guarantees. Also the residents - as in other rented housing - receive individual rent subsidies related to income, size of household and size of apartment. People in acute need of housing can turn to the municipality for help if they are without possibilities to solve their own housing problem. Foreclosure is mentioned as a cause among other causes, e.g. divorce, cf. page 59 in 98% of Danish mortgages are securitized to mortgage-backed securities and sold by the mortgage originators. Business Process walk-through Mortgage banks which obtain application data and review documentation and appraisals of originators who propose mortgages. Each mortgage bank, every day, issues new bonds valued at one cent each into an existing bond pool in an amount equivalent to the new loans it makes that day. The money manager of the mortgage institute decides when to sell the new bonds into the secondary market since they are identical to other bonds in the same series. In event of a rise or drop in interest rates, a new bond pool may be started at a rate ½ percent different than its predecessor, but the yields are equivalent. The bond prices trade and are quoted at day end and there is inter day pricing. The amount of cash transferred by the mortgage institute to the originator (borrower) is based on the number of bonds issued and their previous day’s quote. Every time a loan balance is reduced, an equivalent number of bonds are identified by lottery and converted into a different bond also with a one cent par value (that will convert at par into cash at the next payment date). This and the fact that originally bonds issued equal the full amount of the loan, enforce the Balance Principle. Loan prepayments can be made by using cash with some advance notice requirements so the bond market can anticipate what is coming. In effect a contract is made in advance that the cash presented will be used for prepayment at the next payment date. Loans can also be prepaid using bonds. These bonds can be purchased at a discount if that’s where they are trading, and receive prepayment credit at par. Loan prepayments in bonds require presentation of bonds from the series that funded the loan. Bond investors do not see loan prepayments with bonds to be a prepayment at all since the bonds eliminated due to the prepayment do