questions Nos. 38 and 39 together.
No final decision has been made as to the number of IBRC residential loans that NAMA may acquire from the Special Liquidators (SLs). However as previously advised, NAMA has made appropriate preparations, including the selection of Pepper Asset Servicing (Pepper) through a competitive tendering process as its preferred bidder to provide primary and special servicing on any loans that may be acquired.
Should NAMA acquire part of the IBRC mortgage portfolio, the bulk of the requisite staffing resources to manage the loans will be provided by Pepper. Pepper's services will be carried out under delegated authority and close oversight from NAMA; the resourcing implications for NAMA, in terms of such oversight, will depend on the volume of loans which may transfer. Furthermore NAMA advises me they have the necessary expertise to oversee the service provider.
In the event that NAMA ultimately acquire mortgage loans from the Special Liquidators to IBRC, the NAMA Board will determine its strategy at that stage and, in doing so, will be mindful of its legal obligations and of general market norms.
I am advised that NAMA will apply best practice in this regard including CCMA to ensure that a borrower's legal position does not deteriorate by virtue of NAMA acquisition of the loan or loans concerned.
