Clare Daly (Dublin North, Socialist Party)
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213. To ask the Minister for Finance if he will address the situation of the 13,000 Irish Bank Resolution Corporation mortgage holders whose situation is very vulnerable in view of the fact the loans are being sold; and the steps he will take to ensure that these persons are protected. [9424/14]

Michael Noonan (Limerick City, Fine Gael)
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It is important to highlight that the contractual terms and conditions of all customer mortgages and other borrowings have not changed as a result of the appointment of the Special Liquidators nor will those terms and conditions change as a result of the ultimate sale of these obligations to a third party. Purchasers of mortgage loans will be required to honour the legal terms of the loan agreements. Nonetheless I am fully aware of the concerns raised by the IBRC mortgage holders regarding continued protection under the Central Bank's Code of Conduct on Mortgage Arrears (CCMA) for those mortgage holders following the sale of the loan book by the Special Liquidators.

The Special Liquidators have, following due consideration, decided that the sale of the residential mortgage book in portfolios was the best method available to maximise market interest and returns within the timelines set out in the Ministerial Instructions. It was not possible for me to interfere in the sales process developed by the Special Liquidators to compel them to sell the residential mortgage portfolio to regulated entities as to do so would have had a negative impact on the return achievable by the Special Liquidators. Such action would have left me open to challenge by other creditors of the bank.

I am keenly aware that the potential loss of protection under CCMA is a source of great concern to the mortgage holders of the bank. The continued applicability of CCMA depends on the regulatory status of the ultimate acquirer of the IBRC portfolio which will not be known with certainty until that process is completed next month. However I have instructed my officials to examine the issue fully, in consultation with the Central Bank and the Attorney General's office with a view to bringing forward a solution if required.

While work is ongoing in that respect I also am pleased to note that some unregulated firms have already indicated that they intend to voluntarily adopt the CCMA in order to manage acquired loans as they believe that following CCMA is in the ultimate best interests for both the business and their customers. I fully expect that this would also be the case in the event that the IBRC portfolio was acquired by such organisations.

It is also important to note that in the event that NAMA acquire the IBRC residential mortgage book they will be mindful of their legal obligations and are likely to apply best practice in relation to CCMA, furthermore they have confirmed that no borrower will be in any worse a position.