Brian Walsh (Galway West, Independent) | Oireachtas source

I thank the gentlemen for their engagement. On the mortgage repossessions issue, most reasonable observers would agree that to have a functioning mortgage market the bank must have entitlement to enforce or realise its security, but I am sure the witnesses would agree that there are many desperate cases that need special attention. They will be aware that the Government will shortly announce initiatives in this regard to support those who are still in mortgage arrears and in negative equity. Have the witnesses had any engagement with the Department of Finance on this? Has it sought any advice or have officials spoken to the witnesses about it? Are there any specific areas they would like Government to examine?

The witnesses mentioned that with regard to voluntary disposals, in most cases they look at the financial status of the borrower and will write off on the basis of what that shows up, and perhaps write off all the residual debt after the sale of the property. Do they engage with borrowers before it comes to that in terms of arriving at what is affordable for them if that meets what the property might achieve on an open market sale, perhaps write down the mortgage at that stage, allow them stay in their home and retain ownership of the property without having to agree to voluntary disposal? Is that something in which they engage?

Deputy Fleming mentioned the bank's write-backs and write-downs. Many of the losses generated in AIB and in the other banks were as a result of losses that crystallised when it had to sell some of its loans to NAMA, but there was significant provisioning as well.

Given the capital appreciation in property prices over recent years, I would have thought AIB would have significantly higher write-backs than €150 million last year out of the total amount written down. How does AIB arrive at a write-back? Is that when a mortgage or property is finally sold and the price realised was higher than AIB expected? Can AIB take a general view of its asset book and state that markets have improved significantly over recent years, the bank probably made too large a provision on its general loan books and take a figure there as opposed to realising individual write-backs when deals are settled?

In terms of AIB's engagement, I am sure other members received correspondence today from a lady in Waterford who is concerned about an agreement she had with the bank which was reneged upon in terms of legal action that is being taken against her. She was distraught when I spoke to her this morning. She asked me to raise that with AIB. Although I do not want to get into the specifics, is Mr. O'Connor available to meet members on specific issues?

Following on Senator Hayden's point on receivership, the conduct of some receivers is an area about which I would be gravely concerned. I wrote to the bank previously about one family in Galway which had fallen out with the bank and where receivers were appointed. I refer to the figures in terms of what is being deducted from rents. This is a buy-to-let situation and there were multiple properties. Gross rents over a two-year period were close to €400,000 but the amount credited back to their accounts was less than €50,000. Therefore, there were significant amounts being reduced. They had made the case to the bank on several occasions that the return to the bank would be much stronger if they were allowed to retain the management of the portfolio of assets. I wrote to the bank about this. I got a rather condescending response, not from the bank but from the bank's legal representatives, suggesting that I should have more interest in a return to the taxpayer than the borrower. In this case, the proposals that were put to the bank would have resulted in a significantly better return for the bank and, ultimately, the taxpayer. Is there an ability for us and these families to meet these bank representatives to engage? Has the bank cases which have come out of receivership where the bank has allowed the individuals to manage the assets? In the case I mention, there is no doubt it would result in a better return for the bank.