asked the Minister for the Environment if he will consider revising the conditions for the issuing of SDA loans to incorporate mortgage protection.
Ceisteanna—Questions. Oral Answers. - SDA Loan Conditions.
5.
Section 39 of the Housing Act, 1966, and the regulations made under it set out the minimum statutory conditions applicable to the granting of house purchase loans by local authorities.
It is open to any local authority to include a condition to provide mortgage protection by way of an insurance policy or otherwise when granting a loan. Similarly any recipient of a loan can take out mortgage protection if they so wish. I do not consider, however, that I should make such a condition a compulsory element of the scheme.
Is the Minister aware that applicants' attention is not drawn to this question and that the benefits that could be derived from a mortgage protection scheme are not pointed out? Furthermore, would the Minister agree that the cost involved seems in many cases to give advantage to SDA applicants in taking out mortgage protection?
There could be complications as well. That is another way of looking at it.
It does not appear that the advantages of a mortgage protection scheme, even on an optional basis, are pointed out to SDA applicants.
I will bring that to the Minister's attention. I appreciate the point, but I felt that the purpose of the question was to make it mandatory to incorporate mortgage protection in regard to the issuing of SDA loans. Whatever the merits in regard to making the options known to the applicants, which I will have considered by my colleague, there are also disadvantages in adding it in as a compulsory element to the scheme.
In view of the fact that building societies look for this kind of protection would the Minister ensure that, in the interests of sound, responsible fiscal management, the Department of the Environment will issue a directive to each local authority recommending that such mortgage protection be sought with SDA loans?
There are two points of view on it. As a Deputy, I take the view of the applicant. One is adding to the burden of the applicant's responsibility with regard to seeking an SDA loan. Surely the more simplified the procedure as far as the applicant is concerned, the better. My colleague, Deputy Murphy, is proposing an additional burden as far as the applicant is concerned, although I appreciate the advantages in having this type of mortgage protection.
Is the Minister seriously suggesting that taking out protective insurance is an additional burden?
People wish to get their rights in as simplified a manner as possible and the SDA system is one of the most beneficial systems operating. That is why we have extended the income limits and the amount of the loan. It is working well, but I can see arguments for and against the case made.
I respectfully request the Minister to bring this matter to the attention of the Minister for the Environment?
I will certainly do that.