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

2012 Annual Report

Annual Reports:2012 Annual Report

IBMC 2012 Annual Report

2012 started with interest rates near the bottom of the previous year evidenced by a 10 year treasury yield at 1.88%.   Rates remained consistently low with minor fluctuations during 2012 with the benchmark index closing the year at 1.76%.  As a result the pipeline was elevated throughout 2012 and IBMC recorded, by far, its best year in history.  The need for additional personnel required a continual increase in the building footprint occupied by IBMC.  Improvements in work flow efficiencies, technology usage, and compliance issues were an integral part of the year’s resources in implementation.  Significant growth in net worth related to servicing size and risk exposure were planned and successfully accomplished.

Highlights for 2012 are as follows:

  • Pre-tax net income of $19,814,886 after mortgage servicing rights valuation adjustment of $14,196,313
  • Net worth stands at $23,428,679, an all-time year end high for IBMC
  • Total volume for the year was $2.7 billion.  IBMC loan programs generated over 10,000 new loans totaling $1.5 billion from 222 bank locations.  The Federal Home Loan Bank mortgage program brought in an additional $1.2 billion in new FHLB loan servicing from 83 participating financial institutions.
  • IBMC finished the year servicing nearly 37,000 loans totaling $4.7 billion
  • Cash fees paid to IBMC member banks was $27.5 million, and when added to the $8.2 million paid on FHLB volume, resulted in $35.7 million in fees being paid directly to financial institutions utilizing IBMC
  • IBMC was instrumental in the funding of over $10 million in agricultural loans during the year
  • IBMC 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 continue to have a significant impact on staff efficiency and work flow, automated data retrieval and imaging continue to be in focus and implemented
  • IBMC continued its commitment to training its users by hosting monthly training sessions and conducting over 300 personal bank visits
  • IBMC has enhanced its commitment to quality control and compliance with additional resources directed to personnel and procedures and has been rewarded with successful audits and reviews in many areas

As IBMC enters 2013, it is focused on the numerous regulations being introduced that will significantly affect the mortgage operations of both IBMC and its members.  Also, any increase in interest rates could greatly impact the level of refinance activity and thus overall volume.  Consequently, staffing and compliance issues will remain top priorities.  These challenges are real and eminent but IBMC remains well postured with staff expertise and its commitment to superior service and quality programs.

Respectfully submitted,

Daniel Vessely
IBMC President

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