The Government is keenly aware of the concerns raised by the Central Bank and others regarding the potential loss of protection under the Code of Conduct on Mortgage Arrears (CCMA). The Government is committed to bringing forward legislation that will protect mortgage holders and believes the sale of loan books to unregulated third parties Bill is the most effective way to address the issue in a comprehensive manner. The legislation will ensure the protection of the CCMA or any replacement code in the future will continue to apply to mortgages which are sold to unregulated financial service providers.
In the interim the Government has always been clear that we fully expected that any purchaser of the IBRC mortgage portfolio would service the loan books in accordance with the CCMA. The two purchasers of the residential mortgage loans to date, Loanstar and Oaktree, have both committed to servicing these books in accordance with the terms of the Central Bank's code of conduct on mortgage arrears, CCMA. As the Deputy will be aware the Special Liquidators are legally obliged to oversee the liquidation of IBRC for the benefit of all creditors of the bank including the State. As such I am not in a position to interfere in the sales process undertaken by the Special Liquidators as to do so would erode value for the creditors of IBRC including the State and the Irish taxpayer and it could leave the me open to legal challenges from other creditors. In such circumstances it would not be appropriate for me to meet with individual borrowers of the bank.