The World Bank Group often makes capital market interventions in countries to develop the legal and regulatory infrastructure to support housing finance, which requires knowledge and familiarity with local country contexts and constraints. In Mexico, where there is a shallow bond market and demand from lenders for long-term finance, World Bank Group support to liquidity facilities has proved timely, appropriate, and effective.
The World Bank Group supported the transformation of a central bank lending window known as FOVI into Sociedad Hipotecaria Federal (SHF). SHF began as a liquidity facility, but then funded the Sofoles, which were specialized financial intermediaries that soon became major private sector lenders. This intervention was fitting because Mexico was emerging from financial crisis and banks had left the mortgage market, meaning having SHF with debt guaranteed by the government was essential to the continual growth of the housing market.
Source:
World Bank Group. (2016) World Bank Group Support to Housing Finance. International Bank for Reconstruction and Development / The World Bank.
Link: https://ieg.worldbankgroup.org/evaluations/world-bank-group-support-housing-finance