Presentaci

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Supporting clients with global needs
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Introduction

• BBVA USA
• BBVA BANCOMER

New Product

• Potential Business
• Services to Provide
• Advantages
• Characteristics
• Requirements
• Operational Flow Chart

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Introduction
The Hispanic market on the border states in the
United States, represent a huge opportunity for
business
BBVA Bancomer is the financial institution
leader in Mexico
Focusing on the strength of the Mexican borders,
in 2005 the Group BBVA decided to participate in
the North American market, through an acquisition
of two banks Valley Bank (today known as BBVA
Bancomer USA) in CA and Laredo National Bank in TX
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BBVA USA groups 5 business units 3 Banking
Institutions
Laredo National Bank ()
American Bank specializing in international and
commercial banking
BBVA Bancomer USA
Extension Bank from Bancomer México primarily
focusing on the 1st generation of immigrants
BBVA Puerto Rico
6th Bank in Puerto Rico, specializing in
financing mortgages, commercial and consumer
products
and 2 Non Banking Institutions
BBVA Finanzia USA
Credit card and consumer financing provider
Bancomer Transfer Services
Leader in Money transfers to Mexico and
LatinAmerica a specialist in MSB
() In the process of adopting BBVA global image
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Laredo National Bank, is the legal entity that
will provide the financing

• LNB is a bank founded in 1892, its a bank that
  is regulated by the OCC.
• As a national bank, LNB has experience in lending
  all over the United States.
• With the 95 branches in TX and CA, BBVA USA can
  service customers from all over the USA and
  Canada
• LNB has the experience of financing properties in
  Mexico for American residents.
• 95 of the employees are bilingual(100 in BBVA
  Bancomer USA).

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Introduction

• BBVA USA
• BBVA BANCOMER

New Product

• Potential Business
• Services to Provide
• Advantages
• Characteristics
• Requirements
• Operational Flow Chart

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BBVA Bancomer, supports the sales process

• BBVA Bancomer the leader financial institution in
  México with national presence through 1,700
  branches.
• In January 2005, BBVA Bancomer acquired the
  biggest mortgage company in Mexico, Hipotecaria
  Nacional, creating the mortgage division for the
  institution
• With 10 years of experience in the market,
  Hipotecaria Nacional, has provided approximately
  120,000 individual credits
• Maintains business relationships with 895
  Developers in Mexico
• Hipotecaria Nacional has a business network with
  110 branches distributed within 10 divisions

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Divisional Occidente
Guadalajara I, Guadalajara II, Atotonilco, Cd.
Guzmán, Colima, Lázaro Cárdenas, La Piedad,
Manzanillo, Tecomán, Morelia, Tepic, Puerto
Vallarta, Uruapan, Zamora, Zapopan, Guadalajara
III, Ixtapa
COVERAGE
Divisional Metroperiférica
Acapulco, Cuernavaca, Iguala, Pachuca, Toluca,
Tula
Divisional Metro-Centro
México, Coacalco, Del Valle, Vallejo, Los Reyes,
Santa Mónica, Satélite, Iztapalapa
Divisional Sureste
Cancún, Chetumal, Campeche, Mérida, Playa del
Carmen, Villahermosa, Ciudad del Carmen, San
Cristobal de las Casa,Tapachula, Tuxtla Gutiérrez
Divisional Golfo
Cholula, Coatzacoalcos, Córdoba, Jalapa, orizaba,
Puebla I, Tehuacán, Tlaxcala, Tuxtepec, Tuxpan,
Veracruz, Huajapan de León, Juchitán de Zaragoza,
Oaxaca, Poza Rica
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Introduction

• BBVA USA
• BBVA BANCOMER

New Product

• Potential Business
• Services to Provide
• Advantages
• Characteristics
• Requirements
• Operational Flow Chart

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New Product
POTENTIAL BUSINESS

• Potential market is 41 million of US and Canadian
  Citizens with high income and future retirees
  (Baby boomers).
• It is estimated that in the next 7 years there
  will be a demand for 10,000 houses for retirees
• In April, 2005, the market in the restricted zone
  showed an inventory of properties estimated at
  5.3mmd
• Statistics show an average of 473 properties
  sales per month

Bancomer guarantees the transaction through the
issuance of a Trust (fideicomiso)
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Introduction

• BBVA USA
• BBVA BANCOMER

New Product

• Potential Business
• Services to Provide
• Advantages
• Characteristics
• Requirements
• Operational Flow Chart

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New Product
SERVICES TO PROVIDE
With the synergies between BBVA USA and BBVA
Bancomer México we have the opportunity of
launch, Your Dream Home in Mexico

• A package has been created with all necessary
  services for US and Canadian citizens to be able
  to purchase a dream home in Mexicos restricted
  zones
• The loan is underwritten and funded by LNB
• Services provided to the developers are given by
  Hipotecaria Nacional in Mexico and includes
• Training to the Developers sales force
• Appraisals
• SRE Permits
• Trust Issuance

This product has been created at the request of
Real Estate Brokers and Developers
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Introduction

• BBVA USA
• BBVA BANCOMER

New Product

• Potential Business
• Services to Provide
• Advantages
• Characteristics
• Requirements
• Operational Flow Chart

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New Product
DEVELOPER ADVANTAGES

• New tool to increase their sales
• Competitive product in the USA and Canadian
  mortgage market
• Customer underwritten under the US credit
  guidelines
• Bilingual representative in Mexico
• All Loan and Permit Processing
• Immediate payment through electronic transfers
  (Pesos/Dollars)
• Support of the leader financial institution in
  Mexico

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Introduction

• BBVA USA
• BBVA BANCOMER

New Product

• Potential Business
• Services to Provide
• Advantages
• Characteristics
• Requirements
• Operational Flow Chart

17
New Product
PRODUCT CHARACTERISTICS

• Credit in Dollars
• Minimum loan amount 100,000 USD.
• Maximum LTV 75.
• Terms 15, 20 and 25 years.
• Tree interest rates programs.
• Fixed interest rate
• Adjusable rate mortgage 3/1. (Fixed interest
  rate for first 3 years, and adjustable for the
  rest of the term)
• Adjusable rate mortgage 5/1. (Fixed interest rate
  for the first 5 years, and adjustable for the
  rest of the term)
• No prepayment penalty
• Formalizing through a Trust

Interest rate based on Libor plus margin
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New Product
Purposes of the Loan

• The loan can be used with anyone of the next
  purposes
• 1. Vacation home acquisition
• 2. House acquisition for investment purpose
• 3. Cash out over previous acquiered properties in
  Mexico

Any purpose will have the same loan
characteristics
Interest rate based on Libor plus margin
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New product
Interest rates comparatives
SCORE

ARM 3/1

ARM 5/1

FIX

MAS DE 701 PTS

7.500

8.000

9.000

686 A 700 PTS

7.625

8.125

9.125

671 A 685 PTS

7.750

8.250

9.250

650 A 670 PTS

7.875

8.375

9.375


Rates posted for 25 Years

• 20 Year Term - subtract .250 from listed rate
  above
• 15 Year Term - subtract .500 from listed rate
  above
• ARM programs, have an anual increase of 2
  maximum and a total increase of 6 (based in the
  origial rate)

RATES SUBJECT TO CHANGE DAILY WITHOUT PRIOR
NOTIFICATION
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New product
Example
FIX
ARM 5/1
ARM 3/1
Sales Price
300,000.00


300,000.00


300,000.00


Down Payment
90,000.00


90,000.00


90,000.00


Loan Amount
210,000.00


210,000.00


210,000.00


Interest rate
8.50
8.00
7.50
Term
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15
15
Monthly payment
2,067.95


2,006.87


1,946.73


Trust
62.29


62.29


62.29


Insurance
72.45


72.45


72.45


Monthly payment
2,202.69


2,141.61


2,081.47


Closing costs (estimated),
Entre
6
Entre
6
Entre
6
y
y
y
8
8
8
origination and Trust fee
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Introduction

• BBVA USA
• BBVA BANCOMER

New Product

• Potential Business
• Services to Provide
• Advantages
• Characteristics
• Requirements
• Operational Flow Chart

22
New Product
REQUIREMENTS

• Credit Score 650 Pts. (Fico Score).
• Minimum Age 18 años.
• Hazard Insurance
• Annual maintenance Trust Fees and Insurance
  Premium are included in the monthly payment
  through and Escrow Account

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New Product
REQUIRED DOCUMENTATION

• Signed Application
• Picture ID (Passport and Driver License)
• Income Tax Returns with W2s for the last 2 years
• Paystubs for the recent month
• Bank Statements for the last 2 months

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New Product
REQUIRED DOCUMENTATION FOR APPRAISAL

• Property Deed
• Condominium Regime (if applicable)
• Articles of Incorporation
• Power of Attorney with Identification
• Proof of Address
• R.F.C.
• Plan of Property identifying the distance from
  the restricted zone

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Introduction

• BBVA USA
• BBVA BANCOMER

New Product

• Potential Business
• Services to Provide
• Advantages
• Characteristics
• Requirements
• Operational Flow Chart

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FLOW CHART
Developer/Realtor meets with customer while
vacationing in Mexico and signs a sales contract
Requests additional information and reviews file
a 2nd time
LNB underwrites the file of customer
No
Yes
Approved?
Approved
Yes
Developer/Realtor sends file to H.N.
representative Expected time for
prequalification is 48 hours once LNB receives
signed application
No
LNB contacts customer with interest rate and
requests opening of checking account
LNB mails Denial letter explaining the reasons
for denial and advises HN representative
Customer deposits funds at LNB for SRE permit,
annual fee and estabishment of Trust and
appraisal.
H.N. representative sends file to Laredo National
Bank.
1
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FLOW CHART
1
HN representative receives the SRE permit and
sends instructions to the Notary
LNB receives signed documents and sends loan
proceeds via electronically to Trust-Bancomer.
LNB requests appraisal and Trust establishment to
a H.N. representative
HN representative schedules closing time with
Developer, customer and Trust to sign at Notary
HN representative coordinates the validation of
the loan and closing date with customer to sign
the Loan Agreement, Note, Hazard Insurance, 24
hours in advance of signing the Trust
(fideicomiso)
HN representative follows up with the appraisal
and requests the SRE permit (The permit is
taking approximately 16 days)
No
Funds are sent to Developer via electronically or
by check at least within 24 hours after the Trust
(fideicomiso) has been signed
Once Loan Agreement and Pagare are signed will
send via email copies of Loan Agreement, Note,
Hazard Insurance Binder copy of unsigned Trust
to LNB
Once appraisal received, LNB prepares the loan
agreement, Pagare, Notary instructions and sends
to HN representative
All servicing of the loan will be handled by LNB
in the United States
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Expected processing time from application
received and approved by LNB through closing is
approximately 30 days
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This product is already available. LNB and
Hipotecaria Nacional are ready and pleased to
attend you.
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