HiTo Prepares Second RMBS Issue

Mexican securitizer Hipotecaria Total is preparing to launch the next piece of a novel MXP200bn 3-year RMBS program. HiTo plans to begin in August the placement of up to MXP10bn in 9.5% 20-year bullet bonds, known as Bonhitos, in weekly auctions. The shop is the first to bring the Danish model of mortgage securitization to the western hemisphere, according to COO Gerardo Flores. He adds that the bonds can be issued as the mortgage credits are accumulated, rather than waiting to build a large pool. HiTo has placed MXP50bn in 8.5% bonds since opening the first Bonhitos program in December. Creating a new MXP10bn tranche allows the issuer to increase the rate to 9.5%, matching an increase in underlying levels. The issuer is in discussions with lenders including Scotia, HSBC, ING, SuCasita, Finacasa and Credito Imobilario to include their credits, says Flores. “The goal is to sign up nine originators in 2008 and originate MXP12bn by December, from 35,000 loans,” he adds. Intercam Casa de Bolsa is managing the placement.