Mortgage debt advocate David Hall has predicted that AIB and other Irish banks are facing “the end of the road” in selling distressed mortgage loans, under any new Sinn Féin or Fianna Fáil finance minister.
He cited the work done by Fianna Fáil’s Michael McGrath and Sinn Féin’s Pearse Doherty to regulate banks in recent years.
“If you look at Michael McGrath’s record and Pearse Doherty’s record, they have been very strong and constructive. They have been very debtor-friendly, and have tried to rebalance the imbalance that has always existed between banks, vulture funds, and debtors,” he said.
“You have to see their exceptional record over the last number of years, including Michael McGrath, who brought forward legislation that was passed, which is the 2018 bill for the regulation of vulture funds. And Pearse Doherty had a number of bills, including the No Consent, No Sale bill, that was not successful in the past term in being brought forward,” he added.
The remarks come as AIB appears to continue plans for sales of distressed residential loans. Mr Hall said the legislation promoted by the finance spokespersons “reflect the debtor-friendly nature of the men”.
“They understand the disadvantage customers have when loans are sold to vulture funds instead of banks applying discounts to their customers,” he said.
Some vulture funds were benefiting from discounts by buying mortgage loans at 55% of the face value of the loans, and “customers should get the discount and not the fund”, Mr Hall said.
Banks have been slow to repossess homes but people have been lulled into a false sense of security, he added.