Ms Derville Rowland:

In terms of the system, it is a little complicated and is about to change again because of legislation enacted. Loan ownership might rest with an entity but the framework that was put in place was such that credit-servicing firms would deal with consumers because we were at pains to ensure that consumers would always and only interact, in terms of arrears or any other loan issues, with a regulated entity. The Senator might recall a lot of discussion here and elsewhere about the underlying loan owner not actually being subject to regulation. As a result of those discussions, new legislation to provide that the underlying loan owners be subject to regulation was passed recently. That is in transition now so, in the future, all loan owners will be subject to regulation. As it stands, the system in place now is that a consumer deals with a regulated entity. Indeed, the law provides that he or she must do so. In that way, all the protections of the consumer protection code and the code of conduct on mortgage arrears must be complied with and the Central Bank can supervise to make sure it is done properly and that they meet their obligations to the entity. However, once a matter goes to court, it may very well be the case that the owner of legal title would have to be dealt with in the legal proceedings and the loan ownership had previously been resting with the unregulated party or entity so the transfer of title could be at issue. In the new system, as I am sure members are aware, the underlying loan owner will have to be regulated. We are in a transition period right now and loan owners must make an application by 21 April to do so, at which point, that will no longer be the case. It might be something to do with the legal system requiring the title in possession proceedings to be dealt with by the owner.