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Subprime Housing Goes South: Constructing Securitized Mortgages for the Poor in Mexico
Author(s) -
Soederberg Susanne
Publication year - 2015
Publication title -
antipode
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.177
H-Index - 98
eISSN - 1467-8330
pISSN - 0066-4812
DOI - 10.1111/anti.12110
Subject(s) - securitization , latin americans , materialism , capital (architecture) , power (physics) , state (computer science) , economics , subsidy , financial system , market economy , political science , law , geography , philosophy , physics , archaeology , epistemology , algorithm , quantum mechanics , computer science
Mexico represents the largest market for residential mortgage‐backed securitization (RMBS) in Latin America. Despite its significance to questions of development, there has been no critical analysis on the social implications and power dimensions of RMBS with regard to low‐income housing in Mexico. This essay fills this gap by demystifying the technical and thus apolitical nature of RMBS as well as by explaining how and why state‐sponsored securitization schemes subsidize financial and construction interests in the name of expanding home ownership for the poor. In so doing, the analysis employs a historical materialist approach that, first, places RMBS within the contradictory nature of capital accumulation processes in Mexico and relations of class‐based power therein, and second, views RMBS as an integral feature of housing policy that is inextricably linked to the nerve centre of capital accumulation, namely: the credit system.