Dáil Éireann Debate, Thursday - 26 May 2016
65. Deputy Michael McGrath asked the Minister for Finance the number of banks covered by the Central Bank of Ireland's investigation of tracker mortgages; the number of individual cases; when the investigation will conclude; and if he will make a statement on the matter. [12276/16]
Amharc ar fhreagraI have been informed by the Central Bank that its examination of tracker mortgage related issues covers all lenders which offered tracker mortgages to customers, including both for the family home and investment properties from when the lenders started to offer such mortgages, up to the end of 2015.
The Central Bank's purpose in this examination is to identify any cases where:
- customers' contractual rights under the terms of their mortgage agreements were not fully honoured; and/or
- lenders did not fully comply with the various requirements and standards regarding disclosure and transparency for the customer.
With regard to the number of individual cases, the examination requires lenders to carry out a review in order to identify customers who have been negatively impacted and, where there has been any detriment, to provide redress in line with redress principles determined by the Central Bank. This process is ongoing.
In relation to the time-frame for the examination, the Central Bank has stressed that it is important that each lender carries out a comprehensive and robust review of their mortgage books, which achieves a fair outcome for all customers. While the Central Bank wants to have the examination completed as soon as possible, it also recognises that this is potentially a significant undertaking for lenders and it is important that they are given the necessary time to complete it. The Central Bank expects significant progress to be made by all lenders before the end of 2016 and have assured me that the examination will remain a priority for as long as it takes to address all issues and deliver the right outcomes for customers.
I would also highlight to the Deputy that the Central Bank will be providing public updates through their website throughout the examination and I have been informed that the next update is due to be issued at the end of July.
