The securitization of mortgage portfolios in latin america

Running head : The securitization of mortgage portfolios

Analysis of the article The securitization of mortgage portfolios in Latin America : The case of Colombia , by Mauricio Cardenas

The present essay is intended to analyze a by Mauricio Cardenas entitled The securitization of mortgage portfolios in Latin America The case of Colombia . In the article the author is elucidating how crisis in the mortgage sector of Columbia was turned into opportunities for the development of the sector . It has five sections in which the first is an introduction to mortgage securitization and the

objectives of it . The second part is the history of the mortgage d in the country and this is followed by details about Titularizadora Colombiana a company that was set up for developing secondary mortgage market . The fourth is the structure of mortgage securities and finally an analysis on how mortgage securitization could affect the economy of the country

Mortgage securitization intends to connect the growing sector of capital market to housing finance sector so that it would be possible to develop primary as well as secondary market for mortgage and would finally result in housing development of the country . There are seven private banks in the country with largest share of assets being mortgage credits . The crisis in 1998 to 2000 resulted in reduction of mortgage credit balance considerably and it was mainly because of the increase in the interest rate and loss of clarity on the conditions of mortgage as a result of new...