Results 8,781-8,800 of 27,945 for speaker:Michael McGrath
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: With regard to the mortgages in arrears, the bank has provided us with a lot of data and details of the restructuring arrangements it enters into. Earlier in private session, the committee agreed to write to all the lenders to clarify their policies in respect of the application of legal fees to mortgage accounts in arrears. Prior to a repossession order being secured, where a threatening...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: The legal fees incurred are applied to the borrower's mortgage account while the legal proceedings are ongoing.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: Is this for every legal letter issuing? Is it just where there is a court appearance? Will Mr. Mahon talk us through it?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: Is the basis for doing this set out in the loan documentation? Is it provided for in the code of conduct or the mortgage arrears resolution process? Where is the basis that allows the bank to do this?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: Is that aspect of the relationship regulated? To Mr. Mahon's knowledge, does the Central Bank have a view on it? Has it issued guidance on what is allowable? Is there a limit on the amount of legal fees that can be applied? Where I am going with this is if a borrower is co-operating and paying what he or she can and is trying to negotiate a restructuring arrangement but continues to...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: Yes.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: Okay.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: As such, the bank has two tests. These are that there is non-engagement, which, presumably, translates into no payment being made on the mortgage, and that it must be part of the legal process, which, presumably, has gone to court.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: Mr. Mahon's understanding is that the application of such legal fees provided for in the loan contract does not in any way contravene a Central Bank code or rule or any provision of the mortgage arrears resolution process.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: That is the bank's understanding.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: As stated , I tabled questions in the Dáil and the response from the Central Bank was to the effect that it was examining whether the application of legal fees was in compliance with the mortgage arrears resolution process. We will see where that leads. Given that the mortgage and housing markets are central to the bank's business model, do our guests have any observations on the...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: The Vice Chairman has covered the issue of the number of borrowers on the standard variable rate, which is quite high. That is just my observation. In the context of question No. 9, the total number of mortgage sub-accounts is 32,680 out of 79,301, which is 41% of the book in account number terms. Did KBC split out the number of those loans that have the discount?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: That has been provided. Did our guests clarify which of those loans have a loan-to-value, LTV, ratio of above 90%? Is there any opportunity for those customers to reduce their rate? Was this dealt with earlier?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: That is only 2%.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: Or even with 90% to 100% LTVs.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: For those with an LTV ratio of-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: -----of greater than 90%, the best the KBC can do for them is a fixed rate of 3.7%.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: Does that include the-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: That is the 0.2% discount.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector (Resumed): KBC Bank (21 May 2019)
Michael McGrath: That brings it to 3.7% or 3.9%.