Bernard Durkan (Kildare North, Fine Gael)
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68. To ask the Minister for Environment, Community and Local Government the role played by the Irish Credit Bureau in the determination of eligibility for local authority housing loan in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [43860/13]

Jan O'Sullivan (Limerick City, Labour)
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In advancing loans for house purchase by lower income borrowers it is of critical importance that local authorities make such funding available on the basis of sound lending criteria. My Department and individual local authorities have a responsibility to ensure that the borrower can sustain the loan over the full term. Of equal importance, in view of recent developments in the domestic property market, is the imperative for a local authority to ensure that prudence and pragmatism are applied to all aspects of the management of its housing loans book. In a time of limited resources, deploying those resources in a focused and effective manner ensures the management of its loans portfolio can be achieved as efficiently as possible.

The current credit policy has been in effect since 2009. It was deemed appropriate at that time to update the elements associated with local authority lending and to have a homogenous regime in place that ensured best practice was followed across the sector. All applicants are now assessed according to the same criteria, and their applications subjected to the same independent scrutiny. Underwriting of the application by the Irish Credit Bureau is an intrinsic element of that independent scrutiny. This approach represents prudent lending practice , and the current guidelines achieve equitable consideration of all applications. There is anecdotal evidence that loans issued since the introduction of the revised credit policy are more likely to be fully performing. I consider that the current mortgage loan model is fair, adequately meets the needs of prospective borrowers, and facilitates participation in housing acquisition initiatives such as the tenant purchase schemes.