In a move that shows that securitization can be more than a way for rich banks to get even richer, mortgage-backed securitization is being used to by U.S. government agencies and private sector banks to finance the building of housing for 5,000 low-income families in the Dominican Republic whose homes were destroyed last year by Hurricane George.

The project is being led by the U.S. Department of Housing and Urban Development (HUD), which is planning to issue $20 million in mortgage-backed bonds guaranteed by the Overseas Private Investment Corp. (OPIC) and backed by mortgages issued to the hurricane victims.

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