Dublin South West TD, Seán Crowe, has called on the Minister of Finance, Paschal Donohoe, to come clean and let families know what he intends to do to protect the rights of families whose mortgages have been sold by Irish banks to vulture funds.

The Sinn Fein TD said that the blatant lie that these mortgages were being sold on because they were not engaging with the bank has been truly exposed and the Government needs to act now to stop these reckless sales.

Deputy Seán Crowe said:

“This summer we have heard announcements from PTSB and KBC that they were selling home loans to vulture funds. Ulster Bank has now announced that they too will also sell off about 2,300 owner-occupied home loans, as well as 2,900 buy-to-let mortgages, to the vulture fund Cerberus.

“We must remember that these are not just financial packages that are being sold on but they are the biggest financial commitment of most people’s lives.

“Homeowners who have had their mortgages sold on have rights which must be protected and it is the Government who should ensure that this happens.

“This began with the PTSB’s announcement that it was selling 7,400 family home mortgages to Start Mortgages, a subsidiary of the US vulture fund Lone Star. The State currently holds 75% of shares in PTSB, so this sale clearly happened with the support of the Government and it has emboldened other banks to do the same.

“Since the PTSB announcement my constituency office has received a number of distressed phone calls from PTSB mortgage holders who have been informed that their loan is being sold on to Start Mortgages. They claim they were in debt but actively trying to meet their financial obligations. Now they have told in writing that their mortgages are being sold on to this vulture fund.

“The lie that these mortgages were being sold on because they not engaging with the bank has been exposed as it has now emerged 1,050 fully performing family home mortgages are in the portfolio to be sold to the vulture fund.”

Crowe continued:

“It is quite legitimate for these mortgage holders to want to know what the Minister knew before the proposed sell-off and if he took actions to facilitate this takeover bid.

“The Minister and his Government have been strangely silent up to now, presenting themselves as somehow the helpless silent partner but that position is not tenable. Minister Donohue’s silence, despite the State’s 75% control of PTSB, is unacceptable and shows an implicit acceptance of these reckless sales. It seems that vulture funds are been given free reign by this Government.

“The affected families want to hear from Minister Donohoe and the Government. He needs to come clean and let families know what actions he took when the proposed sale by PTSB of family home mortgages to this vulture fund landed on his desk.

“His silence has contributed to the climate where other banks, like Ulster Bank, can confidently announce that they are selling off sell off owner-occupied home loans to vulture funds.”

ENDS