Bernard Durkan (Kildare North, Fine Gael)
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Question 41: To ask the Minister for Finance the degree to which the full extent of arrears of mortgage or other personal debt has been determined by reference to the various lending agencies or institutions; the existence of compound interest or late payment penalties that forms part of such debt; if he will use his good offices with such bodies with a view to restructuring of such loans with possible elimination of punitive charges penalties or compound interest; and if he will make a statement on the matter. [19298/12]

Michael Noonan (Limerick City, Fine Gael)
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Firstly, I wish to inform the Deputy that the lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities. In addition, the Central Bank is independent in the carrying out of its supervisory functions of regulated financial institutions. The Central Bank of Ireland issues mortgage arrears statistics every quarter which set out the mortgages arrears for the industry by number of accounts and balance in arrears. The balance includes the value of the outstanding mortgages including arrears, accrued interest, and any unpaid customer fees and charges including legal costs, where such are added to the balance outstanding. I have been informed by the Central Bank that they do not have details of the figure in the arrears amount that is made up of compound interest and late payment penalties. Published statistics are available on the Central Bank website : http://www.centralbank.ie/press-area/press-releases/Pages/ResidentialMortgageArrearsandRepossessionStatisticstoDecember2011.aspx

In July 2011, the Central Bank published the findings of a themed inspection of mortgage lenders which examined compliance with the requirement of the revised Code of Conduct on Mortgage Arrears (CCMA) specifically relating to charges on mortgage accounts in arrears, and the related 'Letters of Direction' issued by the Central Bank. These Letters of Direction instructed mortgage lenders to refrain from imposing interest surcharge on arrears and other specific charges arising on a mortgage account 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 Mortgage Arrears Resolution Process from 1 January 2011. Provision 9 of the CCMA refers to the restriction from imposing such charges. Lenders have been notified individually of the charges to which this provision applies.

Further details may be found at the following link: http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankMonitorsLendersCompliancewiththeRevisedCode.aspx