Helen McEntee (Meath East, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this issue and also welcome the fact that Deputy McGrath has brought this Bill forward for consideration. I agree with the concept of the Bill but unfortunately I do not believe it offers much more than the agreement that was reached last week. Having said that, it is important that we are debating the issue. This issue was brought to my attention for the first time by a constituent who was understandably worried and shocked when she found out that her mortgage with a regulated entity was going to be sold, possibly, to an entity that is not regulated.

A home is the biggest investment that most people will ever make in their lives. Those who are able to buy or build a home without recourse to a mortgage are the lucky ones but for most people that is not the case and a mortgage is the only option. We are all fully aware of the difficulties many people have been facing in regard to their mortgages in recent years. I am still meeting landowners and home owners who feel they are not being helped. They are struggling and feel they have nowhere to go. In those instances, it is up to us as public representatives to stand up and protect them and to make sure that their rights are not being infringed upon. We must work to ensure that they are being given the best possible opportunity to find a solution and losing their home should be the last resort. It is important to note that because of the negotiations that have happened in the past year, we have seen over 50,000 mortgages restructured, the number of mortgages in arrears has dropped and the number of split mortgages has increased. While nobody is saying this is an easy process, this is good news. I believe the banks need to make a greater contribution and I am still meeting people who have had very negative experiences with banks. Unless one goes to meetings with such people or makes a few phone calls on their behalf, they are being walked on. However, I know the Minister is dealing with this issue.

The recent announcement of the sale of the IBRC mortgage book is another twist to the story that we could do without. However, the Government has listed the sale of loan books to unregulated third parties Bill on the legislative programme. This will address concerns surrounding the continued application of the code of conduct on mortgage arrears in the context of mortgages that are sold to unregulated entities. The 13,000 people who are affected in the short term want to know how that will help me them and why we are not bringing that legislation forward now. I understand what the Minister has said and I accept that it is not as easy as that. Were we to attach additional conditions to the mortgages now, we could face legal challenges that would be difficult to win. Extending the protections of the code of conduct to unregulated entities is complex and requires careful consideration. It cannot be rushed and cannot happen overnight. However, that is not much comfort for those who are affected now. I spoke to a woman earlier today who accused me of having my head in the clouds. She said I was living on a different planet if I thought that these vultures would not hike up interest rates and allow the 13,000 people be hung out to dry. Maybe I am on a different planet but I do not think this will happen. Obviously it is an emotive issue and I do not blame her for getting angry. However, we must be reasonable about this. We cannot start screaming and shouting about something that might never happen. There have been two previous examples where groups of mortgages were sold and the treatment of those mortgage holders was consistent with the code of conduct, on the advice of the Central Bank. The loan book of Bank of Scotland (Ireland) was sold to Apollo Global Management which met representatives of the Central Bank and the Department of Finance. The company indicated clearly that it would adopt the code of conduct. Perhaps my head is in the clouds but I do not see why it should be any different in the case of the IBRC loan book. I do not agree with the hype and scare mongering that has been going on. We should not be using this issue for political gain. However, we are dealing with people's lives and the mortgage holders need a bit more certainty than a voluntary agreement affords them. The Minister has said that whoever purchases the loan books will have to agree to adhere to the code and we all know that an agreement was reached between the special liquidators and the second phase bidders. Having said that, it is only a voluntary, verbal agreement and while I feel a verbal agreement carries some weight, a written agreement would help to put the minds of the 13,000 people affected to rest. We are trying to rebuild the reputation of the banking and financial sector and I believe that is the least they could do to assist in this matter.

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