I am aware of the concerns of borrowers about the sale of the mortgage book as part of the liquidation of IBRC and in particular the concerns in relation to the Code of Conduct on Mortgage Arrears. I have been advised by the Special Liquidators that the third party bidders who are bidding on the residential mortgage portfolios have confirmed that they will be directing that the mortgages are serviced in accordance with the terms of the CCMA. I welcome this voluntary agreement which will ensure that mortgage holders in arrears will continue to be serviced in line with the CCMA and the customers will continue to be protected by the code in the event that these bidders acquire the loan book.
I have been advised that there are a total of 4,175 Private Dwelling House mortgages that are in arrears in IBRC. Of these 78% are co-operating with the Mortgage Arrears Resolution Process (MARP). The Special Liquidators have restructured 38% of these MARP PDH Accounts and 6% are in the final stages of completion. The Special Liquidators are working towards a solution with 42% of these MARP PDH Accounts which, with borrower co-operation, they will endeavour to deal with before the sales process completes. The Special Liquidators do not currently have sufficient information to devise a solution in respect of 14% of these MARP PDH Accounts however further information is being requested from the borrowers with a view to working towards a solution. Any acquirer of the IBRC loan book will be obliged to honor the terms of these restructured agreements entered into by IBRC.
Discussion are continuing between my officials and officials in the Central Bank in relation to the application of the CCMA to entities that are not regulated by the Central Bank of Ireland. The application of the code by unregulated entities is a positive development and is in the best interests of both borrower and lenders. However, as I have previously stated, if it becomes evident that the voluntary application of the code is not delivering the requisite protections for mortgage holders in arrears, I will bring forward the required legislation.
