IFC Boosts Peru MBS Market

The International Finance Corporation (IFC), the private-sector arm of the World Bank, is collaborating with Titulizadora Colombiana and Banco de Crédito del Perú to set up Peru’s first secondary mortgage market company, Titularizadora Peruana. The company, which will have an estimated capital of $3.6 million, “will acquire residential mortgage loans and structure mortgage-backed securities to develop the secondary mortgage market and expand access to housing finance in Peru”, said the Corporation. IFC has already approved a credit line of $50 million for Titulizadora Peruana to acquire a mortgage portfolio and improve the conditions of structured securities. The aim of IFC is to replicate the model of Titularizadora Colombiana and Hipotecaria Su Casita, two IFC-backed institutions, that have helped to develop the MBS markets in Colombia and Mexico, respectively.