Results 13,061-13,080 of 16,492 for speaker:Ciarán Lynch

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: The reason I have picked up on the point is that new mortgages seem to be still in that bracket. I wished to clarify those two points. I am concerned that people seeking new mortgages in AIB are being offered 35-year mortgages.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: The Central Bank would not be impressed. It was most emphatic about the matter in 2009.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: A final point relates to mortgage protection and mortgage insurance. What monitoring is available to ensure people are maintaining such insurance for new mortgages?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: Yes, life assurance.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: How many of the bank’s customers with non-distressed mortgages have income protection?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: Okay. It is mandatory to protect mortgage repayments in the Canadian and Dutch models of mortgage lending practice. As a result, neither Canada nor the Netherlands suffered a property bubble. Products were designed by companies such as Genworth to protect 30% of the equity. Because the governments of those countries introduced such a mandatory ruling, they had positive outcomes. From our...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: If PPI were mandatory, as is the case in Canada and the Netherlands - albeit under two different models - would it bring down the cost of the mortgage because of the reduction in the risk factor due to the insurance loading that is placed on top of the mortgage?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: The insurance companies ensured there would be a limit on loan-to-value ratios because they insure the amount of borrowing provided by the bank, which results in a triangulation in terms of monitoring.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: It is coming up to 5.25 p.m., and we are due to finish at 5.30 p.m. I would be grateful if we could finish five minutes early. I have been sitting here since 10 o'clock this morning and my legs are getting a little stiff. I thank Mr. Duffy and his team for attending this afternoon. I believe it is his first time before the Joint Committee on Finance, Public Expenditure and Reform. I am...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: On Mr. Murphy's response to Deputy Dara Murphy's question in respect of mortgages with 40-year schedules, are we talking about new or existing mortgages that have been rescheduled?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: I am surprised to hear that, particularly in the context of new mortgages. In 2009 the Central Bank gave a very clear opinion that it was very much opposed to mortgages with terms of more than 25 years. In the long term advancing such mortgages would give rise to another property bubble because by scheduling over a 35-year period, all one would be doing was facilitating an additional value...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: To clarify, Senator Thomas Byrne is, as I understand it, proposing that a social welfare assessment is the type of assessment the bank should be using. Social welfare benefit is determined within a specific monetary limit. In other words, where one qualifies for a full supplementary welfare allowance or disability allowance, there is a cap on the benefit received. Nowhere in the assessment...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: No, there is not.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: The medical card application form includes a calculation as to whether one has mortgage repayments, rent payments or repayments in respect of a home improvement loan. In respect of the main disability allowance or jobseeker's allowance, however, there is no calculation of debt whatsoever.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: My point is that there is a ceiling on the amount of benefit an applicant can receive. One could have a debt of €10 billion but there is a maximum on how much one will receive.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: The Senator has made his point well. We will now move on to supplementary questions, beginning with Deputy Dara Murphy.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: The Deputy is supposed to be being putting a brief supplementary question, not starting the whole day again.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: The Deputy must also be brief.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: I have been here since 10 a.m. and will be back here at 10.30 tomorrow morning.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Ciarán Lynch: Senator Byrne is next and then I will take some supplementary questions from Deputies Murphy, Mathews and Spring.