Martin Heydon (Kildare South, Fine Gael)
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23. To ask the Minister for Finance if consideration is being given to a proposal to allow the owners of mortgaged properties bid for the sale of their distressed mortgage at a lower value when the sale of these mortgages is being considered; and if he will make a statement on the matter. [44716/14]

Michael Noonan (Limerick City, Fine Gael)
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The sale of mortgage books is a commercial matter for the entities concerned and neither the Central Bank nor the Department of Finance has a statutory function in relation to these decisions. Relationship Frameworks are in place with the State owned banks which provide that the State will not intervene in the day-to-day operations of the banks or their management decisions. These frameworks are required to ensure that the banks are run on a commercial, cost effective and independent basis to ensure the value of the banks as an asset for the State.

In the case of IBRC (in Special Liquidation), the decision to sell the mortgage loans by way of portfolio sales was arrived at by the Special Liquidators having taken independent advice that the most efficient method of disposal and the one most likely to maximise sales was to sell the loans as part of a larger portfolio. It is important to note that the Special Liquidators are obligated by the conditions set out under the IBRC Act 2013 to ensure that the assets are sold at a price which maximises the overall return for its creditors including the State. Although I can understand that many mortgage owners might be interested in buying their loans, the time, cost and practicalities of this would make this option more costly.  The Government is not in a position to interfere with these decisions as to do so would leave the State open to challenge from other creditors of IBRC where it may be argued that decisions were taken for the benefit of one creditor over another.