Infonavit, Mexico's biggest mortgage originator, plans to issue a cross-border RMBS at the end of this year or the beginning of 2008, said Jose de Jesus Gomez, coordinator of the state agency's mortgage program.
The Mexican originator has roughly Ps4 billion ($366 million) of RMBS on the agenda for this year. While plans are afoot to go abroad, Infonavit, like other local lenders, has found that so far domestic funds are enough to absorb issuance. To date, only two originators, Metrofinanciera and Su Casita, have issued securitized term deals in the cross-border market. Earlier this year, the former bought back the only cross-border deal it had closed because of problems with the structure. The collateral for that transaction consisted of construction loans.
A potential currency swap and other structural features drive up the cost of overseas issuance, keeping many Mexican originators from crossing the Rio Grande. GMAC RFC and Patrimonio fall into this camp. Patrimonio's head of financial planning, Othon Paez, said the originator has no short-term plans to go cross-border. Ditto for GMAC. "We still haven't found a way to do it that's attractive to us," said Jesus Robles, GMAC's head of structured finance.
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