Menu
05/12/2017
Flaws In Regulations Leaving Mortgage Holders In Precarious Position - FF
Fianna Fáil has raised concerns over a "serious flaw in the regulations surrounding unregulated loan owners".
The party's Spokesperson on Finance, Michael McGrath, claimed the situation is leaving certain mortgage holders in arrears in a very precarious position.
He said: "These funds have purchased home loans – some of which are distressed – from the banks and are unregulated by the Central Bank. Before the sale of these loan books to vulture funds, Fianna Fáil continually highlighted the fact that if the fund was unregulated they would be free to do what they wanted with the loan.
"We know that many of these funds are here for a quick profit and have no long term objectives in Ireland. Sadly, in many cases, this profit comes at the expense of families and individuals who are in arrears.
"In 2015 the Government enacted legislation that would only regulate an intermediary leaving the loan owner completely free to make the major decisions that affect people's lives. Once again, Fianna Fáil was clear that this law was inadequate and was only a half-baked solution.
"In recent weeks, it has emerged that certain Retail Credit Firms, who are regulated by the Central Bank, miscalculated the amount people were in arrears by. In some cases the figure was out by as much as 500 per cent."
Deputy McGrath said that based on Dáil responses he has received, it appears that if an unregulated loan owner miscalculates the arrears the Central Bank is powerless to do anything about it.
He concluded: "This revelation calls into question the entire regulatory system surrounding Vulture Funds. You would have to ask what other key decisions are beyond the Central Bank's powers.
"It is clear to me that these funds must be regulated like any other bank or non-bank lender operating in Ireland. There are currently nearly 12,000 family home mortgages owned by unregulated loan owners and it is simply unacceptable they should be beyond the reach of Central Bank's regulatory powers."
(MH/LM)
The party's Spokesperson on Finance, Michael McGrath, claimed the situation is leaving certain mortgage holders in arrears in a very precarious position.
He said: "These funds have purchased home loans – some of which are distressed – from the banks and are unregulated by the Central Bank. Before the sale of these loan books to vulture funds, Fianna Fáil continually highlighted the fact that if the fund was unregulated they would be free to do what they wanted with the loan.
"We know that many of these funds are here for a quick profit and have no long term objectives in Ireland. Sadly, in many cases, this profit comes at the expense of families and individuals who are in arrears.
"In 2015 the Government enacted legislation that would only regulate an intermediary leaving the loan owner completely free to make the major decisions that affect people's lives. Once again, Fianna Fáil was clear that this law was inadequate and was only a half-baked solution.
"In recent weeks, it has emerged that certain Retail Credit Firms, who are regulated by the Central Bank, miscalculated the amount people were in arrears by. In some cases the figure was out by as much as 500 per cent."
Deputy McGrath said that based on Dáil responses he has received, it appears that if an unregulated loan owner miscalculates the arrears the Central Bank is powerless to do anything about it.
He concluded: "This revelation calls into question the entire regulatory system surrounding Vulture Funds. You would have to ask what other key decisions are beyond the Central Bank's powers.
"It is clear to me that these funds must be regulated like any other bank or non-bank lender operating in Ireland. There are currently nearly 12,000 family home mortgages owned by unregulated loan owners and it is simply unacceptable they should be beyond the reach of Central Bank's regulatory powers."
(MH/LM)
Related Irish News Stories
Click here for the latest headlines.
30 August 2011
Banks Have Funds For 'Debt Forgiveness'
Irish banks have enough money for so-called debt forgiveness. The Finance Minister, Michael Noonan, has insisted that the capital is in the banks to allow the write off of some residential mortgage loans, following the recapitalisation of the nationalised banks in July of this year.
Banks Have Funds For 'Debt Forgiveness'
Irish banks have enough money for so-called debt forgiveness. The Finance Minister, Michael Noonan, has insisted that the capital is in the banks to allow the write off of some residential mortgage loans, following the recapitalisation of the nationalised banks in July of this year.
09 September 2011
€7.5bn Available To Exchequer
Imposing losses on junior bondholders in Irish banks has saved €7.5bn, it has been revealed. Speaking before the Joint Oireachtas Committee,John Corrigan, the head of the Nation Treasury Management Agency (NTMA), said the funds can now be re-diverted towards helping to run the country until 2013.
€7.5bn Available To Exchequer
Imposing losses on junior bondholders in Irish banks has saved €7.5bn, it has been revealed. Speaking before the Joint Oireachtas Committee,John Corrigan, the head of the Nation Treasury Management Agency (NTMA), said the funds can now be re-diverted towards helping to run the country until 2013.
30 September 2008
Irish Banks Get Government Lifeline
Customers of Irish banks are now having their cash 'covered' after a surprise move from the Irish government late yesterday that it will "guarantee all deposits". The high-risk move had an almost immediate positive impact on early trading today, with the ISEQ index of Irish shares opening 3.4% higher, at 3,412 points.
Irish Banks Get Government Lifeline
Customers of Irish banks are now having their cash 'covered' after a surprise move from the Irish government late yesterday that it will "guarantee all deposits". The high-risk move had an almost immediate positive impact on early trading today, with the ISEQ index of Irish shares opening 3.4% higher, at 3,412 points.
14 March 2024
Ministers Praise Critical Work Of Ireland Funds
The First Minister and deputy First Minister have praised the work of Ireland Funds, highlighting its critical role in promoting and supporting peace. Michelle O'Neill and Emma Little-Pengelly, speaking at the Ireland Funds Gala in Washington, welcomed the positive and real impact made across society by the philanthropic body.
Ministers Praise Critical Work Of Ireland Funds
The First Minister and deputy First Minister have praised the work of Ireland Funds, highlighting its critical role in promoting and supporting peace. Michelle O'Neill and Emma Little-Pengelly, speaking at the Ireland Funds Gala in Washington, welcomed the positive and real impact made across society by the philanthropic body.
05 November 2015
Call For Govt To Develop Alternative Housing System
Sinn Fein Senator Kathryn Reilly is supporting a call for the Irish Government to develop a housing system which is not reliant on the private for profit sector. Senator Reilly said policy on housing has resulted in a "deepening and worsening" crisis over the last four years, with a "chronic lack" of social and 'affordable' homes.
Call For Govt To Develop Alternative Housing System
Sinn Fein Senator Kathryn Reilly is supporting a call for the Irish Government to develop a housing system which is not reliant on the private for profit sector. Senator Reilly said policy on housing has resulted in a "deepening and worsening" crisis over the last four years, with a "chronic lack" of social and 'affordable' homes.
-
Ireland WeatherThis Evening and Tonight:West to northwest gale force winds, severe along the north coast, will continue overnight. Frequent showers persist, merging into longer periods of rain at times and turning wintry. Minimum temperature 1 °C.
