A mortgage resolution organisation has labelled a Central Bank report on vulture funds a “masterclass in spin.”

The report from the Central Bank claims the controversial funds make more effort to engage with people in mortgage arrears than banks do.

The Cabinet is this afternoon considering the report – details of which were published in the Irish Times this morning.

The report found “no evidence” that vulture funds were failing to engage with borrowers in arrears – and said there was no difference in the number of repossession launched by vulture funds and traditional banks.

Bull . Writing letters and calling is not solutions!!! Vulture funds engage more with borrowers in arrears than banks - report
via The Irish Timeshttps://t.co/cYnnn1sGO1

— David Hall (@davidhall75) November 13, 2018

Masterclass in spin

Speaking this morning however, David Hall, founder of the Irish Mortgage Holders Organisation rejected the report.

“Vulture funds are vultures and they pick on the carcasses of debtors,” he said.

“This report today is a masterclass in spin from the Central Bank which blatantly ignores the key component of this – which is, how many solutions do vulture funds offer?”

He said the five main lenders in Ireland have collectively completed 116,000 mortgage restructures.

“I can categorically tell you, having been dealing with vulture funds and banks for the last number of years that vulture funds are ten times worse than any bank would ever be,” he said.

“If you want to stay in your family home and you can’t afford to restructure your home, you are highly likely to lose your home with a vulture fund.”

Vulture funds

The Finance Minister Paschal Donohoe ordered the vulture fund review following controversy over the sale of 18,000 mortgages by Permanent TSB.

It recommends no change to the code of conduct on mortgage arrears.

Under current laws funds that purchase the loan portfolios are not required to follow Central Bank regulations – although they are obliged to employ an agent that is.

Regulation

In February, the Government agreed to support a Fianna Fáil bill calling for increased regulation of the funds – although Minister Donohoe said it needed significant re-drafting to be effective.

This afternoon, Fianna Fáil housing spokesman Darragh O’Brien said there is some evidence of vulture funds being easier to deal with – but warned too many people are still at the mercy of banks and funds.

The report will be published by the Department of Finance later this afternoon.