El Salvador suffers from twin deficits of affordable housing and affordable housing finance. Total systemic mortgage production in the country dropped 12% in 2015 due to macroeconomic and social problems. Liquidity in the market is very limited and there is no internal capacity to invest in mortgage backed securities at this time. La Hipotecaria has maintained its lending programs in the face of these challenges and the OPIC guaranty will bring badly needed foreign investment into the country and the housing sector. The $45 million in proceeds from La Hipotecaria’s mortgage-backed securitization will be used to originate new affordable mortgages for El Salvadorian middle-class borrowers.
$33.75 million for up to a 30-year term.
$45 million ($39.6 million in Class A Notes, $4.5 million in Class B Notes and $900,000 in Class C Notes).