Andrew Doyle T.D. welcomed the voluntary commitment of the bidders for the former Nationwide and Anglo Irish Bank home loans to sign up to the Central Bank Code of Conduct which protects the relationship with mortgage borrowers in arrears.
The announcement was made along with the statement by Minister for Finance, Michael Noonan on the sale of the commercial real estate loan book of the former Anglo-Irish bank worth €7.3 million. These loans are spread across several countries with most of them in the United Kingdom.
Deputy Doyle said “Although most of the mortgages being sold by Dublin’s largest accounting firm KPMG are in commercial real estate, there are about 13,250 residential mortgages of former Irish Nationwide and Anglo-Irish Bank worth €1.8 billion being offered for sale. Each mortgage being sold represents a repayment commitment by 1 or 2 people, often with a family. Half of these mortgages are in arrears. Therefore, thousands of home-owners and their families in Wicklow and Ireland who borrowed money from Nationwide and Anglo Irish bank are caught in a larger financial situation that was not of their making.”
“Many people who contacted me were concerned about the future of their mortgage and their relationship with the new owners of the loans. So the news that the companies bidding for the home loan portfolio have agreed to sign up for the Central Bank Code of Conduct on Mortgage Arrears is very welcome.”
“While the courts provide protection against unscrupulous practice by the mortgage company, the Code of Conduct lays down a clear relationship between the two parties and the mortgage company which is required to ‘Act honestly, fairly and professionally in the best interests of its customers and the integrity of the market,’ according to the Code. This new relationship will require oversight by the Central Bank to ensure fair treatment of mortgage holders by any new companies purchasing the loans,” added Doyle.
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