Bernard Durkan (Kildare North, Fine Gael)
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Question 194: To ask the Minister for Finance the steps that can be taken to encourage the mortgage lending sector to address the issue of the multiplication of mortgage arrears through the medium of compound interest; if the lending sector would take a realistic position whereby the missing of a monthly instalment would not result in the application of penalties such as compound interest; and if he will make a statement on the matter. [18975/11]

Michael Noonan (Limerick City, Fine Gael)
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The revised Code of Conduct on Mortgage Arrears, (CCMA) was issued to all mortgage lenders and came into effect on 1 January 2011.

The CCMA sets out how mortgage lenders must treat borrowers in or facing mortgage arrears. The CCMA requires that each lending branch must have at least one person with specific responsibility for dealing with arrears and pre-arrears cases. It also requires frontline staff to be made aware of the lender's policy for dealing with arrears and pre-arrears cases and the relevant contact person and process. The revised CCMA also introduced the Mortgage Arrears Resolution Process (MARP) framework for the handling of arrears and pre- arrears cases. Provision 9 of the revised CCMA states that "Lenders are restricted from imposing charges and or surcharge interest on arrears arising on a mortgage account in arrears to which this Code applies and in respect of which a borrower is co-operating reasonably and honestly with the lender in the Mortgage Arrears Resolution Process. (Lenders will have been notified individually of the charges to which this applies)."

The Central Bank issued Letters of Direction in December 2010 to mortgage lenders prohibiting them from imposing specific arrears charges or surcharge interest on mortgage accounts in arrears to which the revised CCMA applies and in respect of which a borrower is co-operating reasonably and honestly with the lender in the MARP from 1 January 2011. With regard to monitoring compliance with the consumer protection codes, the Central Bank carries out themed inspections and mystery-shopping exercises. On 1st July 2011 the Central Bank published the findings of a themed inspection of mortgage lenders which examined compliance with Provision 9 of the revised CCMA and the Letters of Direction. This themed inspection was carried out across six mortgage lenders including credit institutions and retail credit firms. 655 customer mortgage account statements were reviewed during the course of the themed inspection. Further detail can be found at the following link: http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankMonitorsLendersCompliancewiththeRevisedCode.aspx

Bernard Durkan (Kildare North, Fine Gael)
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Question 195: To ask the Minister for Finance the estimate of the number of persons currently showing arrears in respect of mortgage repayments; the extent to which this is likely to fluctuate in the future; and if he will make a statement on the matter. [18976/11]

Michael Noonan (Limerick City, Fine Gael)
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I would like to inform the Deputy that figures published by the Central Bank on 19 May 2011 show that, at the end of March 2011, there were 782,429 private residential mortgage accounts held in the Republic of Ireland to a value of almost €116 billion. Of these, 49,609 accounts, or 6.3%, were in arrears for more than 90 days. For further information, please see the relevant press release on the Central Bank's website: www.centralbank.ie.

Bernard Durkan (Kildare North, Fine Gael)
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Question 196: To ask the Minister for Finance the lending institutions, if known, most amenable to accommodating those with arrears of mortgage; the nature of any such accommodation; and if he will make a statement on the matter. [18977/11]

Michael Noonan (Limerick City, Fine Gael)
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Neither I, as Minister for Finance, nor the Central Bank comment on individual lending institutions in the manner referred to in the Deputy's question.

However, all mortgage lenders are obliged to adhere to the requirements of the revised Code of Conduct on Mortgage Arrears (CCMA) which is effective from 1 January 2011. The Code sets out specific requirements mortgage lenders must adhere to when dealing with customers in arrears and those at risk of falling into arrears. The CCMA requires that each branch must have at least one person with specific responsibility for dealing with arrears and pre-arrears cases. It also requires frontline staff to be made aware of the lender's policy for dealing with arrears and pre-arrears cases and the relevant contact person and process involved. The revised CCMA also introduced the Mortgage Arrears Resolution Process framework for the handling of arrears and pre-arrears cases.

Full details of the Code of Conduct on Mortgage Arrears and on the Mortgage Arrears Resolution Process may be found on the Central Bank's website: www.centralbank.ie.