The mortgage market is still brewing in Mexico, as Hipotecaria Su Casita launched its second mortgage-backed securitization.

Like the transaction completed in June 2000, the mortgages for middle-income housing have not yet been originated. The deal provides a two-year revolving period in which time the proceeds are released as the loans are made. If by some chance the mortgages are not originated within those two years, the money that is left over in the account is used to pay the bondholders. "There is great likelihood that in a two year revolving period Su Casita will be able to originate $10 million dollars [of] middle income mortgage loans," said Brigitte Posch, an analyst at Moody's Investors Service.

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