Clare Daly (Dublin Fingal, Independent)
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183. To ask the Minister for Finance if those whose mortgages were sold to foreign owned vehicles will now be entitled, as per the code of practice on the transfer of mortgages, to know the length of time the firm has been in business and in operation and the name of the ultimate holding company, with reference to the Fourth Anti-Money Laundering Directive, AMLD4; and if he will make a statement on the matter. [24088/17]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank has advised me that where mortgage credit providers choose to adhere to the Code of Practice on the transfer of mortgages, they may provide borrowers with a range of information relating to a proposal to transfer their mortgages to another lender. Such information could include:

- the name and address of the intended transferee;

- the relationship, between the mortgage lender and the transferee;

- information on the intended transferee's time in operation and experience in managing mortgages, of how rates will be set and of how repayments will be made.

As the referenced 1991 Code of Practice is voluntary, it does not have a legislative basis and is not subject to the Central Bank of Ireland’s administrative sanctions process. 

In contrast, I have been informed by the Central Bank that provision 3.11 of the more recent Consumer Protection Code (the “Code”) dictates what should occur in terms of information to consumers when loans are transferred. This provision states that where a regulated entity transfers all or part of its regulated activities to another regulated entity, a number of requirements arise, one of which is to inform affected consumers.

When a loan book is transferred, the consumer must be informed of this change in ownership as the regulated activity of 'credit servicing' will usually transfer to another credit servicing firm. Where the transferee is an unregulated entity, the Code also requires that the regulated lender also notify the consumer of the regulated entity that will be ‘servicing’ the loan for the unregulated entity.

It is also important to highlight that the transfer of a loan from one entity to another does not change the terms of the contract or the borrower's rights and obligations under the original contract.

Finally, it should be noted that the 4th Anti-Money Laundering Directive (4AMLD) requires Member States to ensure that corporate and other legal entities incorporated within their territory obtain and hold adequate, accurate and current information on their beneficial ownership, including details of the beneficial interests held. It also requires the above mentioned entities to transmit their beneficial ownership information to a central register.

Establishing a central register of beneficial ownership will not alter any practices that mortgage credit providers have voluntarily adopted under the 1991 Code of Practice on the Transfer of Mortgages ("Code of Practice").