Citibank announced it is deploying Metavante’s lending technology to service mortgages in a rare hot-housing category: U.S. residents buying up residential property in Mexico. Citibank, operating as Banamex USA across the border, has added Metavante’s Web-based, end-to-end loan origination system that includes processing and closing to service the Mexico loans. Banamex was already a Metavante core-banking customer.
Other players like GE Money and Spain’s Banco Bilbao Vizcaya Argentaria are also venturing into a market that has seen a rise in interest from the U.S.’ large population of retiring baby boomers. Costs for travel to Mexico have declined in recent years, and banks are expanding lending services there for a market that’s traditionally been cash-only or available only through niche (and expensive) financing. GE Money announced it plans to service $150 million in mortgage loans to the Mexico market next year, nearly triple its closed loan values to U.S. consumers in 2007, according to the AP.
