Dáil Éireann Debate, Friday - 7 September 2018
128. Deputy Thomas P. Broughan asked the Minister for Finance if he has requested a report on the number of owner occupier mortgages of a bank (details supplied) that were included in a project in cases in which mortgage holders have been engaging with the bank and meeting the arrangements for repayments and arrears; and if he will make a statement on the matter. [36135/18]
View answer129. Deputy Thomas P. Broughan asked the Minister for Finance the number of non-owner occupier mortgages that are accommodating tenants in the private rented sector that have been sold by a bank (details supplied) to a company; and if he will make a statement on the matter. [36136/18]
View answer131. Deputy Thomas P. Broughan asked the Minister for Finance the number of non-owner occupier mortgages being sold by a bank (details supplied) that are accommodating tenants in the private rented sector and are in receipt of housing assistance payments, HAP, rent supplement, RS, and rental accommodation scheme, RAS, payments; and if he will make a statement on the matter. [36138/18]
View answerI propose to take Questions Nos. 128, 129 and 131 together.
As the Deputy will be aware the decisions around loan sales are the responsibility of the board and management of the banks which must be run on an independent and commercial basis. The Minister for Finance cannot stop loan sales, even by the banks in which the State has a shareholding.
I wish to advise the Deputy that while my department has had a number of interactions with PTSB in connection with the sale, it does not hold the specific information that is being sought. Officials from my department contacted PTSB and they provided the following response:
"Permanent TSB plc (the ‘Bank’) has agreed to sell a Non-Performing Loan portfolio to the retail credit firm Start Mortgages DAC, supported by LSF Irish Holdings 97 DAC, both affiliates of the Lone Star Funds. Start Mortgages has been authorised by the Central Bank of Ireland since November 2008 and will become the servicer of the loans when the transaction completes later this year.
The loan sale was undertaken as part of the Bank’s strategy to reduce the ratio of Non-Performing Loans on the Bank’s balance sheet from c.26% in line with regulatory requirements.
The portfolio contains loans linked to c.10,700 properties. In terms of the make-up of the portfolio by loan type (Variable, Fixed, Tracker), the book broadly reflects the make-up of the Bank’s overall loan book.
The loan sale includes circa 3,300 Buy-To-Let (BTL) properties which are classified as Non-Performing reflecting the Non-Performing Classification guidelines set out by European and Local Regulators. Comprehensive occupancy information on this BTL population is not available.
All loans included in the sale are either Non-Performing or are cross-collateralised/connected to another loan which is Non-Performing, reflecting the Non-Performing Classification guidelines set out by European and Local Regulators. Customers will continue to be afforded the protection of existing regulatory protections after the transfer completes."
