A solution must be found for 4,300 mortgage holders with Permanent TSB who have entered into split mortgages arrangements with the bank and now face the prospect of their loan being sold to so called ‘vulture funds’, according to Fianna Fáil Spokesperson on Finance Michael McGrath TD.
Deputy McGrath was responding to a report in today’s The Sunday Times that European banking regulators are set to reaffirm their view that Permanent TSB’s split mortgages should be classed as non-performing loans – increasing pressure on the bank to sell them on.
Deputy McGrath commented, “We know that some 4,300 Permanent TSB mortgage holders are fully honouring the terms of the split mortgage agreement they have entered into with the bank and yet their loans are being lined up for sale in the same basket as loans where no repayment has been made for years. We need a clear explanation as why AIB’s split mortgages are classed as performing loans but Permanent TSB’s are not.
”The Government needs to find a solution to this matter. It is deeply unfair that customers who have followed the advice and entered into a restructuring agreement with their lender are now having their mortgages treated as bad loans and proposed for sale in this manner.
“Permanent TSB, the Central Bank and the Department of Finance need to step up their efforts to resolve this matter. The visit of Danièle Nouy – Chair of the ECB’s Supervisory Board – to Dublin this week will provide an opportunity for the relevant parties to work together to find a solution.
”Meanwhile, I have discussed the Fianna Fáil private members’ bill on the regulation of vulture funds with Minister Paschal Donohoe. The Minister has reassured me that the Government is committed to the passage of the Bill and he has confirmed the Department of Finance is currently working on draft amendments. My party will consider any amendments from any quarter that we believe enhance the Bill. The Bill will move to Committee Stage following the mandatory parliamentary consultation with the ECB which is ongoing.”