Dáil Éireann Debate, Tuesday - 28 November 2017
111. Deputy Stephen S. Donnelly asked the Minister for Finance if an analysis has been conducted by his Department of the net financial position of each bank involved in the tracker mortgage scandal, including the benefits to the banks of moving persons to higher interest rates and the costs of the redress schemes; and if he will make a statement on the matter. [50039/17]
Amharc ar fhreagra112. Deputy Stephen S. Donnelly asked the Minister for Finance if his attention has been drawn to any analysis conducted of the net financial position of each bank involved in the recent tracker mortgage scandal, including the benefits to the banks of moving persons to higher interest rates and the costs of the redress schemes; and if he will make a statement on the matter. [50040/17]
Amharc ar fhreagra113. Deputy Stephen S. Donnelly asked the Minister for Finance if he has requested analysis to be conducted regarding the net financial position of each bank involved the recent tracker mortgage scandal, including the benefits to the banks of moving persons to higher interest rates and the costs of the redress schemes; and if he will make a statement on the matter. [50041/17]
Amharc ar fhreagra114. Deputy Stephen S. Donnelly asked the Minister for Finance if he has requested, or will request, of the Central Bank of Ireland, an analysis of the net financial position of each bank involved the recent tracker mortgage scandal, including the benefits to the banks of moving persons to higher interest rates and the costs of the redress schemes; and if he will make a statement on the matter. [50042/17]
Amharc ar fhreagraI propose to take Questions Nos. 111 to 114, inclusive, together.
The Central Bank’s Tracker Mortgage Examination requires all mortgage lenders that provided tracker interest rate mortgages in the Irish market to conduct a complete review of their mortgage loan books to assess compliance with both contractual and regulatory requirements relating to tracker mortgages. Lenders’ reviews were required to be conducted in accordance with the Central Bank’s framework for completion of the Examination (the “Framework”) issued in December 2015. The Framework requires lenders to identify all impacted customers and to address customer detriment in line with the Central Bank’s Principles for Redress. Steps being taken by lenders to address customer detriment identified during the course of the Examination include putting customers on the correct interest rates (rate rectification) in order to stop the immediate harm caused to them and providing redress and compensation.
The Central Bank has provided a number of update reports on the progress of the examination, the most recent of which was last October. While the Central Bank is not in a position, due to confidentiality requirements under Central Bank legislation, to comment on the position of individual regulated entities, it has put aggregated information into the public domain in relation to the Tracker Examination. The latest Central Bank update report indicates that lenders had identified approximately 13,000 impacted accounts as at end September (though it should be noted this figure will increase as the Examination continues to progress) and that €120 million had been provide to impacted customers (in respect of approximately 3,300 accounts) pursuant to the Examination. This is additional to the 7,100 accounts (and the €43 million redress and compensation paid) identified prior to the industry wide examination. Individually lenders report and make provision for the costs they incur, or expect to incur, in respect of tracker mortgage failings to their customers.
The Central Bank’s enforcement work continues in parallel to the Examination. One enforcement investigation has already concluded in relation to Springboard Mortgages
https://www.centralbank.ie/news/article/(29-11-2016)-settlement-agreement-between-the-central-bank-of-ireland-and-springboard-mortgages-limited-trading-as-springboard-mortgages). Other investigations are at varying stages of completion and the Governor of the Central Bank has stated that he expects that all the main banks will be subject to Central Bank enforcement investigations. The Central Bank is prepared to carry out multiple enforcement investigations and the investigations are detailed and forensic. As part of ongoing enforcement investigations, interviews with relevant individuals have been and will be conducted, and large volumes of documentation have been and will continue to be gathered and reviewed.
