Edging towards its third issue of RMBS, Colombia's quasi-Fannie Mae has closed the purchase of one of three loan pools to back the deal. The country's leading mortgage bank, Granahorrar, has sold Titularizadora Colombiana a Ps300 billion (US$106 million) portfolio. Due diligence is underway to cull the tiny number of loans that fall short of the agency's standards. "In the last two issues we eliminated only a very small portion of the purchased mortgages," said Nicolas Brezing, an analyst at Titularizadora. In the last placement on Nov. 20, some Ps588 billion (US$207 million) in loans were kept from the purchased pool of roughly Ps650 billion (US$228 million).

And now participating banks are more familiar with the criteria and so less likely to hand over duds, Brezing added. Loans from local banks Banco Davivienda and Banco Colmena will round out the pool. Granahorrar holds 19.2% of the total volume of mortgages in Colombia, estimated at Ps11.2 trillion (US$3.9billion). Davivienda comes in second with 16.9%, and Colmena has an 11.8% share. Davivienda and Comena backed up the second issue, along with Banco Conavi.

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