Dáil Éireann Debate, Tuesday - 27 March 2018
108. Deputy Joan Burton asked the Minister for Finance the regulations and policies in place to ensure the rental proceeds of buy to let mortgages which are in distress are paid over to the bank which holds the mortgage debt rather than be used for another purpose such as servicing the mortgage of the landlord’s principal private residence; and if he will make a statement on the matter. [13671/18]
Amharc ar fhreagraI have been advised by the Central Bank of Ireland that their Codes of Conduct do not include rules to ensure the rental proceeds of buy to let mortgages which are in distress are paid over to the bank which holds the mortgage debt rather than be used for another purpose such as servicing the mortgage of the landlord’s principal private residence.
The Central Bank’s Code of Conduct on Mortgage Arrears 2013 (the CCMA) applies to the mortgage loan of a borrower which is secured by his/her primary residence. Therefore the CCMA does not apply to Buy To Let mortgages.
However, the arrears handling provisions of the Central Bank’s Consumer Protection Code apply to loans provided to consumers which are not covered by the CCMA, including Buy To Let mortgages of personal consumers. The relevant rules in the Consumer Protection Code cover the following matters:
i. Having written procedures in place for the handling of arrears
ii. Provision of information to consumers in arrears
iii. That the regulated entity must, if requested, deal with a nominated third party of the personal consumer in relation to their arrears
iv. Revised repayment arrangements
v. Communication with consumers in arrears.
