Mexico's Condesa Financiera might come out with its first securitization of mortgages by the first quarter of 2008, according to CEO Christopher Gaughan. The specialty finance company could be pumping out the equivalent of $7 million monthly each in residential mortgages and bridge loans for construction in the second half of this year. Scarcely a year old, Condesa is currently, along with Su Casita, the only private sector originator in Mexico that has lent mortgages at a 30-year fixed rate, Gaughan said during last week's Information Management Network Spring ABS 2007 conference. While lauding the market's prospects, Gaughan was less of a fan on the current state of servicing among most originators. "The perception is that servicing is quite good," he said. "The truth is it's not tested." Apart from Mexicans living in their native country, Gaughan pointed to another promising growth venue: Mexicans in the U.S. Peer Su Casita is already lending to this segment on a small scale.
Mexico's IXE is working on a Ps5 billion ($458 million) transaction collateralizing payroll taxes for Chiapas, a state known to many Americans primarily as the 1994 birthplace of the anti-capitalist Zapatista rebellion. The deal has a long tenor of 30 years, with the state currently pulling in about Ps350 million a year in payroll taxes. The tax rate is currently 1.5% and bumping up to 2% in January 2008. IXE's transaction would likely price in early June, IXE's Pablo Pena said on the sidelines of the Information Management Network's Spring ABS 2007 in Miami, which convened last week.