After years of delay, Mexico's mortgage-backed securities market may finally be ready for launch as local non-bank mortgage lenders, the Sociedades Financieras de Objeto Limitado (Sofoles), are encouraged to issue MBS deals by a government keen to diversify funding for the housing sector, market experts said.

The country's 14 Sofoles are seen as key components for the development of a secondary mortgage market in Mexico, with several now developing mortgage-backed transactions ranging from Ps20 million to Ps1 billion ($2 million to $100 million), said Jose Ramon Tora, a director in Standard & Poor's structured finance ratings group.

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