S&P Sees no Mexico RMBS Flood Damage

S&P says that the devastating floods in the Mexican state of Tabasco will have little impact on RMBS, based on a preliminary evaluation of the mortgage pools that included properties in the stricken area. “During our recent assessment, we found that these pools had only a small percentage of affected loans and mortgages,” says the agency. It adds that 46 transactions were issued between 2003 and 2007 that are still outstanding. “Of these securitized pools, none had more than 0.7% of its loans in Tabasco. Consequently, the overall impact on Mexican RMBS should be relatively small,” says S&P. It expects mortgage loan servicers to assist with issues such as property inspections, forbearance plans, filing and settling insurance claims, and handling any federal aid for properties in the affected transactions.