Guillermo Babatz has a big job on his hands. After traveling
the fast track in a number of senior positions at Mexico's
Finance Ministry, known as Hacienda, the 35-year-old
Harvard-educated economist was appointed two years ago as
director-general of the newly created federal mortgage agency,
Sociedad Hipotecaria Federal (SHF).
A Young Man with a Mission
Guillermo Babatz wants to revolutionize Mexico's mortgage industry and reshape the country's capital markets, too.
SHF's debut was accompanied by widespread speculation about
its role. Babatz describes that mission simply: to create a
secondary mortgage market.
And securitization should be the mechanism of choice to
finance mortgages, meaning mortgage-backed securities (MBS)
would become the backbone of Mexico's capital markets. "That's
for a simple reason. The social security reform of 1997 implies
that the great majority of financial saving in this country
will flow through institutions like Afores [privately-managed
pension funds] and...
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