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

2013 Annual Report

Annual Reports:2013 Annual Report

IBMC 2013 Annual Report

2013 started with interest rates similar to the previous year evidenced by a 10 year treasury yield at 1.70%.   Rates remained low until the second quarter and then saw a consistent rise for the remainder of the year with the benchmark index closing the year at 3.01%.  As a result the pipeline steadily declined throughout the year.  The need for fewer personnel allowed IBMC to eliminate temporary staff positions.  Improvements in work flow efficiencies and technology usage continue to maximize efficiency.  Significant growth in net worth related to servicing size and risk exposure were again successfully accomplished.

Highlights for 2013 are as follows:

  • Pre-tax net income of $25,843,665
  • Net worth stands at $39,783,933, an all-time year end high for IBMC
  • Total volume for the year was just over $2 billion.  IBMC loan programs generated over 7,000 new loans totaling $1 billion from 210 bank locations.  The Federal Home Loan Bank mortgage program brought in an additional $1 billion in new FHLB loan servicing from 100 participating financial institutions.
  • IBMC finished the year servicing nearly 45,000 loans totaling $5.8 billion, another all-time high
  • Cash fees paid to IBMC member banks was $19.9 million, and when added to the $6.6 million paid on FHLB volume, resulted in $26.5 million in fees being paid directly to financial institutions utilizing IBMC
  • Providing award-winning service earning the Iowa Finance Authority’s Top Lender award for the second consecutive year
  • IBMC was instrumental in the funding of $7 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 delinquencies and foreclosures
  • Complying with and monitoring new rep and warrant model with GSE’s and appropriately reserved for potential losses
  • Enhanced web-based data systems for banks to view and manage their IBMC volume and pipelines
  • Offered personalized service by conducting 15 training sessions and making more than 300 bank visits
  • IBMC continued enhancement to its quality control and compliance functions with additional resources and updated agreements with all banks.  

As IBMC enters 2014, it is focused on the numerous regulations, most importantly QM, being introduced that significantly affects the mortgage operations of both IBMC and its members.  The increase in interest rates, the decline of refi activity, and the impact of QM will likely reduce overall volume significantly.  Consequently, IBMC will focus on marketing new locations and products.  IBMC is positioned well with its servicing portfolio and remains committed to superior service and quality programs.

Respectfully submitted,


Daniel Vessely
IBMC President

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