IBRC Mortgage Loan Book

Dáil Éireann Debate, Wednesday - 30 April 2014

Wednesday, 30 April 2014

Questions (73)

Pearse Doherty

Question:

73. Deputy Pearse Doherty asked the Minister for Finance further to the recent disposal by the special liquidators of the Irish Bank Resolution Corporation of 64% of its mortgage book to Lone Star and Oaktree, if he will confirm that both of these companies typically pursue returns on investment in excess of 15% per annum; if he will outline the way these companies might achieve such returns on the mortgages they have acquired from IBRC; and if he will make a statement on the matter. [18971/14]

Written answers

Minister for Finance

Neither I nor the Special Liquidators are in a position to comment on the intentions or subsequent actions of third party purchasers once they have purchased the loan assets.

I am advised that the contractual terms and conditions of all customer mortgages and other borrowings of Irish Bank Resolution Corporation have not changed as a result of the sale of these obligations to a third party. Purchasers of mortgage loans will be obliged to honour the legal terms of the loan agreements. Furthermore the Government has committed to bringing forward legislation to ensure mortgage holders maintain the protection of the CCMA. In the interim I am satisfied that the new purchasers have agreed to comply with the Code of Conduct on Mortgage Arrears.