Fianna Fáil Finance Spokesperson Michael McGrath has said the 11,000 former Irish Nationwide customers who have their family home mortgage with IBRC (in Special Liquidation) must have their interests protected when the mortgage book is sold or transferred over the next few weeks.
Deputy McGrath said: “The Special Liquidator of IBRC is under instruction to ensure that the valuation of all IBRC assets was completed by 30 November 2013 and that the sale of all IBRC assets is agreed or completed by no later than 31 December 2013 or as soon as practicable thereafter. The key concern for IBRC family home mortgage holders is that they may lose key protections if the mortgage book is sold to an entity not regulated in Ireland.
“In quite a worrying development, Minister Noonan has confirmed to me in a parliamentary reply that ‘The continued applicability of the Central Bank Code of Conduct on Mortgage Arrears (CCMA) and the Mortgage Arrears Targets Programme will depend on the regulatory status of the ultimate acquirer of the portfolio.’
“Under no circumstances should the IBRC mortgage holders have the protections afforded by the CCMA and the Targets Programme removed from them as part of the sale of the mortgage book. I believe the retention of these protections should be a condition of the sale of the mortgage book.
“In the event that the mortgage book is not sold, it will be transferred to NAMA. This also leads to significant problems as NAMA is not regulated by the Central Bank of Ireland and, again, IBRC customers will lose key protections. If the mortgage book is transferred to NAMA, the Minister for Finance will need to put a mechanism in place to ensure that the mortgage holders no not lose vital protections.”