Brendan Howlin (Wexford, Labour)
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Question 478: To ask the Minister for the Environment, Heritage and Local Government his new criteria in relation to credit policy for local authority housing loans; if his attention has been drawn to the fact that as a result of this new criteria applicants who would previously have qualified are precluded from receiving local authority housing loans; his views on whether this change is conducive to the aims of the local authority housing loans scheme; and if he will make a statement on the matter. [36630/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The Housing (Local Authority Loans) Regulations 2009 provided for the issuing of written guidance in the form of the credit policy for the processing of loan applications and the making of loans by all local authorities. The credit policy, which I introduced with these Regulations, is intended to underpin local authority lending and ensure prudence and consistency in approach.

As part of the new procedures, the Affordable Homes Partnership (AHP) provides a central underwriting and support service to all local authorities. The AHP processes all loan applications, carries out credit checks and issues a recommendation to the local authority on each application in accordance with the credit policy. The final decision to reject or approve a loan application is a matter for each local authority and its credit committee.

In order to minimise risk and to ensure that the processing of loan applications is carried out on the basis of the fullest available information in relation to the financial standing and general credit worthiness of applicants, the credit policy includes a requirement to perform credit checks for each application. Credit checks are carried out using information provided by the Irish Credit Bureau. In addition, judgement checks are carried out using information from the Courts Service. These checks are intended to ensure that local authorities are equipped with the fullest information so that they can avoid unnecessarily risky lending while continuing to lend to low income but credit worthy households.