Service elements

Design/tailor innovative products for specific markets
SBI has transferred into numerous international markets the approaches and methodologies learned through over 40 years of SBI’s U.S. experience in successful low-income housing finance. SBI works along a continuum of market segments, linking commercial sources of housing finance with low to middle income homeowners. Working closely with local financial institution clients and relying on its market assessment capability, including an analysis of the legal and regulatory environment, SBI designs housing products tailored to specific emerging market needs. Leveraging its success in U.S. and international markets, SBI demonstrates to its financial institution partners that housing finance is a profitable line of business.

Establish mortgage lending capacity in commercial banks
SBI creates and/or strengthens mortgage and rehab lending capacity in local commercial banks. Applying tested mortgage lending techniques based on the borrower’s capacity to repay, strong monitoring, and distinctive customer service, SBI establishes profitable housing finance units within financial institution partners, in many cases where mortgage lending did not exist in these markets previously.

Deliver trainings and practical tools
SBI has developed “drop-in” toolkits for the entire mortgage lending process, including client applications and screening forms, operations manuals, and a full suite of practitioner-developed training materials, featuring case studies and other tools for loan officers and their managers. SBI adapts these tools for new markets, adjusting specific courses for local regulatory norms (such as documentation requirements for proof of title).

Facilitate access to long-term funding for mortgage lending for financial institutions
SBI recognizes the critical need for access to long-term funding as a necessary ingredient to successfully launch mortgage and rehab lending in a financial institution. SBI has extensive experience in identifying potential sources of funding, securing funding commitments, and structuring housing finance products to put this funding profitably to use.

Signature Engagement: Georgian Banks
Utilizing a technical assistance grant from USAID, SBI worked with TBC Bank and the Bank of Georgia to develop and launch the country’s first mortgage finance products for home improvements, acquisition and construction. The assignment involved helping design new lending products and providing extensive training for bank staff. From 2000-2002, $3.6 million in mortgage loans were originated, with an average size of about $9,000. Less than one percent of the loans made were more than 30 days past due. Today, both banks are leading product innovation and portfolio growth in homeowner finance in Georgia.

Signature Engagement: Romanian Mortgage Finance Initiative/Domenia Credit
In 2001, SBI launched a “green-field” mortgage finance initiative in partnership with USAID and the Romanian-American Enterprise Fund. Using an initial $3 million in capital, the SBI team assessed the market for mortgage loans, developed a range of products, recruited and trained local talent, and built an initial loan portfolio of 272 loans worth over $4 million. In 2003, SBI transferred management of Domenia Credit to their team of local professionals, and facilitated an additional $28 million in equity and debt investment from Raiffeisen Bank, the IFC, DEG, and EBRD, leaving in place a mortgage finance company that is able to lead market development on a national scale.

DOCUMENT: SBI Ltd. Housing Sector Illustrative Credentials List