Company Overview:
MBI Financial (OTCBB: MBIF.OB) is building a national, publicly held, financial services organization by acquiring profitable, privately held mortgage brokerage and loan origination companies across the United States. As an industry consolidator MBI is creating a premium mortgage banking operation and sourcing channel that brings increased efficiencies, speed, and quality controls to the mortgage origination and banking process. The Company believes that by creating this platform and leveraging it, the public markets will reward its shareholders with an increased valuation.
MBI is acquiring select regional mortgage brokerage firms across the United States . By integrating these firms into a unified network, the Company believes it can gain significant market share in its target cities and increase the profitability of its firms through innovative marketing programs. Although MBI Financial's affiliated firms retain their autonomy in their regional markets, they are backed at the national level by a team of seasoned mortgage banking industry professionals who oversee their administration and business development opportunities. MBI Financial's affiliated firms are currently located in Texas; the Company plans for further expansion in California, Florida, Texas, Arizona, Louisiana, New Mexico, Illinois, Pennsylvania, and New York. As an industry consolidator, MBI Financial is rate insensitive. In fact, rate increases and declines in mortgage application loan volumes provide MBI with opportunities to acquire individual mortgage brokerage firms on more attractive terms because they may be more rate and volume dependent.
MBI believes that the long-term opportunity in the mortgage brokerage and banking business lies in initiating and expanding the relationship with the customer. In addition to building critical mass by acquisition, MBI Financial is fostering further growth through Affiliated Business Association relationships (ABAs) with home builders and real estate developers across the U.S. and through the cross selling of additional financial services. By providing excellent customer service, innovative mortgage and related financial services product offerings, MBI Financial believes that its affiliates, their customers and the shareholder community will be winners.
MBI Financial is also committed to helping the Hispanic community achieve the goal of homeownership. The United States Hispanic Chamber of Commerce (USHCC) points out that with a 46% homeownership rate, Hispanics as a group lag significantly behind the nation's overall homeowner rate of 68%, as well as behind the 74% rate of homeownership among non-Hispanic Whites. The Company's presence in markets such as Texas, one of the top ten states in the U.S. with the largest Hispanic markets by spending power, allows for easy access to the Hispanic community, which with a population of 40 million, is the nation's largest minority group.
The Hispanic community has been historically under-served by the financial services industry. The Association of Hispanic Advertising Agencies found that financial services is one of two industries that devotes the least amount of advertising dollars to the Hispanic community. This gross oversight will soon catch up with the financial services industry: HispanTelligence ® found that U.S. Hispanic purchasing power has surged to nearly $700 billion and is projected to reach as much as $1 trillion by 2007. The lack of marketing focus by the financial services industry overall provides an opening for MBI Financial, which not only has a presence in markets with large Hispanic populations but also seeks to grow with the Hispanic community as its purchasing power increases and it pursues home ownership.
