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

2014 Annual Report

Annual Reports:2014 Annual Report

IBMC 2014 Annual Report

2014 started with interest rates at a recently high water mark of 3% on the 10 year treasury yield.  As a result, IBMC activity was subdued for the first part of the year.  However, rates steadily declined throughout the year with the 10 year ending at 2.22%.  IBMC volume rose accordingly for a while but eventually faded late in the year for seasonal reasons and refi-burnout.  The reduction in volume allowed the resources to implement significant initiatives including sales to Freddie Mac, Ginnie Mae Pool securitization, and advancing its Full Service platform into Minnesota.

Highlights for 2014 are as follows:

  • Pre-tax net income of $4,979,147
  • Net worth stands at $41,605,427 an all-time year end high for IBMC
  • Total volume for the year was just under $1 billion.  IBMC loan programs generated nearly 4,000 new loans from 188 bank locations.  The Federal Home Loan Bank mortgage program added another 2,500 loans in servicing from 84 participating financial institutions.
  • IBMC finished the year servicing over 46,000 loans totaling $6.1 billion, another all-time high
  • Cash fees paid to IBMC member banks was $11.3 million, and when added to the $2.8 million paid on FHLB volume, resulted in $14.1 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 third consecutive year
  • Implemented sales of loans to Freddie Mac
  • Began issuing Ginnie Mae securities so IBMC can retain the servicing on all non-IFA government loans
  • Introduced IBMC Full Service platform into the state of Minnesota
  • IBMC was instrumental in the funding of $10 million in agricultural loans during the year
  • Complying with and monitoring new rep and warrant model with GSE’s and appropriately reserved for potential losses
  • Offered personalized service by conducting numerous training sessions and making nearly 500 bank visits
  • IBMC continued enhancement to its quality control and compliance functions with additional resources and communications to banks  

As IBMC enters 2015, interest rates have fallen dramatically and the pipeline has doubled, so staffing and resources are an immediate concern.  The transition to a combined RESPA/TILA platform will significantly affect the mortgage operations of both IBMC and its members during the year.  These are challenges as IBMC continues to concentrate on marketing new products and locations.  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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