IBRC Mortgage Loan Book

Dáil Éireann Debate, Wednesday - 9 July 2014

Wednesday, 9 July 2014

Questions (71)

Joe Higgins

Question:

71. Deputy Joe Higgins asked the Minister for Finance if he will report on the present situation of the sale of the Irish Bank Resolution Corporation mortgage loan book; if he will stop the sale of any further performing mortgage loans; and the restrictions he will place on any new owners of these mortgage loans. [30220/14]

Written answers

Minister for Finance

I am advised by the Special Liquidators that they are in the process of devising and implementing a further sales process in respect of the unsold residential mortgage assets. 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 could erode value for the creditors of IBRC including the State and the Irish taxpayer and it could leave me open to legal challenges from other creditors. I have been further advised that the Special Liquidators will be writing in the coming weeks to borrowers with unsold loans to inform them of the further sales process in respect of their loans.

In the sales process recently completed, the Special Liquidators sought and received the agreement of bidders and the ultimate purchasers of IBRC mortgage loans to voluntarily comply with the terms of the CCMA. It would be the intention of the Special Liquidators to seek similar commitments from bidders for mortgage loans in respect of any further loan portfolio  sales process.

In addition the Department of Finance is currently preparing the Sale of Loan Books to Unregulated Third Parties Bill. This will address concerns surrounding the continued applicability of the Code of Conduct on Mortgage Arrears after the sale of loan books to unregulated entities. Detailed engagement with the Attorney General's office and the Central Bank on draft legislation has now commenced. The Bill is listed for publication in 2015 however, it is intended that the legislation will be commenced as soon as possible.