Sounds more like the bond money mortgages that were available before the subprime lending practices kicked in. Municipal financing used to be a big deal; there were several large lawfirms that did nothing but bond work. Soros wants something like that to become the lending norm.
If it's popular in Europe, you know it's gotta be dripping with socialism. And, from what I recall, the bond mortgages were very restrictive as to house size, location, and so on. Naturally, the bond indenture requires record-keeping of borrower info. They pretty much tell you where you're allowed to reside.
The more I think about it, the more it sounds like a community organizer's wet dream.
It's not a community organizer thing. It works better than what we have, but only because Denmark is small enough that the Government is required to be somewhat sane.
But it won't work here as long as we have the CRA, as we have very bad underwriting standards enforced by law, a pernicious form of insanity.
This is only a variation on the collateralized mortgage tricks that Fanny/Freddie were doing. Both require that the underwriting of the individual mortgages are good. In our case, if the underwriting is bad, everybody loses, the CMO holder loses, the householder loses. (Except those who bet on the loss via CDS).
In the Danish case, if the underwriting is bad, and the homeowner doesn't look like they can pay, the price of the bond falls and maybe the homeowner can buy the bond cheap. Thus, only the bond holder gets screwed. And the homeowner can game things by making it look like they are going to default, and then buying the bond after it falls - short of like short selling.
Like our constitution, the Danish system works only for a moral people.