Dáil Éireann Debate, Tuesday - 7 November 2017
224. Deputy Pearse Doherty asked the Minister for Finance the number of court cases being taken against State-owned banks and other banks by persons appealing the compensation or redress they have been offered under the tracker examination process; and if he will make a statement on the matter. [46406/17]
Amharc ar fhreagra227. Deputy Thomas P. Broughan asked the Minister for Finance if mortgages affected by the tracker scandal have been sold on to vulture funds; if so, the number of such mortgages that were and are owned by vulture funds; the redress that will be made available to persons affected; and if he will make a statement on the matter. [46411/17]
Amharc ar fhreagra253. Deputy Michael McGrath asked the Minister for Finance the number of persons that fell into arrears on their mortgages as a result of being wrongly denied a tracker mortgage rate or as a result of being on a less favourable tracker rate, by each of the 15 lenders included in the Central Bank's examination of tacker mortgage-related issues, or the aggregate data if details are not available; and if he will make a statement on the matter. [46998/17]
Amharc ar fhreagraI propose to take Questions Nos. 224, 227 and 253 together.
The Tracker Mortgage Examination is the largest, most complex and significant supervisory review that the Central Bank has undertaken to date in the context of its consumer protection mandate, involving a review of more than two million mortgage accounts by lenders.
As per the most recent Central Bank’s status update of 17 October on the tracker mortgage examination (https://www.centralbank.ie/news/article/statement---tracker-mortgage-examination), circa 13,000 affected customers have been identified to date through the Examination, the majority of whom will receive their redress and compensation before the end of the year. Prior to the Examination, the Central Bank ensured a further 7,100 cases involving tracker mortgage issues were rectified and remedied.
The Central Bank also publishes data on the number of PDH and BTL mortgages, and on the arrears position of those mortgages (see latest data attached https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears/residential-mortgage-arrears-and-repossessions-statistics-june-2017.pdf?sfvrsn=7). This data series also provides information on the mortgages which are held by unregulated loan owners. However, the Central Bank advises that as the Tracker Examination is ongoing it is not in a position to provide granular data on the on the number of impacted tracker mortgage accounts in arrears or which have been transferred to unregulated loan owners.
However, it should be noted that the Tracker Framework requires lenders to review all mortgage accounts, including those that have been redeemed, sold or transferred to another entity by the lender, together with mortgage accounts where the customer has lost possession of the secured property for any reason (including by way of voluntary and involuntary sale). In the case of any loans that have been transferred or sold to another entity the Central Bank has taken the approach that the originator of those loans is responsible for their review and the payment of any redress and compensation required as set out by the Framework. The Framework also requires lenders to implement controls and/or measures to ensure that potentially impacted customers do not lose possession of their properties during the period from when the potential relevant issue is identified until the lender satisfies itself that potentially impacted accounts are not in fact impacted by the issue or redress and compensation occurs. Such controls and measures may include, but are not limited to, pausing legal activity and repossessions of properties and informing customers that wish to undertake assisted voluntary surrenders of their properties, of the possibility that they may be included in a redress scheme in the future.
Regarding the number of Court cases initiated against banks arising from the tracker issue, the Central Bank advises that it does not have data on this legal matter. However, it should also be noted that the Tracker Framework provides that redress and compensation is to be paid to impacted customers up front at the point of offer and compensation cannot be reduced by virtue of a customer lodging an appeal.
