Mortgage Measures Review 2016
Details of the first review of the mortgage measures were announced by Governor Philip R. Lane on 23 November 2016.
Watch back: Mortgage Measures Press Conference
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See below for the measures that will apply from 1 January 2017.
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Loan-to-Value and Loan-to-Income Measures in detail
On the 27 January 2015 the Central Bank of Ireland first announced regulations for residential lending by regulated financial services providers in the Irish market. The measures came into force on 9 February 2015. The results of the first review of the mortgage measures was announced on the 23 November 2016 and it is intended that the amendments will come into force on 1 January 2017.
More information on these regulations is available below, including policy documents, research papers and related previous consultations.
The regulations have been based on in-depth economic analysis and empirical evidence.
Here are the relevant research papers published today.
- Economic Letter No. 8 “The Effects of Macroprudential Policy on Borrower Leverage” by Kinghan, C., McCarthy, Y. and C. O’Toole (2016)
- Economic Letter No. 9 “Model-based estimates of the resilience of mortgages at origination” by Joyce, J. and F. McCann (2016)
- Economic Letter No. 10 “Originating loan-to-value ratios and the resilience of mortgage portfolios” by McCann, F. and E. Ryan (2016)
- Economic Letter No. 11 “Assessing the sustainability of Irish house prices: 1980-2016Q2” Kennedy, G., O’Brien, E. and M. Woods (2016)
- Economic Letter No. 12 "Housing supply after the crisis" by Kennedy, G. and R. Stuart (2016)
- Economic Letter No. 13 “Exploring developments in Ireland's regional rental markets, Central Bank of Ireland" by McCann, F (2016)
- Economic Letter No. 14 "Modelling Irish rents: recent developments in historical context" by Kennedy, G., Sheenan, L. and Woods, M, (2016)
Two recent research papers on new lending since the introduction of the measures can be found here.
The introduction of the measures in 2015 review was also informed by other a range of existing empirical research and these papers which are listed here.
Feedback Statement and Submissions
The regulations were informed by a public consultation issued in 2014. The Central Bank of Ireland published a feedback document providing an overview of responses to the submissions made during the consultation process and the review process undertaken by the Central Bank of Ireland. The consultation paper, feedback statement, and the responses received to the consultation can be found below.
Submissions were received from 24 individuals and 27 different organisations as outlined below.
1. Submissions from 24 Individuals
2. Joint Submissions (submitted by Society of Chartered Surveyors Ireland, Banking & Payments Federation Ireland, Construction Industry Federation, Lisney, Irish Mortgage Brokers, DNG, Hooke and MacDonald, IPAV, Property Industry Ireland, Association of Expert Mortgage Advisors, Irish Brokers Association and JLT Dec 2014.)
3. AMTrust International Mortgage & Special Risks
4. Association of Expert Mortgage Advisors (AEMA)
5. Association of Personal Insolvency Practicioners (APIP)
6. Bank of America Merrill Lynch
7. Banking Payments Federation Ireland (BPFI)
8. Brendan Burgess
9. Cairn Homes PLC
10. Construction Industry Federation (CIF)
11. Cork Chamber of Commerce
12. Craddock Estates Ltd
13. Credit Union Development Association (CUDA)
14. Dan McLaughlin
15. Department of Finance
17. Fianna Fail
18. Hooke & MacDonald
19. The Institute of Professional Auctioneers and Valuers
20. JLT Insurance Brokers Ltd.
21. Labour Party
22. MDC Mortgage Brokers t/a Irish Mortgage Brokers
23. Professional Insurance Brokers Association
24. Property Industry Ireland (IBEC)
25. Ronan Lyons
26. Sherry Fitzgerald
27. Sinn Fein
28. Ulster Bank