Written answers
Wednesday, 9 July 2014
Department of Finance
IBRC Mortgage Loan Book
Joe Higgins (Dublin West, Socialist Party)
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71. To ask the Minister for Finance if he will report on the present situation of the sale of the Irish Bank Resolution Corporation mortgage loan book; if he will stop the sale of any further performing mortgage loans; and the restrictions he will place on any new owners of these mortgage loans. [30220/14]
Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Special Liquidators that they are in the process of devising and implementing a further sales process in respect of the unsold residential mortgage assets. The Special Liquidators are legally obliged to oversee the liquidation of IBRC for the benefit of all creditors of the bank including the State. As such I am not in a position to interfere in the sales process undertaken by the Special Liquidators as to do so could erode value for the creditors of IBRC including the State and the Irish taxpayer and it could leave me open to legal challenges from other creditors. I have been further advised that the Special Liquidators will be writing in the coming weeks to borrowers with unsold loans to inform them of the further sales process in respect of their loans.
In the sales process recently completed, the Special Liquidators sought and received the agreement of bidders and the ultimate purchasers of IBRC mortgage loans to voluntarily comply with the terms of the CCMA. It would be the intention of the Special Liquidators to seek similar commitments from bidders for mortgage loans in respect of any further loan portfolio sales process.
In addition the Department of Finance is currently preparing the Sale of Loan Books to Unregulated Third Parties Bill. This will address concerns surrounding the continued applicability of the Code of Conduct on Mortgage Arrears after the sale of loan books to unregulated entities. Detailed engagement with the Attorney General's office and the Central Bank on draft legislation has now commenced. The Bill is listed for publication in 2015 however, it is intended that the legislation will be commenced as soon as possible.
Andrew Broderick
Posted on 12 Jul 2014 8:30 am (Report this comment)
The liquidator (even "Special" ones) work for the client, who in this case is The Minister for Finance and must act only on the instructions of the client.
Based on the manner in which the previous sales were carried out and are now being administered, I believe the Minister and his Special Liquidator have questions to answer regarding what appears to be a conflict of interest and possible fraudulent actions by the Special Liquidator.
Why are the home owners loans that were sold still being administered by the Special Liquidator / IBRC and who is paying for the services?
Is it not standard practice that when goods are purchased as part of a liquidation sale it falls to the buyer to take immediate control of the items?
To what extent has KPMG (Special Liquidator) benefited or expects to benefit from the sale of the assets?
Do KPMG (Special Liquidator) expect to provide professional services to the purchasers of IBRC assets?
Has the Special Liquidator / KPMG ever provided the purchasers or any of their associate companies, executives or directors with professional services in the past?
Are the new owners paying IBRC or KPMG to manage their portfolios?
Is the Minister aware that numerous breeches of the Data Protection Act have been reported in regard to the already completed sales?
Does the Minister expect to receive a seat on the board of KPMG or any of its subsidiaries when he retires from office?
Does the Minister ever intend to act in the interests of the homeowners (Irish People) who are now through no fault of their own (but by his hand) are at the mercy of the vulture funds (American Companies) who purchased the assets?