The Department of Finance and the Regulator is being urged to look into the credit union sector in Ireland issuing home loans.

Fianna Fáil Finance spokesperson Michael McGrath said there is "huge potential" for the sector which is currently a "drop in the ocean" on terms of the overall mortgage market.

Deputy McGrath also revealed that the total amount of outstanding credit union home loans at the end of March was around 5,000 mortgages worth a combined €106.5 million.

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He said: "Credit Union mortgage lending is currently a drop in the ocean in terms of the overall mortgage market. It is clear that there is massive scope for increased long term mortgage lending within the sector. There are a number of ways in which this can be done. Some larger credit unions are already directly writing home loans. Where the expertise exists for the associated underwriting, credit unions should be facilitated in this regard. It may be necessary to review the current 10% limit on long term lending to allow this to develop further.

"There is now a widespread acceptance that there needs to be more creative solutions adopted to deal with the current housing crisis. I believe credit unions can play a major part in this – they can be of major assistance in both the private and social housing sectors."

(CD/LM)