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Supporting clients with global needs

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Potential Business

Services to Provide

Advantages

Characteristics

Requirements

Operational Flow Chart

BBVA USA

BBVA BANCOMER

Introduction

New Product

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BBVA Bancomer is the financial institution leader in Mexico

The Hispanic market on the border states in the United States, represent a huge

opportunity for business

61,673,146

22%

44%

7%

21,475,522

19,966

33%

13%

Population

Increase in Population

HouseHold

Income per Capita

% of Population in the US

Expected Increase

% Hispanics

2nd Generation

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

Introduction

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BBVA USA groups 5 business units; 3 Banking Institutions

Bancomer Transfer Services

BBVA Bancomer USA

Laredo National Bank (*)

BBVA Finanzia USA

BBVA Puerto Rico

Extension Bank from Bancomer México primarily focusing on the 1st generation of immigrants

American Bank specializing in international and commercial banking

Credit card and consumer financing provider

Leader in Money transfers to Mexico and LatinAmerica; a specialist in MSB

6th Bank in Puerto Rico, specializing in financing mortgages, commercial and consumer products

and 2 Non Banking Institutions:

(*) In the process of adopting BBVA global image

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• LNB is a bank founded in 1892, it’s 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).

Laredo National Bank, is the legal entity that will provide the financing:

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BBVA USA

BBVA BANCOMER

Potential Business

Services to Provide

Advantages

Characteristics

Requirements

Operational Flow Chart

Introduction

New Product

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• 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

BBVA Bancomer, supports the sales process:

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COVERAGE

Divisional Metroperiférica

Acapulco, Cuernavaca, Iguala, Pachuca, Toluca, Tula

Divisional Metro-CentroMéxico, Coacalco, Del Valle, Vallejo, Los Reyes, Santa Mónica, Satélite, Iztapalapa

Divisional SuresteCancún, Chetumal, Campeche, Mérida, Playa del Carmen, Villahermosa, Ciudad del Carmen, San Cristobal de las Casa,Tapachula, Tuxtla Gutiérrez

Divisional GolfoCholula, Coatzacoalcos, Córdoba, Jalapa, orizaba, Puebla I, Tehuacán, Tlaxcala, Tuxtepec, Tuxpan, Veracruz, Huajapan de León, Juchitán de Zaragoza, Oaxaca, Poza Rica

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

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BBVA USA

BBVA BANCOMER

Potential Business

Services to Provide

Advantages

Characteristics

Requirements

Operational Flow Chart

Introduction

New Product

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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

POTENTIAL BUSINESS

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

New Product

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BBVA USA

BBVA BANCOMER

Potential Business

Services to Provide

Advantages

Characteristics

Requirements

Operational Flow Chart

Introduction

New Product

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A package has been created with all necessary services for US and Canadian citizens to be able to purchase a dream home in Mexico’s 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

With the synergies between BBVA USA and BBVA Bancomer México we have the opportunity of launch, “Your Dream Home in Mexico”

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

SERVICES TO PROVIDE

New Product

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BBVA USA

BBVA BANCOMER

Potential Business

Services to Provide

Advantages

Characteristics

Requirements

Operational Flow Chart

Introduction

New Product

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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

DEVELOPER ADVANTAGES

New Product

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BBVA USA

BBVA BANCOMER

Potential Business

Services to Provide

Advantages

Characteristics

Requirements

Operational Flow Chart

Introduction

New Product

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Credit in Dollars Minimum loan amount: $100,000 USD. Maximum LTV 70%. Terms: 15, 20 and 25 years. Tree interest rates programs.

1. Fixed interest rate2. Adjusable rate mortgage 3/1. (Fixed interest rate for first 3 years,

and adjustable for the rest of the term)3. 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

PRODUCT CHARACTERISTICS

New Product

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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

* Interest rate based on Libor plus margin

Purposes of the Loan

New Product

Any purpose will have the same loan characteristics

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Interest rates comparatives

• 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

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

New product

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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 15 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),origination and Trust fee

Entre 6% y8%

Entre 6%y8%

Entre 6%y8%

New product

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BBVA USA

BBVA BANCOMER

Potential Business

Services to Provide

Advantages

Characteristics

Requirements

Operational Flow Chart

Introduction

New Product

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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

REQUIREMENTS

New Product

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Signed Application Picture ID (Passport and Driver License) Income Tax Returns with W2’s for the last 2 years Paystubs for the recent month Bank Statements for the last 2 months

REQUIRED DOCUMENTATION

New Product

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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

REQUIRED DOCUMENTATION FOR APPRAISAL

New Product

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BBVA USA

BBVA BANCOMER

Potential Business

Services to Provide

Advantages

Characteristics

Requirements

Operational Flow Chart

Introduction

New Product

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FLOW CHART

Developer/Realtor meets with customer while vacationing in Mexico and signs a sales contract

LNB underwrites the file of customer

Developer/Realtor sends file to H.N. representative; Expected time for prequalification is 48 hours once LNB receives signed application

H.N. representative sends file to Laredo National Bank.

LNB contacts customer with interest rate and requests opening of checking account

Approved?

Yes

No

Customer deposits funds at LNB for SRE permit, annual fee and estabishment of Trust and appraisal.

Requests additional information and reviews file a 2nd time

Approved

Yes

No

LNB mails Denial letter explaining the reasons for denial and advises HN representative

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LNB requests appraisal and Trust establishment to a H.N. representative

HN representative receives the SRE permit and sends instructions to the Notary

HN representative follows up with the appraisal and requests the SRE permit (The permit is taking approximately 16 days)

Once appraisal received, LNB prepares the loan agreement, Pagare, Notary instructions and sends to HN representative

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)

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

LNB receives signed documents and sends loan proceeds via electronically to Trust-Bancomer.

No

HN representative schedules closing time with Developer, customer and Trust to sign at Notary

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Funds are sent to Developer via electronically or by check at least within 24 hours after the Trust (fideicomiso) has been signed

All servicing of the loan will be handled by LNB in the United States

FLOW CHART

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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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