CMP 6.9

Your trusted news source

September 2011, 6.9

5th

Annual Brokers on Lenders Survey

taking

stock

Brokers weigh in on lenders SPECIAL FOCUS E & O Insurance

PROFILED The Mortgage Centre-Durham

MARKETING Web 2.0 secrets for mortgage pros

FEATURE Brokers discuss fee for service PUBLICATIONS MAIL AGREEMENT #41261516

TM

HLC believes in helping our mortgage professionals succeed.

HLC offers many innovative programs, sales incentives and value-added benefits that are designed to help you sell more!

hlcmortgages.com Grant Bennett

Dodi Kozak

Mark Buller

• Grant.Bennett@hlcmortgages.com

• Dodi.Kozak@hlcmortgages.com

• Mark.Buller@hlcmortgages.com

• 1-866-978-9919

• 1-866-443-9427

• 1-866-236-5765

Nicole Bernier

Angelo Froudakis

Geoffrey Woodford

• Nicole.Bernier@hlcmortgages.com

• Angelo.Froudakis@hlcmortgages.com

• Geoffrey.Woodford@hlcmortgages.com

• 1-866-264-8571

• 1-866-702-4994

• 1-866-217-5159

British Columbia

Quebec

Alberta

GTA & Ontario East

Ontario South & West

Atlantic Canada

3877337 Canada Inc. is a subsidiary of CIBC Mortgages Inc. and carries on business as HLC. HLC is licensed/registered in Ontario as a mortgage brokerage under Licence #10423, in Quebec as a mortgage agency, in British Columbia and Nova Scotia as a mortgage broker, in Alberta as a mortgage brokerage and in New Brunswick as a credit broker. TM HLC Design is a trademark of CIBC.

52

78

paying for errors & omissions With a spate of E&O claims pinned to private lending deals, brokerages are increasingly straying from their associationendorsed insurers and, as Vernon Clement Jones finds out, shopping around for the best rates, wherever that search takes them

64

6.

09 issue

cover story

32 Brokers on Lenders 2011 CMP once again polled brokers to get their feedback on lenders and see where they ranked in terms of what they offer brokers. The results are in, and compared to last year, there are a few surprises

Purchase of a Mortgage Portfolio

When Size Matters!

$46,000,000

Commercial Lending. Fast!

• • • •

Term, Bridge & Construction Complex Situations Large Transactions Creative, Fast & Reliable

Blake Cassidy (Ext. 4868)

800.494.0389 or 416.966.1100 Romspen is a non-bank mortgage lender specializing in commercial real estate across Canada. We offer customized mortgage solutions for term, bridge and construction financing from $2M to $60M. With over $750 million under administration, Romspen leads the industry in alternative commercial mortgage lending.

ON, QC, AB, BC

Office/Retail & Industrial Complex

Multi-Tenanted Industrial Buildings

$21,500,000

$12,000,000

TORONTO, ON

FORT MCMURRY, AB

contents

NEWS & COMMENTS 8 Some of the best stories and comments from MortgageBrokerNews.ca: Broker: Lenders, time for forced-savings mortgage, Lender paperwork frustrates brokers, lawyers, Veteran cautions new agents on bank deals, Top originator urges niche brokering, focus on property investors, Brokerages downsize sales force, Brokers: Channel lenders copying bank switch-out policies, Competition grows for association-anointed E&O insurers 22 News Analysis: The Big Story: A compilation of the top quotes from our weekly multimedia broadcasts on MortgageBrokerNews.ca

FEATURE 64 Going exclusive: Mortgage professionals say they’ve had enough of clients going to the bank, with broker commitment letters in hand. As Vernon Clement Jones finds out, a growing number are thinking exclusivity agreements will stop them in their tracks 86 Time to opt-in: Using electronic messaging to reach clients and potential clients is the lifeblood of mortgage brokers. New anti-spam legislation will soon place significant restraints on the ability of businesses to send electronic messages

2

mortgagebrokernews.ca

84

BROKER PROFILE Robert Boyd and his partners at The Mortgage CentreDurham have built their business around the unique idea that agents can grow professionally without leaving the company

MARKETING 78 In a new series, Doren Aldana explores some of the ways mortgage brokers can harness the power of social media to build referrals. Secret #5: Use ‘Consumer Tip’ Videos to Explode Your Referrals

PROFILES 88 Provider: Mortgage Alliance finds a new home for RightMortgage as it moves the unique product to Paradigm Quest 90 Insight: A new brokerage is taking “fighting for your client” to a new level as it attempts to capitalize on the involvement of two of its brokers in the popular sport of mixed martial arts 94 Guest Column: Dave Butler of VERICO Butler Mortgage says success in this industry is about system and processes, not how many agents you have. As a CMP Top 50 broker, he knows of what he speaks

regulars 26 International News 30 This time last year 92 Favourite Things 95 CMP Service Directory

life•time a•chieve•ment [lahyf-tahym uh-cheev-muhnt] noun

1. something accomplished, especially by superior ability, special effort, great courage, etc.; a great or heroic deed, over one’s career or life span.

2. act of achieving; attainment or accomplishment.

However you define it,

Bill Watson has built a career and business rooted in respect for his colleagues, clients, and profession. He has lived his principles through professional consistency, actively giving back to his community, and staying connected to the needs of his clients.

It comes as no surprise that the AMBA Board of Directors honours Bill Watson as the

2011 AMBA Lifetime Achievement Award winner.

The Mortgage Centre congratulates Bill on this well deserved recognition.

The Mortgage Centre is a division of CIBC Mortgages Inc., a member of the CIBC group of companies. ® The Mortgage Centre is a registered trademark of CIBC Mortgages Inc.

Editor’s Letter

Brokers have their say Over the past few months, CMP has been soliciting broker opinion on which lenders are doing the best job of serving the broker channel. The results can be seen in this issue as we present our fifth annual Brokers on Lenders survey.

So are lenders getting it right in the eyes of brokers? Some are and some aren’t. The overall level of ratings fell this year, suggesting lenders have slipped a little. But on the flip side, several lenders made large gains over their standing last year, making the case, albeit not quite as forcefully, for an upswing in broker approval.

When it comes to the future of the broker/lender relationship, opinions varied, but brokers were unanimous in thinking challenges remain, especially when it came to the aggressive tactics being used by banks and how the broker channel lenders should respond.

“If our lenders do not realize that banks have stepped up their game in the branches, we will lose more business and won’t be able to remain committed to the lenders. We need competitive products and rates.”

“Lenders are looking more and more for quality deals submitted by brokers who aren’t wasting their time with Hail Mary submissions. What brokers are looking for, is the non-banks to distinguish themselves from the banks. It is only in a broker’s best interest to work with non-bank lenders, but the market is currently very competitive and it is harder and harder for brokers to compete with banks who are waiving penalties and paying legal and appraisal fees. We need products that will allow us to stand out as the true professionals. Simply having a better rate is no longer providing the edge we need.”

“It is mind-boggling how much easier it is to get mortgages approved in branches with half the conditions. We need to be able to compete with branch banking and the mobile bank reps and the only way we can do that is if our lenders become more aggressive with competitive rates and more flexible guidelines for approvals.”

In our October issue, it will the lender’s turn at the podium as CMP offers their take. Should make for more interesting, ahem, conversation, no?

As always, I encourage you to contact us with any news related to the broker and mortgage industry or just to share your opinions on how we’re doing. It is exciting times for our industry and we look forward to helping you and your business navigate them.

Cheers, John Tenpenny Editor john.tenpenny@kmimedia.ca

4

mortgagebrokernews.ca

6.

09 issue

B R O K E R F O C U S E D . B R O K E R L O YA L .

You’ve just met with your new clients.

You need a lending partner, not a competitor.

More than ever, Canadians are shopping for mortgages. To provide brokers with a significant advantage, we offer: • Competitive rates • More compensation choices • Superior customer service • A broad range of mortgage products • Status programs with unique advantages As your lending partner, our job is to help you grow your market share.

To learn more about how Street Capital can assist you, contact your local RVP today.

Tel: 647.259.7873 • Toll Free: 1.877.416.7873 • www.streetcapital.ca ™ Trademark

of Street Capital Financial Corporation. FSCO Licence No. 11428

Quotables

“I have been in the industry since 1980 and been through the rough times and I think [lenders] are over-compensating on the conditions. In reality, sometimes you discuss a file and they then agree to remove conditions. Sometimes thinking outside the box is not in their vocabulary.”

Anonymous broker comment from our annual Brokers on Lenders survey in response to the question, “What was the biggest challenge you’ve had with a lender’s service in the past 12 months?” Page 32

“I believe that it (mandatory insurance requirements) painted a target on the backs of mortgage brokers.

Now they could go after them and hope to get a payout. The question is, were they justified in taking that action or were they just going after brokers because they represented the best hope of getting paid? I think it’s more of the latter.”

Jeff Atlin, partner with Abacus Mortgages in Toronto, discussing the rise in errors and omissions insurance premiums. Page 52

September 2011 Publications Mail Agreement #41261516 Postmaster: Return undeliverable addresses to KMI Publishing, 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2

EDITOR Senior Staff Writer

John Tenpenny Vernon Clement Jones

NATIONAL SALES MANAGER

Trevor Biggs Scott Clarke

OFFICE MANAGER

Marni Parker

SUB-EDITOR

Rachel Naud

mortgagebrokernews.ca

DESIGNER PRESIDENT CEO

SALES MANAGER, Mortgagebrokernews

6

DESIGN MANAGER

Jacqui Alexander Vivid Design Solution Tim Duce Mike Shipley

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as CMP magazine can accept no responsibility for loss.

Advertising enquiries trevor.biggs@kmimedia.ca

Editorial enquiries john.tenpenny@kmimedia.ca Printed by Solisco imprimeurs-printers www.solisco.com

KMI Publishing 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 mortgagebrokernews.ca

News Industry

The past month has seen a lot of broker discussion of articles posted on MortgageBrokerNews.ca. Here we collect some of the most commented on stories and the reaction they garnered from the mortgage broker community.

To read the full stories or to make your own comment visit: www.mortgagebrokernews.ca

broker: lenders, time for forced-savings mortgage A veteran broker is renewing calls for channel lenders to develop a “forced-savings” mortgage, focused on helping borrowers shift debt at the same time it strengthens the industry’s hand.

“Over the years, I’ve taken the idea to a least four lenders, and their response was always positive, but it never went anywhere,” Mike Maguire, owner of Mortgage Wise Financial in London, Ont., told MortgageBrokerNews.ca. “This mortgage product would effectively encourage clients to save money by tying it into monthly mortgage payments, but not as prepayments but as savings – savings that would be sufficiently removed from their access to make them have to think about getting it.”

I have been doing forced-savings mortgages for years with my clients. Most decent lenders will permit this action. FirstLine was a pioneer utilizing this technique helping their borrowers pay off a 25-year amortized mortgage in 12 years in many cases. CIBC dismantled this benefit soon after acquiring FirstLine. This simple strategy helps me show my clients that I work in their best interest and a bank works in the best interests of their shareholders, not their customers.

– FirstLine As a veteran mortgage professional and a former banker for a number of years, I agree forced savings is essential encouraging Canadians to save for a rainy day, however, I do

8

mortgagebrokernews.ca

The strategy mirrors those of the prepayment plans many brokers already map out for clients, a way of whittling away at principal balances faster.

Maguire’s proposal not only formalizes that strategy but places that extra money directly into a savings account. It is not used to pay down the principal.

Maguire’s renewed call for one or more broker channel lenders to offer that service comes as an increasing number of Canadians grapple with unprecedented levels of debt, virtually on par with that of their American counterparts. Helping clients get out from under that burden is an opportunity for the broker channel to reassert its position as a consumer-orientated partner to homeowners, a role distinctly removed from that of the banks, said Maguire. CMP

not agree not to pay down the principal of their mortgages. When I was a bank branch manager over 20 years ago, I helped customers set up a fixed savings plan, which is an automatic transfer of a certain portion of their pay from their chequing account into a high interest savings account (tax-free savings account in today’s market), then prepay their mortgages monthly but leaving a certain portion as emergency savings (saving for the rainy days). This strategy works but only if the customers (participants) have the staying power and discipline. In my opinion, we can advise our clients/customers with the best strategy, it is up to the clients/customers to implement the strategy.

– Angela Wong-Liao

$540,877

Your trusted news source

average home price in B.C. in July, up 10 per cent from a year ago (BCREA)

Our Power Compensation® Program gives brokers the man advantage.

Which means better service and lower rates for your clients and bigger earnings for you.

And, with exclusive products in your lineup — like B Lending Solutions and ARM, plus dedicated underwriting and All Star Portal access — you’ll be even more competitive in the market.

Be a Power Broker with Team Bridgewater.

CMP009 09/01/11

1-888-837-2326

n

bwballstarportal.ca

Personal. Efficient. Committed.

News Industry

Your trusted news source

Lender paperwork frustrates brokers, lawyers

A leading broker is asking channel lenders to look at standardizing their instructing documents for lawyers, a way of easing the headache for legal and mortgage professionals, alike, but also creating a competitive edge for the industry.

“Anytime that we, as brokers, have to intervene because there’s a question about what the lender is asking for in terms of documents creates extra work for us,” Dan Eisner, CEO for True North Mortgage, told MortgageBrokerNews.ca. “It definitely occupies a certain percentage of our time and it’s growing as lenders attach more conditions to their deals. I’d like to see that come off my plate and broker channel lenders coming together to standardize their instruction documents would help do that.”

Ostensibly, that move would address concerns shared by brokers in all Canadian markets, from Toronto to Trois-Rivières. The problem is likely heightened for mortgage professionals working in small markets where real estate lawyers may be unfamiliar with the specific requirements of some monolines.

“I have had complaints from lawyers that the paperwork for monoline and non-bank lenders took more time,” said Mike Missere, a mortgage agent with Mortgage Intelligence in Thunder Bay, Ont. “There was one lawyer that threatened to charge the client more for having to do their mortgage documents because of it. I was able to stop that, but from my standpoint I have to field more queries from the lawyers about the legal paperwork when the lender’s not one of the chartered banks.”

“I would love it if lenders would get together and take a listen to what the lawyers have been saying on a number of issues,” Jeff Kahane, of Kahane rect ad August2011_SYD_REVISED.pdf 1 8/30/2011 10:51:41 AM Law Office, told MortgageBrokerNews.ca. “Absolutely, if they could standardize document requirements, it would make life much easier. As it is now we are presented with different paydown and payout terms, consent of spouse requirements that aren’t even required in Alberta, and conditions that aren’t even spelled out in the documents, but that we later find out are being asked for. If every lender had the same format, or even if a lender standardized the format for just its own mortgages, that would speed up things for the client and reduce the likelihood of things being missed.” CMP

As a former conveyancer turned mortgage broker in B.C. I can relate. The biggest culprits are the monolines who use third-party companies, like First Canadian Title to issue their instructions.

Because they are based in Ontario, their instructions tend to be based on the Ontario Land Title system and laws. The terminology and documents associated with conveyancing is slightly different in each of the provinces. The companies issuing mortgage instructions should be aware of this, but tend to have an Eastern snobbish attitude to any province except Ontario.

– Kim D, British Columbia Good suggestion Dan. I think most brokers have heard these complaints before. I do find that the law firms that have most of the trouble handling non-bank instructions are those that only dabble in real estate or who don’t have sufficient volume to see every lender all the time.

That said, if Jeff Kahane still thinks it’s an issue worthy of consideration, then I suspect he’s right as his firm does lots of business and he’s well-respected.

– Gord McCallum

We don’t rely on credit, income, or age. We do lend on appraised value. Corporate and international clients.

Fast commitments. Loan amounts from $15,000 to $750,000. Lender fees as low as 2.00%.

80%

5.75%

6.75%

OFFICES IN VANCOUVER, CALGARY, EDMONTON, TORONTO & ATLANTIC PROVINCES

Hugh Doggett

10

mortgagebrokernews.ca

416 402.5994

905 824.7095

hdoggett@capitaldirect.ca

CENTUM Gets You Noticed

Gain instant notoriety with your own personal website, blog and RSS news feed when you become a CENTUM Broker.

www.centum.ca | Join us to get the CENTUM Advantage Allison Taylor at 1.888.928.1338 or allison_taylor@centum.ca The CENTUM Network is Canada’s Premier Mortgage Broker Organization and one of Canada’s largest networks with over 260 locally franchised offices with more than 2,500+ mortgage professionals on Centum.ca.

Independently Owned and Operated. ® ™ trademarks of Centum Financial Group Inc.

®

News Industry

My E&O provider through CAAMP gave me a quote that was about 60 per cent higher than previous years. We have never even had a hint of a claim. So I went shopping. Once they found out that I was about to switch, they offered to match the rate from the other company to which I was going to switch. So now my rate is about the same as last year.

– Hal If we simply shop the competition and give our current provider the chance to match, can we complain when a mortgage customer shops us? Business should be going to whomever offers the best service and ongoing service followed by price. Too many think that because of the CAAMP affiliation that we automatically get best pricing and as Hal stated, that is just not the case. I’m not a fan of tied selling, period. CAAMP needs these companies to mandate CAAMP membership so they have a continuous revenue stream.

– AB Broker The question is does CAAMP or IMBA not disclose in their financials how much they get from their “sponsorship” of E&O providers or any other service. My wife is a CGA and her association gets her great deals on home and auto insurance, cellphones, etc. that so far we have not been able to get shopping ourselves.

– Ont. Broker We had heard stories of E&O insurance going up significantly, so we asked Rocca Dixon (our current provider) for a renewal quote prior to signing. They only took us seriously when our renewal date came up and we told them we were likely moving to Purves Redmond. We found it interesting that they acted just like a lender realizing they were losing a mortgage to another lender at maturity. The initial claims-free quote we got from Purves Redmond was still significantly cheaper; perhaps because they are not associated with CAAMP or other provincial organizations? FSCO’s website has a link showing which firms are acceptable E&O insurance providers.

– Bob W.

Your trusted news source

competition grows for association-annointed E&O insurers E & O insurance providers endorsed by CAAMP and other professional associations are facing a run for their money as competing insurers win over brokerages fleeing premium hikes.

“The fact is that we are not doing a lot of advertising,” Andrew Reid, principal insurance broker and director at Purves Redmond Ltd., which accesses errors and omissions insurers not specifically endorsed by mortgage broker associations. “But mortgage brokerages are coming to us through word of mouth and they’re a mix – brokerages that are and brokerages that are not currently receiving coverage from the insurer-partners of their professional associations.”

The uptick in interest and, indeed, business for insurers operating without a specific endorsement from either CAAMP or one of its provincial counterparts comes as Alberta brokerages face their first-ever requirement to hold E&O insurance. They must also show that they’re covered for loss resulting from “fraudulent acts in the carrying on” of their business. Their insurers are to provide proof of that coverage to industry regulator RECA on or by Sept. 1, that deadline timed to sync with relicensing.

The insurance requirement in Alberta largely mirrors those of Ontario, Saskatchewan and, now Manitoba: $500,000 for a single occurrence and $1,000,000 for all occurrences in a 365-day period for both liability and fraud coverage.

The increased demand Reid – and the several other insurance brokers representing providers like GCAN, Chubb and Chartis – is now fielding is coming from Alberta, but also Ontario. Some brokerages in the central province are now grappling with significant increases in insurance premiums as claims – especially involving private lending deals – rise and insurers fine-tune risk assessments for individual firms based on claims, funded volume, number of agents and other key determinants of risk. The end result is substantial premium increases for some brokerages. CMP

THE BEST APPRAISERS IN CANADA ARE CERTIFIED AND REGULATED BY

LOOK FOR THE PROFESSIONAL DESIGNATIONS

DAR & DAC

12

mortgagebrokernews.ca

THE CANADIAN NATIONAL ASSOCIATION of REAL ESTATE APPRAISERS CALL 888-399-3366 or FIND AN APPRAISER at WWW.CNAREA.CA

Setting

THE STANDARD! 速

IN THIS YEAR ALONE

www.verico.ca/welcome

News Industry

Your trusted news source

Brokerages downsize sales force It may run counter to their competitors, but a number of brokerage heads have moved to downsize sales forces, instead of adding to them – a way of freeing themselves to grow their own sales as new home purchases slow.

“I’m now ‘it’ – chief cook and bottle washer,” Paul Ouellette, broker and manager of Central Mortgage Associates Inc. in Windsor, told MortgageBrokerNews.ca. “There were rewards associated with having a staff of nine sales associates, but I found that two-thirds of my time was spent on administrative work and cleaning up other people’s apps. I decided that enough was enough and pared back to work for and by myself.”

The move has ultimately doubled his productivity in terms of developing leads, winning client commitments, but, more importantly, funding deals. They’re the most tangible benefits of reducing the number of agents in the office. They’re also compensation for any lost revenue from commission splits.

Quellette’s business trajectory runs counter to those of most brokering veterans, increasingly looking to beef up their sales teams in order to extend their reach in the community and to generate more leads – that’s even as home sales in key Canadian markets slow. Many brokerage heads are, in fact, going one further, using an amended provincial pact to rapidly expand their businesses across provincial lines and to take on new agents in new markets.

Specifically, changes to the Agreement on Internal Trade, taking effect July 1, 2011, have made it easier for individual brokers already licensed in Ontario, British Columbia, Alberta, Saskatchewan, Manitoba or Québec to win the equivalent licence in any of those other provinces without having to meet new education and experience requirements. It means they can act as principal brokers in that new territory without having to hire a local player to fill that role.

Still, Quellette, a 25-year veteran of the industry, prefers to go it alone, what he calls returning to the industry’s roots.

“I now live by the eat-what-you-kill strategy that is the basis for brokering,” he said. “When people come to my office, they know that they’re talking to the broker not to an unseasoned subordinate. I found that it was, for me, the right thing to do.”

He’s not alone.

14

mortgagebrokernews.ca

“We pared back three years ago, to only one agent working with those of us partnered in the business,” said Christopher Bisson, principal broker for The Mortgage Centre (Guelph). “We did it because the return on investment, considering the time involved with overseeing agents and the split structure we had in place, was not cost-effective. By increasing the number of deals we did ourselves we made up for what was lost by reducing staff.”

Unlike Quellette, Bisson, who personally claimed $92.6 million in funded volume last year, is now debating whether to reverse that earlier move.

“We’re not talking about it,” he told MortgageBrokerNews.ca, “but we would be very selective in choosing agents and also look to adjust our split agreements to make taking on new staff financially viable.” CMP

If you haven’t read the book Good to Great by Jim Collins - you need to. I think by looking at the “bus principle” (as presented in Good to Great) we can figure out this whole article (and maybe even the quality problem in the broker channel). The bus principle is pretty simple, for a business to grow, there are three things it needs to do, first they have to get the wrong people off the bus, second, get the right people on the bus and third, figure out where everyone is going to sit. In the case of these businesses, I wonder if the people they had on their bus were “the wrong people”? If the “let go” brokers were quality brokers contributing significant volume with little to no supervision, would they have been let go? Most likely not! So... is it fair to bring attention to the fact that “Brokerages Downsize Sales Force”, well... probably, because “Brokerages part ways with non-producing brokers” just isn’t as catchy an article! I like the end here, “but we would be very selective in choosing agents...” - isn’t this bringing the right people on the bus?

Whatever made it a good idea to just bring on any warm body into the industry in the first place? Let’s continue the conversation about raising the standards in the broker channel! Also, Mike Cameron at http://mymortgagerevolution.ca/ is a great resource.

– @kiltedbroker Chris Bisson is right on. If most managing brokers examined the liability and time spent on managing staff versus time spent marketing to their own clients they would see what a loser game it is. There is way more money in brokering than in providing cheapo management services and risk-free income to the aggregators.

– Contrarian

News Industry

Your trusted news source

Broker: Time to disclose reward points Clients are entitled to know when they’re being charged a higher interest rate so brokers can bank the spread to pass it on to other customers, argues an industry veteran, calling on FSCO to mandate disclosure around that lender option.

“When we hear ‘Disclosure! Disclosure!

Disclosure!’ we don’t hear about the points that some lenders give brokers for specifically and intentionally offering one client a ceiling rate in order to hold onto to the basis points and then buy down the rate for a subsequent client – without having to give up any commission on that subsequent deal,” Paul Mangion, a broker with The Mortgage Centre in Mississauga, told MortgageBrokerNews.ca. “That amounts to charging the first client a fee because it saves the broker thousands of dollars in lost commission in buying down the rate for that subsequent deal.”

The practice is, in fact, shunned by many brokers, some even going so far as to call it “price discrimination.” But many others have stepped up their use of it in order to retain clients threatening to go with increasingly aggressive banks, even if they’re dangling a rate only one or two basis points lower than the broker’s.

Mangion, a high-volume broker working both A and alternative deals, understands the temptation, although questions the ethics of mortgage professionals now taking advantage of formal lender points programs that effectively encourage the practice by offering it as an option.

Ethics aside, he said, clients trusting brokers to win them the lowest possible rate must be told when their mortgage professionals have offered them a ceiling rate instead of the floor rate.

“When we, as brokers, receive an extra benefit in the form of points from a lender for offering the high end of our rate range to an unsuspecting client, that has to be disclosed,” he said.

Still, all lenders now offering those programs do so as an option, said another seasoned broker, suggesting that places responsibility on the broker’s shoulders, not the lender’s.

Either way, Mangion wants the Financial Services Commission of Ontario to take up the issue during its review of industry regulations early next year.

“Our industry’s reputation depends on transparency.” CMP

Should any retailer or proprietor in Canada disclose what profit they are making on any sale? Paul is obviously not a businessman and for some reason considers our industry as a charity. We are not a charity and we charge whatever we feel is just for our services. Let the clients decide if they made the right choice or not. Does a bank disclose to the client how much profit they are making on each product that they sell? No. They let the client know how much it’s costing them, and the clients decide for themselves.

– Businessman

free. Clients are not dumb and they accept that they are getting value for the service and if we should get paid.

– Alberta

On our RECA forms, we have a section where it states are you (the client) paying a higher interest than normal for this transaction. It is a clear as day. Do clients need to know everything? I go over the sheet with every client and state very clearly this is how we get paid.

Clients are not stupid they know that you are getting paid for your work. We do not work for

16

mortgagebrokernews.ca

Full disclosure doesn’t require a regulator to tell us that we have to specifically do what is right for the client. I have always felt that brokers should disclose how we are paid, what incentives we are given to use from one lender to another, etc. Full disclosure may cost us a deal from time to time, but lack of disclosure costs a lot more – credibility.

– Donald Wilson We as broker/agents are not in the retail business. We are not mortgage peddlers. We are agents for our clients and therefore have a fiduciary duty to them. If you want to charge your client an extra fee, do so but you must disclose or you are facing a lawsuit. We have very limited opportunities now to show the

News

Industry

Your trusted news source

public who we are and that we can be trusted.

I’m also a licensed Realtor and if I made some extra coin at my client’s expense and did not disclose that, I would lose my licence.

– Jake Rempel I don’t think that this is an issue of ethics, or of conflict of interest. In a free market, the price of a product is generally based on what the market will bear. Every seller balances risks and rewards in his pricing strategy. By offering a higher rate, the broker also risks losing the deal because the clients have an option to shop around. Pricing is for the total value that the broker provides. Why tie down the hands of the brokers when the competitors i.e. the bank branches are doing the same thing. They can give super low rates to some clients because they know they can charge higher rates to others. Let’s not make the playing field more uneven than it already is.

– Ad Lankhanpal Paul does have a point, we exist in a regulated industry and the regulator is not the same one who regulates our bank competitors. If the regulator asked why we charged a different rate on the same day, from the same lender to essentially the same type of client; how would we answer: “stupid regulator, we are business not a charity” or “stupid regulator, the banks do it every day.” I don’t think we would react that way to the regulator so we need to think this through a bit more clearly. I don’t really have an

Jason Strandlund

61% of Canadians aged 45 to 60, who intend to stay in their current home as long as possible after retirement (HomEquity Bank/ Ipsos Reid)

answer yet, but I think we cannot just say “screw it, we can do whatever we want.”

– Ron Butler When clients come to us for financing, they trust that we are acting in their best interest. Not disclosing the fact that they are being given a higher rate, so the broker can bank points to benefit others, is simply unethical and dishonest. It tarnishes the reputation of the broker industry. Rates are not everything, but honesty is.

– Kim D. Seems that some of us don’t understand the difference between clients and customers. The banks and the retail industry have customers.

We have clients. Customers can be sold whatever they will buy. Clients trust their broker/ agent to do what is best for them. We are agents for clients.

– Jake We are honest as it is. Clients are the ones that need a lesson in honesty. They will shop brokers like no tomorrow no matter how many years of service. So, will I lose any sleep if they have to pay a fee? Absolutely not. If they don’t like fees then they can negotiate their own mortgages.

My time is valuable and demands top dollar.

Bottom line: if you expect not to pay fees when dealing with me, then you don’t deserve a loan.

– How About Some Honesty From Clients

THE ALTERNATIVE LENDER You NEED To kNow Fisgard is one of the largest private alternative lenders in Western Canada and is dedicated to supporting mortgage brokers and their clients. We provide competitive products, flexible lending guidelines and dedicated customer service.

Having a good relationship with you, our broker clients, is critical to the success of our business. Fisgard’s creative, knowledgeable and experienced underwriting team wants to see all of your deals that don’t fit the typical “bank box”.

Chances are that Fisgard can fund these deals, and fund them quickly. We are here for you and we’re here for your clients.

Call your underwriter today.

Call 866.382.9255 or visit www.fisgardmortgage.com

Fisgard Capital Corporation | 3378 Douglas Street, Victoria BC V8Z 3L3 | www.fisgardmortgage.com

CMP_Third_page_JaS.indd 1

5/9/2011 12:56:04 PM

mortgagebrokernews.ca

17

News

Business Advice

veteran cautions new agents on bank deals An industry veteran is asking young agents to take a second look at the number of deals they’re sending to members of the Big Five, suggesting stronger relationships with monoline lenders is essential to retaining clients but also to serving them.

“An agent is free to send 100 per cent of their deals to one of the Big Five,” John Hamilton, a broker with Dominion Lending Centres in Barrie, told MortgageBrokerNews.ca. “But I think it’s important young mortgage professionals take the time to learn about the products of the monolines, instead of just sending deals to the banks. I think sending more deals to monolines often better serves the client because of the monoline/broker relationship. But it also allows the agent to better retain the client after the origination.”

The cautionary note comes as new media reports suggest monolines are increasingly being challenged by the banks, both in and outside the

broker channel. Two of the major banks using the broker channel advanced their relative share of broker business in the second quarter. That shift coincides with, and may in fact be driven by, the “rate wars” and the renewed willingness of bank branches to undercut broker rates. Their goal is to meet year-end targets, argue brokers, who themselves are finding it harder to maintain origination numbers as home sales slow and banks slash mortgage rates.

Against that highly charged backdrop, any growth in the percentage of deals that brokers and agents are now sending to the big banks doesn’t add up, said Hamilton, a broker for more than two decades. “I wouldn’t have expected that. The monolines are offering the lowest rates still, and the more we use the monolines, the more pressure we place on the banks to bring their rates down.” CMP

Peoples Offers a Choice:

Multi-Family Rental Properties Senior’s Housing Projects Commercial Properties Construction Projects

Competitive Rates Equity Take Outs Purchases No Minimum Beacon Homeowner or Rental Flexible Income Verification Renewal Fees Available

18

®

Calgary

Suite 1115-Bentall Two 555 Burrard Street, Box 231 Vancouver, BC V6C 3K4 Fax: 604-683-2787 Email: vancouver@peoplestrust.com

Suite 955 808-4th Avenue SW Calgary, AB T2P 3E8 Fax: 403-266-5002 Email: calgary@peoplestrust.com

CMHC/Conventional Financing Brian Kennedy 604-331-2211 Jonathan Wong 604-331-2218

CMHC/Conventional Financing Dennis Aitken 403-205-8203 Daniel Stewart 403-205-8202

Single Family Financing Tom Wollner 604-331-2210 James Pell 877-855-9750

mortgagebrokernews.ca

I love hearing people complain about sending their deals to a bank. I have news for you, the monoline lenders are working just as hard if not harder to retain the clients you sent them.

Use your current relationships no matter if it is a bank or a monoline lender. When that is no longer in your best interests, then look at other options.

– B.C. Broker

CMHC & Conventional Mortgages for:

Single Family Alternate Equity Lending:

Vancouver

I agree with John Hamilton: Brokers should support our channel by sending business to monoline lenders. Why send your business to the competition? Nonsense.

– @kiltedbroker

Toronto Suite 1801 130 Adelaide St. West Toronto ON M5H 3P5 Fax: 416-368-3328 Email: toronto@peoplestrust.com CMHC/Conventional Financing Michael Lombard 416-304-2078 Ady Steen 416-304-2089

News

Industry

Top originator urges niche brokering, focus on property investors With an originations slowdown sending brokers scrambling to diversify their portfolios, a top Ontario player is arguing “niche” brokering may actually be the best way forward.

“In 2011, our originations from real estate investors will likely surpass 50 per cent of our total volume,” Dave Butler, of VERICO Butler Mortgages Inc., told MortgageBrokerNews.ca. “In 2010, it was roughly 40 per cent. My single best determinant regarding sales success was listening to Peter Kinch many years back and concentrating on being a niche broker. I felt that Peter was correct in his assessment that real estate investors were a very underrated and under-marketed block of potential clientele.”

The analysis presents a counter argument to the strategic advice of a number of industry veterans committed to the single-family residential market despite what CMHC calls a dwindling number of first-time homebuyers in Ontario and Eastern Canada. While new purchases have also slowed across much of the West, Vancouver brokers are also contending with the highest home prices in the country. That, coupled with the highest occupancy rates in years, is discouraging potential buyers from entering the market.

Butler, a 2011 CMP Top 50 broker, managed to steer clear of those obstacles in large part because of his portfolio of property investor clients – one group that has successfully exploited historically low interest rates and the glut of inventory now driving down prices in key markets.

“It doesn’t take a genius to figure out that your average client might need your services for their mortgage every two to five years,” said Butler, a six-year veteran of the industry, “whereas a real estate investor may need your services for five to 10 different mortgages per year. How hard is it to close a deal for a client 10 different times in the year if you already have all his documents on file from previous deals?” CMP

Tired of searching multiple mediums to get the latest mortgage information for your business?

Equity lending is a necessity of life. Unfortunately, most institutional lenders haven’t quite accepted this as good business practice. Typical underwriting guidelines put up obstacles, such as location of property, appraisal guidelines, self-employment criteria, etc. In my opinion, they are missing out on the most profitable type of business they could book. Borrowers in this category are not rate-sensitive and are appreciative of the broker’s effort. We need a simple equity product with tiered pricing based on credit score and property type, any recent appraisal (CRA or AACI) and a broker inspection report, IE pictures and a copy of the current property tax statement is enough for private lenders.

– Art Connor, Mortgage Centre Owen Sound Interesting take on what brokers need to succeed or at least sustain going into the uncertain future. I agree that exploiting an under-serviced niche is an excellent strategy. However, I caution big time having only one niche as this article suggests for Dave. I want to have several powerful niches so that if something happens to change the game, and it seems that always happen, then my overall business is safer.

– Greg Williamson

www.mortgagebrokernews.ca

News Industry

Your trusted news source

Brokers: Channel lenders copying bank switch-out policies Broker channel lenders are increasingly taking a page out of the banks’ book, says brokers concerned about the growing difficulty in switching clients out of their mortgages as monolines ramp-up retention efforts.

“There’s no question that the retention teams of broker lenders are becoming more aggressive with switch-outs,” said Jeff Attwooll, a mortgage consultant with Dominion Lending Centres Your Mortgage Partners. “Some are now insisting on talking to the client before they sign off on the discharge of a mortgage.

That’s relatively new for broker-lenders and is what the banks do. Of course, that’s not good for brokers.”

With originations and refinances having slowed in most markets across the country, brokers are increasingly looking for opportunities to switch clients out of their existing mortgages, at relatively high rates, and into new loans, offering today’s rock-bottom pricing. Even after penalties, said Attwooll, a high-volume originator based in Cambridge, Ont., breaking an existing mortgage often makes financial sense for many of his clients.

But a growing number of monolines are actively looking to block that move, said Dustan Woodhouse, with Dominion Lending Centres Canadian Mortgage Experts on B.C.’s Lower Mainland, by insisting on the same kind of client-lender meetings – usually by phone – that the banks do before agreeing to the discharge. As at the branch level, those discussions are focused on presenting borrowers with a more competitive rate on a new mortgage.

Unlike some of the Big Five, broker-lenders aren’t going so far as to eat their own penalties in order to retain clients, said Attwooll, although their retention has the same potential to cut the broker out of the equation.

“Of course, we don’t get a commission on the new mortgage with the same broker-lender,” Attwooll told MortgageBrokerNews.ca. CMP

We think outside the branch.

0

100 95

The Mortgage Group Canada Inc.

75

For over 20 years, The Mortgage Group has built a reputation on expertise and integrity with over 700 Mortgage Professionals across Canada.

25

In fact, our No Sweat approach to mortgage

5

solutions has helped over a quarter million Canadians.

From our vast lender network and leading-edge

0

tools to innovative training and unparalleled support, we take pride in what we do, where we work and who we work alongside.

0

100 95 75

25 5

www.mortgagegroup.com TM

National Mortgage Broker Network

20

mortgagebrokernews.ca

0

News

INdustry

This is not an issue as lenders currently renew 88 per cent of the mortgages upon maturity anyways. If a broker is now relying on renewals for income, they are in trouble. They might as well leave the business now, as this is only going to get worse for marginal brokers.

– Jim I wonder if the loyalty programs that some of the lenders have are worth looking at? I know Street Capital has a program that will pay out a small commission if they are successful in renewing the client’s mortgage after the initial term. Honestly I have never thought of this as an option, but it might be something to look at.

- @kiltedbroker This isn’t new to our industry. All lenders are trying to keep their clients as long as possible. They are, after all, running a business.

Instead of relying on renewals I’m relying on that 88 per cent retention rate to pay my trailer fees.

– Peter We have to be more diligent in supporting our lender partners, especially when it comes to efficiency. We must try to complete a deal with a lender once we send it there. Jumping somewhere else with the deal at the last moment doesn’t help efficiency and funding ratios. Also a move to trailer fees is what will help all brokers in the long run.

- Vic

Visit

Your free daily online news resource for the mortgage brokering industry!  Latest News  Broker News TV  E-Newsletters  Industry Trends  Forum/Comments  Online Polls  Best Practices  Advice on Building your Business

appointments ING DIRECT announced that David Napoleone has been promoted to regional sales manager for Toronto North and Northern Ontario. He will be reporting to Kim Luxton, director, lending broker sales.

David Napoleone

Vince Agozzino

Home Trust announced the appointment of Vince Agozzino to the position of director of national sales. Agozzino brings with him over 15 years combined experience in the financial services industry and has served as bank manager for a schedule A bank on the retail side as well as a business development officer of both prime and alternative mortgage product suites. He joins Home Trust from another non-bank lender where he served as both a regional vice-president and vice-president of sales for Eastern Canada.

Agozzino will be responsible for the direction of the business development team at Home Trust. CMP

Subscribe today for FREE! www.mortgagebrokernews.ca

News Analysis Multimedia

Your trusted news source

Every week, MortgageBrokerNews.ca rounds up influential figures to discuss the major issues in the mortgage industry. You can watch these videos online in the Broker News TV section of our website, but here we bring you the highlights from last month’s clips

the

big story

On the topic of …

broker diversification Andre Seminuk: “Being a mortgage agent in today’s competitive marketplace, we need be able to diversify, we have to be able to provide more offerings and we need to make sure that we’re more versed in people’s financial plans, their overall portfolio and wealth creation. Being a mortgage sales agent is fairly limited. There’s a great competitive landscape out there, which has really benefited the consumer in today’s marketplace. Looking at financial planning firms that are offering mortgages, looking at banks and their increased competition for life and disability insurance, there’s a lot of competition and there is a lot that we can do. Having a Canadian First Financial franchise and a qualified financial planner within the body of our business model and under the same roof allows us to not only consult on a mortgage plan, but also fit that mortgage plan into their overall financial plan. We need to make sure we are using their money most efficiently and that we’re also creating wealth while paying down debt. It’s not simply what interest rate you receive on your mortgage, but what is the interest paid over the next five to 15 years.”

On the topic of …

lender product diversification Boris Bozic: “The dilemma that lenders have today is creating products that are a must-have or a nice-to-have. Historically, even at Merix, we’ve taken feedback from the broker industry that said ‘If only Merix had this to offer, your volumes would increase substantially.’ Time, energy and money is spent around creating these other products, and

22

mortgagebrokernews.ca

yet when they come to the marketplace they’re used more for window dressing and for optics than actual product, which is available to a consumer, which comes to its natural conclusion, which means that both the broker and the lender wins. So I would suggest that whatever requests or whatever the mortgage broker community would like to see, the most important question that they have to ask themselves is that if a lender creates these ancillary products for them, can they deliver?”

On the topic of …

Andre Seminuk

the challenges and benefits of blogging Christopher Molder: “One thing to understand about blogging is that it is not a silver bullet for your marketing. If you are doing online marketing, a blog should be one of the cornerstones of your online presence. A website is very static and most consumers expect you to have a website. The blog is where you get an opportunity to showcase yourself and write some current, entertaining and educational content. What I see a lot of brokers doing is writing plain, rather boring content about why you should use a mortgage broker, the blog

Boris Bozic

…want to earn more, Mortgage Architects has a 100% commission payout model, with no monthly fees …are worried because 89% of your renewing customers stay with their lender*, Mortgage Architects has a lender that will never compete with you, and pays trailers when you facilitate renewals …need to be more competitive, then get the highest status offerings with FirstLine, MCAP, Laurentian Bank and National Bank via our centralized placement desk

powerofvalue.ca Contact our sales team today!

Joanne Vickery

Glen Ward

Luisa Simonetti

Western Canada

Atlantic Canada/Eastern Ontario

Québec

joanne.vickery@mtgarc.ca 604.250.5070

glen.ward@mtgarc.ca 877.499.4076

luisa.simonetti@archyp.ca 514.323.8383

Meini Ickert National Sales

meini.ickert@mtgarc.ca 778.218.2120

facebook.com/MAdoYouWantMore *2011 CMHC consumer survey © Copyright 2011, Mortgage Architects, all rights reserved.

InstantlyConnect CMHC’s Underwriting Centre is backed by the experience gained from millions of transactions approved through emili – CMHC’s on-line mortgage loan insurance decisioning system. Our dedicated team of emiliProfessionals is committed to providing you with extended hours of service and national expertise with a local perspective.

Whether you have a mortgage loan insurance question, are seeking policy information or simply need help submitting an application, an emiliProfessional is available Monday to Friday from 6:30 a.m. to 11:00 p.m. (ET) and Saturdays from 8:30 a.m. to 7:00 p.m. (ET) Instantly connect to an emiliProfessional today at 1 888 GO emili

Everything You Need to Open New Doors

News Analysis

Multimedia

Your trusted news source

should be a platform to showcase yourself. I use video predominantly on my blog. First of all, video production is easy to do – it takes me less time to produce a video than it does to write a blog.

Another benefit is that when consumers visit my blog they get to see who I am and it creates a certain amount of trust. You’ll find that there is a whole segment looking for information online and they want to remain anonymous and you’ll find the concept of a blog is like a reverse drip.

Traditional marketing is where you get a contact lead and you “drip” constantly on them over a six-month period. The blog is considered a reverse drip, where somebody who is interested in your content can choose to receive information from you through your RSS feed or continually visiting your blog. One of challenges of doing a blog is staying committed to it, because it can take a while to see any results, but in the long run you will see hard and soft benefits. The hard benefit is where the money is – generating leads, while the soft benefit is that it becomes easy for you to become referable because viewers share your content.”

On the topic of …

financing former grow-op properties Wojciech Pianka: “Due to the fact that many of them are in B.C. and Ontario, not many lenders are looking at financing these properties. However, there is great value as a lot of these properties are underpriced and just need a little bit of cleanup and work. When you’re putting together an application you want to have two things. You want to have your client obtain an indoor air quality certificate and a mould-free certificate. These documents will basically let the lender know that the property is habitable. As far as I know, in Ontario, there is only one lender who will look at these sort of applications and they are CMHC-insured. So, you want to make sure all your paperwork is in order, such as financials and down payment. The final challenge in getting grow-op properties financed is that sometimes once the deal has closed and renovations have begun, some of the air quality and mould issues can resurface. Remember, you and/or your client will be responsible for taking care of this and this can cost anywhere from $20,00 to $65,000.

Just because a property is a former grow-op, don’t run from it, there’s great value if you know what you’re doing.

On the topic of …

recent economic turmoil Martin Reid: “We see the volatility that’s

happening internationally potentially having a negative impact on Canada. The Canadian economy is very strong, Canadian consumers are in very good shape, but we’re not an island and we are impacted by what’s happening both south of the border and in Europe.

The likely impact is that maybe we see consumer confidence slowing down and consumers moderating in terms of the real estate market home purchases, but we don’t see any significant move downward.

What we do see however, is interest rates remaining low, remaining low during the balance of 2011 and well into 2012. That should be a big plus for consumers and a big support to the real estate market in Canada.

Christopher Molder

On the topic of …

brokers using refis to boost their bottom line James Robinson: “Even though we are in a historically low interest rate environment we have seen mortgage volumes decrease on the origination side which is perhaps causing some of us in our industry to look at our existing client base. There are less purchases so some of our existing clients who may be able to refinance into a lower-rate mortgage and save some money, which is fantastic if we’re acting in the best interests of the customer.

We have to make sure we are not simply doing this transaction to generate more business for ourselves and therefore negatively impacting our lender’s portfolios. It may be great in the short term to generate more business, but long term it will cause the lenders to become more aggressive and we’ve already seen this in terms of their retention teams and trying to keep those customers themselves rather than flow them through the broker channel. So it’s great if we’re looking out for our customer’s best interest, but we need to make sure that there is a reason other than a commission cheque for doing it.” CMP

Wojciech Pianka

Martin Reid

James Robinson

mortgagebrokernews.ca

25

News

International

u.s.

Fannie Mae: Negative equity environment saps would-be homebuyers With 64 per cent of Americans expressing pessimism over the state of the economy in the second quarter, Fannie Mae’s latest quarterly national housing survey shows consumers walking a tight rope into a housing market focused more on renters as employment worries persist.

That’s the highest percentage of Americans with a negative view of the country’s economic shape, according to Fannie Mae, which began the survey in the first quarter of 2010.

What’s more, negative equity levels continue to rise nationwide as house prices remain suppressed.

In the second quarter, 26 per cent of mortgage borrowers were underwater, or owed more than the property is worth, compared to 23 per cent in the first quarter.

And when mixed with rising costs of living and fewer jobs, more and more would-be homebuyers say they are unlikely to get a mortgage.

Survey results show 73 per cent of single-family renters believe it would be difficult to qualify for a mortgage, with 33 per cent citing their own credit histories as a hurdle.

The survey studied consumer confidence across generational lines and found 51 per cent of Gen X (ages 35 to 44) claim it would be hard for them to qualify for a mortgage. When looking at Generation Y (ages 18 to 34) — the cohort most likely to be first-time homebuyers— the number rises to 59 per cent.

Even though pessimism abounds across the market, the younger cohort seems more optimistic about the future. Fifty-seven percent of Generation Y participants said they expect their personal situation to improve over the next year, compared to 42 per cent in Gen X and 35 per cent of baby boomers.

The survey, which is based on interviews with more than 3,000 Americans, found 26 per cent worry about losing their job.

One-third of respondents perceive their savings to be sufficient, while 44 per cent said household expenses have increased significantly in the past year.

“Consumers are more cautious due to concerns over employment and household finances,” said Doug Duncan, vice-president and chief economist of Fannie Mae. “As a result, consumer spending, which accounts for about 70 per cent of the economy, ground to a halt in the second quarter.

Consumers are more hesitant to take on additional financial commitments, and a setback to confidence means a setback to the recovery of the housing market.” CMP

26

mortgagebrokernews.ca

U.S. home builders still pessimistic Homebuilders are just as pessimistic about the depressed housing market as they were two years ago.

The National Association of Home Builders said recently that its index of builder sentiment in August was unchanged at 15. The index has been below 20 for all but one month during the past two years.

Any reading below 50 indicates negative sentiment about the housing market. It hasn’t reached 50 since April 2006, the peak of the housing boom.

Separate gauges of current single-family home sales and foot traffic of prospective buyers each rose one point this month. But the outlook for sales for the next six months fell two points. Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven’t fared much better.

Builders are struggling to compete with foreclosures, which have made the price of re-sales more competitive. Many buyers are having difficulty obtaining loans or meeting higher down payment requirements. Low appraisals are scuttling some deal after contracts have been signed. Some would-be buyers who want to purchase a new home can’t sell their old one.

While new homes make up a small portion of sales, they have an outsize impact on the economy.

Each new home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the builders’ trade group.

A special question on the survey this month showed that 41 percent of builders had lost a contract because a buyer could not sell their current home, said Bob Nielsen, chairman of the builders’ group.

David Crowe, the group’s chief economist, said a weakening U.S. economy and high unemployment are also “discouraging many potential buyers from exploring a home purchase.” Even record-low mortgage rates have done little to boost sales.

An index of builders’ outlook in the northeast and west rose four points and one point, respectively. Sentiment in the south stayed the same in August while it declined two points in the midwest. CMP

61%

of Canadians who reported holding some debt as part of the poll, say they are making good progress towards paying down their debt so far in 2011 (CIBC / Harris-Decima)

Teamwork Wins!

YES, at Equitable it’s a Team approach to Lending.

Working together we can see and hear what others may miss.

We work to understand the challanges and overcome obstacles to make the deal work for you.

That’s why for over 40 years, Canadians have turned to Equitable for innovative residential and commercial financing options.

Equitable is your Success Team.

Got a client Challenge?

Call Team Equitable today.

In Ontario call: 416.515.7000 1.866.407.0004 In Western Canada call: 403.440.1200 1.866.940.1201

www.equitabletrust.com

News Industry

Your trusted news source

Broker: Never, ever buy down rate

28

mortgagebrokernews.ca

average Toronto home price in July, down 3.2 per cent from June (TREB)

$459,122

He’s increasingly an anomaly, but a veteran broker who has never bought down rate is admonishing the growing number of mortgage professionals now relying on that retention strategy, suggesting it only delays the inevitable.

“If you’re a single, independent mortgage broker trying to buy down rate in order to keep a client from going over to a bank offering a better rate, you are competing with the bank, and you are not going to win that competition,” Ad Lakhanpal, with Mortgage Alliance in Oakville, Ont., told MortgageBrokerNews.ca. “I’ve had agents agree to do it, and then they’ve gone back to the lender to get a new commitment letter to present to the client. But the process doesn’t end there: the client then goes back to the bank again, and they better that new rate. So they’ve still lost the client. I’ve never bought down rate and I never advise it.”

Fewer and fewer brokers and agents across Canada are prepared to say the same, as competition with the bank heats up and originations slow down. Some mortgage professionals are, in fact, suggesting as many as 80 per cent to 90 per cent of brokers are now prepared to sacrifice a portion of their commission in order to shave even five basis points off of a client’s interest rate.

Once dismissed as a last-ditch effort to retain customers, a growing number of brokerages are using it as a first line of defence as they ramp up online lead generation efforts, dangling rock-bottom rates on the web to attract shoppers.

“At the end of the day, I found that I got the lead if my rate on that product was the lowest on the (referral site) that day,” Paul Poirier, a top-20 broker with Dominion Lending Centres based in Toronto, told MortgageBrokerNews.ca. “People online are looking at rate, first and foremost. They’re not like referrals from clients. Here the rate has to be the lowest or very near the lowest to get the lead.” CMP

I agree that there are a lot of agents out there cutting and cutting ‘til they win the client, but are not properly compensated for their hard work. The issue here is that there is a surge of mortgage agents out there doing just that.

They think to get the business they must cut rate and it is even not against the retail banks, but fellow mortgage agents or brokers. They are not that well-educated by their mortgage broker of record or brokerage they are working for. This is hurting a lot of long-time mortgage brokers and agents. A thought here is that instead of cutting mortgage rates why not offer other services in conjunction that they should be doing with possibly other home-related services to make the client want to close the deal. Just a thought as I truly offer complimentary services besides rate cutting and it has done nothing but add to my firms’ volume.

– Jim from Durham Region-Broker Brokers who focus on rate and buy down rates, and often reduced commissions, will likely soon be out of business. While we’re in business to offer the client great service and mortgage options/advice, we also have to make enough money to stay in business to be able to continue offering that great service.

– James Shinners In 25-plus years, I have never felt the need to buy down the rate. Just those brokers who will be here a couple years will have that need. If they had more customers, they could afford to lose more customers.

– John Like Ad Lakhanpal, I too have never bought down a rate for a client, not even to save a deal. Once I show my value proposition, rate isn’t really a concern. Of course there are some who are still worried about rate, but I can’t help someone who isn’t willing to help themselves. I have learned not to waste my time on those consumers and just let them know that I can’t help them. My office is full service meaning that we follow up throughout the term and prior to renewal. If I chose to buy down the rate for them five years ago, who do you think they are going to grid at renewal? Why would I discount my services? By agreeing to buy their rate down is to acknowledge that my value proposition is very weak at best. There is a saying that goes, ‘Price is an issue in the absence of value.’

- Jeremy Serve up enough recognized value, stay top of mind through mail, email, website and social media and always give the best advice to the client and rate doesn’t enter the equation. I grew my business from two to nine agents in this past recession and

News

INdustry

we didn’t discount even one commission. Get paid what you’re worth, deliver more than clients expect.

– Elfie Hayes Why do we assume that every customer who calls or walks through our doors already knows and understands how we are compensated? As far as they know, we are paid just like bank employees, and even if they end up going somewhere else, why should we care? We still get a paycheque every two weeks, right? Wrong. You have to explain how it works for mortgage brokers and tell them that you will look into anything they might hear out there.

You also have to tell them that if their bank suddenly gets all warm and fuzzy because now there’s a broker involved, that’s totally dishonest. Once your client understands this, they won’t go shopping around. Of course, you have to make a good impression on them, and if you can’t do that, you’re pretty much sunk anyway.

Call me naive, but this has always worked for me. I’ve been a licensed broker since 1996, and I’ve never once bought down a rate. Selling a service means selling a relationship. You must create and build that relationship.

– Julia Krause As a veteran mortgage professional, I agree with Ad Lakhanpal, we are all independent business contractors and we have to know our profit margins. If we buy down 50 per cent of our businesses, we probably have to do 200 per cent of the businesses to make up the income level that we want to achieve. Yes, we are competing against the big banks, and they have deep pockets and we don’t.

Seventy per cent of my business is from existing clients.

These clients trusted and respected my professional knowledge and integrity, therefore, pricing is not their most important objective. I can see new mortgage professionals may be facing big challenges because they have not established their credibility and they need business to survive. I advise these new mortgage professionals to set up their marketing plan prior to joining this industry. They have to set marketing funds and contingency funds aside, which can at least keep their alive for at least one year. Our industry’s success ratio is 10 per cent doing 90 per cent of the businesses in Canada.

–Angela Wong-Liao I have been in this business for over 15 years. As I have never bought down a rate I do recognize that many veteran brokers have status rates therefore have better rates than a lot of newer brokers to start. I have no problem with what other brokers do. If they buy down rate, that is their prerogative. I come on here and laugh at the conceited egotistical brokers who complain about new brokers and banks. It is a dog-eat-dog world. Let the strong and smart survive. It’s like the veteran brokers want a broker union that protects their commission, pay and the rates they can get. Instead of worrying about other brokers and what they are doing, worry about how you do business.

– B.C. Broker

News subhead

ng the facienges chall

NO. 12

the Guide to Industry Broker

GUIDE TO THE BROKER INSUSTRY

www.mortgagebrokernews.ca

CUSTOMERS

THE STATE INDUSTRY

OF THE

APPRAISALS DEMYSTIFYING AND VALUATIONS

FOR LIFE

MAIL AGREEMENT

#41261516

PUBLICATIONS

www.mortgagebrokernews.ca

SEPTEMBER 2010, 5.9

keresrs bro n lend o

ed? arante ction Gu Satisfa

SPECIAL FOCUS WORKING WITH ALT A CLIENTS

FEATURE BROKERING IN THE ATLANTIC PROVINCES

PROFILED YVES CORMIER – SMALL TOWN BROKER PUBLICATIONS MAIL AGREEMENT #41261516

5.9_Cover_Final.indd 1

9/2/10 12:01:06 PM

2010

30

this time last year Canadian homeowners financially fit Canadian homeowners appear to be more financially fit than others in Canada, as 65 per cent pay off their credit balances each month compared to 48 per cent of non-homeowners.

A quarter of the homeowners with mortgages have also made a lump sum payment or accelerated their mortgage payments in the past year, according to a survey sponsored by Genworth Financial Canada.

Forty-four per cent of homeowners paid all their bills and saved money in the past year, suggesting a strong correlation between homeownership and financial fitness.

“Homeownership is an achievable goal for those who are prepared,” said Peter Vukanovich, president and chief operating officer of Genworth.

“Homeownership helps people focus on their financial situation and get their fiscal house in order.”

The survey was conducted in partnership with the Canadian Association of Credit Counselling Services (CACCS).

“A mortgage is easier to manage when people have good personal finance skills,” said Henrietta Ross, CEO of CACCS. One year later With a renewed feeling of financial confidence, more Canadians are planning to take the plunge into homeownership in the next two years.

According to a poll sponsored by Genworth Financial Mortgage Insurance Company Canada in collaboration with the Canadian Association of Credit Counselling Services (CACCS) there has been a significant increase in the number of people planning to purchase their first home, moving from six per cent in 2010 to 11 per cent in 2011.

mortgagebrokernews.ca

This annual survey reviews the financial fitness levels of Canadians yearly, as well as their views on homeownership. Of those Canadians who are considering a first home purchase in the next two years, the most likely group to take the plunge include people under 35 (14 per cent), those with children (12 per cent) and those with incomes between $75,000 and $99,000 (11 per cent).

“Canadians recognize that one of the best steps towards financial security is owning a home,” said Debbie McPherson, senior vicepresident, sales and marketing of Genworth Financial Canada. “As The Homeownership Company, we help Canadians responsibly achieve homeownership and we’re encouraged to see that more people are planning to pursue their dreams of homeownership over the next two years.”

Financial confidence also means that more thought is being given to prepare the next generation: An overwhelming amount of those polled felt strongly that children should be taught financial education in school (95 per cent) and 92 per cent said individuals should get educated before acquiring a credit card.

“We are a nation that wants to make sure our children learn the important lesson of being careful with their money so they can one day enjoy financial freedom and perhaps own a home,” said Henrietta Ross, chief executive officer of CACCS. “Before you can buy your first home, getting your finances in order – and learning to keep them that way – is an important step.” CMP

E G A G T MOR

TORONTO

T N E V AN E THER O O N E LIK

cepts n o c e g d tting e u c d n a t , conten r e b i l a c ented Unpreced

adshaw Howie Mandel, Terry Br zi, az rr Fe ith Ke m, ha e Clark, James Cunning ad, Gerry Dee Seth Godin, Rt. Hon. Jo rt Daniel, Sally Hogshe be Ro , an or rc Co a ar rb eenfield, Ba Amanda Lang, Jerry Gr

a c . e c n e r e f n o c e mortgag

2011 Broker on Lenders sponsored by

taking

stock Brokers weigh in on lenders

CMP once again polled brokers to get their feedback on lenders and see where they ranked in terms of what they offer brokers.

The results are in, and compared to last year, there are a few surprises

32

T

he more things change, the more they stay the same.

Originations are tightening, interest rates remain low and the banks continue to fight for more market share. Last year was a good year for mortgage professionals and 2011 looks to be strong, but some sort of housing market correction is coming and interest rates won’t stay low forever.

When CMP polled its database of brokers, the surprise was that overall the scores were down and some lenders definitely improved their standing with some brokers – at the expense of other lenders.

While Merix and First National slipped, albeit only slightly, allowing MCAP to tie for the lead in medals won and capture the overall performance title, Street Capital and ING Direct made the most noise, jumping three and five spots respectively, in the overall performance category. Street Capital also increased its medal haul by four.

It was great to see the responses to our fifth annual Brokers on Lenders survey. Nearly 400 mortgage professionals took the time to answer questions and provide candid feedback on lenders in 11 categories: approval/ loan turnaround times, underwriter support, BDM support, broker support, transparency of commission structure, IT and electronic/technology, interest rates, product range, overall service level to brokers, satisfaction index on overall credit policy, and overall lender performance.

mortgagebrokernews.ca

Grades were given on a scale of one (very poor) to five (very good). The overall response was so strong for many lenders, but a minimum requirement to be included on this year’s final tally was each lender had to receive at least 50 votes. New to this year’s list are National Bank of Canada and TD Financial Services. The number of lenders who received votes was nearly 30 in total, which shows that mortgage professionals certainly have a wide variety they feel comfortable to use. After that we took the top 10 from each category. Not only does this make the final list easier to manage and read, but it ensures that the scores given represent a fair sample of mortgage professionals from all different areas in multiple provinces, rather than being based on only a few scores.

Our respondents have a considerable amount of experience, with 67 per cent of them having worked as mortgage brokers/agents for more than five years. There is also a strong lender background, with 63 per cent of them having worked for a lender in the past. What this all means is that this year’s responses are coming from a well-seasoned group who understand both sides of the broker/lender relationship, and can be considered a fair representation of the country.

Cover

brokers on lenders

Many brokers indicated their loyalty to the broker channel lenders, with more than half of them (53 per cent) saying they put through less than 20 per cent of their loans each month with chartered banks. There is still some work to do with regard to educating clients as 53 per cent of brokers indicated that only 20 per cent of their clients initially inquired about getting their mortgages from a non-bank, while 43 per cent of brokers said 40 or more per cent of people initially inquired about getting their mortgages from traditional banks.

The push towards lender commissions being based on efficiency rather than volume is something brokers seem to endorse, as 63 per cent of respondents see this as a positive development for the industry.

But that doesn’t mean there aren’t some issues to work out around this issue.

“Efficiency requirements are all over the place.

It would be useful to have some consistency in what the lenders are looking for. I’m sure some kind of industry standard could be looked at.

Efficiencies are too ‘one-sided’ at this time. The lenders need to acknowledge their contribution to some of the lost deals. Efficiency goes both ways.”

CMP would like to thank everyone who participated in this year’s survey, and we hope you find the results interesting. Don’t forget to check out our October issue when we give the lenders an opportunity to respond.

2011 total medal standings Lender

Total

MCAP

4

3

0

7

Merix Financial

3

3

1

7

First National Financial

3

0

3

6

Street Capital

0

3

2

5

Home Trust

0

1

2

3

FirstLine Mortgages

1

0

1

2

Scotia Mortgage Authority

0

1

1

2

ING Direct

0

0

1

1

National Bank of Canada

0

0

1

1

which criteria are most important to brokers?

35 30

34%

Approval/ loan turnaround times

23%

Underwriter support

21%

Overall service levels to brokers

7%

Interest rates

5%

BDM support

5%

Product range

5%

Satisfaction on overall credit policy

25 20 15 10 5 0

mortgagebrokernews.ca

33

Cover

brokers on lenders

Approval/ loan turnaround times Rank

Lender

Score 2010

Change

First National

4.34

4.85

-0.51

MCAP

4.05

4.63

-0.58

Street Capital

3.99

4.27

-0.28

4

ING Direct

3.96

3.56

+0.4

5

Merix

3.84

4.23

-0.48

6

Home Trust

3.82

4.16

-0.34

7

Scotia Mortgage Authority

3.78

4.27

-0.49

8

FirstLine Mortgages

3.49

3.40

+0.09

9

TD Broker Services

3.22

-

-

10

National Bank of Canada

2.93

-

-

how long have you been a broker/agent? less than a year - 3% 1-2 years - 8% 2-5 years - 2% 5+ years - 67% 34

Score 2011

mortgagebrokernews.ca

Approval/ loan turnaround times The importance of approval and loan turnaround times to a mortgage professional has always been second to none in terms of relationships with lenders, and this year is no different. When asked to rank which criteria was most important, 34 per cent voted for it.

First National and MCAP remained Nos. 1 and 2, while Street Capital managed to knock Merix out to capture third spot.

Overall, scores were down a little from 2010, indicating that no one can be complacent when it comes to turnaround times.

“Quick turnaround times with approvals and document followup is a plus when we can go onto a lender’s system and monitor the submission of documents and to find out if they were accepted.”

Cover

brokers on lenders

BDM support (training, information) Rank

Lender

Score 2010

Change

Merix

4.16

4.78

-0.62

Street Capital

4.14

4.06

+ 0.08

Home Trust

4.05

3.44

+0.61

4

FirstLine Mortgages

3.94

4.44

-0.50

5

ING Direct

3.93

4.25

-0.32

5

First National Financial

3.93

4.09

-0.16

7

MCAP

3.85

4.30

-0.45

8

Scotia Mortgage Authority

3.52

4.17

-0.65

9

National Bank of Canada

3.29

-

-

9

TD Broker Services

3.29

-

-

BDM support BDMs play a key role in any mortgage, and as such, having a good BDM is an important factor for this year’s respondents, although its importance fell slightly from last year. Merix maintained its spot on top, with Street Capital making a big move from eighth to second, while Home Trust moved all the way from 10th spot to take third place.

“Street Capital Financial is standing head and shoulders above the majority of lenders, for me. Their BDM support is outstanding.”

“Home Trust’s level of support from the BDM is unmatched.” “[Merix’s] BDM gets back to me right away and sends me constant updates so I never have to go searching for the latest information.”

36

Score 2011

mortgagebrokernews.ca

what percentage of loans would you put through chartered banks (as compared to other lenders) on average each month?

53%

0-20%

53%

0-20%

20%

21-40%

16%16%

41-60%

20%

6%

6%

5%

21-40%

61-80%

41-60% 61-80%

81-100%

5%

81-100%

An Open Letter from the President of MCAP Service Corporation On behalf of the employees of MCAP, I want to thank you for participating in this year's Brokers on Lenders survey and acknowledging our company as the leader in overall service level to brokers.

The results of this year's survey show that you see value in the service and support we provide and speak to the quality of the people here at MCAP. In the coming months, look to MCAP for more industry-leading initiatives such as our Bank on Brokers™ program introduced earlier this year.

Together we will grow our industry and grow the broker channel.

I thank you for your continued support and confidence in the MCAP team. Our commitment to the broker channel remains strong.

Ronald D. Swift, AMP, CMB President, MCAP Service Corporation

MCAP Service Corporation

Ontario Mortgage Brokerage #10515

Ontario Mortgage Administrator #11692

Cover

brokers on lenders

Broker support Rank

Lender

Score 2010

Change

Merix Financial

3.97

3.60

+0.37

Street Capital Financial

3.67

3.20

+0.47

FirstLine Mortgages

3.59

2.93

+0.66

4

Home Trust

3.55

3.46

+0.09

4

MCAP

3.55

3.40

+0.15

6

ING Direct

3.54

2.95

+0.59

7

First National Financial

3.40

4.32

-0.92

8

Scotia Mortgage Authority

2.92

4.20

-1.28

9

National Bank of Canada

2.83

-

-

10

TD Broker Services

2.60

-

-

have you ever worked for a lender? yes - 63% no - 37%

38

Score 2011

mortgagebrokernews.ca  

Broker support Though not as high on the list as some other categories, broker support, in terms of training and information seminars, is still a valuable asset for brokers.

After three years at the top, First National tumbled and Merix moved up from third to take first place, followed by Street Capital, which moved up five places, while FirstLine Mortgages made the biggest improvement and climbed all the way from 10th spot to capture third place.

Cover

brokers on lenders

Interest rates Rank

Lender

Score 2011

Score 2010

Change

Merix Financial

4.34

3.85

+0.49

MCAP

4.01

3.85

+0.16

Street Capital

3.97

4.55

-0.58

4

First National

3.94

4.25

-0.31

5

Scotia Mortgage Authority

3.78

4.58

-0.80

6

ING Direct

3.76

4.54

-0.78

7

National Bank of Canada

3.52

-

-

8

TD Broker Services

3.28

-

-

9

FirstLine Mortgages

3.27

3.20

+0.07

10

Home Trust

3.16

3.86

-0.7

Interest rates Interest rates moved up the list of important criteria for brokers this year, coming in fourth, after not making the list last year. With interest remaining low and most predictions pointing to that trend continuing, rates seem to be playing a bigger part of the equation for brokers.

Merix made the biggest jump, going from seventh place last year to grab top spot. Street Capital was bumped from second to third by MCAP, which moved up from sixth. ING dropped from third to sixth.

When asked what will be the most important issue affecting the broker/lender relationship over the next six to 12 months, one broker put it succinctly: “Competitive products and rates. If our lenders do not realize that banks have stepped up their game in branches, we will lose more business and would not be able to remain committed to the lenders.”

what percentage of your clients will initially inquire about getting their mortgages from non-banks?

53% 53%

0-20% 0-20%

21% 21%

14%

14% 9% 1%

21-40% 21-40%

9%

41-60% 61-80%

41-60% 61-80%

81-100%

1%

81-100%

mortgagebrokernews.ca

39

Cover

brokers on lenders

Overall service level to brokers Rank

Lender

Score 2011

Change

MCAP

4.14

4.54

-0.40

Street Capital

4.13

3.00

+1.13

First National Financial

4.08

4.52

-0.44

4

Merix Financial

4.05

4.21

-0.16

5

ING Direct

3.99

3.75

+0.24

6

Home Trust

3.91

3.46

+0.45

7

Scotia Mortgage Authority

3.83

3.86

-0.03

8

FirstLine Mortgages

3.61

4.00

-0.39

9

National Bank of Canada

3.09

-

-

10

TD Broker Services

3.05

-

-

Overall service level to brokers It’s no coincidence that the top three in this category, MCAP, Street Capital and First National as well as fourth-place Merix, also finished in the top four overall. While MCAP retained first place, Street Capital made the biggest move, going from 10th to second. The response from brokers was strong and overall service level to brokers also moved up the list of criteria most important to brokers – going from fifth to third on this year’s list.

While improvements have been made, according to brokers, more can still be done.

When asked ‘what was the biggest challenge

40

Score 2010

mortgagebrokernews.ca

they had with a lender’s service in the past 12 months?’ this is what some brokers had to say: “Response time and lack of clarity on issues. Sometimes, just providing more info would be helpful. I think they take for granted how much they know and how some brokers are that much more inquisitive about learning.”

“I have been in the industry since 1980 and been through the rough times and I think [lenders] are over-compensating on the conditions. In reality, sometimes you discuss a file and they then agree to remove conditions.

Sometimes thinking outside the box is not in their vocabulary.”

Cover

brokers on lenders

IT and electronic/technology Rank

Lender

Score 2011

Score 2010

Change

First National Financial

4.13

4.11

-0.02

MCAP

4.07

2.99

+1.08

Merix Financial

3.78

4.54

-0.76

4

Scotia Mortgage Authority

3.61

3.86

-0.25

5

FirstLine Mortgages

3.42

3.81

-0.39

6

ING Direct

3.40

2.87

+0.53

7

Street Capital

3.39

2.91

+0.48

8

Home Trust

2.91

4.04

-1.13

9

TD Broker Services

2.78

-

-

10

National Bank of Canada

2.47

-

-

IT and electronic/ technology First National jumped from third place to first in this category, while Merix slipped from first to third and MCAP made a huge leap from sixth to second.

“MCAP’s technology is superior to most monoline lenders available.”

“First National has an excellent website/portal to see exactly what the status of your file is.”

A new spirit in mortgage lending Dedicated to mortgage brokers at equity financial mortgage services we deliver a new level of responsiveness and common sense lending to the ontario mortgage broker community.

EquityFinancialTrust.com/Mortgage

Toll Free: 1.866.393.4891

TrusT. Leadership. performance. © 2011 equity financial Trust company

mortgagebrokernews.ca

41

Cover

brokers on lenders

Product Range Rank

Lender

Score 2011

Score 2010

Change

FirstLine Mortgages

4.30

4.11

+0.19

Scotia Mortgage Authority

4.21

4.17

+0.04

National Bank of Canada

4.07

-

-

4

MCAP

4.01

4.38

-0.37

5

Merix Financial

3.85

4.41

-0.56

6

First National Financial

3.72

3.85

-0.13

7

TD Broker Services

3.69

-

-

8

Home Trust

3.66

4.07

-0.41

9

ING Direct

3.65

4.25

-0.60

10

Street Capital

3.63

3.20

+0.43

Product range

do you find commission structures confusing? yes - 18% no - 82%

42

mortgagebrokernews.ca

There has obviously been a lot of tinkering going on with products at the lenders, as this year saw complete turnover in the top three, with FirstLine moving up six spots to claim first place, while Scotia jumped four spots to second and National Bank, new to the list this year, captured third place.

“Scotia has the best product suite and consistent service.”

“National Bank helped us bring CMHC seminars to the agents and allowed us to involve real estate in obtaining their RECO credits. This brought us closer with the real estate agents and brokers and showed that we are prepared to work with them in many ways.”

Cover

brokers on lenders

Satisfaction Index on Overall credit policy Rank

Lender

Score 2010

Change

MCAP

4.08

3.77

+0.31

Merix

3.98

4.44

-0.46

ING Direct

3.89

3.50

+0.39

Home Trust

3.89

3.70

+0.19

5

Street Capital

3.88

3.85

+0.03

6

Scotia Mortgage Authority

3.87

4.00

-0.13

7

First National Financial

3.81

4.11

-0.30

8

FirstLine Mortgages

3.67

4.23

-0.56

9

TD Broker Services

3.34

-

-

10

National Bank of Canada

3.19

-

-

Satisfaction index on overall credit policy More changes at the top as MCAP leaped from sixth to first and ING from ninth to a third-place tie with Home Trust. Merix slid from the top spot last year to second.

“Merix sees that helping an agent give their clients the best rates while also planning for their own future is important.”

“MCAP has great service and they will reduce the penalty by 20 per cent if the client is refinancing. No one else does that.”

“ING has better lending standards, great BDM support, competitive rates and they seem like they really want broker business.””

44

Score 2011

mortgagebrokernews.ca

what percentage of your clients will initially inquire about getting their mortgages from traditional banks?

33% 33%

0-20% 0-20%

24% 24%

21%

21%

13.5% 13.5% 8.5%

8.5%

21-40% 21-40% 41-60% 61-80%

41-60% 61-80%

81-100%

81-100%

Cover

brokers on lenders

Transparency of commission structure Rank

Lender

Score 2010

Change

First National

4.42

4.48

-0.06

Merix Financial

4.35

4.44

-0.09

Scotia Mortgage Authority

4.29

3.30

+0.99

4

MCAP

4.26

4.85

-0.59

4

ING Direct

4.26

4.00

+0.26

6

FirstLine Mortgages

4.22

3.55

+0.67

7

Street Capital

4.17

4.36

-0.19

8

TD Broker Services

4.13

-

-

9

National Bank of Canada

4.12

-

-

10

Home Trust

3.93

4.23

-0.30

are you seeing a push towards lender commissions being based more on efficiency rather than volume? yes - 65% no - 35% if yes, is that a positive development in your view? yes - 63% no - 37% 46

Score 2011

mortgagebrokernews.ca

Transparency of commission structure While MCAP slipped to fourth, First National and Merix moved up one spot each from last year, while Scotia climbed from ninth to capture third place.

“First National has good turnaround times, clear commission structure, excellent rates for top performing teams and a streamlined process.”

When asked, ‘how do you predict commissions/ bonuses will evolve in the future?’ brokers had some definite ideas.

“I think it will go towards efficiency bonuses to get away from brokers who send applications everywhere and hope they stick. I think that brokers who package their deals correctly should be rewarded for their business.”

“As margins get squeezed lenders will continue to put pressure on the finder’s fees and expect more rate buy-downs from the broker community.”

“I’m actually hoping more trailer fees; the industry hasn’t realized that this deferral of income is a good thing. They just need to make sure everyone gets paid over the long run.”

Think reverse mortgages are expensive?

Think again!

With CHIP Home Income Plan’s new low rates, homeowners 55+ can now access up to 50% of their home equity at rates comparable to other home equity lending products.

But unlike these other products, with the CHIP solution: • no payments are required, until homeowners choose to move or sell • no income, credit or medical qualifications are needed • funds can be received as a lump sum or over time, giving your clients the flexibility they need

Why not tap into the potential of the growing seniors market and recommend CHIP? You’ll receive a referral fee, and we’ll look after all the paperwork for you.

To find out more, or to partner with CHIP, contact us:

1-866-536-2447 www.chipadvisor.ca

In addition, clients maintain ownership and control of their home.

CHIP Home Income Plan is provided by HomEquity Bank, a Schedule I Canadian Bank. HomEquity Bank is a wholly-owned subsidiary of HOMEQ Corporation, a TSX-listed company. TM Trademark of HomEquity Bank.

Cover

brokers on lenders

Underwriter support Rank

Lender

Score 2010

Change

MCAP

4.22

4.85

-0.63

Home Trust

4.05

4.40

-0.35

First National

4.02

4.36

-0.34

4

Scotia Mortgage Authority

3.97

4.50

-0.53

5

Street Capital

3.95

4.10

-0.15

6

ING Direct

3.93

3.55

+0.38

7

Merix Financial

3.89

4.48

-0.59

8

FirstLine Mortgages

3.59

4.00

-0.41

9

National Bank of Canada

3.16

-

-

10

TD Broker Services

2.91

-

-

Underwriter support Considering they are on the front line between lenders and brokers, underwriter support ranked extremely high on the list of criteria most important to brokers, ranking second behind approval/loan turnaround times. While MCAP and First National held on to first and third place respectively, Home Trust supplanted Merix in second, moving up from fifth place last year.

When asked, What do you think the most important skill an underwriter can have?

Brokers were united in their call for communication and common sense.

“An ability to think outside the box. I fully understand policy and procedure

48

Score 2011

mortgagebrokernews.ca

however, sometimes the grey areas on those policies are not always hard and fast.

Sometimes exceptions can be made, however some underwriters don’t go out of their way to even try.”

“Resourcefulness. It is great working with good underwriters who will take the time to discuss a deal and look for solutions to get it approved.”

“Patience and willingness to try and make a deal work so that a broker doesn’t have to go from lender to lender.”

“The ability to truly identify a quality credit deal and work with the broker to make the experience exceptional for the client. This way we all win.”

t n a I w r e n t r a P o t . u o y with

The unmortgage is the complete package. Everything about it has been designed to help your Clients save money by offering them competitive rates, industry leading prepayment options, and a variety of payment frequencies.

Now what about you? Glad you asked. Because the unmortgage was also designed for YOU, with: • Fast turn around times • One of the best finder’s fees in the business • Great service • Competitive rates And we’re just getting started. We’ve worked hard to be a leader in the industry and to provide you the best mortgage products, and at the 2010 Canadian Mortgage Awards, ING DIRECT received 7 nominations, including Best Service Industry Provider.

We are honoured by the recognition and want to share this success with you, after all, a great mortgage product and service like this needs great brokers like you.

Sound like the right match for your business? Find out more about becoming a designated unmortgage broker, and what it can do for you and your Clients at: ingdirectbrokerteam.ca

® A registered trademark of ING Groep N.V. “save your money” and “unmortgage” are registered trademarks of ING Bank of Canada.

Cover

brokers on lenders

Overall Performance Rank

Lender

Score 2011

Change

MCAP

4.03

3.50

+0.53

Merix

4.02

4.44

-0.42

First National Financial

3.98

4.59

-0.61

4

Street Capital

3.89

3.41

+0.48

5

ING Direct

3.83

3.28

+0.55

6

Scotia Mortgage Authority

3.78

3.45

+0.33

7

FirstLine Mortgages

3.71

3.37

+0.34

8

Home Trust

3.69

3.42

+0.27

9

National Bank of Canada

3.23

-

-

9

TD Broker Services

3.23

-

-

Overall performance In the overall performance category this year there was some shake-up, as MCAP leapfrogged Merix to switch places with First National. Street Capital and ING also made some gains from last year, with Street moving up three spots to fourth and ING moving five places all the way to fifth.

“MCAP has surprised me this year and the overall service with BDM and underwriter work very hard at answering your questions.

For someone new, that is so important and others just have not taken that much time.”

“Merix so far has been the most personable lender I have worked with. I appreciate that they truly desire to have my business and work hard to get it. They also treat newcomers with respect.”

“First National is by far the best lender. All lenders could learn something from them.

50

Score 2010

mortgagebrokernews.ca

Brokers are their customers and we feel like customers.”

“Overall Merix works the hardest to get my business. With lower volumes I don’t send in as many deals as some, but [they] treat me like I do. Their system is based on efficiency not quantity.”

“Common-sense lending, good policy procedures to support that, great underwriters, that is what makes the difference working with MCAP. Their competitive commissions and programs allow us to be competitive.”

“I think First National is one of the best lenders out there. They are fast with their approvals and that is important. They also update their conditions very quickly, which when you are on a deadline to remove financing conditions is of prime importance.” CMP

Feature E&O insurance

With a spate of E&O claims pinned to private lending deals, brokerages are increasingly straying from their association-endorsed insurers and, as Vernon Clement Jones finds out, shopping around for the best rates, wherever that search takes them

Paying for

errors & omissions V

eteran broker Jeff Atlin could well have been first in line when they started handing out E&O insurance more than 20 years ago. Considering today’s escalating premiums, what Atlin paid back then was, indeed, a handout.

“I took out that coverage starting in 1991, when it was first being offered to mortgage brokers here,” says the private lending specialist, a partner with Toronto-based Abacus Mortgages.

“Premiums have gone up considerably since then. Recently, we received a notice from our current insurer, whom we’d been with for years that our premiums would be tripled at renewal.

We decided to call around and got three other quotes that were also high, although a couple were a little cheaper.”

He’s not the only broker now on the hunt, with a significant number of insurers actively courting brokerages across several markets. It means choice is considerably greater than the one or two providers Atlin and other seasoned brokers had to choose from in those early days when E&O insurance specifically formulated to cover brokers against professional errors and negligence was first introduced.

52

mortgagebrokernews.ca

Feature E&O insurance

mortgagebrokernews.ca  

53

Feature E&O insurance

Starting in September, the policies are mandatory in Alberta, with insurers required to provide the provincial regulator proof of their clients’ coverage. The scope of those policies mirrors Ontario, Saskatchewan and Manitoba mandates: $500,000 for a single occurrence and $1,000,000 for all occurrences in a 365-day period for both liability and fraud coverage.

“ by doing my job carefully and professionally, I’ve never had it and never needed it. I hope B.C. will never mandate it for brokers. It could possibly lead to a growth in claims here as well ” And as in those other provinces, Alberta brokerages are also having to choose between going with an insurer endorsed by one of their industry’s professional associations and the many other providers looking to grow their respective books.

“Mortgage brokerages are coming to us through word of mouth and they’re a mix – brokerages that are and brokerages that are not currently receiving coverage from the insurer-partners of their professional associations,” says Andrew Reid, principal insurance broker and director at Purves Redmond Ltd. The firm represents GCAN insurance. “The fact is that we are not doing a lot of advertising.”

The increased demand Reid – and the several other insurance brokers representing providers like GCAN, Chubb and Chartis – is now fielding comes not only from Alberta, but Ontario.

Some brokerages in the central province are now grappling with significant increases in insurance premiums resulting from an uptick in claims stemming from private lending deals. Insurers are also fine-tuning risk assessments for individual

54

mortgagebrokernews.ca

firms based on their claims history, funded volume, the number and experience of their agents and their exposure to private lending, among other key determinants of risk. The end result has been substantial premium increases for many brokerages.

“In one case, a brokerage came to us with a renewal for five times the amount they paid last year,” says Reid, whose E&O book is largely comprised of GCAN policies.

“Brokerages are now looking around for better deals and the rates that we’re accessing for them are competitive.”

While broker associations have entered into “partnerships” with individual insurers, there is no specific requirement for brokers to use a particular service provider in order to win provincial licensing. Still, their associations do endorse individual insurers, an effective and coveted marketing tool for providers such as Encon Insurance Managers Inc. – CAAMP’s partner.

“ I believe that it (mandatory insurance requirements) painted a target on the backs of mortgage brokers. Now they could go after them and hope to get a payout. The question is, were they justified in taking that action or were they just going after brokers because they represented the best hope of getting paid? I think it’s more of the latter ” Reid, with a portfolio of 200-plus brokerage clients, maintains the rates he accesses on their behalf are competitive, with brokerages increasingly willing to explore options outside their professional associations.

Top: Derrick Leue Bottom: Jeff Atlin

1 Up to 100% commission payout model 2 Support after the ink dries, including:

• no cost automated-and-intelligent CRM • powerful dashboard of reporting tools • senior management bench strength

3 No monthly marketing fees or technology fees

Call us today!

All available at

Daniel Putnam President

416.884.6767

dputnam@mortgagebrokers.com

Stewart Eadie RVP, Ontario

416.573.9999

stewart@mortgagebrokers.com

Glen Ward

RVP, Atlantic

877.499.4076

gward@mortgagebrokers.com

© Copyright 2011, MortgageBrokers.com, all rights reserved. Corporate Office: 6505 Mississauga Rd., Mississauga, ON L5N 1A6

Feature E&O insurance

Although CAAMP continues to provide its members access to highly competitive rates, the association’s President Jim Murphy tells CMP, “the rates are competitive depending on individual claims histories.”

Tamera Olsen, executive director of MBABC – B.C.’s professional association for mortgage originators – makes a similar boast about the organization’s own insurance program, with insurance brokerage Jones Brown and with Royal Sun Alliance as underwriter.

“We really just launched our program late this spring,” she tells CMP, “so we don’t have exact numbers on member participation yet, although the association brings a certain amount of buying power to the table that is certainly more than an individual brokerage does. That reflects the very competitive rates our members can access. Of course, the rate is going to vary from office to office based on individual claims history and other factors.”

It makes brokerage-to-brokerage comparisons difficult. It has, however,

“ that partnership is about providing members rates that are as good, or better, than what else they can get in the marketplace, but it’s also providing an insurer the kind of economies of scale that encourages it to make a longterm commitment to the industry ”

56

mortgagebrokernews.ca

done little to silence industry concerns about escalating premiums.

They’re the kind of complaints association executives in Alberta have heard and expect to hear more of. It comes with the job. But provincialassociation partnerships with E&O insurers are crucial to preventing a monopoly situation and winning brokers access to coverage specifically tailored to their needs, argues the immediate-past president of the Alberta Mortgage Brokers Association.

“There is no financial compensation to AMBA stemming from the partnership with its E & O insurer,” says Dean Koeller, who stepped down from his position this spring, just after spearheading the selection process for the association’s new insurer-partner. “That partnership is about providing members rates that are as good, or better, than what else they can get in the

Together, we can make home ownership a reality for your customers.

We have mortgage lending solutions for your customers.

Our team of professional mortgage and credit specialists are dedicated to providing mortgage brokers with unparalleled service. We’ll work with you to assess applications on an individual basis, providing your customers with specialty mortgage lending solutions.

Consistent. Reliable. Responsive.

Toll Free: 1-877-273-7498 Website: www.tdfinancingservices.com TD Financing Services Home Inc. Licence #11286

Feature E&O insurance

“ it really comes down to risk management and educating brokers about why claims happen, where they come from and how to manage E&O insurance ” marketplace, but it’s also providing an insurer the kind of economies of scale that encourages it to make a long-term commitment to the industry. That makes us less susceptible to insurer flight in an economic downturn or a correction in housing prices and less dependent on one insurer, which can then set prices outside of competitive forces.”

The comments come as several brokerages across the province complain of premium increases at renewal.

In May, AMBA announced LMS Prolink, with insurer Liberty International Underwriters as new insurer-partners for its E&O Liability program.

Koeller sees the endorsement as a way to win the insurance company the kind of profitability needed to compete with CAAMP’s partner, Encon Insurance Managers Inc. That head-to-head competition is key to winning Canadian brokerages the best possible rates and blocking formation of a monopoly, he tells CMP. Still, as a partner with AMBA, Liberty – through its insurance broker partner, LMS Prolink – has committed itself to leading E&O information and education sessions for association members.

“It really comes down to risk management,” says Derrick Leue, LMS Prolink president, “and educating brokers about why claims happen, where they come from and how to manage E&O insurance.”

Ensuring that message gets through to brokers is why most insurers work exclusively with one insurance brokerage, putting the onus on their respective partners to lead educational efforts such as helping an association formulate E&O policy and procedures.

58

mortgagebrokernews.ca

Those types of campaigns did little to insulate the industry from a spate of claims, starting in 2008. The timing coincides with Ontario’s move to make E&O insurance for its hundreds of brokerages mandatory, and that may not be coincidental.

The spike came courtesy of investors who funded private lending deals, says Leue. Many watched in horror as the recession, and resulting job losses, drove up default rates for subprime mortgages.

In the aftermath, investors were left hunting for someone to blame. Many fingers were pointed at the mortgage professionals who brokered the deals. It didn’t help any that brokers in Canada’s largest market were now required to carry E&O coverage.

“That made mortgage brokerages more attractive to aggressive plaintiff lawyers,” says Leue, suggesting mandatory licensing in Ontario gave investors access to claims money they simply wouldn’t have had brokers been uninsured. Atlin isn’t quite so diplomatic.

“ the question is, were they justified in taking that action or were they just going after brokers because they represented the best hope of getting paid? I think it’s more of the latter ” “I believe that it painted a target on the backs of mortgage brokers,” says the Ontario broker, himself a past president of the Independent Mortgage Brokers Association of Ontario, IMBA. “Now they could go after them and hope to get a payout. The question is, were they justified in taking that action or were they just going after brokers because they represented the best hope of getting paid? I think it’s more of the latter.”

Top: Tamera Olsen Bottom: Jim Murphy

WE SUPPORT YOUR NEEDS

Verico The Mortgage Practice is NOW OFFERING licensed Brokers the FREEDOM of Having a Fully Supported Backoffice “Let VTMP support your back office needs”

Feature E&O insurance

“ but had we allowed ourselves more time to look for coverage, we would have explored all the options with all the insurers. It’s what all brokerages need to do these days ” That litigious environment has started to change, although the rates for almost all brokerages exposed to private lending haven’t come down.

“Thankfully those claims are starting to stabilize in terms of their frequency and severity,” says Leue, who has fielded complaints from brokers about premiums that have risen as much as 500 per cent at renewal.

That kind of increase – and the real possibility mandatory coverage has encouraged it – has cemented opposition to E&O insurance among some B.C. brokers.

“By doing my job carefully and professionally, I’ve never had it and never needed it,” says Allan Sadler, owner of Rala Investments, a brokerage specializing in

62

mortgagebrokernews.ca

private deals. “I hope B.C. will never mandate it for brokers. It could possibly lead to a growth in claims here as well.”

Despite its exhaustive regulation of the industry, Canada’s most western province hasn’t moved to force brokerages to hold E&O coverage.

“It is something we strongly support and encourage our members to have, though,” Olsen tells CMP, pointing to MBABC’s new partnership with Royal Sun Alliance. Under that plan, all mortgage professionals of an insured brokerage must be association members. The same applies to similar programs available through other associations.

While MBABC and AMBA moved to strengthen their relationships with chosen insurers this spring, IMBA ended its formal partnership with its provider. That insurer effectively quit the niche market, the result of growing claims exposure. Leue, whose company was the brokerage partner for that

“ I hope B.C. will never mandate it for brokers. It could possibly lead to a growth in claims here as well ”

Feature E&O insurance

insurer, hopes to eventually regain the partnership with IMBA – this time with Liberty as the underwriter.

“Certainly, these relationships are important,” he tells CMP, also referencing the company’s very active relationship with Alberta’s mortgage broker association. “Definitely, we would have fewer clients if we did not have AMBA. The relationship provides us with a marketing advantage in terms of reaching AMBA members.”

CAAMP’s own E&O program affords insurer Encon, and its chosen brokerage partner, Rocca Dickson Andreis, the same kind of head start. Still, that endorsement may not wield the same power it once did, as brokerages look to trim costs.

“ by doing my job carefully and professionally, I’ve never had it and never needed it ”

“ definitely, we would have fewer clients if we did not have AMBA. The relationship provides us with a marketing advantage in terms of reaching AMBA members ” “After we got the quotes from other insurers, we did go back to our current insurer – through CAAMP – and ask them to readjust their quote,” says Atlin. “They did bring it down a little and we decided to stay with them, because cost was only one factor to look at. But had we allowed ourselves more time to look for coverage, we would have explored all the options with all the insurers. It’s what all brokerages need to do these days.” CMP

Tough deals wearing you down?

Seeing more customers with challenging income and credit situations?

Having difficulty with “out-of-the-box” applications? n Frustrated with restrictive lending criteria? n Ready to expand your client base beyond the traditional borrower? n n

We are the home of Sensible Lending® and have mortgage options suitable for most borrowers. (TSX:CWB)

Serving brokers in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan.

866.441.3775 www.OptimumMortgage.ca

Questions? Comments? Deals?

Contact your regional business development manager or our underwriting centre at 866.441.3775

mortgagebrokernews.ca

63

Feature

Fee for service

going

exclu

64

mortgagebrokernews.ca

usive

Feature

Fee for service

Mortgage professionals say they’ve had enough of clients going to the bank, with broker commitment letters in hand. As Vernon Clement Jones finds out, a growing number are thinking exclusivity agreements will stop them in their tracks

I

t’s like waiting for the other shoe to drop or, rather, a heavy hobnail boot ready to hit the floor with a thud.

“You’ve sat down with the client, done all the work and have got them the commitment, and then you wait,” Rick Somerville, owner of Dominion Lending Centres - Advanced Mortgage in Lethbridge tells CMP. “But what we’re seeing a lot more of is that clients take our rates to the bank in order to get a better one. It means all our work was for not, and it’s frustrating.”

It’s a lot more than that. Brokers from one end of the country to the other – including Somerville’s southern Alberta stomping grounds – are fed up with what they charge is the deceptive rate

mortgagebrokernews.ca

65

MEET THE TEAM

Rafer Strandlund

Jason Strandlund

Jen Scharien

Corrie White

VP Mortgage Investments

Residential Underwriter

Residential Underwriter

Commercial Underwriter

Commercial Underwriter

Submit your deals via Expert, by fax to 866.384.1498 or to newdeal@fisgard.com

THE ALTERNATIVE LENDER You NEED To kNow Fisgard is one of the largest private alternative lenders in Western Canada and is dedicated to supporting mortgage brokers and their clients. We provide

competitive products, flexible lending guidelines and dedicated customer service.

Having a good relationship with you, our broker clients, is critical to the success of our business. Fisgard’s creative, knowledgeable and experienced underwriting team

wants to see all of your deals that don’t fit the typical

“bank box”. Chances are that Fisgard can fund these deals, and fund them quickly. We are here for you and we’re here for your clients.

Call Hali today.

Office: 866.382.9255 Cell: 250.480.8883 www.fisgardmortgage.com Hali Strandlund President Mortgage Investments halistrandlund@fisgard.com newdeal@fisgard.com

Fisgard Capital Corporation | 3378 Douglas Street, Victoria BC V8Z 3L3 | www.fisgardmortgage.com

Feature

Fee for service

Passing

the clawback shopping of clients looking to score better interest rates with the banks and prepared to use the time and energy of mortgage brokers to do it.

The practice, encouraged by an increasingly aggressive Big Five, now prepared to undercut even the lowest broker channel rates, has sparked calls or the industry-wide adoption of exclusivity agreements. Although, the mere suggestion brokers penalize clients for opting to go with another lender is not without controversy.

“This topic is certainly a hot potato and with good reason,” IMBA President Albert Collu tells CMP, as the first to wade in.

“Having said that, mortgage brokers across Canada invest much time and effort into providing sound advice and pricing for

License #11127

68

mortgagebrokernews.ca

Brokers in Australia are introducing clawback provisions to safeguard their incomes. Has the slippery slope to a fee for service begun? Andrea Cornish of our sister publication MPA investigates

T

he ban on exit fees threatens to have a devastating effect on brokers’ bottom lines. A number of lenders indicated in the months leading up to the ban that they would be forced to introduce clawback provisions in response to the legislation. Homeloans Ltd’s Tony Carn says clawbacks would be a “sad reality” under the DEF ban, while MFAA CEO Phil Naylor calls the extension of

Your Business Development Manager Team Bruno Valko, AMP

Director, National Sales cell (866) 735-4303 x3504 e-mail bruno.valko@resmor.com

Tania BrunoHatcher Valko, AMP

British Director, Columbia, National Island Sales & Interior cell (250) (866) 818-3884 837-8919 e-mail tania.hatcher@resmor.com bruno.valko@resmor.com

Sach SashaDesai, IdemaBSC

British Columbia, Lower Mainland cell (604) 328-6901 e-mail sach.desai@resmor.com sasha.idema@resmor.com

Quentin Tania Hatcher Warawa, AMP

Prairies British Columbia, and NorthIsland Alberta & Interior cell (780) (250) 446-4440 818-3884 e-mail quentin.warawa@resmor.com tania.hatcher@resmor.com

Mary Corbett Neary Connors

South Alberta cell (403) 880-3447 650-7965 e-mail mary.neary@resmor.com corbett.connors@resmor.com

Steve Futyer, CIM, AMP Corbett Connors

Southwestern South Alberta & Northern Ontario (519) 650-7965 575-8605 cell (403) steve.futyer@resmor.com e-mail corbett.connors@resmor.com

The Right Partner Makes All the Difference.

Industry leading compensation Industry-leading compensation Realtor through insured mortgagemortgages brokers and CMHCreferrals or Genworth agents for property listings

3% Cash Back towards down payment

Client referrals direct to mortgage brokers and agents

Dedicatedand Business Development Conventional high ratio mortgage ďŹ nancing Managers to serve you

3% cash back towards down payment

Competitive Fixed & Variable Rates

Dedicated Business Development Managers Competitive ďŹ xed and variable rates

Carlo Parise, Steve Futyer,AMP CIM, AMP

GTA, Golden Horseshoe Southwestern & Northern Ontario (647) 575-8605 404-2297 cell (519) carlo.parise@resmor.com e-mail steve.futyer@resmor.com

JamesParise, BriniasAMP Carlo

GTA Golden Horseshoe GTA, (416) 404-2297 268-5417 cell (647) james.brinias@resmor.com e-mail carlo.parise@resmor.com

Julie Sanderson James Brinias

Eastern Ontario GTA (905) 268-5417 925-2908 cell (416) julie.sanderson@resmor.com e-mail james.brinias@resmor.com

Terrianne Young, AMP Julie Sanderson

Atlantic Ontario Region Eastern (902) 925-2908 240-2568 cell (905) terrianne.young@resmor.com e-mail julie.sanderson@resmor.com

Terrianne Young, AMP

Atlantic Region cell (902) 240-2568 e-mail terrianne.young@resmor.com

www.resmor.com

toll-free (866) 809-5800

Feature

Fee for service

“ I think it’s time the industry looked long and hard at implementing the practice.

The broker’s job is not to just educate the borrower, however, that’s happening with greater frequency. As the saying goes, time is money.

Brokers should have the means to be compensated for their time and effort ”

Top: Rick Somerville Bottom: Ad Lakhanpal

70

clients and are left uncompensated for those efforts when clients take all that work to their branch. I’ve often found it odd that Realtors have implemented exclusivity agreements with clients and we, mortgage brokers, have not. With proper discussion I would be supportive of implementing such a process for mortgage brokers, but I would also like to see most mortgage brokers moving their sales focus off rates and more towards sound consultation and advice for consumers.”

The veteran broker, also president of Argentum Mortgage and Finance, is the first to publicly address the growing concern of brokers, increasingly finding themselves left at the alter by clients spirited away by the banks at the eleventh hour. But that’s only after those customers have won pre-approvals or, even, lender commitments through a mortgage professional. In fact, the defection is only made possible by the work of the broker, allowing the client to present a competitive rate to the banks, which then revise their earlier rates to undercut the broker’s rate.

The phenomenon has eaten up what some peg as tens of thousands of broker hours in the last eight months alone, time spent interviewing clients and preparing applications that ultimately end in frustration. It’s also re-ignited debate about “research” or “consultation” fees for A deals, something most brokers oppose as a

mortgagebrokernews.ca

clawbacks a “paradox.” “We have, on the one hand, a government-enforced incentive for consumers to switch lenders, and on the other, a lender-enforced disincentive for brokers to encourage, or even allow innocently, consumers to switch lenders,” he states. ‘What message is being sent here for brokers? ‘It’s OK to encourage another lender’s borrower to come to us, but you will be punished if one of our borrowers switches to another lender, whether or not you were involved’?”

Brokers fight back Home Loan Experts director Otto Dargan has had a clawback provision in place for months. While he’s not worried about the fee bait affecting his client base, he does question its impact on other business models. “I am concerned that the removal of DEFs will create culture of refinancing for minor rate differences, which in reality gives the customer very little benefit and reduces the profit margins of our industry,” he warns. “I think that brokers who have sold their services on rate may suffer as a result of this change as their customers will always chase a minor saving. Most of our customers who have left, have done so as a result of selling their property, so I do not believe this will affect our business.”

Dargan’s brokerage agreement includes a clause that states if the customer repays the loan in 24 months and his business incurs a clawback fee from the lender, then he will seek reimbursement from the customer. The provision is also published on his website and discussed with customers during the interview and most customers are happy to sign off. “We explain why we have this in place, and the

“ I think that brokers who have sold their services on rate may suffer as a result of this change as their customers will always chase a minor saving ”

Feature

Fee for service

threat to their credibility and industry market share.

“I certainly empathize with why brokers would want to use fees in this market,” says Beth Jeymans, a mortgage professional with VERICO KC Mortgage Services in Hamilton, Ont. “But it just wouldn’t work when an A client can walk into any bank without having to pay a fee.

Why would they pay a fee to a mortgage broker? I wouldn’t do it. I’d either go to the bank or another mortgage broker who isn’t asking me to agree to pay a fee.”

Supporters of exclusivity agreements argue that they avoid that kind of confrontation at the same time they help to protect broker incomes in this slowing housing market.

“It’s a good idea, and we’ve debated putting something like that in our agreements,” says high-volume broker Chris Bisson, with Complementary Real Estate Services – The Mortgage Centre, in Guelph. “But transparency is absolutely key here and the client would have to be fully appraised of what they are signing.”

A Toronto brokerage head has already introduced an exclusivity clause as part of his broker-client agreement, a way of

“ the exclusivity agreement works both ways and, if the industry did introduce it as part of (best practices), we should promote it that way ” protecting his agents’ time against “rate hunters” prepared to use it as a bargaining tool in pursuit of better bank rates.

“We don’t apply it to all A deals, but generally where we get a strong sense that the client is really not serious about using us and is really only looking to get a commitment to present to the bank,” Ranjit Dhillon, principal broker at CENTUM Mortgage Smart in Etobicoke tells CMP. “The exclusivity agreement works both ways and, if the industry did introduce it as part of (best practices), we should promote it that way. Sure, it works to the benefit of the brokers, but also for the client in that the agreement is guaranteeing the client that the broker

A Good Plan is only the Beginning...

We’ve been underwriting real estate backed Construction, Bridge and Equity Financing in Ontario for over 35 years.

Loans from $1,000,000 to $15,000,000+ Recent loans: $22,000,000 FIRST MORTGAGE

$2,000,000 FIRST MORTGAGE

Construction Loan

Site Servicing Loan

Student residence Waterloo, Ontario

Cornwall, Ontario

$2,900,000 FIRST MORTGAGE

Construction Loan

31 Unit Retirement Residence Orillia, Ontario

$3,800,000 FIRST MORTGAGE REFINANCING

Car Dealerships Etobicoke, Ontario Bolton, Ontario

Brokerage # 10160

Contact Mickey Baratz Lic.# M08000714 (416) 483-8018 ext 233 or mickey@vectormanagement.com

Vector Financial Services Limited mortgagebrokernews.ca

71

Feature

Fee for service

will work sincerely and assiduously to get the client the best deal, including, but not exclusively, rate. It’s also a tangible pledge of the broker’s professionalism.”

But commitment cancellations hurt more than brokers. A channel lender is endorsing the idea of client exclusivity agreements, arguing the time has come for an industry-wide discussion on those controversial but, perhaps, increasingly necessary contracts.

“Conceptually, I am supportive of exclusivity agreements,” says Boris Bozic, Merix Financial president and CEO. “I

72

mortgagebrokernews.ca

“ we mention to customers that it is important that the transaction is a win for the customer, the broker and the bank ” majority of customers understand,” he says.

“We mention to customers that it is important that the transaction is a win for the customer, the broker and the bank. If a customer may exit the loan early, then we offer them loans that do not have significant exit fees or clawback. In most cases this isn’t a concern and customers are happy to proceed. This should be an industry standard. If you offer a good service then you should never work for free.”

For some brokers, the introduction of clawbacks is like pouring salt in the wound that was created two years ago when the industry underwent commission cuts. “Why should the broker pay for it?” asks Sarah Eifermann, mortgage planner at SFE Loans.

“We already had a 35 per cent commission cut as a result of the GFC. The average broker earns $70,000 and then has to deduct the cost of running their business, which is about $40,000.

So the average broker earns a net income of about $30,000 per year — it’s not a lot of money.”

The amount a broker stands to lose on clawbacks depends on the loan size and their aggregator, but clawbacks of $3,000 to $4,000 are not unheard of. For brokers running a business, the sudden withdrawal of that income is a severe blow. Eifermann introduced a clawback provision five years ago.

“If they pay out their loan within 18 months, I’m entitled to charge them up to a one per cent fee for administration if the bank takes back what it pays me, which I explain and they initial in the contract,” she explains. “What it does is it lets them know upfront that the service a mortgage broker provides is not for nothing. And as a society

Review important product guidelines

Calculate mortgage payments and insurance premiums

Read the latest news from Canada Guaranty

Find essential contact information

MOBILE ACCESS. ANYTIME. ANYWHERE. DOWNLOAD THE FREE CANADA GUARANTY APP TO YOUR BLACKBERRY速, IPHONE速 OR IPAD速 TODAY! At Canada Guaranty, we understand the increasing demands of the mortgage industry.

With more time spent out of the office than ever before, we've made it our priority to ensure you have access to the tools you need, when you need them.

Canada Guaranty Mortgage Insurance Company 877.244.8422 I www.canadaguaranty.ca

For busy professionals, Mobile Tools makes it even easier to access essential product information, conveniently displayed through your handheld device.

Visit canadaguaranty.ca/mobile to discover how Mobile Tools can better assist you!

Feature

Fee for service

think it’s time the industry looked long and hard at implementing the practice.

The broker’s job is not to just educate the borrower, however, that’s happening with greater frequency. As the saying goes, time is money. Brokers should have the means to be compensated for their time and effort.”

Collu is prepared to lead a provincial discussion on regularizing exclusivity agreements as a best practice, similar to those Realtor agreements that bind home sellers and buyers to their real estate agents for a contracted period of time.

Still, even well-intentioned clients may balk at having to sign exclusivity agreements, says industry trainer

74

mortgagebrokernews.ca

“ and as a society we think everything should be free.

It gives an automatic value proposition on the brand right from the get-go — they know that it’s not for free ” we think everything should be free. It gives an automatic value proposition on the brand right from the get-go — they know that it’s not for free.”

Eifermann has rarely had to enforce the clawback provision and only two of her clients in the last year have refinanced. But she

$460,000,000 COMMITTED YTD 2011 BRIDGE FACILITY Four residential apartment buildings comprising 1,478 units

LAND LOAN 1.06 acre residential condominium development site

$19,500,000 Second Mortgage

$15,500,000 First Mortgage

Toronto, Ontario

Toronto, Ontario

LAND LOAN 150 acres of zoned mixed-use lands

BRIDGE FACILITY Portfolio loan on 9 retail properties

ACQUISITION LOAN Property acquisition line secured against 18 Properties

$17,000,000 First Mortgage

$35,000,000 Secondary Debt

$13,500,000 First/Second/Third Mortgage

MEZZANINE CONSTRUCTION LOAN Secured LOAN 3,208 sq. ft. custom home $25,000,000 Subordinated Debt $520,000 First Mortgage Toronto, Ontario

Calgary, Alberta

Various Provinces

Various Provinces

Markham, Ontario

Where Mortgage Deals Get Done.          

Residential & Commercial Construction Loans Land & Development Financing Infill Construction Financing First & Second Mortgages Bridge & Equity Financing Immediate Approvals Easy Draw Process Will Match Any Non-Bank Committed Pricing Flexible Lending Programs Loan Sizes $1-$50 Million

Providing Real Estate Capital for:

For Lending Inquiries For Lending Inquiries Please Contact: Please Contact: Michael Carragher Michael Carragher mcarragher@FirmCapital.com mcarragher@FirmCapital.com Tel: (416) 635-0221 Tel: (416) 635-0221 Fax: (416) 635-1713 (416) 635-1713 1244 CaledoniaFax: Road Road Toronto, ON 1244 M6A Caledonia 2X5 Toronto, ON M6A 2X5 Ontario License #: 10164 Ontario License #: 10164

Landlords ● Developers ● Builders ● Reits ● Capital Markets Distressed Debt ● Special Situations ● Real Estate Private Equity

Feature

Fee for service

Top: Albert Collu Bottom: Rangit Dhillon

Greg Williamson, initially skeptical about the efficacy of nationwide or even provincial adoption.

“I think what might happen is that the more experienced brokers and agents will be able to sell the concept to clients, but more inexperienced mortgage professionals may scare them off,” he says.

That could be averted, argues another broker, suggesting lenders like Bozic take the lead, by putting “teeth in their commitment letters.”

“I think it’s possible that we could face a challenge by consumer advocacy groups if we, brokers, look to make exclusivity agreements a best practice,” Ad Lakhanpal, a Mortgage Alliance Broker in Oakville, Ont., tells CMP. “Asking clients to sign them upfront is also likely to scare many away. But if the lenders were to readjust their commitment letters to include a penalty clause for clients if they cancel the deal and go to another lender, then that I think would be more effective in protecting brokers and lenders.. It’s also the easiest way to do it.”

In the absence of that tougher commitment protocol, Somerville and his team of agents are still left to grapple with the very real problem of clients who are prepared to use them as a stepping stone on their way to the better bank deal – whether it’s lower than the broker rate or, even, if only a match.

“We’re considering whether to introduce an exclusivity agreement ourselves,” he says, revealing the kind of exasperation so many brokers feel.

We’ll see.”

“ it’s a good idea, adn we’ve debated putting something like that in our agreements.

But transparency is absolutely key here and the client would have to be fully appraised of what they are signing ”

“ banks pay mortgage brokers solely for the purpose of placing a loan with them. They don’t pay you for the advice you give the client about the right loan for the client ” admits there is a difficulty in enforcing it and has had to take one client to the Victorian Civil and Administrative Tribunal. “You need to have a lawyer chase it for you or take them to small claims court to have them pay.”

Despite that, she thinks more brokers will be introducing fees — both for clawbacks and for the advice they provide. “There are two issues — one is a fee for advice and the other is clawbacks. Banks pay mortgage brokers solely for the purpose of placing a loan with them.

They don’t pay you for the advice you give the client about the right loan for the client. So fee for advice will be coming in and I think you’ll find brokers bringing in a fee for clawbacks. Why should a broker have to foot the bill when they’ve done the work? We think we should get everything for free. What it boils down to is they don’t think we should get paid if they take their business elsewhere. And because there’s been no cost to the client in the past they’ve been able to use and abuse the system of commissions.”

Eifermann charges a fee for advice, which she specifies is different than a fee for service.

“Fee for service refers to the actual placement of the loan,” she clarifies. “Fee for advice refers to the advice given regarding the product suite, the lender, the rate, the structure that suits their needs and goals. There’s an argument that with the new ASIC legislation you have to do that anyway — that’s true, but I’ve spent eight years in this industry building up my knowledge base, I’m currently doing my diploma and I give you advice — as an accountant or a financial planner would give you advice and charge you for it — so the same thing applies.”

“They think that the banks pay us, but when I explain that the banks pay me for placing the loan on their behalf, not for the advice component, they don’t have a problem with it.” CMP

No Fluff.

Every day of every month CMP and Mortgagebrokernews.ca delivers top quality, relevant content that independent mortgage broker professionals use to improve their business – no filler – no fluff.

Maximize your marketing ROI with the leading independent voice of the mortgage brokering industry.

Contact.

Scott Clarke 416 644 8740 x 237 scott.clarke@kmimedia.ca Trevor Biggs 416 644 8740 x 236 trevor.biggs@kmimedia.ca

Business Marketing

78

mortgagebrokernews.ca mortgagebrokernews.ca

Business

Marketing

web 2.0 marketing secrets for mortgage pros eos d i V Tip’ rrals r e m efe nsu R o r C ‘ u o use ode Y l p x to E

In the final instalment of his latest series, Doren Aldana explores some of the ways mortgage brokers can harness the power of social media to build referrals

I

n last month’s article, I showed you how to convert your Realtor ‘fans’ on your Facebook Fan Page into loyal referral partners who send you all their referrals. Now, in this final article of the series, I’m going to teach you how to use helpful ‘Consumer Tip’ videos to capture more repeat and referral business from your database of past clients. This is one of the most powerful, costeffective ways to mine the gold from your database, without having to pay a single penny for postage. Remember, it costs five times more to acquire a new client through conventional advertising than it does to acquire a referral or repeat transaction from an existing client.

At this point, if you’ve been following along in this five-part series, you should already have a Facebook account and a ‘Realtor Tips’ fan page set up.

Now let’s get started.

Once you complete those prerequisite steps, the next step is to set up your Consumer Tips Fan Page. This is a unique page for marketing your mortgage business on Facebook. It will allow you to build a following of fans who ‘Like’ your mortgage business. Here are a few examples of possible titles for your page: • John Smith, Vancouver Mortgage Agent • John Smith, Vancouver Mortgage Consultant • John Smith, Vancouver Mortgage Broker • John Smith, ABC Mortgage You get the idea. Just make sure your title has your name and/or company name and tells people what business you are in. You’ll want to add your logo, photo or custom-branded banner to the page.

Now that you have your Fan page set up, the next step is to deliver killer content that engages, entices, and magnetically attracts your ideal clients. The primary objective of your content is to build a following of ‘fans’ that know you, like you and trust you because of all the valuable stuff you’re sending them. If you do this right, when the time comes that they need a mortgage – boom – you’ll be the first person they think of because you’ve cultivated goodwill and top-of-mind consciousness. First you gain mindshare, then heartshare, and then ultimately, walletshare.

What kind of content should you post? Here are a few ideas to consider: 1. Mortgage trends and real estate news – but not too often. When there are significant changes to rules, regulations or rates that impact the consumer, by all means let people know so they don’t miss the boat on a timesensitive opportunity. However, don’t hit them over the head with the same old mortgage stuff too often or you’ll bore your people to death.

2. Homebuyer tips. Teach people how to avoid costly mistakes, ways to save money, steps to take, etc. These can be ‘evergreen’ tips with perennial value to homebuyers. Again, this isn’t

mortgagebrokernews.ca mortgagebrokernews.ca

79

Business Marketing

“ if you do this right, when the time comes that they need a mortgage – boom – you’ll be the first person they think of because you’ve cultivated goodwill and top-ofmind consciousness. First you gain mindshare, then heartshare, and then ultimately, walletshare ” something you want to talk about too often.

Statistics show that people are only refinancing or buying a home once every three to five years. That means this ‘homebuyer’ content will only be relevant to people once every three to five years.

3. Homeseller tips. This is where you teach people how to sell their home faster for top dollar, how to stage their home, how to have more curb appeal, how to attract more quality buyers, etc. Your Realtors will love this stuff too.

4. Home maintenance tips. For example, you can provide tips on landscaping, setting up irrigation, house painting, home renovation, etc.

5. Recommended resources. This is where you can endorse your referral partners and invite your ‘fans’ to take advantage of a free analysis, free report, or a free consultation that your referral partner is offering. For example, you can promote a ‘free home evaluation’ from your Realtor, a ‘free financial analysis’ from your financial adviser, a ‘free consultation’ from your home stager, etc.

6. Funny stuff. I call this as edutainment.

While you’re educating them, you want to entertain them. The highest paid people in the world are entertainers. Look at Oprah; she is the richest, most powerful female on the planet because she knows how to entertain people through her personality and her engaging and entertaining interviews. Entertaining people is where all the magic happens.

There are lots of fun ways to entertain people on Facebook. For example, cartoons,

80

mortgagebrokernews.ca

funny images, funny videos, etc. Again, just be careful that you don’t overdo it. Whenever possible, try to dovetail the content in with what you do so that it’s congruent with your brand and what you’re trying to accomplish.

7. Ask questions that encourage interaction and feedback. This is a great way to create relationships and connections, and have people feel like they know you, like you, and trust you, and want to do business with you. Seek first to understand, then you’ll be understood.

Now the question is, what’s the most powerful content format to use? Should it be plain text, video, audio, images, or something else? As I mentioned in my previous articles in this series, the most powerful, effective media to use is VIDEO! Please refer to my second article in this series for more info on the software and equipment you’ll need to create low-cost, high-impact videos.

Here are a few video platforms I recommend using for posting your ‘Consumer Tip’ videos with maximum impact: 1. ‘Consumer Tips’ fan page on Facebook.

Your fan page provides you with an awesome video player that allows videos up to 20 minutes long. There is an immense amount of video played – and shared – within Facebook in any given moment of any given day. And because of this viral nature of Facebook, it is a really powerful platform for sharing your videos.

2. ‘Consumer Tips’ Blog. The cool thing about posting videos on your blog is that Google loves blog content, especially video, and if you do it right, you can get loads of free traffic from people searching for mortgage info on Google. This involves posting your articles and videos to your blog on a regular basis (ideally once per week) and then coding your content with the right title tags, description tags, meta tags, etc.

Once that’s done you get ‘backlinks’ by submitting your articles and videos to blog directories, article directories, bookmarking sites, etc. Backlinks are indexed pages that have links pointing to your site, in this case your blog. In general, the more backlinks from relevant sites, the higher Google will rank your site and the more free traffic you’ll receive.

Business

Marketing

For example, if you live in Toronto, and you’re a mortgage broker and your video is coded with ‘Toronto Mortgage Broker.’

Google is going to search that and it’s going to file it inside its enormous database using a complex algorithm. When people start searching for ‘Toronto Mortgage Broker,’ your videos will start coming up because Google loves video and it loves blogs. So, you definitely want to start posting your videos and the transcribed version of each video on your blog.

3. YouTube channel. I used to say that it’s not good to post videos on YouTube because after someone watches your video, YouTube will often recommend that they watch related videos from your competitors. However, I recently learned that if you set up a YouTube channel you can get people to subscribe through an RSS Feed, which basically means that when you add a new video to your channel, anyone who subscribes to it will get notified that there’s a new video and they can watch your video without any of your competitor’s videos being recommended.

Once you have your social media platforms set up (YouTube Channel, Fan page, LinkedIn, Twitter, blog, etc.), it’s a good idea to add a ‘Follow Me’ section on your Blog with icons representing each of the social media sites you’re connected to so people can start following you. Remember, the bigger your following, the bigger your bank account.

So there you have it. I’ve just given you several ideas you can use to start increasing your profits using the power of video and social media. Now it’s time for you to take action. Just do this stuff.

About the Author: Doren Aldana is considered by many to be Canada’s leading mortgage marketing coach.

Since 2005, he has been dedicated to helping mortgage professionals attract more clients with less effort, regardless of market conditions. Among Aldana’s latest innovations, is a completely done-for-you video marketing solution that allows you to instantly deploy powerful videos through social media that attract mortgage clients like crazy. To see a free demo, visit: www.

Done4UVideoMarketing.com. CMP

mortgagebrokernews.ca mortgagebrokernews.ca

81

PRESENTED BY:

R REGISTED Y ONLINE TVOE! A & SA forum.ca

tor www.theinvReICsING STARTING EARLY BIRD P M $129!

FRO

The real estate investing event of the year is coming to the west!

Be ParT of IT! Hear from our Toronto Delegates about their Investorforum experience…

• 500+ attendees • 35+ exhibitors • Interactive workshops • 30+ High-Level speakers • Case-studies and panel presentations • Networking drinks reception, discussion lunches and networking breakfast & coffee breaks • Strategic media partners and associations

Diamond Sponsor

Gold Sponsor

“From a financial or emotional standpoint if you are considering your first purchase this event will help you decide. If you already own properties and want to expand this event is a must.”

Rick F — Toronto Delegate “Looking forward to the next InvestorForum because there was so much information to take in. Think I need another round!”

Susan H — Toronto Delegate “It was a great weekend with invaluable information.

Anyone who invests or would like to invest in real estate should attend. Worth every penny!”

Jim — Toronto Delegate “The best group of speakers I have ever heard in one single day. Thank you and the good folks at CRE Magazine for a world class event.”

Jamie G — Toronto Forum

Silver Sponsors

Media Partners

ConferenCe Programme Day one

Day Two

07:45–08:45

Registration & Networking Breakfast

9:00–10:00

Registration – Expo Floor Open

08:45–09:00

Opening Address

10:00–10:45

Opening Keynote

10:45–11:30

Insider Stories, Advice and Tips on the Investment Process

Vision Investment Properties

09:00–09:45

Urban/Suburban Investor Strategy Philip DuMoulin, co-star HGTV’s Urban Suburban

09:45–10:30

Presented by

Canadian Hot Spots 2012

11:30–12:00

Morning Networking & Refreshment Break

Don Campbell, president of the Real Estate Investment Network (REIN)

12:00–12:45

The Authority Formula

10:30–11:00

Morning Networking & Refreshment Break

11:00–11:45

Investing through direct ownership in Canadian Properties Presented by Tyler Hoffman, Vision Investment Properties

11:45–12:30

Finding The Right Property – A Guide To Multi-Family Investing

Greg Habstritt, founder of Simple Wealth, award winning investor, speaker, trainer and author

12:45–1:45

Networking LUNCH

1:45–2:30

The Power Within Tahani Aburaneh, author, investor and real estate coach

2:30–3:15

Brendon Ogmundson, economist, BC Real Estate Association

Domenic Mandato, president, InvestPlus Properties

12:45–2:15

VIP LUNCHEON with CARY MULLEN

2:15–3:00

Canadian Financial market – Forecast 2012 Peter Kinch, founder, Peter Kinch Mortgage Team and Dominion Lending Centres across Canada

3:00–3:45

Getting the Money Secrets – Uncovering Unlimited Funds for Deals

3:15–3:45

Afternoon Networking & Refreshment Break

3:45–4:30

Legal Tips for Landlords/Investors in Residential Properties Douglas Gray, former Lawyer & best selling Author

4:30–5:15

Julie Broad, investor, blogger and founder of revnyou.com

3:45–4:15

Afternoon Networking & Refreshment Break

4:15–5:00

Leveraging Social Media to Grow Your Portfolio Wade Graham, president, Higher Ground Real Estate

5:00–5:45

Property Management, Properly Managed Brian Pulis, president, Pulis Investment Group

5:45–6:45

Regional Economic Forecast

West Coast Top Investor Awards 2011 followed by drinks reception. Partnered by

PANEL DISCUSSION: The Great Debate: Property Investment Beyond our Borders

aTTenTIon all morTgage BroKers! Bonus offer! register for the Investorforum & receive free access to the exclusive all day mortgage Broker workshop on november 12th in Vancouver. www.theinvestorforum.ca

Book now to secure your place at the

Ticket registration

Hotline: 855-283-2721 Email: registration@kmimedia.ca Sarah Habib

& save with the early Bird special!

event Information & sponsorship opportunities

Register online & enter coupon code IFVDPS2 to save $150

Real Estate Partner

Mortgage Clinic Sponsor

Another event organized by

National Account Manager

416-644-8740 Ext. 249 sarah.habib@kmimedia.ca

follow us:

Profile Brokers

Keeping it in the family B

usiness owners like to think that their venture is unique, that they provide a product or a service, or have a strategy, that they alone offer. At The Mortgage Centre-Durham, that might actually be true.

“I know everyone says it, but we really do run a unique operation here,” says Boyd, partner and principal broker of The Mortgage Centre-Durham since it opened its doors in 1993.

“We want our agents to stay and grow with us.

Why, after investing five or 10 years with us, should they have to disrupt their lives and move elsewhere to do something greater? We’ve created a model where they can grow inside the group. And to my knowledge, there’s nobody else doing that in this country.”

“Our philosophy is simple,” says Boyd.

“Creating a family at The Mortgage CentreDurham is a priority. Building and maintaining

84

mortgagebrokernews.ca mortgagebrokernews.ca

strong relationships with our agents is just as important as building and maintaining strong relationships with our clients, the community, and The Mortgage Centre Canada network.”

“I know it sounds Pollyanna,” says Boyd, “but the business we’ve built is one of trust and relationships.”

When Boyd and his original partner Rosemary Madden purchased the franchise, they agreed that as agents became more comfortable with originating mortgages and then wished to grow and expand, they would do whatever was necessary to accommodate them.

“The truth is that once you have a relationship with somebody and it’s working well and people trust one another, if they want to make a change, why not let them do it? As long as they are qualified to take on that next role, why not let them do it within the company instead of leaving?”

Robert Boyd and his partners at The Mortgage Centre-Durham have built their business around the unique idea that agents can grow professionally without leaving the company

Profile Brokers

To keep the Mortgage Centre-Durham family together, Boyd and his partners developed two distinct strategies: allowing owners and agents to buy and sell shares within the company and providing agents with mentoring to help them grow professionally.

When one partner expressed a desire to sell his shares and open his own brokerage a few years ago, the thought of someone leaving in order to find new challenges led Boyd and his partners to come up with a unique idea.

“We purchased his shares back and he used the money to build a sub-franchise under The Mortgage Centre-Durham licence,” explains Boyd, who received his mortgage broker’s licence in 1990.

“The idea of him leaving, going someplace else to open up a storefront shop, why should he have to do that?”

Recently, a seven-year company veteran who wanted to grow into the experience of business ownership purchased shares from another partner who wished to reduce her day-to-day involvement in the operation of Durham Mortgage.

Providing mentoring for agents who want to explore different career options within the company has also proven successful.

When people first come into the business, they’re very focused on getting that first transaction and getting originations. Over time, some agents want to do more.

“If an agent starts and says, ‘I like doing mortgages, but I really like the idea of training and coaching,’ we offer an opportunity for them to work in a team with less experienced colleagues to mentor them while originating mortgages with them, as opposed to working by themselves,” says Boyd.

A commitment to establishing a sense of family and promoting professional growth can happen best in a company that is strong and growing. The Mortgage Centre-Durham derives its strength from its close ties with The Mortgage Centre Canada, its clients, and the Durham community.

In many ways The Mortgage Centre-Durham’s focus on family is a reflection of the focus of its parent company. Family is what The Mortgage Centre Canada is all about, according to Boyd.

“I’ve always been glad to be a part of The Mortgage Centre network. It’s a fabulous group of individuals with a strong entrepreneurial mindset.

The people within the organization have the same philosophy of sharing and growing together as The Mortgage Centre-Durham.

“I enjoy being with The Mortgage Centre Canada more and more as time goes on.

“With its current focus on building its brand and strong commitment to hiring the best people and supporting them, the company has never been stronger.”

Focusing on clients’ needs is very important to The Mortgage Centre-Durham.

“Seventy-six per cent of my business is existing clients. It’s all about doing our best to stay in touch with our clients. They’re ours until they tell us otherwise. We consider somebody a client until they’ve paid off their mortgage. And for us it’s worked. Our client retention is very high.”

That attitude is something Boyd has practiced since the very beginning.

“When I first acquired my licence and entered this business, generally a broker would be used if you couldn’t get an application approved at your local bank branch. There was very little business being done through mortgage brokers,” he recalls.

“My partner and I thought, ‘How can we use this licence to the benefit of people? How could we get good people better mortgages?’

“From day one, we’ve believed that we need to educate people so that they understood what they’re signing. We are there for our clients if they have any questions as they go through the mortgage process, and afterwards.

“And I think we’ve used the licence in the manner it was intended to be used. We’ve always worked hard to get our clients the best mortgage option.”

Strong ties with the community are an added strength of The Mortgage Centre-Durham and a reason it is one of the largest brokerages in Durham Region with over 24 agents and four locations.

Community is also important to The Mortgage Centre Canada, says Boyd, as he explains the company’s policy of not allowing franchises to overlap territories.

“They don’t allow people to set up shops across the street from one another. They designate a territory. They let you build that territory and grow that territory.”

Boyd believes that to ensure the health of the mortgage brokerage industry, we must continue to organize ourselves, placing a high emphasis on education and maintaining a high proposition value to both borrowers and lenders.

The concept of family permeates The Mortgage Centre-Durham, and its commitment to nurturing and developing its brokers and agents through mentoring and giving them the option of buying and selling shares in the company makes it a unique mortgage brokerage. CMP

mortgagebrokernews.ca

85

FEATURE

Anti-spam legislation

canada’s anti-spam legislaton:

time to opt-in Using electronic messaging to reach clients and potential clients is the lifeblood of mortgage brokers. New anti-spam legislation will soon place significant restraints on the ability of businesses to send electronic messages

With permission, this is a reprinted version of Blake, Cassels & Graydon LLP’s July 2011 Blakes Bulletin: Canadian Anti-Spam Legislation.

86

C

anada’s Anti-Spam Legislation (CASL or the Act) will establish one of the most stringent anti-spam regimes in the world. It will apply to all “commercial electronic messages” (CEMs) that include not only email but also text messages, instant messages and messages sent through social networking sites. While CASL will only apply if the electronic message can be said to be a “commercial” electronic message, such messages merely need to encourage participation in conduct of a commercial character, whether or not there is an expectation of profit, to be caught by the Act. Moreover the onus will be on senders of CEMs to prove that they met the Act’s numerous requirements. In particular, unless specifically permitted by the legislation, the recipient of the CEM must have consented to receiving the CEM before it was sent. This is referred to as an “opt-in” system and differs from an “opt-out” system with which companies operating in the U.S., and most other international jurisdictions, may be familiar. It is worth noting that an electronic message requesting consent to receive further CEMs is itself a CEM and, therefore, cannot be sent without the consent of the recipient.

Each CEM must meet several form and content requirements. Among other things, each CEM must provide an unsubscribe mechanism whereby recipients can indicate that they do not consent to receiving any further messages.

Failure to meet CASL’s CEM requirements may lead to significant liabilities for a business. A single violation by a corporation could be subject to an administrative monetary penalty as high as C$10-million. CASL also provides for a private right of action that will allow any person who believes they have been affected by breach of the Act to apply to a court to seek redress. The court order may require the person who contravened the Act to pay the applicant a specified amount of

mortgagebrokernews.ca

damages for each day on which the violation continued. Civil damages may also be sought by way of class action, leading to significant risks of liability exposure for all businesses.

In order to be adequately prepared for the Act’s introduction, it is very important to review internal communications practices within your organization and seek professional advice on how the Act may affect your business as there are some important and complex exceptions to the requirement for seeking express consent. An effective compliance program will likely include the early adoption of a mechanism for collecting express consents from as many of your business contacts as possible before the Act comes into force. However, in order to ensure that express consent obtained currently continues to apply when the Act is in force starting in 2012, it would be prudent to comply with the form and content requirements as set out in the Act now.

Draft regulations CASL anticipates that many of the details of the CEM regime can be provided or refined through regulation. At present, two sets of regulations have been issued in draft form. The draft regulations provide additional detail on: • the information that must be contained in each CEM; • the information that must be contained in a request for consent to receive CEMs; • the requirements of the unsubscribe mechanism; • an option to provide some information by way of a link to a website (available in limited circumstances, where not “practicable” to include in the message); and • what constitutes a “family” or “personal” relationship for purposes of an exemption for the opt-in requirement.

FEATURE

Anti-spam legislation

In the draft regulations recently published by Industry Canada, nine of the 12 areas in which the government was given authority to make rules under the CASL have not been addressed. Some of these unaddressed areas could have clarified the requirements under the Act or provided greater latitude in terms of exemptions from the Act. For example, the government has chosen not to provide rules identifying additional circumstances in which consent is not required for a CEM, despite Parliament’s invitation to do so in the Act. Moreover, the draft regulations may raise issues that will require clarification.

For example, the draft regulations refer to situations where it will be “not practicable” to include required information in a CEM. It is likely that this refers to messages subject to character constraints (SMS messaging, for example), but this is not specified, and accordingly, the scope of that provision is uncertain.

Finally, several of the regulatory provisions increase the compliance burden. Under the draft regulations, to meet the “personal relationship” exception under the Act, the sender and recipient must have met in person. In the context of a regime governing online behaviour, it seems strange not to recognize a personal relationship between persons who meet and interact solely online. Moreover, while the Act allows for people to request consent to receive CEMs on behalf of a third party, the draft regulations place a significant burden on the requester to ensure that the third party complies with specified obligations.

Accordingly, companies will want to carefully consider their ability to control the actions of third parties before requesting any consent on their behalf.

Authors: Blakes Anti-Spam Group (http://www.blakes.com/english/antispam.asp). CMP

mortgagebrokernews.ca

87

profile PROVIDER

Mortgage Alliance finds a new home for RightMortgage as it moves the unique product to Paradigm Quest

The right move M

ortgage Alliance has officially found a new home for its industry-leading RightMortgage, giving Paradigm Quest – and “multiple lenders” under its umbrella – the nod.

“We’re very pleased with the decision to take the RightMortgage to Paradigm,” MAC President Michael Beckette told CMP. “The RightMortgage retains all the features it had before, with all the built-in flexibility and transparency consumers enjoy, plus more product options and multiple lending sources. In addition, a website will allow clients to get more involved with their own mortgages in real time.”

The announcement answers the prayers of MAC mortgage professionals who deluged Beckette with emails in late June after Macquarie Financial – the lender co-branding the trademark mortgage process – announced it would quit the broker channel.

The move left MAC looking for alternative funding for the RightMortgage, which enables borrowers, and their brokers, to customize mortgages by tabbing features onto a bare-bones structure. Taken as it is, that no-frills framework allows the client to access some of the lowest interest rates in the marketplace. Macquarie’s decision to give up direct sales through the broker channel ended its nearly four-year run as funder

“ what’s also important to note is that the transition will make for seamless, uninterrupted originations for the RightMortgage, which will now be entirely Mortgage Alliance’s product, and we’ll be here to provide the back-office support ”

88

mortgagebrokernews.ca

for the RightMortgage – what MAC prefers to call a “branded mortgage process.” The product remains exclusive to brokers and agents in the Mortgage Alliance family.

“We weren’t given any advanced notice when Macquarie made its announcement,” said Beckette, “and it was a surprise. We were approached by six different lenders almost immediately, but we went with Paradigm because there was an established level of trust there already and they could ensure the RightMortgage maintained the flexibility that has made it so unique in the market.”

The value attached to thousands of “RightMortgage” under Macquarie is now approaching the $4-billion mark, with over $1 billion of that coming in 2010, said Beckette. MAC brokers are anxious to add to those numbers, some relying almost exclusively on the product and its pick-and-choose features, such as varying amortization, rate holds, and pre-payment and “Skip-a-Payment” options. Those clients get what they pay for – or rather, pay for what they get – with interest rates decided by the number and scope of those add-ons.

That bestseller will now be supported by several wholesale funders, said Kathy Gregory, president and CEO of Paradigm. “A number of them will provide the RightMortgage with a diversification of funding options, which should provide long-term stability for that business.

What’s also important to note is that the transition will make for seamless, uninterrupted originations for the RightMortgage, which will now be entirely Mortgage Alliance’s product, and we’ll be here to provide the back-office support.”

The move to Paradigm will also see MAC sync its MortgageBoss platform with the mortgageservicing company’s RUBI system, allowing borrowers real-time access to their account information. It’s the kind of transparency and customer service focus that has garnered the RightMortgage so strong a following, said Beckette. CMP

Michael Beckette

Gro Subscripup t Availablions e

Looking for a resource to help your property investment clients?

Are you a property investor yourself?

Subscribe to Canadian Real Estate or send your clients a gift subscription today!

Canada’s only monthly publication dedicated to Canadian real estate investors offers readers accurate, cutting-edge information to guide their investment decisions.

In every issue  get industry predictions/forecasts from mortgage experts  gain a better understanding of the distinctions between residential and commercial mortgages  discover the advantages of the mortgage broker for the real estate investor  learn key strategies and benefits of portfolio re-financing

Help your clients succeed and grow your business at the same time!

SPECIAL

READER RATE

12 issues for $60 Promo Code: CMP120711 24 issues for $105 + FREE BOOK Promo Code: CMP240711

$19.99 value!

Subscribe online: www.canadianrealestatemagazine.ca and enter the promo code above to take advantage of this special limited time offer!

 For bulk/group subscriptions please call 416-644-8740 Ext. 243.

Profile Insight

A new brokerage is taking “fighting for your client” to a new level as it attempts to capitalize on the involvement of two of its brokers in the popular sport of mixed martial arts

putting

up a

fight I

t’s the ultimate in kicking a stereotype to the curb or knocking it on its keister, with two fighters from the world of mixed marital arts launching a mortgage brokerage, focused on winning deals, not championship belts.

“Our philosophy is simple,” said Wojtek Kaszowski, a three-time North American MMA champ and now principal broker of MMA Mortgages.com. “The mortgage business is changing every day and we want to be the trailblazers in the industry. If we can help people find the right types of financing and get them better rates then what they’re being sold at the banks then we’ll know we’ve done our jobs.”

Partnering with former UFC Champion Carlos Newton, Kaszowski has also assembled a team of

“ there’s something to the idea that a successful fighter in one arena is going to be a successful fighter in another. For now, we feel this is a good way to differentiate ourselves from the competition, but at the end of the day, we would like people to remember us for what we’ve done for them ”

90

mortgagebrokernews.ca mortgagebrokernews.ca

Wojtek Kaszowski (left) and Carlos Newton

seven agents, many of them drawn from the world of competitive sports, disciplines they’ve now moved to the backburner in order to build a collective book. Most have, in fact, been in the business anywhere from three to five years.

The group is hoping to capitalize on the notoriety of both Kaszowski, 33, and Newton, 34, each with a dedicated fan base that extends across and, indeed, beyond Canada. That strategy could be a double-edged sword in Ontario, where MMA fighting was only legalized earlier this year.

“We did do a little bit of market research on the MMA branding, which recommended its use,” David Gallo, an agent with the firm, told MortgageBrokerNews.ca “There’s something to the idea that a successful fighter in one arena is going to be a successful fighter in another. For now, we feel this is a good way to differentiate ourselves from the competition, but at the end of the day, we would like people to remember us for what we’ve done for them.”

The firm intends to focus on the Toronto market, although is gunning for provincial reach, Gallo said. MMA is prepared to do both A and alternative lending as well as private deals. That isn’t to say Kaszowski and Newton have entirely given up their athletic pursuits.

“Both are now in training,” said Gallo, with Newton preparing to get back into the ring and Kaszowski shifting to the boxing ring later this year. CMP

N ZES! I 00 PRI 0 , $5 S & ll be ne!

O T OL wi azi P O s N U NT T ner mag I W ME in E T w S E d n CR r V IN wa d i A le ofi r p

PRESENTED BY:

ARE YOU THE BEST OF THE WEST?

CANADIAN REAL ESTATE MAGAZINE IS LOOKING FOR THIS YEAR’S TOP INVESTORS IN WESTERN CANADA • • • • •

Investor of the Year Best Deal of the Year Best Newcomer of the Year Inspirational Investor of the Year Best Interprovincial Investor

Submit now!

Nominations end September 30th, 2011

Enhance your investments with up to $5000 worth of prizes including a chance to win a VIP ticket to the InvestorForum in

B.C!

To qualify as a nominee, simply visit

WWW.THEINVESTORFORUM.CA

follow the link to the questionnaire(s), select the appropriate category, and submit details where prompted. Our panel of expert judges will carefully deliberate over the nominees submissions. Winners in the 5 categories will be profiled in Canadian Real Estate magazine!

Profile

Favourite Things

Tara Arciszewski + Mortgage Agent, The Mortgage Centre-Durham + Pickering, Ont.

Hobby A good workout at the gym

Favourite Things Place to be Relaxing with family and friends

Music Rock

Celebrity Shania Twain

Sport Baseball

Book Any good love story Drink Red wine

Food Steak

Vacation Georgian Bay and the Ottawa River

Movie Anything suspenseful

92

mortgagebrokernews.ca

Vancouver Convention Centre

e v i s u l c Ex

Includes 6 AMP credits

WORK SHOP

t n e v E y a D e On ion Centre The Vancouver Convent November 12, 2011

rs r sessions where broke This full day includes fou w ho , ies nit enue opportu will learn to find new rev consolidation and credit bt de h wit to help clients ir brand and business building, how to grow the to d practical tips on how through social media an business. effectively write more Alt eligible to receive six *Attendees will also be Units (CEU) toward Continuing Education Education program s the AMP Continuing ment Category)* (Professional Develop conjunction with the This workshop is held in veral will present you with se Investor Forum, which l rea with high net-worth opportunities to network estate investors.

Workshop Agenda rs

Session 1: 9am – 1.5 hou

Examining the Long Ter Cost of Debt

m

Presented by: Consulting Paul Murphy of 4 Pillars Session 2: 11am – 1.5

hours

utions Creative short ter m sol for long ter m gain!

Presented by: nt of FISGARD Capital Hali Strandlund Preside rs

Session 3: 2pm – 1.5 hou

The Alt-A/Sub-Prime – Back to Business!

Market

Presented by: Argentum Mortgages Albert Collu President of rs

Session 4: 4pm – 1.5 hou

g

Social Media Marketin Presented by: Joe White

President of REMIC

Included in this one day event

All for a limited time offer of $79!

• • • •

PLUS add the exclusive Keynote luncheon to your package which features a session with the inspirational world cup champion & author, Cary Mullen for $100

All 4 sessions Networking breakfast & buffet lunch InvestorForum exhibition floor pass FREE access to the Top Investor Awards ceremony & cocktail reception.

ATTENTION ALL MORTGAGE PROFESSIONALS! Upgrade your one day workshop ticket during registration with the purchase of an InvestorForum delegate pass and get FREE all day access to the all-inclusive Broker Workshop PLUS the entire two day InvestorForum event where you can network and learn with the top real estate experts and investors in Canada!

REGISTER NOW TO RECEIVE YOUR EARLY BIRD DISCOUNT

QUOTE COUPON CODE: IFBW

REGISTRATION HOTLINE: 1-855-283-2721 REGISTER ONLINE:

EMAIL: registration@kmimedia.ca

www.theinvestorforum.ca

FOLLOW US:

Guest Column

great expectations Dave Butler of VERICO Butler Mortgage says success in this industry is about system and processes, not how many agents you have. As a CMP Top 50 broker he knows of what he speaks

to our office and it has been really helpful and effective. When we first saw a demo of it, our initial thoughts were that this was essentially our office process and system, but on our computers. It’s almost like they had been to our office and seen our system and then basically wrote a computer program for it.

Process is just so important in this business ur mortgage process is quite broken up and and it can lead to very efficient results with we do this to play into each other’s salaried licensed mortgage agents and other strengths. We have an administration staff. I have seen many lead brokers/agents get department, an underwriting department, a caught up in this game of hiring tons of mortgage closing department, a CRM department sub-agents, which I agree can be profitable, but and then our compliance department. I currently frequently in this system the lead broker/ handle a large portion of our underwriting and agent’s valuable time gets monopolized by the take care of all our external marketing as well as sub-agents. This then takes away from the relationship management with our referral strength of the lead broker/agent which of partners. To be honest, with the amount of salaries course should be generating leads for his/her I pay to run a setup like this, I’m not in the least business and refining of your company’s bit content with closing just over 500 deals last processes and systems. year. Without adding anyone to the staff I have My single best determinant regarding sales now, I believe we are capable of writing 800 deals a success was listening to Peter Kinch many year. If I add more staff, then those expectations years back and concentrating on being a niche will rise. broker. I felt that Peter was correct in his After my first year in this business in 2004, I assessment that real estate investors were a attended the annual Mortgage Intelligence very under-rated and under-marketed block of conference and had the pleasure of sitting in on a potential clientele. It doesn’t take a genius to learning session regarding office processes and figure out that your average client might need systems. Don Stoddart was the speaker and he your services for their mortgage every two to went through his team’s processes and systems five years whereas a real estate investor may and I was just in awe. At the time I was 24 years need your services for five to 10 mortgages per old, on my own, working out of a home office, with year. How hard is it to close a deal for a client no staff. But sitting in that learning session and 10 different times in the year if you already seeing how Don had this incredible process and have all his documents on file from previous how it lead to such high volumes just opened my deals? CMP eyes to how important an efficient system really was in this business. A month later I took a leap of “ faith and hired my first administrator and began my quest to grow an efficient system.

I have seen many lead brokers In the beginning, our system involved large get caught up in this game of calendar boards all over the walls of our office with hiring tons of sub-agents, which all of our closings on it as well as last names of clients written on cut pieces of Bristol board being I agree can be profitable, but manoeuvred through a “10 Phase” closing system frequently in this system the on another wall in our office. But finally, years lead broker’s valuable time get later, our process is now refined and we are happy with it, although we are always looking to improve monopolized by the sub-agents it. Recently we added a mortgage systems software ”

O

Dave Butler

94

mortgagebrokernews.ca

service directory

Banks

Bridgewater Bank www.bridgewaterbank.ca Ph: 1 888 837 2326 Page 9

FirstLine Mortgages www.firstline.com Ph: 1 800 387 2020 ext. 6044 Inside Back Cover

HomEquity Bank www.homequitybank.ca Ph: 1 866 522 2447 Page 47

Fisgard Capital Corporation www.fisgardmortgage.com Ph: 1 866 382 9255 Page 17 & 66-67

ICICI Bank Canada www.icicibank.ca Ph: 1 800 ICICI CA or (1 888 424 2422) Page 7

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Page 45

Street Capital www.streetcapital.ca Ph: 877 416 7873 Page 5

www.tdfinancingservices.com Ph: 866 694 4392 Page 57

The Money Source www.mymoneysource.ca Ph: 416 699 2274 Page 68 Commercial Lenders

National Bank www.nbc.ca Ph: 1 888 483 5628 Page 59

ROMSPEN investment corporation www.romspen.com Ph: 1 800 494 0389 Page 1

ING Direct www.ingdirectbrokerteam.ca Ph: 1-800-574-5629 Page 49

Associations

CAAMP ACCHA

Canadian Association of Accredited Mortgage Professionals (CAAMP) www.caamp.org Ph: 1 888 442 4625 Cover Wrap & Page 31

MCAP www.MCAPBROKER.com Ph: 1 866 289 7389 Page 37

Vector Financial Services www.vectorfinancialservices.com Ph: 1 866 483 8018 Page 71 Insurance

Non-Bank Lenders

Capital Direct www.capitaldirect.ca Ph: 780 868-0550 Page 10

Equity Financial Trust Company www.equityfinancialtrust.com Ph: 1 866 393 4891 Page 41

Equitable Trust Company www.equitabletrust.com Ph: 1 866 407 0004 Page 27

Canada Guaranty Mortgage Insurance Company www.canadaguaranty.ca Ph: 1 866 414 9109 Page 73

Merix Financial www.merixfinancial.com Ph: 1 877 637 4911 Page 43

Optimum Mortgage A Division of Canadian Western Trust www.OptimumMortgage.ca Ph: 866 441 3775 Page 63

Canada Mortgage and Housing Corporation www.cmhc.ca Ph: 1 888 463 6454 Page 24

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Page 18

Genworth Financial Canada www.genworth.ca Ph: 1 800 511 8888 Outside Back Cover

Broker Networks

Firm Capital www.FirmCapital.com Ph: 416 635 0221 Page 75

Resmor Trust Company www.resmor.com Ph: 866 809 5800 Page 69

Centum Financial Group Inc. www.centum.ca Ph: 1 604 257 3940 Page 11

mortgagebrokernews.ca

95

service directory

Real Estate

Canadian National Association of Real Estate Appraisers www.cnarea.ca Ph: 1 888 399 3366 Page 12

The Mortgage Group www.mortgagegrp.com Ph: 877 899 1024 Page 20

Dominion Lending Centres www.DominionLending.ca Ph: 1 888 806 8080 Page 15

Services

Home Loans Canada®

Home Loans Canada www.hlcmortgages.ca Ph: 1 866 452 1821 Inside Front Cover

Mortgage Architects www.mortgagearchitects.ca • Ph: 1 877 802 9100 Page 23

Verico The Mortgage Practice Inc careers@vtmp.ca Ph: 905 458 4222 Pages 60-61

Best Points Travel www.bestpointstravel.com Ph: 1 800 551 8786 Page 74

VERICO www.verico.ca Ph: 1 866 983 7426 Page 13

The Lions Share Group www.lionssharegroup.com Ph: 1 866 726 5159 Page 29

Technology & Software

MortgageBrokers.com www.mortgagebrokers.com Ph: 647 680 9384 Page 55

The Mortgage Centre Canada www.mortgagecentre.com Ph: 1 800 423 0107 Page 3

Paradigm Quest Inc. www.paradigmquest.com Ph: 416-366-8606 Ph: 604-678-1203 Page 51

D+H Limited Partnership www.dhltd.com Ph: 1 866 345 6449 Page 2

Strategic Information Technology (SIT) www.stratinfotech.com/ Ph: 905 640 0808 Page 35

For service directory listing please contact Trevor Biggs: trevor.biggs@kmimedia.ca

Got news?

Y Your

news n ews is our news!

Do you hav have a e news to share? r Hav Have ave you you heldd a recent event v or made d a new w appointment? pp If so,, CMP W WANTS ANTS to hear ffr from om you.

Send us your newsworthy submissions and photos, and you may find your story printed in a future issue of CMP. Send your news to: vernon.jones@kmimedia.ca

96

mortgagebrokernews.ca

Shopping for a home can be this easy‌ Genworth Financial Canada understands the importance of providing your clients with the information they need to make smart homeownership choices. Our promise is to help them with homebuying basics such as down payment options, maintaining good credit and staying on budget.

Encourage your clients to find us on Facebook.

Visit Genworthsmartshopper.ca

Š 2011 Genworth Financial, Inc.