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

2011 Annual Report

Annual Reports:2011 Annual Report

2011 started with interest rates near the top of the previous year evidenced by a 10 year treasury yield at 3.28%.  However 2011 saw a consistent drop in rates throughout, with that same 10 year yield closing the year at 1.88%.  As a result volume steadily grew and IBMC logged its second highest volume year in history.  Investor guideline and regulatory compliance changes were extremely challenging to implement during peak volume periods.  Growth in personnel forced an overhaul of the building lease and a significant increase in the footprint occupied by IBMC.  Much efficiency will now be awarded as a result of the increased space in conjunction with IBMC’s larger staff.  This reconfiguration also allowed occupancy enhancements for both IBIS and IBA.  

Highlights for 2011 are as follows:

  • Pre-tax net income of $2,882,580 after mortgage servicing rights valuation adjustment of $9,863,223
  • Net worth stands at $12,208,268, an all-time year end high for IBMC
  • Total volume for the year was $1.17 billion.  IBMC loan programs generated 5,165 new loans totaling $709 million from 209 bank locations.  The Federal Home Loan Bank mortgage program brought in an additional $458 million in FHLB loan servicing.
  • IBMC finished the year servicing nearly 27,000 loans totaling $3.23 billion
  • Cash fees paid to IBMC member banks was $12.4 million, and when added to the $3.1 million paid on FHLB volume, resulted in $15.5 million being paid directly to financial institutions utilizing IBMC
  • IBMC funded $4 million in new agricultural loans in 2011 and launched a new Ag program specifically designed to offer more competitive rates and pay banks referral fess over the lives of the loans
  • BMC continues its usage of the government’s HAMP and HARP programs when appropriate for modifying or refinancing loans and continues to successfully manage its delinquency and foreclosure pipeline
  • System enhancements led to implementation of the initial stages of Fannie Mae’s Loan Quality Initiative; uploads of underwriting and funding packages, as well as appraisals; bank and staff viewing of more data on line leading to significant reductions in printing and faxing
  • IBMC continued its commitment to training its users by hosting 12 monthly training sessions and conducting over 300 personal bank visits
  •  IBMC maintains an appropriate loss reserve to offset repurchase and foreclosure risk

Well its Déjà Vu all over again as IBMC enters 2012.  The uncertain fate of the GSE’s continues to loom.  The regulatory landscape continues its development as provisions of the Dodd / Frank legislation and the advent of the new CFPB are being crafted, and each will have significant impact on the industry and every facet of lending.  IBMC’s remains strong as it navigates through these obstacles and maintains its reliance on superior service and quality programs.

Respectfully submitted,

Daniel Vessely

IBMC President

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