Washington DC. September 24, 2001─The
International Finance Corporation, the private sector arm of the World
Bank Group, invested US$10.5 million to acquire a minority stake in Hipotecaria
Su Casita, one of Mexico’s leading mortgage banks.
“Su Casita,” Mexico’s second largest Sofol, was established in 1994
by Josť Manuel Agudo, a former Banamex official, and Manuel Campos, a
graduate of MIT’s Sloan School of Business. In 1995, Pulte Mortgage
Corporation, the second-biggest U.S. homebuilder, became shareholder in
Mexico’s mortgage banks, or SOFOLes, are expected to play a key role
in President Vicente Fox’s plan to create 750,000 new housing units per
year in Mexico by 2006, up from the 250,000 that were built in 2000. The
SOFOLes were born in 1994 and stepped into the void created when Mexico’s
commercial banks abandoned the mortgage market after the 1994 financial
crisis. By the year 2000, Mexico’s 15 mortgage SOFOLes were originating
over 95 percent of all mortgage loans provided by private sector lenders
in that country.
Bernard Pasquier, IFC Director of Latin America and the Caribbean, said
that “IFC’s investment is part of a larger strategy to help develop
the mortgage markets in Mexico, which will bring clear benefits to the
lower middle class families in the country.”
Su Casita operates from 56 locations throughout Mexico and has a portfolio
of over $1 billion in loans.
Roger Pastore, President of Pulte Mortgage Corp. said that ” IFC’s
investment is a vote of confidence in the future of Su Casita and in the
future of the Mexican mortgage market.” He added that “IFC’s
financial strength and experience will be invaluable as Mexico strives
to develop the capacity to finance the country’s housing needs.”
IFC has also agreed to buy the subordinated portion of a mortgage-backed
bond issue recently sold by Su Casita, the first of its kind in Mexico.
The bonds channel funds from institutional investors- pension funds
and insurance companies-to mortgage loans made to individual borrowers.
The IFC purchase of subordinated bonds makes it possible for Su Casita
to increase the volume of such bond sales in the future.
Manuel Campos, Vice President of Su Casita said that “the goal of the
SOFOL industry is to make financing available to every Mexican family that
wants to buy a home.” “Our challenge–he added-is to build the
bridge between capital markets and homebuyers, and with the IFC on our
team, we are sure to reach that goal much sooner.”
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
as a way to reduce poverty and improve people’s lives. IFC finances
private sector investments in emerging markets, mobilizes capital in the
international financial markets, and provides technical assistance and
advice to governments and businesses.
Pulte Homes, Inc., (www.pulte.com)
based in Bloomfield Hills, Michigan, has operations in 44 markets across
the United States, Argentina, Puerto Rico and Mexico, where it is the fifth-largest
builder. Pulte Mortgage Corporation is a nationwide lender committed
to meeting the financing needs of Pulte Homes’ customers by offering
a wide variety of loan products and superior customer service.