Catherine Murphy (Kildare North, Independent)
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Question 545: To ask the Minister for the Environment, Heritage and Local Government if common arrangements exist between local authorities in the area of mortgage protection or if they are free to make individual arrangements with insurance companies; if the arrangements also cover or are intended to cover the rental portion of the shared ownership loans; if there is direct involvement by his Department in nominating the insurance company; and if he will make a statement on the matter. [6067/07]

Noel Ahern (Dublin North West, Fianna Fail)
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The Mortgage Protection Scheme for local authority loans is common to local authorities and has applied to all house purchase loans approved by authorities on or after 1 July 1986. One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. The appointment of the insurance company and the terms of the scheme were negotiated by the Mortgage Protection Committee, which is a sub-committee of the County and City Managers' Association (CCMA). The Committee is representative of the CCMA, the Housing Finance Agency and a representative of my Department.

Under the existing mortgage protection arrangements, the purchased equity of a shared ownership transaction is covered for mortgage protection insurance purposes. The feasibility of extending cover to the rental portion is being examined by the scheme administrator in conjunction with the underwriter and the matter is due to be considered by the Mortgage Protection Committee when this examination has been completed.