Department of Finance
IBRC Mortgage Loan Book
Séamus Healy (Tipperary South, Independent)
To ask the Minister for Finance the fraction of the book value that was paid recently by Lone Star and Oakland Capital for the non-performing loans which had been originally drawn down from Irish Nationwide Building Society; the status of the assurance by Lone Star and Oakland Capital that they will comply with Central Bank of Ireland guidelines in dealing with mortgage debt; the entity this assurance has been given; if it is a written assurance; if the assurance is legally binding on Lone Star and Oakland Capital; if he will urgently bring forward legislation to protect these mortgage holders from arbitrary mortgage increases and repossessions; and if he will make a statement on the matter. [16577/14]
Michael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
I have been informed by the Special Liquidators that they will not be providing information relating to amounts paid for portfolios by third parties as this is commercially sensitive information.
As the third parties are not regulated entities they are not required to comply with the Central Bank of Ireland Code of Conduct on Mortgage Arrears (CCMA). However he two purchasers of the residential mortgage loans, Loan Star and Oaktree, have both voluntarily committed to servicing these books in accordance with the terms of the CCMA.
The Government has always been clear that we would ensure mortgage holders maintained the protection of the CCMA. The Department’s Legislative Programme includes the Sale of Loan Books to Unregulated Third Parties Bill, which will address concerns surrounding the continued applicability of the CCMA after loan books are sold to unregulated entities.
In preparation for this legislation, my officials have been considering how best to ensure that the protections under the CCMA and other Codes continue to apply when a loan book is sold to an unregulated entity. Progress is being made and draft heads of legislation have been sent to the Central Bank for their consideration in advance of more detailed engagement with the Attorney General s office.
It is important to highlight that the contractual terms and conditions of all customer mortgages and other borrowings of Irish Bank Resolution Corporation have not changed as a result of the appointment of the Special Liquidators nor will those terms and conditions change as a result of the sale of these obligations to a third party. Purchasers of mortgage loans will be obliged to honour the legal terms of the loan agreements.