Mexican banks are making headway on legislation that will allow for the transfer of mortgages and pave the way for securitization. Despite the disruption of a presidential election in August, industry participants expect that a new law will be in place before the end of the year.

The long-term goal is to develop a stable and liquid mortgage market in Mexico by allowing Mexican banks access to dollar funding. This would lower the banks cost of funds, ultimately resulting in lower and stable mortgage rates for borrowers between now and then, however, there are a lot of things that need to come together, noted Pat Jordan, director in the international ratings group at Standard & Poors in New York.

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