Fideicomiso Hipotecario: Best Social Impact Mortgage Provider Mexico 2017

Mexico’s first mortgage-oriented real estate investment trust (MREIT), Fideicomiso Hipotecario – FHipo for short – is the first vehicle that allows the general public to invest in residential mortgage portfolios in Mexico, contributing to the development of the housing sector and helping improve the mortgage sector’s liquidity by enabling the participation of local and international investors, thus enhancing the availability of capital whilst offering stable and predictable returns.

Listed on the Mexican Stock Exchange, FHipo offers the mortgage industry access to additional sources of funding. FHipo acquires, originates, co-participates, manages and operates well-diversified mortgage portfolios throughout Mexico.

FHipo has an outsized impact on Mexico’s housing market, which has long suffered from under-funding from the private sector. Historically, commercial banks have not attended certain income levels within the mortgage sector, offering a limited amount of mortgages to such segments and focusing primarily on clients with higher income.

FHipo displays a flexibility that is unmatched locally and enables the firm to offer its clients premium investment opportunities. The latter, given their highly developed mortgage platform, financially sophisticated management team and deeply qualified risk assessment technologies that helps FHipo stay ahead of its competition.

FHipo with a young and entrepreneurial management team including the youngest CEO and CFO in the Mexican Stock Exchange, have created a business model that includes a pronounced social element: with the resources obtained through the capital markets, FHipo has created greater competitiveness within the industry and thus contributed to the improvement of terms and conditions of the entire mortgage industry.

The firm allows home buyers, regularly unattended by commercial banks, to access the housing sector at significantly lower interest rates through origination programs with Infonavit and FOVISSSTE. The firm participates in housing projects that directly impact the quality of life of Mexican workers, by offering borrowers increased security and proximity to job opportunities, reducing daily commutes, thus increasing quality of life and providing one of the most important assets for a family, its house.

The judging panel notes that FHipo has established a solid reputation which allows them to easily source funding both domestically and from overseas sources. The judges feel confident that Fideicomiso Hipotecario makes a significant difference and declare the firm winner of the 2017 Best Social Impact Mortgage Provider Mexico Award.

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