Financialization and crisis of the new home mortgage market for workers in Mexico

This work aims to analyze the organization and transformation of the institutions linked to securitization, that operate in the new housing mortgage market for workers in the formal sector in Mexico. For this, an analysis is made of the number and amounts of investment and circulation, both of mortgage loans and of residential mortgage-backed securities (RMBS). Since the global financial crisis originated in the US mortgage market, paradoxically, the growth of this market has been encouraged in Mexico through its financialization. This process has been carried out through the accelerated increase in the participation in the RMBS market by public housing financing institutions; in contrast to the withdrawal of private financial entities and banking institutions. The increase in the issuance of bonds and the granting of mortgage loans also corresponds to an increase in the number of uninhabited homes; indication of a crisis fostered by overproduction of homes.