Pearse Doherty (Donegal, Sinn Fein)
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291. To ask the Minister for Finance further to Parliamentary Question No. 135 of 28 May 2025, to clarify that credit servicing firms, regulated by the Central Bank of Ireland, are allowed to own the legal title without beneficial ownership of the underlying loan related to the mortgage where the beneficial ownership of the loan is not with the original issuer of the mortgage; and if he will make a statement on the matter. [31566/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 provides that, in relation to a relevant credit agreement, any entity which holds the legal title to the rights of the creditor under the agreement, unless it is already regulated by the Central Bank of Ireland in relation to the provision of credit or servicing a credit agreement, must be authorised by the Central Bank as a credit servicing firm.

However, the holding of a beneficial interest in the entitlements of the creditor under such an agreement is not a regulated activity and, unless such an entity is also carrying on a credit servicing activity, it does not fall within the regulatory remit of the Central Bank.