Results 11,921-11,940 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: On the prevailing rate issue that applies in both AIB and Permanent TSB, AIB included in its December update an additional 4,000 customers and AIB is proposing that they receive compensation of €1,000 plus €615 towards independent advice. My understanding is that this is a cohort of customers who were never on a tracker rate but were on a fixed rate of interest for a period and...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: Has the Central Bank approved the banks' approach to and conclusion on this issue?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: I will stick with the issue of tracker mortgages as I have a few follow-up questions. I would like to revisit the issue of the prevailing rate, about which a number of members, including me, asked questions. I gave Ms Rowland an extract from a contract during the break, which I do not expect her to have read yet. I have some questions on how the Central Bank approaches this issue. The...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: We heard that earlier. To repeat my question, is it the case that the prevailing rate was generally not defined in the mortgage contract?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: That is, therefore, the case. I will take, by way of example, the contract I shared with the witnesses before the meeting resumed. The extract I provided is from an Allied Irish Banks mortgage contract with one of the 4,000 customers in the category identified by AIB as being within scope. I understand the customer in question will receive the compensation offer of €1,000. I just...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: Yes, but it is the standard contract. It is the contract that I suspect governs a large number of the 4,000 cases AIB has now stated are included in the scoping exercise and in which it is offering €1,000 in compensation.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: I believe Professor Lane is wrong. That is my honest view. When I read through the documentation, I believe it is clear and that he is on very thin ice. He has selectively relied on one clause in the mortgage contract which refers to the prevailing rate. He is shaking his head. Will he, please, hear me out? There is no definition whatsoever of the "prevailing rate". The clause is very...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: It is clear that is Professor Lane's view, but I do not believe it has been pushed as far as possible. This will leave a sting in the tail in the handling of the tracker mortgage issue. Professor Lane has placed a greater priority on a reference to the prevailing rate, which is undefined. Greater priority has been placed on one interpretation of an undefined element of the contract than on...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: It would be very helpful if the Central Bank wrote to the committee setting out its assessment of the prevailing rate issue and the factors it took into account in arriving at the broad conclusion that the approach of the institutions was to interpret the prevailing rate as being that which applied at the time a person came off the fixed rate.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: We will have further engagement. The delegates have been asked this question, but I want to get a clear answer. The Central Bank has not to date found any evidence that there is a corresponding problem in the case of commercial loans. I corresponded with Ms Rowland who responded. I will send on the additional information requested on an individual case. More broadly, the Central Bank...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: I am speaking in broad terms. I do not expect-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: My question is whether the Central Bank has identified any case in which it believes a bank wrongly took a commercial customer off a tracker rate-type loan, typically a Euribor plus loan, and whether there is a wider probe into that issue or if a wider probe is thought to be unnecessary.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: The contract provided for the changes.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: In the delegates' view, no case has been identified in which there was a breach of-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: It is important to be clear because people constantly come to us to make allegations in respect of commercial loans.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: I want to ask about the miscalculation of arrears by Start Mortgages and Tanager. There has been some confirmation in that regard. I am aware of a court case in Northern Ireland and know that both Start Mortgages and Tanager have written to customers about an incorrect calculation of arrears and how interest was treated. Will Professor Lane bring us up to date on where the Central Bank...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: Is Ms Rowland stating that it did not impact on the overall amount outstanding on the loan, including the arrears, but that it may have impacted on the calculation of the monthly repayment?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: When Ms Rowland says regulatory action is being taken what does she mean? Has she identified how many lenders are involved?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Central Bank of Ireland (18 Jan 2018)

Michael McGrath: What is the Central Bank's view in circumstances where these entities have brought repossession proceedings or are before the courts in respect of customers?

Written Answers — Department of Finance: Interest Rates (18 Jan 2018)

Michael McGrath: 51. To ask the Minister for Finance the position regarding the application of interest on a judgment secured by a financial institution against a person or their home; the basis for the rate that is charged; if discretion is involved in the application of the interest; and if he will make a statement on the matter. [2437/18]