Dáil Éireann Debate, Thursday - 25 April 2024
163. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which any banking regulation currently applies or should apply to mortgage and finance companies offering mortgages and who then sell the mortgages on to third parties without the consultation of the mortgagee; and if he will make a statement on the matter. [18706/24]
Amharc ar fhreagraThere is a robust regulatory framework governing the provision and management of credit agreements provided to consumers. Within the scope of the financial services legislative and regulatory framework, any entity which in involved in the business of providing mortgages to consumers must be regulated by the Central Bank of Ireland as a credit institution or a retail credit firm.
Furthermore, any other entity which carries out credit servicing activities in relation to such agreements or who subsequently holds the legal title to the rights of the creditor under such a mortgage agreement is required to be regulated by the Central Bank of Ireland as a credit servicing firm or as a credit servicer if the agreement is of a type which falls within the scope of the European Union (Credit Servicers and Credit Purchasers) Regulations 2023.
All bank and non-bank regulated entities are required to comply with the relevant financial services regulatory framework including the protections and rights set out in the Central Bank’s Consumer Protection Code 2012 and the Code of Conduct on Mortgage Arrears 2013.
This consumer protection framework provides the same protections and rights to all consumers regardless of the regulated entity they are dealing with and it seeks to ensure that all Central Bank regulated entities are transparent and fair in their dealings with mortgage borrowers and that mortgage borrowers are protected from the beginning to the end of the mortgage life cycle.
