Fears for mortgage holders’ lack of protection

The level of protection that will be provided to mortgage holders whose loans have been transferred to unregulated “vulture funds” has been called into question amid fears that the incorrect body may be regulated.

The concerns raised by Fianna Fáil finance spokesperson, Michael McGrath centre on the Department of Finance’s decision to regulate mortgage servicing firms rather than the financial institution which owns the loan, through proposed consumer protection legislation.

Mr McGrath said that placing the focus on firms servicing the loans rather than the owner of the mortgage could lead to a lesser degree of protection than is required as the so-called vulture funds would retain control of important decisions which affect consumers.