Dáil Éireann Debate, Thursday - 4 April 2019
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Mortgage Book Sales
66. Deputy Michael McGrath asked the Minister for Finance if the Central Bank has been consulted regarding the intention of a bank (details supplied) to securitise mortgage loans; and if he will make a statement on the matter. [15951/19]
Amharc ar fhreagraThe Central Bank of Ireland has advised that it cannot comment on specific transactions relating to regulated firms. In addition, the Central has commented as follows:
“While the strategy and commercial decisions of lenders are ultimately matters for the boards of those lenders, the Central Bank, as supervisor, requires that when loans are sold, all statutory legal protections are met. This includes ensuring the terms of existing restructuring arrangements are honoured.
“Where a loan is securitised or sold, that loan must be serviced by a bank, retail credit firm (RCF) or credit servicing firm (CSF) authorised and regulated by the Central Bank. This ensures the protections available to the borrower remain with the loan in all cases, regardless of whether the borrower has an alternative repayment arrangement in place or not. This can be achieved through re-engaging with borrowers; restructures; accounting write-downs; mortgage to rent; engaging through the Insolvency Service; sales and securitisations; and the legal process.”
