Dáil Éireann - Volume 645 - 30 January, 2008
Written Answers. - Social and Affordable Housing.
Deputy Aengus Ó Snodaigh Deputy Aengus Ó Snodaigh
Deputy Aengus Ó Snodaigh asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to recent statements by consumer watchdogs listing mortgage protection insurance among the types of insurance that consumers should avoid as they may not be worth the money spent on them; if, in view of this, he will amend the legislation that requires purchasers of affordable homes under the shared ownership scheme to take out mortgage protection insurance with their local authority, often at a rate several times higher than that offered by private insurers; and if he will make a statement on the matter. [1796/08]
Deputy Batt O’Keeffe Deputy Batt O’Keeffe
Deputy Batt O’Keeffe: The local authority mortgage protection insurance scheme has applied to all house purchase loans approved by authorities on or after 1 July 1986. One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers.
The scheme is overseen by the Mortgage Protection Committee, which is a sub-committee of the County and City Managers’ Association (CCMA) and is representative of the CCMA, the Housing Finance Agency and a representative of my Department. The Committee has recently sought tenders for an independent review and evaluation of the existing arrangements and will consider the recommendations arising from that review in due course following the appointment of a successful tenderer and receipt of their report.
Dáil Éireann 645 Written Answers. Social and Affordable Housing.