Last week, Genworth Financial became the first foreign mortgage insurer to enhance an RMBS in Mexico in the primary market by providing insurance that covered up to 25% of the principal and accrued interest of the most recent deal from originator Su Casita, according to sources close to the deal.
But the company has yet to open an office in Mexico. Until it does, insurance it provides domestically will require special approval from the government's Secretary of Finance and Public Credit. "The law allows us to approve insurance case-by-case," said Jose Antonio Gonzalez, director general for insurance and securities in the Finance Ministry. He added no foreign provider of mortgage insurance has set up shop in Mexico because the license to do so has yet to be put in place. "It will take another month or so," Gonzalez added. Mexico's legislature approved a law regulating non-government providers of mortgage insurances in April.