IBRC mortgage payments halted by KPMG appointment

Updated: Tuesday, 12 Feb 2013 17:05

Residential mortgage holders with Irish Bank Resolution Corporation have not had mortgage payments taken from their accounts since a special liquidator was appointed to the bank last week.

RTÉ News understands that IBRC’s sort codes were suspended when the liquidator took over last week.

This means that it has been physically impossible for customers to transfer monthly mortgage payments out of their accounts and into those of the KPMG special liquidator.

The money will still be owed and the mortgage holders will all be written to in due course to tell them what they have to do to make their monthly payments to KPMG.

New mortgage arrangements should be in place within a matter of days.

IBRC was left with €26bn worth of loans after the National Assets Management Agency took loans worth €5m or more off its books.

The current valuation of that loan book is €16bn, which includes loans to Topaz Petrol Stations, to Seán Quinn's Overseas Property Portfolio, Seán Fitzpatrick’s personal loans and the mortgages of thousands of everyday owner-occupiers who had originally taken out home loans with Irish Nationwide.

It will not be known for six months which of these loans will end up on NAMA's books and which will not, as the liquidator can sell off assets during that time.

What is left over then will transfer to NAMA.