IBRC Liquidation

Tuesday, 27 May 2014

Questions (131)

Stephen Donnelly

Question:

131. Deputy Stephen S. Donnelly asked the Minister for Finance further to his statement of 20 February 2014 in respect of the Irish Bank Resolution Corporation mortgage borrowers that if the special liquidators were to sell mortgages individually, rather than in loan books, it could result in a mortgage holder's neighbour who had a row over planning permission buying the mortgage and, alternatively, someone with whom the mortgage holder is in dispute or another family member, in circumstances where the family is not pulling together, could come in and buy the mortgage; if, following the sale of the mortgages to Oaktree and Lone Star, he can confirm the protections that are now in place to prevent the scenarios outlined; and if he will make a statement on the matter. [22846/14]

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Written answers

Minister for Finance

I am advised by the Special Liquidators that following due consideration to advice provided by PwC, they decided to sell the residential mortgage book of Irish Bank Resolution Corporation (in Special Liquidation) in portfolios in order to maximise market interest and return. Should it have been decided that the mortgages be sold individually, individuals, such as those described in the question above, would have been entitled to bid for the individual mortgages, if they met the criteria to be considered qualifying bidders. Any further decision regarding the onward sale of the mortgage book is a commercial decision for the acquirers of these loans and I have no role in the matter.

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.