Mexican players are hopeful that the introduction of a new mortgage insurance (MI) product will spur a secondary market in mortgages and, down the chain, advance the nascent MBS market. "It's very positive," said Jose Landa, general director of GMAC Financiera. "We need this to create risk-based pricing," he added.

State agency Sociedad Hipotecaria Federal (SHF) is timed to debut a product shortly that mimics U.S. MI. Apart from stimulating a secondary mortgage market, the insurance is expected to bulk up investments in the "technology systems needed to create standardization, agility and efficiency," said Moody's Investors Service in a recent report on the product.

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