FAQ


  

Iowa Bankers Mortgage Corporation (IBMC) offers the following options:

Payment Coupons

You will receive a set of payment coupons following the loan origination, and every year with your Annual Escrow Analysis. Payments should be sent directly to the Payment Processing Center using the envelopes provided.

Sure-Pay (Recurring ACH Withdrawal)

Our most popular option! IBMC provides the convenience of automatically drafting your bank account for the amount of your total monthly payment each month on the 1st, 5th, or 12th. Additional principal and/or escrow payments can be added to the regular monthly drafts with this option. Enroll online today!

Bi-Weekly

One half of your total monthly payment is withdrawn from your bank account every other Friday. You choose the payment cycle (which Friday) to start, and twice a year a ‘principal only payment’ equaling ½ of the monthly payment amount is applied. Initially, a comparison showing the interest saved and shortened maturity date under this payment plan is provided. All payments will be applied according to the terms of your Note and Mortgage. A nominal setup fee of $50.00 is charged, plus a $2.00 per draft fee. Download a Bi-Weekly enrollment form.

Web Payments on myibmcloan.com

For your convenience, you are able to make a payment at any time via our website. Payments made after 3:00 p.m. CST will be posted the following business day or on the draft date of your choice. Make a payment now.

Your Bank’s Bill Pay Service

Most financial institutions offer an auto bill pay service. If yours does, you can ask for them to issue your total monthly payment to IBMC each month. Provide your bank with this information:

Your 10 digit IBMC loan number: 000xxxxxxx
Iowa Bankers Mortgage Corporation or IBMC
PO Box 6220
Johnston, IA 50131

Yes, you have the option to set an additional amount of principal to be withdrawn each month with your full payment or to send in principal payments to our office at your convenience.

If you need to delete a payment posted to your account prior to the drafting of funds, you are able to do this on our website or contact our Customer Service Department at 800-873-9667 by 2:00 pm CST on your payment draft date.

No, IBMC does not accept any payments made by a credit card.

IBMC may accept and hold partial payments in a separate account until you pay the rest of the payment, and then apply the full payment to your loan. Please contact our Loan Servicing Department for more information regarding the circumstances under which we will accept partial payments. If your loan is sold, your new lender may have a different policy.

Payments received in our office by 4:00 pm CST on a business day will be posted on that same business day. Payments received after 4:00 pm CST will be posted the following business day.

IBMC generates and mails payment coupons based on the state your property is located in. New coupon books are sent to our borrowers 30-45 days before a payment change is effective. Please see the Escrow Information section of this FAQ to see when your state receives the annual coupon mailing.

Regulations require us to send payment coupons to all of our customers.

No, this is not an option. If you are facing a temporary or permanent hardship, contact our office to speak with a loss mitigation specialist to discuss other alternatives.

An escrow account is set up to pay your taxes and/or insurance on your behalf. Each month, part of your monthly mortgage payment goes into your escrow account. When your taxes and/or insurance premiums are due, IBMC will pay those bills with the funds that have accumulated in your account.

Once a year, we are required to review your escrow account. We perform calculations to ensure that there are sufficient funds to pay your future property tax and/or insurance bills when they are due. The Escrow Account Disclosure Statement includes a history of the activity in your escrow account and the anticipated activity for the next year.

Minimum escrow balance requirements are governed by Federal law, or by your loan contract and applicable state law. These funds help to prevent the escrow account balance from being overdrawn if tax or insurance premiums increase. This minimum balance is known as your escrow cushion. IBMC requires a two month cushion, which is two months of escrow. Note: Mortgage insurance is not included in this amount.

The amount we collect each month to be held in your escrow account may change based on increases or decreases to your taxes and/or insurance premiums. Any changes will be reflected in the Escrow Account Disclosure Statement you receive annually.

You can pay the shortage in full by sending us a check along with a copy of your analysis form to the address on the statement. Send a check (payable to IBMC) to:

IBMC
8800 NW 62nd Avenue
PO Box 6220
Johnston, IA 50131

If you choose not to pay the shortage, we will spread the amount over the next twelve months and include it in your new mortgage payment.

Shortages result when there is an insufficient escrow balance to cover previous account activity. Your new monthly payment amount is based on projected account activity, which reflects any increases or decreases to your taxes and/or insurance premiums.

Depending on the Investor, state and government regulations, you may be able to close your escrow account if you have two years of good payment history, and if your loan to value (LTV) ratio is less than 80%. Contact us at servicing@iowabankers.com or call customer service at 1-800-873-9667 for loan specific information.

State Tax Due Date (1) Tax Due Date (2) Escrow Analysis Month Payment Change Month
Arizona 4/30 10/31 November January
Colorado 2/29 6/15 March May
Illinois Varies by county Varies by county October December
Iowa 3/31 9/30 October December
Minnesota 5/15 10/15 June August
Missouri 12/31 N/A February April
Nebraska (Douglas, Lancaster & Sarpy) 3/31 7/31 May July
Nebraska (All other) 4/30 8/31 May July
North Dakota 2/15 N/A March May
South Dakota 4/30 10/31 May July
Wisconsin 1/31 N/A October December

If you have an insurance claim check for damage to your home, please call IBMC at 1-800-873-9667 for specific instructions as the procedures vary depending on Investor and Regulator requirements.

Please have a copy of your new insurance policy sent to IBMC. Insurance information can be sent to IBMC at the following:

Email: ibmc-insurance@iowabankers.com
Fax: 515-286-4210
Mail: PO Box 950, Johnston, IA 50131

Please provide your insurance agent/carrier with your IBMC loan number and our mortgagee clause to ensure we receive your policy information:

Iowa Bankers Mortgage Corporation
It’s Successor’s and or Assigns (ISAOA)
PO Box 950
Johnston, IA 50131

PMI is a type of mortgage insurance used with conventional loans. PMI is required when your equity is less than 20% of the value or purchase price of your home.

The LTV is the current unpaid principal balance of your mortgage loan divided by the lesser of either your original appraised value or the purchase price of your property.

If you have an escrow account, property tax payments will be disbursed when they are due. This information is reported electronically to IBMC through our tax service provider. There is no need to mail your real estate tax bill directly to us.

Mortgage insurance is automatically terminated…

  • provided your payments are current, when the principal balance of the mortgage loan is first scheduled to reach 78% of the original value, or purchase price of your property (the lesser of the two is used in this calculation)
  • the first day of the month following the mid-point of the mortgage loan amortization period is reached, if the scheduled loan to value (LTV) ratio for the mortgage loan does not reach 78% before the mid-point

Mortgage insurance is eligible for cancellation…

  • When the borrower initiates cancellation of PMI coverage by submitting a written request to the servicer when reaching 80% LTV.
  • Borrower must have good payment history and loan current

*Different rules apply for loans closed before July 29, 1999. Call customer service for details.

All year-end tax and interest information (IRS Form 1098) will be sent no later than January 31.

Only 13 months of interest can be claimed in any given year- January through January. Sometimes a borrower will have made his or her January payment in December of the previous year. The January interested is claimable; because the interest is in arrears (the January payment includes December’s interest).

The IRS only requires the social security number for the primary borrower. Please note that we are unable to change the social security number on Year End statements.

The points paid at closing may not appear on your Year End statement if IBMC was not the originating lender or if your loan was refinanced. For further questions on this, please contact your tax adviser or attorney.

Your mortgage payment is due on the 1st of the month. A late charge will be assessed if the payment is received in our office after the 16th. Payments not received by the last business day of the month will be reported to the credit bureau as delinquent. If you have a problem making a payment, please call Customer Service or visit the links below for more information on your options.

www.knowyouroptions.com

www.makinghomeaffordable.gov

Find a HUD Approved Counseling Agency in your area.

If you are having difficulty making payments, we are here to help. Please call 1-800-873-9667 and ask to speak to a Loss Mitigation Specialist to find out what alternatives are available for your situation.

Repayment Plan: If you are past due on payments and experiencing a temporary hardship, you may qualify for a Repayment Plan. You must be able to pay your regular monthly payment in addition to a portion of the past due amount. Investor approval may be required, please call 1-800-873-9667 and ask to speak to a Loss Mitigation Specialist.

Loan Modification: If you are not able to make your past due loan payments, but can make regular monthly payments, you may qualify for a Loan Modification. If approved by the Investor, delinquent payments may be added to the unpaid principal balance of your loan. You will need to complete and send in a Loss Mitigation Packet for review with copies of your two most recent pay stubs to verify your income.

Forbearance: If you are unable to make a loan payment due to a temporary hardship, you may qualify for a Forbearance Agreement. If approved by the Investor, your mortgage payments may be reduced or suspended for a certain period of time. You will need to complete and send in a Loss Mitigation Packet for review with copies of your two most recent pay stubs to verify your income.

You may also visit the links below to find out what options you may have to avoid foreclosure:

www.knowyouroptions.com

www.makinghomeaffordable.gov

Find a HUD Approved Counseling Agency in your area.

If the net proceeds from the sale of your home won’t pay off your loan and you can’t afford to pay the shortage, the investor may accept an amount less than the total payoff. You’ll need to complete and send in a Loss Mitigation Packet for review with copies of your two most recent pay stubs to verify your income.

If you don’t qualify for any other loss mitigation alternatives and you don’t have any additional liens against your property, you may be able to deed the property directly to the investor to avoid foreclosure. You’ll need to complete and send in a Loss Mitigation Packet for review with copies of your two most recent pay stubs to verify your income.

Your payment is due in our office on or before the due date, the first of each month. There is a grace period of 15 days before a late fee is assessed. Your mortgage will be reported as delinquent on your credit report any time a payment is made after the last business day of the month in which it is due.

To generate a projected amortization schedule please view the amortization section of our website. Please keep in mind these figures are estimates only.

You will need to refinance your mortgage to remove another party.

No. Deeding your interest or removing your name from the property does not remove your liability for making future payments. You are still obligated to repay the debt and the debt is still reported on your credit report.

With Investor Approval IBMC can process a P&I Recast on your loan. The fee for this is $250.00; please contact our office for more information.


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