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Iowa Bankers Mortgage Corporation often touts our three lending channels — Heritage, CORE and Alliance — that are designed to match the various needs of mortgage lenders.
To help our lending partners better understand which channel fits their needs, IBMConnection will feature a series of FAQs on each channel as well as our partnership with the Federal Home Loan Bank. This month, we take a deeper look at Alliance.
The Alliance lending channel provides access to secondary market financing with conventional products and competitive rates, offering complete control of your income and communication with your borrower. As the investor, we offer interest rate protection to your bank. Our staff conducts the loan processing and closing document preparation on your behalf.
Which loan products are available within the Alliance channel?
Fannie Mae conventional, HomeReady, Rural Development (RD) and Veterans Affairs (VA).
What are the benefits to utilizing the Alliance channel?
The Alliance channel offers all the benefits of the CORE channel we shared last month with the bonus of eliminating backroom work and expenses related to processing and compliance.
Which processes are handled by IBMC through the Alliance channel?
We will handle the preparation of all disclosures and loan documents, verification requests, and third-party ordering apart from title which is handled by the bank. The lender can facilitate the loan closing and settlement themselves or via a title/closing company.
Which property types are allowed within the Alliance channel?
One-, two-, three- and four-unit properties that meet the requirement of a primary residence, second home, investment, condominium, planned unit development (PUD) or manufactured home.
Is there a maximum income a bank can earn through this channel?
A bank’s income potential is determined in the pricing of a loan, known as a service release premium (SRP), which can be coupled with any potential fees charged to the borrower. The bank chooses the fee structure keeping control of all revenue.
In which states can Alliance be utilized?
Illinois, Iowa, Minnesota, Nebraska, South Dakota and Wisconsin.
What rate lock options are available within Alliance?
The lender has the option to offer their borrower a 30-, 45-, 60- or 90-day lock option to best meet the needs of the transaction. Note: The 30-day lock period will become available once the loan has been in process for at least 15 days.
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