ILCU Statement in Response to Central Bank of Ireland Report

Media Release: 26 January 2018

The Irish League of Credit Unions (ILCU) today notes the publication of the Central Bank of Ireland’s House Loans in Credit Unions – Thematic Review Findings. It is fully acknowledged that credit unions providing house loans must have the necessary and appropriate systems and controls in place to adhere to the regulatory and legislative requirements. The report today identifies improvements needed in the current provision of house loans in the sector.
 
Credit unions are cognisant of the need for a systematic, comprehensive and structured house loan model. In April 2017, credit unions affiliated to the ILCU voted to establish a centralised, mortgage solution, which could meet all regulatory requirements. The ILCU is currently progressing the delivery of such a solution which will assist credit unions in dealing with the heavy administrative and regulatory requirements associated with the processing and fulfilment of mortgages, based on a standardised, consistent reliable methodology. A leading Outsourced Service Provider has been contracted to provide back-office administrative support, and a soft launch of the mortgage solution is planned for April 2018
 
In developing this centralised support structure, the ILCU has advanced a mortgage solution that addresses the credit underwriting and legal processes associated with residential mortgage lending. Credit unions availing of this support structure will be enabled to provide a robust, standardised, safe and secure mortgage lending process to members.

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