Michael McGrath (Cork South Central, Fianna Fail)
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87. To ask the Minister for Finance his views that the Central Bank of Ireland should review the requirement that a property valuation supplied for the purposes of obtaining a mortgage must not be more than two months old at the time when the loan is being drawn down, on the basis that the vast majority of loan applications take three months to complete; and if he will make a statement on the matter. [12633/15]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Central Bank of Ireland that the basis of the new macro-prudential mortgage lending regulation (S.I. 47 of 2015) is dependent on the value of the property and therefore due consideration must be given to ensure the accuracy of the calculation of the 'Loan-to-Value' of the loan at the date of drawdown. The shorter the time differential between the date of valuation and the date of drawdown will ensure the accuracy of the regulation.

Given that the majority of housing loans are initially sanctioned on an 'approval in principle' basis and that it is possible for a material gap (6-10 months depending on individual banks) between the date the initial valuation is provided and the date of  the loan drawdown, this amendment serves to bring consistency to the industry by seeking that the valuation at drawdown is dated within two months and is reflective of open market value.