You can read more about the Danish mortgage model in the annual reports.
Reports and articles
Three ways Danish mortgage market trumps U.S.
Jack Guttentag argues in an article in Daily Herald - 29 May 2010 - that the Danish Mortgage market trumps U.S. in three major ways. This applies with respect to "structural stability", "linkages to primary markets" and "refinancing options". We are providing the article with permission from the author. Jack Guttentag is Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania, and founder of GHR Systems, Inc., a mortgage technology company.
Can the Danish mortgage model fix U.S. housing finance?
Yes, it can. When it comes to mortgage finance, the Danish perform the ultimate balancing act. Read the article "Can a Danish import fix U.S. Housing finance?" by Linda Lowell in the June edition 2010 of the Housing Magazine. Linda Lowell has interviewed Alan Boyce, who is heading up the joint venture Absalon that has assisted in developing a mortgage credit system in Mexico applying basic characteristics of the Danish model and relying on Danish securities infrastructure.
Publication on the traditional Danish mortgage model
The Association of Danish Mortgage Banks has now released the publication: "The traditional Danish mortgage model". The publication describes the principles of the Danish mortgage model. It also describes the recent changes to the Danish legislation on covered bonds, and the reasons why the financial crises did not lead to any serious consequences for neither Danish mortgage banks nor lenders of mortgage loans.
Principle of Balance Mortgage Lending: A Better Approach
The mortgage finance system in the United States needs to be rebuild. The goal is to create a standardized, transparent mortgage system which aligns the incentives of the homeowner, the bondholders and the intermediaries. The better and simpler system revolves around The Principle of Balance.
Reforming Housing Finance: Perspectives from Denmark
This paper investigates the effect of adding a distinct feature of the Danish mortgage market to the market in the United States. This feature, a buyback option, enables mortgagors to buy back their share of the mortgage-backed security at market price. Mr. Soeren Willemann was Ph.D. student at ScanRate Financial Systems and Aarhus School of Business and Mr. Mikkel Svenstrup was senior analyst at ScanRate Financial Systems at the time, when the article was produced.
The Danish Mortgage market
As housing finance evolves, are there reasons to follow the Danish model? This is a case study of one of the world’s most sophisticated housing finance markets, the Danish mortgage market. The article highlights some key differences between the Danish and US mortgage markets. It is published in BIS Quarterly Review, March 2004.
The Danish Mortgage Market—A Comparative Analysis
The Danish mortgage system is among the most sophisticated housing finance
markets in the world and presents some unique characteristics. This is stated in a publication from IMF from March 2007.
Danish Mortgage Bonds (Realkreditobligationer): Highly Secure Financial Instruments
Moody writes in May 2002 that the Danish mortgage bonds are very strong and very low-risk financial instruments.
