For Written Answer on :09/07/2024 Question Number(s): 177Question Reference(s): 29666/24 Department:Finance Asked by: Mattie McGrath T.D. ______________________________________________
QUESTION
To ask the Minister for Finance if he will consider enacting laws to restrict vulture funds’ activities, akin to the UK Parliament’s legislation that prohibits vulture investors from exploiting its courts for their gain; and if he will make a statement on the matter.
REPLY
The activities of non-bank entities are already regulated by the Central Bank in Ireland under the provisions of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 as amended. The legislation ensures that relevant borrowers whose loans are sold to non-bank entities maintain the regulatory protections they had prior to the sale, including the protections provided by the Central Bank’s statutory Codes of Conduct and Consumer Protection Code.
As of 30 December 2023, non-bank entities are also subject to the European Union (Credit Servicers And Credit Purchasers) Regulations 2023 which transposes the EU Credit Servicing Directive into Irish law.
It is a matter for the Courts to determine whether a particular litigation constitutes a malicious abuse of court process.
______________________________________________ For Written Answer on :09/07/2024 Question Number(s): 209Question Reference(s): 29660/24 Department:Finance Asked by: Mattie McGrath T.D. ______________________________________________
QUESTION
To ask the Minister for Finance the number and value of Irish mortgages currently held by non-bank entities; the level of risk analysis his Department has conducted to the significant volume of Irish mortgage debt in the possession of these entities; and if he will make a statement on the matter.
REPLY
The Central Bank of Ireland publishes quarterly statistics on the number and outstanding balance of mortgage accounts in Ireland. They are contained in the publication Residential Mortgage Arrears and Repossessions Statistics. The most recent statistics for the first quarter of 2024 were published on 5 July.
At end March 2024, there were a total of 703,308 principal dwelling house (PDH) mortgage accounts outstanding in Ireland, with a value of just over €101 billion. Non-bank entities held 116,342 PDH mortgage accounts with a value of approximately €19.8 billion.
At end March 2024, there were a total of 61,445 buy-to-let (BTL) mortgage accounts outstanding in Ireland, with a value of just under €9 billion. Non-bank entities held 24,019 BTL mortgage accounts with a value of approximately €5.1 billion.
The activity of non-bank entities in Ireland is regulated by the Central Bank of Ireland under the provisions of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015. As regulated firms, non-bank entities and the relevant credit agreements serviced by these firms are subject to the consumer protection regulatory framework. Thus, the consumer protection framework provides the same protections for borrowers regardless of the regulated entity with whom a consumer is dealing with, be that a bank, retail credit firm (RCF) or credit servicing firm (CSF).
The Central Bank is also responsible for maintaining monetary and financial stability and ensuring the financial system works in the interests of the community. The Bank conducts a regular Financial Stability Review to evaluate the main risks facing the financial system and assesses the resilience of the financial system to those risks. The most recent review was published by the Central Bank in June 2024.
