Mexico's largest home finance company, Hipotecaria Su Casita SA, plans to switch to a multiple-purpose finance company license from its limited-purpose license in a move that would let it offer a broader range of financial services.
In a filing with the Mexican Stock Exchange late Monday, the Mexico City company said that as a multiple-purpose financial company, it could sell financial products, such as credit cards and personal loans, other than its core mortgage products.
However, under Mexican law limited-purpose and multipurpose finance companies are prohibited from taking deposits from the public, which can put them at a funding disadvantage compared with banks.
Su Casita's majority shareholder, Caja Madrid, a major Spanish savings bank, announced in July that it would buy the 60% stake it did not already own in the Mexican company for $342 million.
Mexican banks and finance companies have enjoyed a boom in mortgage and credit card lending the last five years, though their growth has slowed since last year as the economy cooled and lenders adopted stricter credit standards.
