DUBLIN, Ireland–Credit unions in this country are hoping for a little luck of the Irish themselves as they press their regulator for expanded mortgage lending limits.
Currently, Ireland’s CUs are limited in mortgage lending according to the size of their overall loan portfolio. But the Central Bank, which regulates credit unions, said it is now reviewing its rules on mortgage lending, for which there is considerable demand.
Credit unions may lend as much as €400 million this year to homebuyers, even though they have more than €5 billion available for lending. The current regulations limit CUs to lending no more than 10% of their portfolios in long-term loans.
"Longer-term lending limits are constantly under review by us and are also being addressed in the strategic dialogue forum we initiated last year," a spokesperson for the Central Bank told the Independent.
Proposals for changes to the restrictions on long-term lending have already been put to credit union representative bodies, the Independent added.