Our Strategy
We believe that the public markets will reward the creation of a premium mortgage distribution and funding channel that brings increased efficiencies, speed, and quality to the mortgage origination and banking process. We are focusing our initial efforts on under-served groups in regional markets. We also believe that we can capture more of the available revenues within the mortgage loan process by creating significant marketing opportunities at varying levels of the financial services product chain.
There are currently 46,000 licensed mortgage brokerage operations in the United States , the bulk of which do not realize the full revenue potential of the mortgage funding process. MBI is currently acquiring select regional mortgage brokerage firms in Texas with $100 million to $400 million in annual loan volume, with an eye to expansion into Florida , California , and other sections of the United States in the near term. By integrating these firms into a unified network, we believe we can gain significant market share in our target cities. We further believe that we can increase profitability of our firms through innovative marketing programs – such as our Affiliated Business Association relationships (ABAs) with home builders across the U.S. - and by cross selling related financial services products.
While there has been recent attention given to the direction of mortgage rates, as an industry consolidator, we are 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 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. Our 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 and MBI Financial has targeted potential acquisitions to service this market. 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 – we not only have a presence in Hispanic markets but we also seek to grow with the Hispanic community as its purchasing power increases and it pursues home ownership.
