Tuesday, 27 May 2014

Questions (115)

Olivia Mitchell

Question:

115. Deputy Olivia Mitchell asked the Minister for Finance if he will confirm that mortgages sold to Lone Star will be covered by the code of conduct for mortgage arrears and any future enactment of it if Lone Star sells on the loans; and if he will make a statement on the matter. [22668/14]

View answer

Written answers (Question to Finance)

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 IBRC residential mortgage loans to date, Loan Star 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.