IBMC portfolio reaches $2 billion

Iowa Bankers Mortgage Corporation portfolio reaches $2 billion

Iowa Bankers Mortgage Corporation—the mortgage affiliate of the Iowa Bankers Association—reached a milestone in mortgage servicing when its portfolio reached the $2 billion level on Wednesday, July 29th. Iowa Bankers Mortgage Corporation (IBMC) President Dan Vessely proudly announced the achievement to employees and commended their efforts.

“IBMC’s focus is always on serving Iowa bank’s real estate needs, but we also nurture our customer relationship with the over 16,000 homeowners making up this $2 billion portfolio,” Vessely said. “Our commitment to customer service for them is just as important as our commitment to the banks they are customers of.  Our employees at IBMC have a long tradition of understanding the unique traits of successful servicing functions, and I am very proud of their role in this significant accomplishment.”

Despite troubles in the national housing markets, the advent of historic low interest rates and concentrated refinance activity led to the significant growth in IBMC’s portfolio this year.  Through July of 2009, IBMC’s new loan volume was $672 million, more than double the same period in 2008.  An additional $388 million in new servicing generated through the Federal Home Loan Bank mortgage program brings 2009 volume over $1 billion—resulting in the rapid growth in total retained servicing. As interest rates have slowly risen from 50-year lows, IBMC’s pipeline has returned to more normal levels, but 2009 is assured to be its high water mark for volume in the corporation’s 30-year history. In response to this explosion of activity in recent months, IBMC has added 12 temporary and two new full-time employees to ensure timely service to IBMC member banks during this demanding period.

This recent milestone adds to IBMC’s list of recent achievements. In 2008, IBMC logged its second highest year on record for both loan volume and cash fees paid to banks. Continuing its role as a provider of secondary outlets for both low-to-moderate income borrowers and rural-oriented properties, IBMC was once again among the top lenders in the state for USDA Rural Development Single Family loans and First-time homebuyer loans through the Iowa Finance Authority.

In April of 2009, IBMC received the 2008 Top Loan Volume award from the Iowa Finance Authority (IFA) for FirstHome mortgages originated through IFA’s single-family programs. IBMC has also been successful in implementing the Home Affordable Modification Program, rendering financial assistance to homeowners it services where warranted.

“The housing finance industry continues to struggle through a very difficult period and many challenges still confront us,” Vessely concluded. “IBMC continues to look for ways to take advantage of opportunities where they exist and our growth better positions us to accomplish this.  We are committed to our practice of conducting business in a manner that can be trusted and relied upon, much like the community banks we serve.”