Tipperary TD, Jackie Cahill has said he is deeply unhappy with the current situation that allows vulture fund owners bypass the need for Central Bank of Ireland regulation through the use of a ‘Credit Servicing Agency.’
“The upshot of the current legislation is that vulture fund owners, who own many distressed mortgages in Ireland, will still be in a position to make strategic business decisions that could negatively affect home owners, without being regulated by the Central Bank themselves.
Deputy Cahill was commenting following confirmation from the Minister for Finance, Michael Noonan, that vulture fund owners can bypass regulation through the use of Credit Servicing Agencies.
“These agencies are, in fact, fronts for the vulture fund owners, ticking the legislative box, but in no way providing a quality regulatory framework by which mortgage holders are protected.
“Across the country, over 5,700 home owners are in arrears on their mortgages held by unregulated loan owners, mainly vulture funds.
“In Co. Tipperary alone, there are hundreds of home owners at the mercy of vulture funds. The risk of home repossession is very real for them, and they need to know that the Government has their best interests in mind.
“The current situation clearly doesn’t have the interests of the mortgage holders at its core. It’s too easy for the vulture funds to side step proper regulation.
“Fianna Fáil has been absolutely clear on this issue. Both the Credit Servicing Agency and the vulture fund that owns the mortgage loan should be regulated by the Central Bank of Ireland.
“All activities undertaken by both entities should be covered by the Code of Conduct on Mortgage Arrears. This needs to be accepted by the Government, and I hope he will look favourably on the soon to be published Fianna Fáil legislation,” concluded Cahill.