ABSTRACT
This chapter reveals the primary beneficiaries of mortgage securitisation in Mexico have not been the poor, whom securitisation is allegedly designed to serve. But instead large construction companies and the housing finance market comprised of state-subsidised Housing Funds and SOFOLS. The chapter evaluates the claims that market-led solutions can provide adequate and affordable homes for the poor in Mexico. This chapter aims to historically contextualise and analyse mortgage securitisation in the processes of capital accumulation in Mexico and the class relations therein. It argues that mortgage securitisation is a capitalist strategy that has been supported by the rhetorical and regulative roles of the Mexican debtfare state. The credit enhancement by the debtfare state through the Federal Mortgage Company for the securitisations of both the SOFOLS and the Housing Provident Funds (HPF) is fairly high, as investors view this as a risky investment.
