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Tuesday 24 October 2017

Mortgage laws for vulture funds

mortgages

New legislation will be brought in by the end of the year to make companies that buy mortgage books observe consumer protection rules.

Thousands of homeowners have seen their mortgages sold to unregulated funds, losing valuable consumer protections policed by the Central Bank.

Now the Department of Finance is planning to change existing legislation so that any firm that buys a mortgage book will have to apply to be regulated by the Central Bank. It comes after Bank of Ireland confirmed it was selling a tranche of its ICS mortgages to a currently unregulated fund.

More than a half a dozen loan books have been bought out by funds that are not regulated by the Central Bank.

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