IBRC deal on code of conduct with mortgage bidders has no legal standing

Wednesday 26 February 2014 17.09
IBRC's special liquidators before the Oireachtas Finance, Public Expenditure & Reform committee today
IBRC's special liquidators before the Oireachtas Finance, Public Expenditure & Reform committee today

The liquidators of IBRC have said that an agreement with bidders for mortgages to uphold a code of conduct on arrears was not a written deal and had no legal standing. 

They made the admission at the Oireachtas Finance, Public Expenditure and Reform committee today.

The special liquidators are being questioned about the sale of 13,000 home loans originally issued by Irish Nationwide Building Society, which was merged with IBRC. 

Yesterday the liquidators said they had reached agreement with bidders for the mortgages to uphold the code of conduct which protects mortgage holders in arrears. 

However, today liquidator Kieran Wallace said there was no written agreement with bidders. He also agreed the deal had no legal standing. 

But he added "my personal view, however, is they will honour agreement."

He said there were 4,175 mortgages in arrears. He said of those in arrears there were 971 borrowers who were not engaging with the liquidators at all. 

At today's committee meeting, the Department Finance's second secretary Ann Nolan said the Government was considering introducing legislation to cover the sale of all mortgage books to unregulated entities. 

She said the issue was being discussed with the Attorney General's office and the Central Bank. She added the likely time frame would be 2015.