Mr. Brendan Burgess:

There was some proposed legislation from, I think, Sinn Féin and Fianna Fáil, to give the Central Bank the power to control mortgage rates. The Central Bank often wants to increase mortgage rates so I would not let it have the power to control those rates. If members are minded to do so, they might say that the maximum mortgage rate should be 3% above an institution's incremental borrowing rate, IBR. If an institution wants to charge a higher rate and can justify it, the institution can get the authority of the Central Bank to do so. The Central Bank takes a long time to make an exception. To force it to make an exception the other way, rather than this way, would be one way of doing it. I would not give the Central Bank any more power in that regard.

One of the Central Bank's best powers is its persuasive power. If it turned to the vulture funds and said its reading of the consumer protection code is these funds must treat customers fairly, that they are not doing so and the Central Bank thinks they should, it could put on a lot of pressure. However, I do not think it will do that. I get no sense from the Central Bank that it sees this as an important issue. It talks about it as such but then says, "What can we do? Let the market decide mortgage rates." That is why there may have to be primary legislation outlining that where a mortgage has been sold, the terms and conditions offered by the originator of that loan goes with it. That would be the solution.