Peadar Tóibín (Meath West, Aontú)
Link to this: Individually | In context | Oireachtas source

280. To ask the Minister for Finance if he will assist those whose mortgages have been sold by their banks to vulture funds in accessing fixed rates from the new owners of these mortgages (details supplied). [51462/22]

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

Decisions in relation to mortgage lending and the management of existing loans, including the particular type of mortgage product offered to existing or new borrowers, are commercial matters for individual mortgage creditors. Neither I nor the Central Bank have a role in setting the rates that mortgage creditors charge on their loans or in relation to the particular mortgage products that they provide to borrowers.

In relation to the regulatory aspects of the provision and operation of mortgage contracts, the Central Bank has put in place a range of measures in order to protect consumers who are taking out a mortgage under its Consumer Protection Framework and which seeks to ensure that lenders are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle, for example, through protections at a time when borrowers may find themselves in financial difficulties. The requirements put in place by the Central Bank complement the European legislative framework, including the European Union (Consumer Mortgage Credit Agreements) Regulations 2016.

Where a loan is sold or transferred to another regulated entity, the regulatory protections that were available to borrowers prior to the transaction continue to be in place with the new owner. It is worth noting that under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 if a loan is transferred or sold, the holder of the legal title to the credit must be regulated and must act in accordance with Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers whose loans are sold or transferred maintain the same regulatory protections that they had, including under the various Central Bank statutory Codes of Conduct, such as the Consumer Protection Code 2012 and the Code of Conduct on Mortgage Arrears 2013.

The Central Bank has also stated that it expects all regulated entities to take a consumer-focused approach in respect of any decision that affects their customers (existing and new) and communicate clearly, effectively, and in a timely manner with all customers.