Mexico Preps for Fannie Mae
A federal guarantee for a securitization of real
estate development loans is a significant step in Mexico's
evolution to capital markets-based mortgage
Mexico's federally owned Sociedad Hipotecaria Federal (SHF)
laid the groundwork for its evolution into a federal mortgage
lending agency in October, when it partially guaranteed a $50
million securitization of bridge loans for private sector real
estate development financing company Metrofinanciera. The
guarantee enables Metrofinanciera to reduce its dependence on
financing from SHF and cultivate local institutional investors.
This in turn should cut its financing costs and enable it to
lend more competitively to real estate developers. J. Armando
Guzmán, executive director of Metrofinanciera, says the
transaction represents a significant step toward SHF's entering
the local debt markets and shows the continued efforts by local
finance companies in Mexico, called sofoles, to take a bigger
role in the housing market. Juan Pablo de Mollein, associate
director of Latin American...
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