Iverson stands at 9-under-par 135. She was joined in the lead by Sung Ah Yim (66) and Joo Mi Kim, whose 65 set the new course record.
Stacy Prammanasudh carded a 67 to move into fourth place at 8-under-par 136. Soo Young Moon is one stroke further back at minus-7. Kyeong Eun Bae, a two-time winner in the Futures Tour in 2005, is alone in sixth at 6-under- par 138 after a 71 Friday.
Iverson got going with a 10-foot birdie putt on the 10th. She was unable to save par at the 11th though. After three straight pars, the 38-year-old knocked her approach to 4 feet to set up birdie on the 15th.
The Michigan native parred five in a row around the turn on the Palmer Course at Turtle Bay Resort. Iverson birdied the third, but three-putted for bogey at the next. She moved to 8 under with a birdie on the fifth.
Iverson's tee ball to the par-3 eighth stopped 8 feet from the cup and she made the putt to share the second-round lead.
'I didn't play well last year, so I went back to LPGA Qualifying School,' Iverson said. 'So it is nice to start out a little better this year. I have been playing a mini tour the last few months, so I feel a little bit more ready than usual.'
Yim birdied the third from five feet and came back with a 15-foot birdie putt on the sixth. The Korean birdied nine and 10 to move to 7 under.
The 21-year-old came up short at the 11th and that led to her only bogey of the round. Yim sank back-to-back birdies from the 13th to get within one of the lead. She dropped her second shot to 3 feet on the 17th for birdie to end at 9 under.
'The conditions were very good. I woke up kind of early today and then I felt a little tired,' said Yim through an interpreter. 'I was nervous and that made me focus on how I was going to play today.'
Kim started with a bogey on the first, however, she bounced back with an eagle on the third to move to minus-3. Kim ran off three straight birdies from the seventh to turn at 6 under.
The 21-year-old Korean tripped to a bogey on the 10th, but came back to birdie 11. She made two straight birdies from the 13th to get within one of the lead, then birdied the 18th to finish in a tie for the lead.
Morgan Pressel, playing her first event as a professional, shot a 3-under 69. She shares seventh place at 5-under-par 139 with Lorena Ochoa, Natalie Gulbis, Hee-Won Han and Sherri Turner.
Grace Park, who shared the lead after round one with Iverson, struggled to a 2-over 74. She stands alongside nine other players at minus-4.
The cut line fell at two-over-par 146 with 81 players advancing to the final round. Among those missing the cut were Sophie Gustafsson (147), Brittany Lang (148) and Laura Davies (154). Jenny Rosales, the 2005 champion, had to withdraw after 27 holes due to an injury to her right hand.