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Iowa Bankers Mortgage Corporation often touts its 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 IBMC’s partnership with the Federal Home Loan Bank. This month, we take a deeper look at CORE.
The CORE lending channel provides access to secondary market financing with competitive conventional products and rates. As the investor, IBMC offers interest rate protection to your bank while your staff is conducting the loan processing and closing functions. The underwriting function is performed by IBMC's knowledgeable staff.
Which loan products are available within the CORE channel?
Fannie Mae conventional, HomeReady, Rural Development (RD) and Veterans Affairs (VA).
Which property types are allowed within the CORE 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.
What is the 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. Both are set by the bank, keeping you in control of your revenue.
What are the benefits to utilizing the CORE channel?
The CORE channel offers the loan products listed above with the advantages of competitive pricing, interest rate protection and the underwriting expertise of IBMC's seasoned staff.
In which states can I lend in utilizing CORE?
Arizona, Colorado, Illinois, Iowa, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wisconsin.
Is the bank responsible for document preparation or settlement of the loan?
Yes. The bank will handle the preparation of all documents, checks and booking of each loan. The lender can facilitate the loan closing and settlement themselves or via a title/closing company.
What rate lock options do I have within CORE?
The lender has the option to offer their borrower a 10-, 30-, 45-, 60- or 90-day lock option to best meet the needs of the transaction. Note: The 10-day lock is mandatory delivery.
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