Banks need to move quickly to sell off mortgages in arrears – Masding
THE head of Permanent TSB has insisted to TDs that lenders need to move quickly to sell off mortgages that are in arrears.
Jeremy Masding told the Oireachtas Finance Committee banks need to sell off their high percentage of non-performing loans quickly.
This was necessary to protect the banking system and the wider community from any downturn in the economy, Mr Masding said.
"The sale of NPLs to third party funds neither dilutes nor weakens the extensive protections which mortgage account holders have when it comes to their loans and their homes. I trust that these interventions will have reassured the public on this issue."
The State-backed bank has come under fire for its decision to launch a €2.2bn loan portfolio sale as it aims to reduce its ratio of NPLs from 26pc at the end of last year towards the euro-area average of around 5pc.
PTSB recently scaled back the sale, known as Project Glas, removing €900m of split or partially restructured mortgages, after coming under political pressure not to sell the home loans of borrowers who had engaged with the lender after falling into arrears.
PTSB continues to "review how we might approach these loans in a way that will meet the objectives of our regulators in respect of non-performing loans," Mr Masding said.
He went on to say that the sale of NPLs to third party funds "neither dilutes nor weakens the extensive protections which mortgage account holders have when it comes to their loans and their homes."
On the matter of PTSB's current financial performance, he described it as "trending positively".
"Our lending volumes are up strongly year-on-year, and our customer deposits remain stable."