Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

58. To ask the Minister for Finance the number of mortgage accounts identified in each bank as part of the tracker mortgage examination that involve both current or former employees of that bank; the number that have been restored to the correct rate and that have received redress and compensation, in tabular form; if this is included in the examination; and if he will make a statement on the matter. [47550/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Central Bank has advised that, due to statutory confidentiality requirements, the Bank may not publicly disclose much of its supervisory engagement with individual firms. In particular, the Central Bank can, generally speaking, only disclose such information in summary or aggregate form so that individual firms cannot be identified. The Central Bank has to be careful that any public disclosures made by it do not breach its statutory confidentiality requirements, or prejudice any ongoing or possible future supervisory or enforcement actions.

However, the Central Bank has advised that the Tracker Mortgage Examination Framework requires lenders to review all mortgage accounts, including those that have been redeemed, sold or transferred to another entity by the lender, together with mortgage accounts where the customer has lost possession of the secured property for any reason (including by way of voluntary and involuntary sale). Bank staff accounts are included the same as any customer account. 

As per the Central Bank’s status update of 17 October, circa 13,000 affected customers have been identified to date through the Examination. Prior to the examination, the Central Bank ensured a further 7,100 cases involving tracker mortgage issues were rectified and remedied.

In accordance with the Examination Framework, the Central Bank expects that, for all impacted customers, lenders’ redress and compensation offers will restore them to the position they would have been in had the detriment not occurred and that they are appropriately compensated for the detriment suffered.  The Central Bank expects the majority of the 13,000 customers identified to date under the Examination will receive redress and compensation by year-end. Central Bank decisions regarding the groups of customers identified as part of the Examination and disputed by some lenders to date will be issued to lenders by mid-December. 

 As at end-September, €120 million has been paid in redress and compensation to approximately 3,300 impacted borrowers. This is in addition to redress and compensation provided by permanent tsb plc (€36.8 million) and Springboard Mortgages Limited (€6.2 million) to customers pursuant to their Mortgage Redress Programme (MRP), which was required by the Central Bank and predated the Examination. Accordingly from July 2015 to end September 2017 the aggregate figure for redress and compensation to customers arising from the MRP and the Examination is €163 million.