Titularizadora Colombiana Securitization Comes To Market

One of Latin America’s largest mortgage-backed securitizations comes to the market this week, when Titularizadora Colombiana – Colombia’s answer to Fannie Mae – offers $335.4 million-worth of its residential mortgage-backed securities or TIPs (títulos hipotecarias). This is the eighth issuance by the company and is backed by a pool of mortgage loans originated by local banks BanColombia (accounting for 73.4%) and Davivienda (26.6%). The securities carry maturities of five, 10 and 15 years and a maximum coupon rate linked to the UVR rate. The government effectively guarantees, through Fogafin, those mortgages held by low-income borrowers (VIS), which comprise almost 22% of the issue. The rest of the mortgages are partially guaranteed by International Finance Corporation, which has a 21.5% stake in Titularizadora Colombiana. The securitization specialist is planning to issue a further $125 million of RMBS next month.