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THE GOVERNMENT HAS been called on to allow homeowners to buy their IBRC mortgages that are due to be sold.
The call came from Deputy Stephen Donnelly in the Dáil today, who pointed out that in a number of weeks the special liquidator of the IBRC, KPMG, is planning to sell more than 13,000 mortgages on the open market.
The mortgages were originally issued by Irish Nationwide.
Donnelly said he has spoken to families, who have told him they have two concerns about this.
The first is that they are not going to be allowed bid for their own mortgages. The mortgages are to be sold in batches of several thousand at a discount.
Donnelly said that under the current plan, the discount on the mortgages will be “turned into profits for large financial firms rather than benefitting thousands of Irish families as it could”.
He said that the families’ second concern is that when their mortgages are sold, they “are going to be stripped of very important protections” from the Central Bank code of conduct mortgage arrears, and the Financial Ombudsman.
Bid
He said that Finance Minister Michael Noonan has the power to allow families to bid for their own homes at market value.
He asked the minister in October if he would exert that power, but “he refused”, citing advice that it would be more efficient to sell the mortgages in batches, said Donnelly.
Donnelly asked the Taoiseach about the issue, wanting to know if the homeowners in question should be allowed bid for their own mortgage at whatever discount is being offered to firms.
He also asked if Enda Kenny would introduce legislation that will guarantee all mortgage holders in Ireland the same level of protection from the Central Bank code of conduct of mortgage arrears and the Financial Ombudsman.
Responsibility
Taoiseach Enda Kenny said that the special liquidator has responsibility for how the assets of IBRC are sold.
He said that the decision to sell as part of a portfolio is “more efficient” and that interference by the State in these matters could lead to challenges from other creditors in the bank.
He added that the continued applicability of the Central Bank code of conduct of mortgage arrears in respect of IRBC’s residential mortgage protection depends on the regulatory statutes of whoever acquires the portfolio.
Minister Noonan had examined the issue in consultation with the Central Bank, said the Taoiseach. “It is a complex legal issue [that] will require some pretty careful consideration,” he said.
Kenny said that the outcome of the sale process will determine what needs to be done at that point.
Donnelly said that a “wait and see after the contract is signed” approach is not good enough.
“There is no trade-off between getting the best price for a mortgage and helping these families,” he said. “This is potentially a win-win [situation].”
“Would you at least take one more look and see if something can be worked out,” he appealed to the Taoiseach.
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There’s tragedy in life like the death of a child .Things never get back to the way they were. RIP to all those who died. Unimaginable heartache for their families …
Thank you for changing the headline. Those four deaths are equally tragic and all four were in the wrong place at the wrong time. It’s unfair to think the family of the little girl is hurting more than the families of the three men. RIP to all of them.
Hi Theresa, it wasn’t intended for the three men to be ‘treated like they didn’t matter’. They were mentioned in the excerpt just below the original headline.
I know they were aoife but every death is tragic and should be treated equally. You mentioned them but didn’t feel their death was as tragic.
Hi Theresa, it’s incorrect to say I didn’t feel their death was as tragic. They were not in the headline but were in the subheading right under the headline, and also in the first line of the piece.
I understand your concern of course, and did change the headline, but it’s not fair to make an assumption about what I do or do not feel about these men’s deaths.
Why weren’t they in the headline? Can you explain your reason to give them a little mention?
relax Theresa, she has already clarified.
Sounds reminiscent of the incident in Scotland….
Four people died here so I don’t get the focus on one person. Your headline is off side.
Have you got kids Theresa because losing a 4 year old is cruel hence the headline focusing on the loss of the kids life who was really just beginning life, think before you comment would be my advice to you
Those three men might have children who are now without a father. Grief is not just for parents. I personally find the story one sided and the three men just added like they didn’t matter. It’s just how I see it.
Give it a rest will ya. There’s always one person who can manage to be offended by everything
Why are arguing about whose death is more tragic? Have a bit of compassion and think before you type.
RIP to the four people here, I hope and pray the grandmother recovers. My thoughts are with the families left behind :(
Horrific,I remember something similar happening on the long mile road many years ago when a container fell off a lorry.
How desperately sad for the families of the bereaved.
Theresa untwist your knickers
What were the ages of the men?
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