DUBLIN, Ireland–Ireland’s credit unions have voted in favor of developing a centralized solution to provide mortgages in the country. The goal is to have credit unions offering mortgages by the end of 2017.
“Under this model of operation, individual credit unions will be responsible for the lending decision and will directly offer the mortgage loan to members,” BusinessWorld.ie reported. “The centralized support service will manage the administrative requirements of the mortgage lending process.”
The Irish League of Credit Unions said it has been working with credit unions for some time to develop a full-service mortgage solution that will meet regulatory requirements.
“In the first instance, this new proposal will assist credit unions to lend up to €550 million, which would be the maximum allowed under the Section 35 lending limits,” BusinessWorld.ie reported. “However, the ILCU will continue to campaign for an extension to these lending limits to ensure that credit unions realize their full potential as significant players in the mortgage market.”
“Expanding loan services to encompass mortgages has been a priority area for credit unions for some time and is directly in response to significant demand from credit union members,” said ILCU CEO Ed Farrell. “Credit unions will play an important role in diversifying the current mortgage lending market which is sorely lacking in competition. Credit unions can now begin to realize their full potential - and provide a viable alternative to current mortgage lenders in a more significant way."