Iowa Bankers Association Iowa Bankers Insurance & Services, Inc.
Iowa Bankers Association
8800 NW 62nd Avenue
Johnston, IA 50131
Toll-Free: 800-532-1423
Local: 515-286-4300
Fax: 515-280-4140

2010 IBMC Annual Report

Annual Reports:2010 IBMC Annual Report

2010 started with interest rates at their highs from the previous year but things quickly changed.  A precipitous 6 month drop in interest rates occurred from April through September evidenced by a 150 basis point drop in the 10 year treasury yield.  This drove IBMC’s pipeline to lofty highs and assured IBMC of recording its second highest volume year in history, trailing only the previous year of 2009.  Complete conversion of software systems, web site enhancements, and demanding regulatory and investor changes, were extremely challenging demands that were met during the year.  New permanent and temporary personnel coupled with office space limitations were difficult obstacles to efficiency but were met and conquered by veteran management.

Highlights for 2010 are as follows:

  • Pre-tax net income of $5,079,303 after mortgage servicing rights valuation adjustment of $8,136,818
  • Net worth stands at $11,763,862, an all-time high for IBMC
  • Total volume for the year was $1.14 billion.  IBMC loan programs generated 5,573 new loans totaling $757 million from 222 bank locations.  The Federal Home Loan Bank mortgage program brought in an additional $382 million in FHLB loan servicing.
  • IBMC finished the year servicing nearly 23,000 loans totaling $2.72 billion
  • Cash fees paid to IBMC member banks was $10.5 million, and when added to the $2.7 million paid on FHLB volume, resulted in $13.2 million being paid directly to financial institutions utilizing IBMC.
  • IBMC funded $7 million in new agricultural loans in 2010 and services $31 million in Ag real estate
  • IBMC continues its usage of the government’s HAMP program when appropriate for modifying loans and continues to successfully manage its delinquency and foreclosure pipeline
  • Conversion to a new production software system and significant enhancements to IBMC web site capabilities for bank usage were implemented resulting in gained efficiencies for both internal and bank utilization.  Furthermore this updated software opens the door for additional enhancements which will be vital as new industry and regulatory demands require these capabilities.
  • IBMC continued its commitment to training its users by hosting 12 monthly training sessions and conducting a total of 291 personal bank visits
  • IBMC significantly increased its loss reserve due to increased repurchase risk throughout the industry.
  • IBMC significantly reorganized its management team with the creation of a credit regulation and compliance area dedicated to this important role dictated by industry evolvement

IBMC enters 2011 with lesser volume demand as interest rates rose in late 2010 but many challenges are still prevalent.  The uncertain fate of the GSE’s continues to haunt as numerous new Fannie Mae procedural changes and requirements are simultaneously being introduced and implemented.  The regulatory landscape is literally being molded as provisions of the Dodd / Frank legislation and the advent of the CFPB are being created and each will have significant impact on the industry and every facet of lending.  IBMC’s commitment to superior service and its dedicated staff and expertise will lead IBMC through the uncertainty.

Respectfully submitted,


Daniel Vessely
IBMC President
 

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