Michael McGrath (Cork South Central, Fianna Fail)
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55. To ask the Minister for Finance the total number of both buy-to-let and residential mortgages that have been sold to unregulated entities since 2010; the institutions who sold and to whom they were sold; the current rate of arrears on these mortgages; and if he will make a statement on the matter. [9875/14]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank has informed me that it cannot comment on commercial decisions of lenders or on the agreements entered into by regulated firms and it does not have data on the total number of both buy to let and residential mortgages that have been sold to unregulated entities since 2010 or the rate of arrears on these mortgages. However, information from company announcements in the public domain would suggest that some 5,500 residential mortgages in total have been sold in 2012/2013. As the Deputy is aware, by virtue of an exemption in Part V of the Central Bank Act 1997, an unregulated entity to whom a cash loan is transferred by a regulated entity is not subject to Central Bank supervision.

The Central Bank expressed its concerns that the consumer protections available to mortgage holders under the statutory Codes could be impacted by the sale of mortgage books to unregulated firms. My Department is working closely with the Central Bank on the issue. The Central Bank has also communicated to firms its preference that the outcome of any sale of mortgage books by regulated entities would ensure continuity of borrower protections under Codes and also that the purchaser would have relevant policies and procedures, systems and control checks to appropriately manage a mortgage loan book.