BBVA Bancomer has registered a new RMBS with Mexican regulators, and mortgage insurance from Genworth is attached.

This comes after the only closed Mexican RMBS so far this year, a deal from Metrofinanciera, had MI from both Genworth and United Guaranty.

There appears to be some validity to the idea that mortgage insurers might benefit in Mexico from the reputational damage to the monoline wrap.

The BBVA deal is the second Mexican RMBS for the Spanish bank. It is now sized at nearly Ps1.5 billion pesos ($140 million), well below the originator's debut deal for over Ps2.5 billion two months ago. The deal is set to price March 12. With triple-A ratings on the national scale from both Fitch Ratings and Standard & Poor's, the deal has a legal final maturity of 20 years. The underlying pool consists of 2,046 mortgages with a total current value of Ps1.5 billion, and an average fixed rate of 11.95%. Seasoning on the collateral averages nearly 21 months, and the current weighted LTV is 69.67%. Genworth provides insurance on 689 of the loans.

Jalisco is home to 18.9% of the mortgages, the highest concentration of any state. The Federal District, which includes much of the Mexico City sprawl, is second, with 18.18%.

Meanwhile, Scotiabank Inverlat is planning to issue an RMBS, according to market sources. This would make it the third commercial bank to issue a deal in this market, after HSBC and BBVA. Sources familiar with the transaction said details should be out within the next two weeks.

Nonbank institutions known as Sofols have been dominating RMBS issuance over the past few years, but a good chunk of future growth is expected to come from commercial banks.

(c) 2008 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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