Noel Grealish (Galway West, Independent)
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117. To ask the Minister for Finance if Irish regulated banks have indemnity bonds on loans for principal private residences and/or buy-to-let properties which are paid by the banks themselves or the customers; if his attention has been drawn to the extent of these bonds which can lead to banking losses being distorted; if he will outline the processes to be followed in order for the banks to make a claim; and if he will make a statement on the matter. [19647/14]

Michael Noonan (Limerick City, Fine Gael)
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Mortgage Indemnity Insurance, also known as Mortgage Indemnity Guarantee, acts as a form of additional security for the mortgage lender in the event of default by the mortgage holder. While either the lender or borrower can be responsible for paying the premia, it is the lender alone who will receive the proceeds of any claim. The borrower will still retain the legal responsibility to pay the mortgage shortfall, where such arises, whether mortgage indemnity insurance is in place or not. It is a commercial matter for lenders to decide whether or not to avail of such insurance. I have asked the state supported banks for information on this and I will send this information to the Deputy as soon as it is to hand.