NAMA Operations

Dáil Éireann Debate, Wednesday - 22 October 2014

Wednesday, 22 October 2014

Questions (58)

Stephen Donnelly

Question:

58. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 283 of 17 September 2014 and further to a recent judgment (details supplied), in the High Court if he is concerned that the National Asset Management Agency, its participating financial institutions and service providers, are not providing running accounts to borrowers; if NAMA has conducted any review of the performance of its participating institutions and service providers in providing running accounts to borrowers; if NAMA may confirm that it has provided running accounts to borrowers on all of the loans under its control; and if he will make a statement on the matter. [40521/14]

Written answers

Minister for Finance

I understand from NAMA that the Judge's commentary in the Flynn case does not relate to the provision of statements of account to NAMA borrowers, but rather that statements of accounts were not put in evidence before the court as one means of proving the debt owing. NAMA has confirmed that the Court did not request statements of account during the case, but that they would have been provided if requested. NAMA has confirmed that statements of account are being sent to the authorised recipients on the relevant account in the Flynn case. I am further advised that NAMA outsources its loan administration activity to participating institutions or third party service providers (collectively termed primary servicers) and that it requires those parties to comply fully with best practice when implementing NAMA's primary servicing or loan account management activity, including the issuance of statements to borrowers.  NAMA actively manages the provision of services on its behalf by the participation institutions and third party providers.  NAMA's primary servicers are obliged to issue statements to borrowers in accordance with standard banking practice and also in line with the practice that applied in each participation institution prior to the NAMA's acquisition of the loans.