Written answers
Tuesday, 26 September 2023
Department of Finance
Defective Building Materials
Joe McHugh (Donegal, Fine Gael)
Link to this: Individually | In context | Oireachtas source
192. To ask the Minister for Finance to confirm that the Central Bank was kept abreast of the previous Mica redress scheme (Statutory Instrument - €2.3 billion) and the current Mica redress scheme (legislative - €3 billion) at all times; whether he will confirm that if, once the remedial option, as prescribed by the Housing Agency, is agreed, all remediated homes will be fully mortgageable; and if he will make a statement on the matter. [41559/23]
Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source
The various statutory instruments in relation to dwellings damaged by the use of defective concrete blocks were put in place by the Minister for Housing, Local Government and Heritage, where necessary with the consent of the Minister for Public Expenditure, NDP Delivery and Reform.
In relation to the valuation of property for residential mortgage lending purposes by Central Bank regulated entities, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 provides that lenders are required to use reliable standards when carrying out a property valuation of a residential immovable property for credit purposes.
Such as those developed by the International Valuation Standards Council, the European Group of Valuers’ Associations or the Royal Institution of Chartered Surveyors. Or take reasonable steps to ensure that reliable standards are applied where a valuation is conducted by a third party.
The Regulations also require lenders to ensure that internal and external appraisers conducting property valuations are professionally competent and sufficiently independent from the credit underwriting process so that they can provide an impartial and objective valuation, which shall be documented in a durable medium and of which a record shall be kept by the creditor.
In addition, the Central Bank mortgage lending regulations apply certain loan-to-value (and loan-to-income) requirements on residential mortgage lending by regulated institutions, but lenders also have a limited flexibility at their own discretion to provide to provide some mortgage lending in excess of these thresholds.
Within this regulatory framework, decisions on credit applications and the collateral which is accepted for residential lending purposes is a business matter for individual regulated lenders.
Policy on residential mortgage lending by local authorities, and the collateral which is acceptable in relation to such lending, is a matter for the Minister for Housing, Local Government and Heritage.
No comments