1. 1 Supporting clients with global needs

2. 2  Potential Business  Services to Provide  Advantages  Characteristics  Requirements  Operational Flow Chart  BBVA USA  BBVA BANCOMER Introduction New Product

3. 3 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

4. 4 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 1 st 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 6 th 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

5. 5 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:

6. 6  BBVA USA  BBVA BANCOMER  Potential Business  Services to Provide  Advantages  Characteristics  Requirements  Operational Flow Chart Introduction New Product

7. 7 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:

8. 8 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 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

9. 9  BBVA USA  BBVA BANCOMER  Potential Business  Services to Provide  Advantages  Characteristics  Requirements  Operational Flow Chart Introduction New Product

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11. 11  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

12. 12  BBVA USA  BBVA BANCOMER  Potential Business  Services to Provide  Advantages  Characteristics  Requirements  Operational Flow Chart Introduction New Product

13. 13  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

14. 14  BBVA USA  BBVA BANCOMER  Potential Business  Services to Provide  Advantages  Characteristics  Requirements  Operational Flow Chart Introduction New Product

15. 15  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

16. 16  BBVA USA  BBVA BANCOMER  Potential Business  Services to Provide  Advantages  Characteristics  Requirements  Operational Flow Chart Introduction New Product

17. 17  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 rate 2.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

18. 18 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

19. 19 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

20. 20 Example FIXARM 5/1ARM 3/1 * Sales Price300,000.00$ $ $ * Down Payment90,000.00$ $ $ * Loan Amount210,000.00$ $ $ * Interest rate8.50%8.00%7.50% * Term15 * Monthly payment2,067.95$ 2,006.87$ 1,946.73$ * Trust62.29$ $ $ * Insurance72.45$ $ $ * Monthly payment2,202.69$ 2,141.61$ 2,081.47$ * Closing costs (estimated), origination and Trust fee Entre6% y 8% Entre6% y 8% Entre6% y 8% New product

21. 21  BBVA USA  BBVA BANCOMER  Potential Business  Services to Provide  Advantages  Characteristics  Requirements  Operational Flow Chart Introduction New Product

22. 22  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

23. 23  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

24. 24  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

25. 25  BBVA USA  BBVA BANCOMER  Potential Business  Services to Provide  Advantages  Characteristics  Requirements  Operational Flow Chart Introduction New Product

26. 26 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 2 nd time Approved Yes No LNB mails Denial letter explaining the reasons for denial and advises HN representative 1

27. 27 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 1 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

28. 28 Expected processing time from application received and approved by LNB through closing is approximately 30 days

29. 29 This product is already available. LNB and Hipotecaria Nacional are ready and pleased to attend you.

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