Stephen Donnelly (Wicklow, Independent)
Link to this: Individually | In context | Oireachtas source

45. To ask the Minister for Finance in respect of the recent sale of mortgages, by Certus/Bank of Scotland, to Tanager, if these mortgages will be covered by the code of conduct on mortgage arrears; if Tanager will be subject to the Government's targets on offering sustainable solutions to mortgage holders in arrears of 90 days or more; and if he will make a statement on the matter. [18177/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Bank of Scotland plc is authorised in the UK and is providing services into Ireland on a cross border basis. The Code of Conduct on Mortgage Arrears (CCMA) applies to the mortgage lending activities of all regulated entities, except credit unions, operating in the State, including, inter alia, a financial services provider authorised, registered or licensed in another EU or EEA Member State and which has provided, or is providing, mortgage lending activities in the State.

Tanager Ltd is not a regulated financial service provider.

In March 2013 the Central Bank published the Mortgage Arrears Resolution Targets (MART) framework, which set out performance targets for mortgage arrears resolution at six Irish mortgage lenders. The six lenders, Allied Irish Banks, Bank of Ireland, Permanent tsb, Ulster Bank, ACC Bank and KBC Bank are required to meet targets at quarterly intervals. The mortgage arrears resolution targets cover both proposed and concluded sustainable solutions, with respect to the lenders 'Republic of Ireland principal dwelling home / primary residence ('PDH') and buy-to-let ('BTL') mortgagees.

The Central Bank has informed me that Tanager Ltd is not one of the six lenders subject to MART.

However, Tanager Ltd has indicated clearly that it intends to voluntarily adopt the Code of Conduct on Mortgage Arrears (CCMA) to manage the acquired loans as it believes following the CCMA is in the best interests of all and forms part of its core strategy.

A number of the purchasers of mortgage loan books are abiding by the Central Bank Code of Conduct on Mortgage Arrears on a voluntary basis. I accept that this is not the same as the consumer having the right to the free service provided by the Financial Services Ombudsman; such a consumer would have recourse to the Courts in the usual manner. However, voluntary adherence to the Code seems to be in the interests of both the consumer and the purchasing entity.

In March 2014 the Government affirmed its commitment to bringing forward legislation to protect consumers whose mortgages are sold to unregulated entities. The Department of Finance recently sent draft heads of the legislation to the Central Bank for its consideration in advance of more detailed engagement with the Attorney General's office. I do not consider it appropriate to discuss the details of these draft heads because we are at a very preliminary stage and the heads have not been cleared from a legal viewpoint. However, I can assure you that we are committed to bringing forward this legislation.