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The Government launched a simplified regime for mortgage trusts: what it consists of and how it will improve credit - Infobae
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www.infobae.com
February 14, 2025
The CNV launched a scheme to facilitate the securitization of mortgage-related loans. The measure seeks to boost real estate financing and expand options in the capital market.
By Jose Luis Cieri
The National Securities Commission is moving forward with the modernization of the capital market with a new regime that seeks to promote mortgage financial trusts as a tool for the development of real estate credit (Illustrative Image Infobae)
In an attempt to strengthen the mortgage lending market and promote access to housing, the National Securities Commission (CNV) implemented a new special regime for the public offering of mortgage financial trusts.
According to the agency, this measure, established through General Resolution No. 1053/2025, seeks to streamline and simplify the securitization processes of mortgage rights and will allow greater flexibility in capital market operations.
Mariano Lo Valvo , a real estate expert, explained that securitization is a mechanism that allows mortgage loans to be transformed into financial instruments that can be sold on the market. “It is like grouping several mortgages and turning them into a bond that investors can buy. This gives banks liquidity to grant new loans and creates more financing options for housing,” he explained.
The new regime, which responds to the provisions of Decree No. 1017/2024, covers financial vehicles whose underlying assets include mortgages, mortgage notes, mortgage loans or similar instruments. The main objective of this regulatory framework is to consolidate a robust and sustainable mortgage loan market, facilitate access to financing for real estate projects and promote the development of the sector.
"This regime could give rise to a second mortgage lending market, facilitating financing outside the traditional banking system," said Lo Valvo.
Among the highlights of this regulation is the reduction of the dissemination period for the placement of fiduciary securities.
According to the CNV, when the issue is aimed at qualified investors, the deadline is reduced to just one day, compared to the three days required under the general regime. This measure seeks to speed up the processes and attract a greater number of specialized investors.
Another significant innovation is the possibility of reopening the placement of trust securities for a period of up to two years from the original issue. Under the general regime, the results of the auction were final, which limited the ability of trusts to adjust their issues based on market conditions.
Now, if a percentage of the authorized amount remains unplaced, a new placement may be made under the previously established conditions.
In addition, the regime allows for the issuance of additional trust securities with automatic public offering, an option that was not contemplated in the previous regulatory framework.
The president of the CNV, Roberto Silva , highlighted the importance of this initiative in the context of the deregulation policies promoted by the National Government. “We are working to make the procedures and processes within the capital market more flexible,” he said.
He also stressed that these measures are essential for the development of mortgage credit and access to housing in Argentina.
Silva also expressed his satisfaction with the implementation of this regulation, noting that it not only boosts the capital market, but also promotes its growth. “We want to support these measures that are important for the development of mortgage credit,” he added.
Mortgage securitization, which involves converting a set of mortgage loans into negotiable securities, is a key tool for financial institutions to obtain liquidity and be able to offer more loans. According to the CNV, this process involves the creation of a trust to which the mortgage loans are transferred.
This trust issues securities backed by the cash flows generated by these loans, which are placed on the capital market.
Economist Federico González Rouco , from the consulting firm Empiria, described this measure as “very good news” for the development of the real estate market and private financing. However, he warned that its impact will be more visible in the medium term.
"It is not a measure that will have an impact in the short term, but with the help of stabilization and greater access to the capital market, it can make the country more robust," he said.
With these measures, the National Government and the CNV seek not only to boost the real estate sector, but also to promote investment and economic development through a more efficient and accessible financial system.
González Rouco also highlighted that this regulation is mainly oriented towards private developments and mortgage financing outside the traditional banking system. “It greatly streamlines the private financing system,” he said, adding that, although the immediate impact will be limited, in the future it could facilitate access to mortgage loans for citizens.
The first is to authorize entities that meet the necessary requirements to register purchase and sale tickets throughout the country , which has already been implemented through General Resolution No. 1043. The second task is the creation of this securitization regime, specifically designed to boost the mortgage credit market within the capital market.
“In the medium term, these measures could facilitate access to housing for a greater number of Argentines, while strengthening the real estate sector and promoting economic growth,” concluded Lo Valvo.
www.buysellba.com
Source:
El Gobierno lanzó un régimen simplificado para fideicomisos hipotecarios: en qué consiste y cómo mejorará el crédito
La CNV puso en marcha un esquema destinado a facilitar la securitización de créditos vinculados a hipotecas. La medida busca dinamizar el financiamiento inmobiliario y ampliar las opciones en el mercado de capitales
www.infobae.com
February 14, 2025
The CNV launched a scheme to facilitate the securitization of mortgage-related loans. The measure seeks to boost real estate financing and expand options in the capital market.
By Jose Luis Cieri
The National Securities Commission is moving forward with the modernization of the capital market with a new regime that seeks to promote mortgage financial trusts as a tool for the development of real estate credit (Illustrative Image Infobae)
In an attempt to strengthen the mortgage lending market and promote access to housing, the National Securities Commission (CNV) implemented a new special regime for the public offering of mortgage financial trusts.
According to the agency, this measure, established through General Resolution No. 1053/2025, seeks to streamline and simplify the securitization processes of mortgage rights and will allow greater flexibility in capital market operations.
Mariano Lo Valvo , a real estate expert, explained that securitization is a mechanism that allows mortgage loans to be transformed into financial instruments that can be sold on the market. “It is like grouping several mortgages and turning them into a bond that investors can buy. This gives banks liquidity to grant new loans and creates more financing options for housing,” he explained.
The new regime, which responds to the provisions of Decree No. 1017/2024, covers financial vehicles whose underlying assets include mortgages, mortgage notes, mortgage loans or similar instruments. The main objective of this regulatory framework is to consolidate a robust and sustainable mortgage loan market, facilitate access to financing for real estate projects and promote the development of the sector.
"This regime could give rise to a second mortgage lending market, facilitating financing outside the traditional banking system," said Lo Valvo.
Features of the simplified regime
Among the highlights of this regulation is the reduction of the dissemination period for the placement of fiduciary securities.
According to the CNV, when the issue is aimed at qualified investors, the deadline is reduced to just one day, compared to the three days required under the general regime. This measure seeks to speed up the processes and attract a greater number of specialized investors.
Another significant innovation is the possibility of reopening the placement of trust securities for a period of up to two years from the original issue. Under the general regime, the results of the auction were final, which limited the ability of trusts to adjust their issues based on market conditions.
Now, if a percentage of the authorized amount remains unplaced, a new placement may be made under the previously established conditions.
In addition, the regime allows for the issuance of additional trust securities with automatic public offering, an option that was not contemplated in the previous regulatory framework.
Policies to deregulate
The president of the CNV, Roberto Silva , highlighted the importance of this initiative in the context of the deregulation policies promoted by the National Government. “We are working to make the procedures and processes within the capital market more flexible,” he said.
He also stressed that these measures are essential for the development of mortgage credit and access to housing in Argentina.
Silva also expressed his satisfaction with the implementation of this regulation, noting that it not only boosts the capital market, but also promotes its growth. “We want to support these measures that are important for the development of mortgage credit,” he added.
Mortgage securitization, which involves converting a set of mortgage loans into negotiable securities, is a key tool for financial institutions to obtain liquidity and be able to offer more loans. According to the CNV, this process involves the creation of a trust to which the mortgage loans are transferred.
This trust issues securities backed by the cash flows generated by these loans, which are placed on the capital market.
Economist Federico González Rouco , from the consulting firm Empiria, described this measure as “very good news” for the development of the real estate market and private financing. However, he warned that its impact will be more visible in the medium term.
"It is not a measure that will have an impact in the short term, but with the help of stabilization and greater access to the capital market, it can make the country more robust," he said.
With these measures, the National Government and the CNV seek not only to boost the real estate sector, but also to promote investment and economic development through a more efficient and accessible financial system.
González Rouco also highlighted that this regulation is mainly oriented towards private developments and mortgage financing outside the traditional banking system. “It greatly streamlines the private financing system,” he said, adding that, although the immediate impact will be limited, in the future it could facilitate access to mortgage loans for citizens.
The regulatory framework
Decree No. 1017/2024, which serves as the basis for this resolution, assigns two main tasks to the CNV.The first is to authorize entities that meet the necessary requirements to register purchase and sale tickets throughout the country , which has already been implemented through General Resolution No. 1043. The second task is the creation of this securitization regime, specifically designed to boost the mortgage credit market within the capital market.
Future prospects
Although the immediate impact of this regulation could be limited, experts agree that its implementation represents an important step towards the consolidation of a more dynamic capital market and a more accessible mortgage financing system.“In the medium term, these measures could facilitate access to housing for a greater number of Argentines, while strengthening the real estate sector and promoting economic growth,” concluded Lo Valvo.
www.buysellba.com
