Menu
23/02/2018
Oireachtas Must Urgently Regulate 'Vulture Funds' - FF
The Oireachtas has been called to urgently regulate 'vulture funds'.
Fianna Fáil Spokesperson on Finance Michael McGrath, made the call following a statement from Ulster Bank CEO Gerry Mallon that the bank may sell off up to 7,000 mortgages.
Deputy McGrath said: "The case for full regulation of these vulture funds is compelling. If the fund buys a mortgage, a farm loan or an SME loan, it makes all the crucial decisions about the future of that loan. Despite this, the vulture fund is untouchable, unaccountable and entirely beyond the reach of the Central Bank.
"In a Dáil reply to me this week, Minister Donohoe confirmed the stark reality 'The Central Bank has no jurisdiction over unregulated third parties and therefore has no power to investigate the activities of such entities.' It is imperative this situation is addressed urgently and Fianna Fáil will be pressing the issue in the Dáil next week with our Bill.
"We also believe there is a need to go further. The 2013 Code of Conduct on Mortgage Arrears needs to be reviewed. With 38,000 family home mortgages now owned by non-bank entities, including over 11,000 by unregulated vulture funds, it is time to update the Code.
"For example, there is a need for a definition of what a sustainable mortgage is. In addition, mortgage holders who are fully honouring the terms of a restructuring agreement need greater protection. The fact that vulture funds do not have to offer some of the main restructuring options such as arrears capitalisation, term extension or split mortgage places distressed borrowers whose loans are with them in a perilous position.
"Ulster Bank's handling of the tracker mortgage scandal has been a shambles. The bank has dragged its feet from beginning to end and can still not provide a definitive update for affected customers. Like other banks, it now wants to outsource its dirty work having failed to address its loan arrears levels itself. As banks and vulture funds want to play 'pass the parcel' with mortgages, farm and business loans, it is time the Oireachtas faced up to its responsibilities," concluded McGrath.
(MH)
Fianna Fáil Spokesperson on Finance Michael McGrath, made the call following a statement from Ulster Bank CEO Gerry Mallon that the bank may sell off up to 7,000 mortgages.
Deputy McGrath said: "The case for full regulation of these vulture funds is compelling. If the fund buys a mortgage, a farm loan or an SME loan, it makes all the crucial decisions about the future of that loan. Despite this, the vulture fund is untouchable, unaccountable and entirely beyond the reach of the Central Bank.
"In a Dáil reply to me this week, Minister Donohoe confirmed the stark reality 'The Central Bank has no jurisdiction over unregulated third parties and therefore has no power to investigate the activities of such entities.' It is imperative this situation is addressed urgently and Fianna Fáil will be pressing the issue in the Dáil next week with our Bill.
"We also believe there is a need to go further. The 2013 Code of Conduct on Mortgage Arrears needs to be reviewed. With 38,000 family home mortgages now owned by non-bank entities, including over 11,000 by unregulated vulture funds, it is time to update the Code.
"For example, there is a need for a definition of what a sustainable mortgage is. In addition, mortgage holders who are fully honouring the terms of a restructuring agreement need greater protection. The fact that vulture funds do not have to offer some of the main restructuring options such as arrears capitalisation, term extension or split mortgage places distressed borrowers whose loans are with them in a perilous position.
"Ulster Bank's handling of the tracker mortgage scandal has been a shambles. The bank has dragged its feet from beginning to end and can still not provide a definitive update for affected customers. Like other banks, it now wants to outsource its dirty work having failed to address its loan arrears levels itself. As banks and vulture funds want to play 'pass the parcel' with mortgages, farm and business loans, it is time the Oireachtas faced up to its responsibilities," concluded McGrath.
(MH)
Related Irish News Stories
Click here for the latest headlines.
03 July 2019
Central Bank Urged To Use Its Powers On Unregulated Loan Owners
The Central Bank has been urged to use the powers it has been given by the Oireachtas to regulate previously unregulated loan owners.
Central Bank Urged To Use Its Powers On Unregulated Loan Owners
The Central Bank has been urged to use the powers it has been given by the Oireachtas to regulate previously unregulated loan owners.
05 December 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.
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.
24 March 2015
FF Call On Central Bank To Directly Engage With Mortgage Providers
The Central Bank has been urged to engage directly with mortgage providers in an effort to secure a reduction in the standard variable rate. Making the call Fianna Fáil finance spokesperson Michael McGrath said that "it is clear that there is a wide and growing disparity with existing customers on SVRs very much at the bottom of the pile.
FF Call On Central Bank To Directly Engage With Mortgage Providers
The Central Bank has been urged to engage directly with mortgage providers in an effort to secure a reduction in the standard variable rate. Making the call Fianna Fáil finance spokesperson Michael McGrath said that "it is clear that there is a wide and growing disparity with existing customers on SVRs very much at the bottom of the pile.
23 September 2015
FF Publish Bill To Close Finance Loophole
Fianna Fáil have published a new Bill to address "a major loophole" exposed by a Supreme Court decision.
FF Publish Bill To Close Finance Loophole
Fianna Fáil have published a new Bill to address "a major loophole" exposed by a Supreme Court decision.
21 June 2016
Sale Of Commercial Loans To Unregulated Investors 'Alarming' - FF
The sale of commercial loans on behalf of vulture funds to individual investors has been described as "alarming" by Fianna Fáil finance spokesperson, Michael McGrath. Deputy McGrath said that these investors are not regulated entities and have "no understanding of the underlying business the loan relates to".
Sale Of Commercial Loans To Unregulated Investors 'Alarming' - FF
The sale of commercial loans on behalf of vulture funds to individual investors has been described as "alarming" by Fianna Fáil finance spokesperson, Michael McGrath. Deputy McGrath said that these investors are not regulated entities and have "no understanding of the underlying business the loan relates to".
-
Ireland WeatherToday:Gale, coastal severe gale, northwest winds ease from late afternoon. Scattered showers will fall as snow over the hills at first, becoming isolated from mid-afternoon. Maximum temperature 7 °C.Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Cloud will spread east towards morning. Minimum temperature 2 °C.
