The search for solutions to urban and social problems prompted by informal settlements is gaining importance in the development agenda of most large cities in Latin America. Nearly 60 percent of the population lives in informal, often centrally located settlements.

This report is one of a series of best practice papers that stem from a regional conference on the development of mortgage securitization held at the IDB. Using Mexico as an example, this paper focuses on the elements of the primary mortgage market that are relevant to establish a secondary...