Results 6,781-6,800 of 16,492 for speaker:Ciarán Lynch

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: Before we commence business, I remind members, witnesses and those in the Public Gallery that all mobile phones should be switched off to avoid interference with the broadcasting of the meeting. I welcome the representatives of Permanent TSB to this morning's meeting. We are joined by Mr. Jeremy Masding, group chief executive officer; Mr. Stephen Groarke, head of financial reporting and...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: Yes. Mr. Masding can continue.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: Thank you, Mr. Masding. I propose to take the first group of questions in 15 minute slots and then move on ten minute slots, and I would hope to conclude by 1 p.m. or even earlier than that. I thank Mr. Masding for coming before the committee and for the information he provided to us. I will begin by delving into some of that. It appears that Permanent TSB has probably the highest...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: On the mortgage to rent solution, which was another one of the resolution processes set out in the Keane report, I note there has not been completion of any of those to date. What is the current state of play in that respect?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: While I accept there may be valuation difficulties arising in Dublin at present the bank's loan book is not exclusive to the Dublin area.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: Why has the bank been unable to complete it in other districts?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: This is €180,000 as current value and not purchase price.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: I will move on to assisted voluntary sales. The bank has a proportionately high number of these, as it does for split mortgages. This seems to be out of kilter with what is done by some of the other banks with significant numbers of people involved. To verify the number Mr. O'Sullivan gave us, he stated approximately 1,300 people have been assisted in voluntary sales.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: We raised this issue with Ulster Bank yesterday afternoon. After the disposal of the property this becomes unsecured debt. What is the bank doing with this unsecured debt?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: Has Permanent TSB engaged in the write-down of debt in these circumstances to date?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: In terms of the previous homeowner moving on and getting on with his or her life is the legacy debt left hanging over him or her?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: It is still there.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: I do not hold the view that everything must be similar in every bank, but we are looking at consistency across the board and it seems to be the case, even in privately owned banks, that this debt is written off as part of a structured resolution process.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: The last time the banks came before the committee there was a very strong difference of opinion on stating that writing a legal letter to distressed customers was a resolution process. It might be the commencement of a resolution process to get matters under way, and a legacy debt which is not categorically dealt with or concluded after an assisted voluntary sale or repossession is not a...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: I do not seek a blanket comment. A property could be in positive or negative equity upon its disposal and this will determine whether a sum is outstanding. In situations where a substantive sum of legacy debt exists and a person has surrendered his or her home because of unaffordability, which is the basis on which the banks deal with cases, has Permanent TSB concluded this debt with people...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: Going back to Mr. O'Sullivan's earlier comment, somebody going into an assisted voluntary sale would be more encouraged. I dealt with a case which the Permanent TSB handled quite well. Following a separation a young woman and a child were living in a one-bedroom apartment. This apartment had been bought for €250,000 and is probably worth approximately €80,000 now. This would...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: However if Permanent TSB approaches this process with vagueness at the end of it that will not encourage people to engage in a voluntary sale and the bank will be tied up in court forever.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: I do not expect the witnesses to have these figures to hand this morning, but will they provide an explanation at a later date, if possible, regarding the 2,302 people involved in legal proceedings at present with regard to how many are still not engaging with the bank even though a legal process is under way; how may are responding to the bank through the legal process; and how many were...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: On foot of the more prudential measures issued by the Central Bank in 2009 regarding loan-to-value, LTV, ratios, income ratios and stuff like that, has there been a significant change in the schedule of mortgages? Has it gone back from 35 years to 20 years or 25 years? What LTV does Permanent TSB apply on those loans?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Mortgage Arrears Resolution Process: (Resumed) Permanent TSB and AIB (9 Apr 2014)

Ciarán Lynch: What is the maximum LTV being allowed? Is it 92% or 95%?