A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Number of firms originating and funding mortgage loans | 7 | 7 | 7 | Danske Bank | A.1.1 |
| Types of originating lenders/market share: | A.1.2 | ||||
| Universal/ commercial banks | 15% of total | 15% of total | 17% of total | Danske Bank | A.1.2.1 |
| Non-depository financial institutions specialized in housing finance | 85% of total | 85% of total | 83% of total | Danske Bank | A.1.2.3 |
| Identify the 3 largest loan originating lenders | Nykrdeit/Totalkredit, Realkredit Danmark, Nordea Kredit | Nykrdeit/Totalkredit, Realkredit Danmark, Nordea Kredit | Nykrdeit/Totalkredit, Realkredit Danmark, Nordea Kredit | Danske Bank | A.1.3 |
| Typical lending spreads for mortgages | 1% | 1% | Danske Bank | A.1.5 | |
| Level of Non-Performing Mortgage Loans (90 days or more past due): | A.1.6 | ||||
| Average 1997-2007 | A.1.7 | ||||
A.2 Size of Mortgage Finance Sector
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 287,878.5 USD (millions) | 292,312.79 USD (millions) | 248,374.31 USD (millions) | Danmarks NationalBank | A.2.1 |
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | 81.77% | 88.62% | 79.61% | Danmarks NationalBank | A.2.1.1 |
| and as % of all credits outstanding | 42.18% | 42.16% | 39.43% | WDI | A.2.1.2 |
| Total amount of home mortgages made in calendar year in millions of USD | 12,749.78 USD (millions) | 12,266.89 USD (millions) | 7,170.68 USD (millions) | Danmarks Nationalbank | A.2.3 |
| and as % of GDP (current) | 3.62% | 3.72% | 2.3% | Danmarks Nationalbank and WEO | A.2.3.1 |
A.3 Housing Finance Products
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Mortgage products as % of all mortgages (approx.) in local currency: | A.3.1 | ||||
| Fixed rate for life of loan | 38.41% | 37.7% | 36.35% | Danmarks Nationalbank | A.3.1.1 |
| Variable rate/discretionary | 58.51% | 62.3% | 66.99% | Danmarks Nationalbank | A.3.1.3 |
| Non-fully amoritizing loans (e.g. Price level adjusted/Interest only) | Not available | Not available | 52% | A.3.1.5 | |
| Loans based on foreign currency as % of all mortgage products | Not available | 2.33% | 3.77% | Danmarks Nationalbank | A.3.2 |
| Most prevalent type of foreign currency mortgage used: | A.3.3 | ||||
| Variable rate/indexed | Not available | Not available | Not available | A.3.3.2 | |
| Variable rate/discretionary | Not available | Not available | Not available | A.3.3.3 | |
| Most frequent interest rates on fully amortizing: | A.3.4 | ||||
| Typical lender fees associated with mortgage origination: | A.3.6 | ||||
| Typical third party fees associated with mortgage origination: | A.3.7 | ||||
| Loan-to-Value (LTV) on first mortgage: | A.3.8 | ||||
| Maximum LTV | 80 | 80 | 80 | European Covered Bond Council | A.3.8.1 |
| Typical LTV at origination | 80 | 80 | 80 | European Covered bond Council | A.3.8.2 |
| Maximum term over which pmt is calculated? | 30 years | 30 years | 30 years | Jyske Realkredit | A.3.9 |
| Mortgage pmt-to-income ratio | A.3.10 | ||||
A.4 Lending and Servicing Process
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Does the mortgage industry use standard principles/guidelines for underwriting? | Yes | Yes | Yes | RealKredit Danmark | A.4.1 |
| Which institutions define underwriting rules? | A.4.2 | ||||
| Other | Yes | Yes | Yes | Danish FSA, Danske Bank | A.4.2.4 |
A.5 Credit Risk Assessment
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Do credit bureaus exist? | Yes | Yes | Yes | Doing Business Denmark | A.5.2 |
| Are credit guarantee systems used? | Yes | Danmarks Nationalbank | A.5.4 |
B. Funding Sources for Mortgages and the Secondary Mortgage Market
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| What are the main funding sources for mortgages? | B.1 | ||||
| Retail funding (deposits/other) | Secondary | Secondary | Secondary | Danish Covered Bond Handbook | B.1.1 |
| Wholesale funding: loans from other banks or corporations | Not available | Not available | Not available | B.1.2 | |
| Funding through mortgage bonds | Primary | Primary | Primary | Danish Covered Bond Handbook | B.1.3 |
| Funding through securitization of mortgages | Non-applicable | Non-applicable | Non-existent | Danish Covered Bond Handbook | B.1.4 |
| Other | Not available | Not available | Not available | B.1.5 | |
C. Housing Microfinance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Types of lenders operating in the housing micro-finance (HMF) sector: | C.2 | ||||
| Level of NPLs (>90 days past due) in HMF | C.4 | ||||