Seán Haughey (Dublin Bay North, Fianna Fail)
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192. To ask the Minister for Finance his views regarding the sale of mortgages by a bank (details supplied) to a so-called vulture fund; if he can intervene to prevent such sales by credit institutions in Ireland; if he will introduce measures to allow borrowers switch their loans to State-backed initiatives such as a local authority or the rebuilding Ireland home loan scheme; if he will make it easier for borrowers to switch back to the pillar banks; if he will encourage these pillar banks to buy performing mortgages that have been sold to lenders by vulture funds; and if he will make a statement on the matter. [31825/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The sale of the benefits and rights a bank or other creditor may have under a credit agreement is a commercial matter for the particular creditor and, as Minister for Finance, I do not have a role to play in such commercial decisions by banks or other creditors.

However, it should be note that any such sale or assignment of a creditor's rights does not change the terms and conditions of the credit agreement and that any creditor which acquires such benefits and rights will do so based on the existing contractual terms and rights of the borrower.

Also, having regard to the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015, the regulatory consumer protections which a borrower had prior to such a sale, such as those set out in the Central Bank Consumer Protection Code and the Code of Conduct on Mortgage Arrears, will continue to apply and will remain available to the borrower following the sale.

In relation to the switching or refinancing of existing loans, I would encourage borrowers to consider the options available to them to secure savings on their loan repayments. In my engagement with banks and other regulated mortgage lenders I have indicated that they should be available to consider switching applications from credit worthy borrowers.

The Central Bank is also engaged on this matter and it advises that it is scrutinising the activities of regulated firms to ensure those borrowers who should expect to be able to switch product or provider are supported to do so if they so wish and that regulated entities have sufficient operational capacity to manage mortgage switching applications.

However, the decision on whether or not to provide new credit or to acquire a creditor's rights and benefits under an existing credit agreement is a commercial matter for an individual financial institution.

In relation to the provision of mortgages by local authorities, the eligibility and other criteria associated with such lending is, in the first instance, a matter for our colleague the Minister for Housing, Local Government and Heritage.