Neasa Hourigan
Question:229. Deputy Neasa Hourigan asked the Minister for Finance if he plans to impose conditions on the transfer of residential mortgages; and if he will make a statement on the matter. [10538/21]
View answerWednesday, 24 February 2021
Questions (229)
Written answers
There is a significant consumer protection framework in place to protect residential mortgage borrowers and to deal specifically with the maintenance of these protections in the event of a loan transfer.
Where a loan is sold or transferred to another regulated entity, the consumer protections that were available to borrowers prior to the transaction continue to be in place with the new owner. Also, the legal rights and terms and conditions of a customer’s mortgage agreement remain in place following a loan sale/transfer.
Under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 if a loan is transferred or sold, the holder of the legal title to the credit must be authorised by the Central Bank and must comply with Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers whose loans are sold or transferred, maintain the same regulatory protections, including under the various Central Bank statutory Codes of Conduct, such as the Consumer Protection Code 2012 (CPC) and the Code of Conduct on Mortgage Arrears 2013 (CCMA).
The Deputy may also wish to note that Provision 3.11 of the CPC requires that, where a regulated entity intends to cease operating, merge with another, or to transfer all or part of its regulated activities to another regulated entity, it must:
- notify the Central Bank immediately
- provide affected consumers with at least 2 months’ notice to enable them make alternative arrangements if they so wish,
- ensure all outstanding business is properly completed prior to any transfer, merger or cessation of operations. Alternatively in the case of a transfer or merger, inform the consumer of how continuity of service will be provided following a transfer or merger and inform the consumer that their details will be transferred to the other regulated entity, if that is the case.
Question No. 230 answered with Question No. 157.