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Doherty welcomes removal of split mortgages from PTSB loan sale

16 May, 2018 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has welcomed the removal of 4,000 split mortgages from the sale by PTSB of thousands of its loans. He said it was proof that political pressure can bring about better results for mortgage holders but that serious questions remained about how Permanent TSB’s split mortgages fell afoul of the ECB rules, while those of other banks didn’t.

Deputy Doherty said:

“I am glad to see these 4,000 split mortgages removed. I reiterate my opposition to the sales process in totality especially the sale of any family homes to vultures. Political pressure has seen 4,000 removed, the rest should also be taken off the market and treated by the bank.

“Matt Carthy MEP and I will continue to question the ECB on its approach but it is clear to me that the root of this problem was Permanent TSB’s own split mortgage product design. Unlike AIB's product the ECB found fault with the Permanent TSB product deciding it should effectively count as a non-performing loan.

“My parliamentary questions about who provided technical or legal advice to PTSB on this product have been met with a wall of silence. That is unacceptable. Once again accountability seems out of reach.” 

Note: Please see the correspondence in relation to the split mortgages below

Pearse Doherty (Donegal, Sinn Fein)
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264. To ask the Minister for Finance if a bank (details supplied) received legal advice or technical assistance in the development of its split mortgage product; if so, the details of the advisers and fees paid; and if he will make a statement on the matter. [16119/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Officials in the Department of Finance referred the Deputy’s question to PTSB and received the following response in this regard:

“Permanent TSB has a requirement for legal/technical support and advice on an on-going basis across different parts of its business. It manages some of this requirement through its in-house capabilities, as well as engaging external legal and technical advice where necessary. Except where required by law or regulation, and in line with how it manages its relationships with its other third-party advisors, the bank does not disclose the identity of such firms or individuals engaged to work with the bank on specific issues or the terms of such work as this information is deemed commercially sensitive.”

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