Housing Market and Credit Assessment

Danish covered bond framework Q1 2022 . Legal framework • The Financial Business Act • The Mortgage-Credit Loans and Mortgage-Credit Bonds, etc. Act with several detailed executive orders Registration • An issuing institution is required to maintain a static cover pool • Mortgage deeds are registered in the Danish Public Land Registry Limits on LTV ratios – based on the value of the property at loan origination . 80% for housing loans (residential property) . 60% for commercial loans (legislative limit 70%) • Static cover pools – issuer must provide supplementary capital if LTV-limits are breached Matching rules • Nordea Kredit complies with the strict balance principle utilising match funding, hence Nordea Kredit only has insignificant interest rate and foreign exchange risk Public supervision • The DFSA performs supervision and on site inspections on an ongoing basis 17 Interest payment Interest payment Borrower Investor Principal payment Principal payment Contribu- tion fee Nordea Kredit Nordea

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