Wednesday, 28 February 2018

Ceisteanna (84)

Michael Fitzmaurice


84. Deputy Michael Fitzmaurice asked the Minister for Finance if the split mortgage agreements and restructure agreements in relation to the proposed sale of loans by a bank (details supplied) some of which stretch 15 to 20 years will be honoured by the purchaser or equity fund; and if he will make a statement on the matter. [10338/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

At the outset I should emphasize at this stage that no loan has been sold yet and it won’t be known how many loans will be sold for a number of months, nor the composition of these loans. In addition, it is not known to whom the loans will be sold. However, I want and expect PTSB to be transparent with their customers when it comes to this sale process as it evolves.

It is important to highlight that there are no changes to the rights or obligations of a customer whose loan is sold by a bank. All terms and conditions attached to their mortgage contract remain in place. In addition, as credit servicing firms servicing loans on behalf of unregulated entities are required to comply with the Code of Conduct on Mortgage Arrears (CCMA), all protections under the CCMA are unchanged. The customer is in the exact same position as they were before their loan was sold. In relation specifically to restructured loans, including splits, any purchaser will be obliged to honour the terms of the restructure agreement, should such loans be included in the final sale.

It is also clear that these restructured loans, where customers are meeting the terms of the revised contract, fall into a very different category than the others. These customers are in a much stronger position in every sense and hence the interested buyer of these restructured loans could be very different as a result.

Finally, I would reiterate that I am prepared to engage with Deputies from other parties in an effort to see if we can strengthen and enhance the protections that are already in place for mortgage holders in a sensible manner.