Iati, who entered the game shooting 51 percent (20 of 39) from deep, made just 1 of 6 shots from long range but logged his 15th straight game with a 3-pointer.
Albany (5-2) scored the game's first five points and led 9-2 following a jumper from Iati. Wagner (1-3) rallied, however, as Jonathon Williams converted a layup with 7:09 left in the first half to give the Seahawks their first lead of the game, 18-17.
But Albany used a 12-3 run over the final 4:30 to enter intermission with a 36-27 advantage.
Williams led Wagner with 26 points on 10 of 11 shooting and has been the Seahawks' leading scorer in each of their last four games.
Colorado State graduate transfer John Gillon has chosen Syracuse, giving the Orange a potential starter at point guard entering the 2016-17 season.
DeSean Murray, who averaged 20.2 points as a sophomore at Presbyterian, will transfer to Auburn to play for coach Bruce Pearl.
Former Kentucky guard Ed Davender, the only Wildcat with at least 1,500 points and 400 assists, has died. He was 49.