Results 14,341-14,360 of 27,945 for speaker:Michael McGrath
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: A fixed rate product is very different and confers different rights and obligations on the borrower. There will be a loss of flexibility, for example. If the variable rate falls below the fixed rate the borrower cannot avail of same. If he or she wants to make a lump sum payment or move house and switch the mortgage penalties will be incurred. Mr. Sibley's answer is not good enough.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: Yes.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: The Central Bank's 2015 report entitled Influences on Standard Variable Mortgage Pricing in Ireland sets out all of the factors that feed into the rate that is charged to the borrower. Taking all of that into account, is it the view of the Central Bank that variable rate mortgages in Ireland are appropriately priced, in particular the cost of funds, capital and risk of default? I accept that...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: Borrowers who can switch should switch and should shop around in that regard. I strongly support that. Will the Central Bank help borrowers by publishing a code of conduct on mortgage switching, for example, to make that process easier?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: If a bank or a non-regulated loan owner such as a vulture fund is currently charging a customer 4% or 4.5% and it decides to double the charge to 8% or 9% and the customer is not in a position to switch because he or she may be in negative equity or in different financial circumstances and so on, what can the Central Bank do about that? If such a lender decides to charge, say, 10%, does the...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: Is Mr. Sheridan saying that as of today if a vulture fund decided to charge 10% on a mortgage for an existing customer there is nothing the Central Bank can do about it?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: What powers does the bank have to do something about it?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: I am inquiring what powers the bank currently has to deal with that type of situation.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: Is it that the bank's powers are limited or does it have any powers in this regard?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: In regard to the European Central Bank's opinion on the Bill, in regard to which the witnesses made a number of similar arguments in their presentations today, it was interesting to note that the ECB has acknowledged that in a number of member states there are restrictions on interest rates charged in respect of property. For example, in regard to mortgages, there are restrictions in place...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: Does the Central Bank currently have any live licence applications from potential new entrants in the mortgage market in Ireland?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: It is also a tiny market where we have a huge percentage of tracker mortgages and we have those who on variable rates, very many of whom are not in a position to switch because of negative equity and so on, and the amount of new lending is very modest.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: Mr. Sibley mentioned that there have been an engagement but has the Central Bank applications from new entrants to lend in the mortgage market?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: The Central Bank representatives should give a fuller answer and explain that interest rate caps are in place in certain sectors. That should be explained.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: I just have a few questions on the discussion that evolved.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: The discussion evolved, so I avail of that flexibility if I may.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: I ask Mr. Sheridan about the issue of the credit servicing legislation. He wrote to me in August when I raised my concerns on that with him and made it clear in his letter that the preferred approach of the Central Bank was that the loan owners would be regulated. That would be the subject of the legislation. It was a policy decision of Government to go down the route that was travelled in...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: Can Mr. Sheridan give me examples of who they are? They hold 26,000 mortgages. Who are the retail credit firms?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: Some of them would have been sub-prime.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Central Bank of Ireland (8 Dec 2016)
Michael McGrath: They are fully regulated entities.