CMP 12.05

MORTGAGEBROKERNEWS.CA ISSUE 12.05 | $12.95

Behind the scenes with all of the winners at this year’s Canadian Mortgage Awards

PUSHED TO THE SIDELINES The truth about why Canadians aren’t buying homes right now

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WHAT’S NEXT FOR HOME CAPITAL? Brokers weigh in on how the lender’s troubles could affect the channel

ONE-ON-ONE WITH CHRIS TURCOTTE Centum’s new president reveals what the network has in store for brokers

5/19/2017 1:21:38 PM

SMART

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ISSUE 12.05

CONTENTS

22

COVER STORY

Who took home the top prizes on the industry’s biggest night – and what did they have to say about it? Find out in this special commemorative guide to the 2017 Canadian Mortgage Awards

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ISSUE 12.05

CONNECT WITH US Got a story or suggestion, or just want to find out some more information?

CONTENTS

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UPFRONT 04 Editorial

What a month it’s been for brokers

06 Statistics

Why more and more Canadians are choosing to defer home purchases

10

08 Head to head

Are monolines doing enough to take the sting out of new mortgage rules?

UPFRONT

44 50

NEWS ANALYSIS

In the wake of Home Capital’s plunging stock and $2 billion loan, brokers weigh in on the future of the embattled lender

CMP talks to Centum’s recently appointed president, Chris Turcotte, to find out what new initiatives the network has planned for the coming months PEOPLE

INDUSTRY ICON Veteran broker and Verico VP Jared Dreyer outlines what brokers need to do to stay competitive in a changing industry

16 Opinion

C

How brokers can come together to fight against further regulation

PEOPLE

M

CM

MY

54 Career path

CY

After cutting his teeth in banking, Anthony Contento found his true calling as a mortgage broker

12

CMY

K

56 Other life

Hitting the road with digital nomad Chris Richards

UPFRONT

COMMERCIAL UPDATE

All signs point to another banner year for commercial sales in Canada in 2017

FEATURES

52

THE POWER OF THE TRIBE

The surprising ways networking can drive business success

2

The Home Capital saga could be just the beginning of a bigger problem

Y

FEATURES

NEW LEADER, NEW DIRECTION

14 Alternative lending update

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

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19/05/2017 8:14:05 AM

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19/05/2017 8:14:05 AM

UPFRONT

EDITORIAL

A whirlwind month for brokers

T

he past month was defined by two major news stories. In Ontario, the provincial government introduced a new housing plan aimed at making housing more affordable – at the expense of certain investors, it seems. And one of the channel’s most trusted lenders, Home Trust, found itself in a struggle with a regulator that has impacted its public perception.

It will take months before all details emerge and the long-lasting impacts are fully realized in both cases.

Initial reports from Toronto’s market are that buyers are content to sit on the sidelines and wait it out. Sales were down 3.2% year-over-year in April, and new listings were up nearly 34%, suggesting that buyers are content to sit on the sidelines for the time being, while sellers – who have held onto

It will take months before all details emerge and the long-lasting impacts are fully realized their investments and the appreciation that they earned – are finally ready to cash out. But if Vancouver’s market is any indication, a slight cooling off may be short-lived.

The Home Trust story may see its resolution sooner rather than later, however. With the company’s shares dropping and an OSC hearing into the lender’s disclosure of fraudulent activity by brokers scheduled for June, the industry anxiously waits to see what the future holds for one of its largest lending partners.

Until then, all one can do is speculate. For now, some leading industry players have shared their thoughts with CMP on how the whole saga will shake out. Check out this issue’s News Analysis feature for that insight.

On a more positive note, this issue also features a who’s who of the mortgage industry, with comprehensive coverage of this year’s Canadian Mortgage Awards. A record number of industry players attended the event, and we’ve got the full scoop on who took home top honours. That includes Lifetime Achievement Award winner Jared Dreyer, who also made some prognostications about the future of Canada’s mortgage industry in this month’s Industry Icon feature.

The team at Canadian Mortgage Professional

www.mortgagebrokernews.ca ISSUE 12.05 EDITORIAL Editor Justin da Rosa Writers Joe Rosengarten Libby Macdonald Ephraim Vecina Kimberly Banks Copy Editor Clare Alexander

CONTRIBUTORS Paul Taylor Janine Garner

ART & PRODUCTION Design Manager Daniel Williams Designers Loiza Caguiat Production Manager Alicia Chin Advertising Coordinator Kay Valdez

SALES & MARKETING Associate Publisher Trevor Biggs General Manager, Sales John Mackenzie National Account Manager Trevor Lambert Marketing and Communications Melissa Christopoulos Project Coordinator Jessica Duce

CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global CEO Mike Shipley Global COO George Walmsley

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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 the magazine can accept no responsibility for loss

19/05/2017 9:50:51 AM

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18/05/2017 12:38:38 PM

UPFRONT

STATISTICS

Failure to launch

THE BIG PICTURE CMHC’s most recent housing market assessment revealed, as ever, a mixed picture across the country, which is undoubtedly contributing to prospective buyers’ uncertainty.

While CMHC red-flagged moderate to strong evidence of overheating, price acceleration and overvaluation in Toronto, Hamilton and Victoria, it also backed off previous cautions for Regina, Montreal and Quebec City.

Many Canadians still want to become homeowners – just not right now MARKET UNCERTAINTY and the fear of escalating mortgage expenses are looming large in the minds of potential buyers, according to RBC’s newly released Home Ownership Poll. While more than 80% of survey respondents agreed that real estate makes for a good long-term investment, only a quarter said they were ready to pull the trigger in the next two years.

25%

29%

of Canadians surveyed by RBC plan to buy a home in the next two years

of those surveyed by RBC last year said they planned to buy in the next two years

Economic fears are paramount for potential buyers who are debating whether to take the plunge. General economic uncertainty accounts for the delay for around half of all hesitant purchasers. Meanwhile, ever-rising house prices were the number-one reason for delaying a purchase – nearly 60% of prospective buyers said they’re waiting to see whether home prices will drop.

39%

of millennials intend to buy a home in the next two years

KEY Strong evidence of problematic conditions Moderate evidence of problematic conditions Weak evidence of problematic conditions

36%

of Canadians would be “concerned” if their monthly mortgage costs went up by 10%

Victoria

Vancouver

Overheating

Overheating

Price acceleration

Price acceleration

Overvaluation

Overvaluation

Overbuilding

Overbuilding

Overall assessment

Overall assessment

Sources: 2017 RBC Home Ownership Poll

WHAT’S THE HOLDUP?

GOING UP, UP, UP

The one thing those delaying homeownership have in common is a feeling of uncertainty about the future – more than half say they’re holding back in hopes of getting a better deal.

Spiralling home prices are a key reason many homeowners are putting off purchases – more than 40% of Canadians across the country believe houses price will go up next year, an increase of 4% over the year before.

Belief that house prices may come down

50%

51%

up 11%

39% up 2%

36%

up 18%

up 13%

36%

41% 35%

% difference from 2016

up 5%

56%

40% 30%

Uncertainty about the economy

20% 10%

Concerns about affordability

0%

38% Source: 2017 RBC Home Ownership Poll

6

60% down 14%

58%

BELIEVE THAT PRICES WILL GO UP

British Columbia

Alberta

Saskatchewan/ Manitoba

Ontario

Quebec

Atlantic provinces Source: 2017 RBC Home Ownership Poll

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Edmonton

Saskatoon

Montreal

Moncton

St. John’s

Overheating

Overheating

Overheating

Overheating

Overheating

Price acceleration

Price acceleration

Price acceleration

Price acceleration

Price acceleration

Overvaluation

Overvaluation

Overvaluation

Overvaluation

Overvaluation

Overbuilding

Overbuilding

Overbuilding

Overbuilding

Overbuilding

Overall assessment

Overall assessment

Overall assessment

Overall assessment

Overall assessment

Regina

Ottawa

Quebec City

Overheating

Overheating

Overheating

Price acceleration

Price acceleration

Price acceleration

Overvaluation

Overvaluation

Overvaluation

Overbuilding

Overbuilding

Overbuilding

Overall assessment

Overall assessment

Overall assessment

Calgary

Winnipeg

Toronto

Hamilton

Halifax

Overheating

Overheating

Overheating

Overheating

Overheating

Price acceleration

Price acceleration

Price acceleration

Price acceleration

Price acceleration

Overvaluation

Overvaluation

Overvaluation

Overvaluation

Overvaluation

Overbuilding

Overbuilding

Overbuilding

Overbuilding

Overbuilding

Overall assessment

Overall assessment

Overall assessment

Overall assessment

Overall assessment Source: CMHC Housing Market Assessment, Q2, 2017

PERPETUAL BUBBLE

BRACING FOR THE WORST

One reason for the current pessimism among potential homeowners: More than half of those surveyed by CIBC believe housing prices will never fall from their current stratospheric levels.

However, 40% are still holding out hope for better 16% affordability within the next five years.

It’s not all that rosy out there for current homeowners, either – compared to last year, fewer homeowners believe they could withstand a market drop or interestrate increase.

Less than a year 1–2 years 3–5 years

20%

4%

WHEN DO YOU BELIEVE HOUSING PRICES WILL START TO FALL?

54%

2016

Never; housing prices will continue to rise

73%

Homeowners who believe they are well positioned to weather an increase in interest rates

6–9 years 10 years

Homeowners who believe they are well positioned to weather a downturn in the market 2017 65%

4%

2017

2%

2016 Source: CIBC Poll

57% 63% Source: 2017 RBC Home Ownership Poll

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UPFRONT

HEAD TO HEAD

Are monolines innovating enough to stay competitive?

The recent mortgage rule changes have put the squeeze on monoline lenders – but are they stepping up their game as a result?

Tim Hurlbut

Deb Murdoch

Aaron Phinney

Business development officer Alta West Capital

Mortgage broker TMG The Mortgage Group

Mortgage broker Mortgage Intelligence

“Monoline lenders will remain competitive. For many years now, they’ve helped Canadians purchase homes, and I don’t see any reason for that to change. There’s an old saying that ‘the only constant is change,’ and the mortgage game is no different.

Rules, regulations and the lending environment are always changing – this is nothing new.

Another old saying is ‘necessity is the mother of invention,’ and frankly I feel this couldn’t be truer than with today’s lenders. Monolines will evolve to serve Canadians as they always have. I don’t see that changing anytime soon.”

“When the mortgage rule changes came into play, it was unclear which insured lenders would still do refinances and rentals. The monoline lenders were very much tied up with bulk insurance issues and having to pro-rate their interest rates to offset some of the product risks.

That said, most of them are back to where they need to be and competing nicely. The monoline lenders have given extra basis points in commissions for buy-downs in order to compete. It’s not always about rates; sometimes the service side wins out. We definitely need monolines in the mix.”

“Across the board, the recent rule changes caught our industry flat-footed, and both monolines and banks have been slow to respond. However, until the full impact of the rule changes is understood, I do not expect to see the immediate innovation in the A lending sphere that we hope for.

Instead, monoline innovation will first take place in the Alt-A and B markets, where niche opportunities can be more readily identified and products created.

The industry and market are in the early stages of another transition, and monolines will continue to adapt to meet the needs of consumers going forward.”

NEGOTIATING THE NEW LANDSCAPE April saw the launch of the MCAP 79 mortgage, a product from one of the nation’s largest private lenders that seems designed to sidestep new rule changes that have made low-ratio mortgage insurance much pricier than before. The increase in rates for LRV deals – a reputed spike of more than 200% in some cases – has hit independent mortgage financing companies that rely on insurance for securitization particularly hard. The MCAP 79, hailed as a “more inventive solution” upon its launch, seems to provide a workaround in the form of an upfront 1% fee designed to offset the lender’s insurance and capital costs, , which can be rolled into the mortgage.

8 www.mortgagebrokernews.ca

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UPFRONT

NEWS ANALYSIS

What’s next for Home Capital?

The embattled channel lender has had a rough few weeks. Industry pundits weigh in on what the future could hold

IN APRIL, Home Capital saw its share prices plunge up to 60% following news that the Ontario Securities Commission was investigating how the company’s principal subsidiary, Home Trust, handled disclosing the suspension of 45 brokers in the summer of 2015.

Current clients, fearing the worst, pulled deposits in droves, and Home Capital was forced to take out a $2 billion loan in a bid to stabilize itself.

Since then investors, brokers and various pundits have speculated about what the future could hold for the channel’s largest alternative lender. The prevailing opinion among some industry players is that the OSC investigation – which was launched nearly two years after brokers were suspended, when the regulator learned they had fudged application documents – has unfairly impacted the lender.

“I’m not going to be privy to everything; there can be things we don’t know about. But

Trust’s products were very good, and they were properly underwritten, so I’m a bit perplexed that people may be thinking that there is something wrong … with the actual mortgage paper. I believe, based on what we know, that the product itself is quite solid.”

That assessment is shared by another leading mortgage broker, who spoke to CMP on the condition of anonymity.

“This is a book of business that has no major flaws in it – it’s stable, and they were a great company a few weeks ago,” the broker says. “I think it’s amazing [the OSC] would do things the way they’ve done them. I thought they would have had a quiet investigation.

None of it makes sense to me. This is a stock market thing; it’s not being driven by logic or the fundamentals of the company. It’s being driven by optics.”

Despite the ongoing saga, Home Trust still appears to be funding loans.

“Home Trust’s products were very good, and they were properly underwritten, so I’m a bit perplexed” Ajay Soni, CMBA I think the short-sellers and market perception and other factors have actually almost conspired to bring the perfect storm for it to come down,” says Ajay Soni, president of the Canadian Mortgage Brokers Association.

“From a mortgage broker’s perspective, Home

10

“Home continues to conduct business,” Pino Decina, the company’s executive vice president of residential mortgage lending, told Bloomberg. “We have been funding every day.”

However, brokers seem to be split when it

comes to trust in the lender. In the same Bloomberg piece, brokers Dan Eisner and Geoff Carnevale offered differing opinions.

“We are not sending Home Trust any deals at this point, as we fear their ability to fund the mortgages at closing has been compromised,” Eisner, the CEO of True North Mortgage, told Bloomberg. “Furthermore, we are exploring other lending options for clients who have scheduled Home Trust closings in the next few weeks.”

Carnevale countered by saying, “They’ve supported my business and the broker channel for years, and I’m going to keep supporting them until somebody tells me I can’t.”

It’s unfortunate it’s come to this, though – and unfair, according to some players, who argue that short-sellers have contributed to the lender’s downfall.

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A TIMELINE OF EVENTS

July 2015 Home Capital announces suspension of 45 brokers

March 2016 Home Capital appoints Martin Reid as new CEO

March 2017 Martin Reid fired

April 19, 2017 OSC announces investigation, names past and present executives

April 24, 2017 Gerald Soloway steps down from board of directors

April 26, 2017 Home Capital takes out $2 billion loan in the wake of fleeing deposits

“I believe to a certain degree it was very public that it was short-sold like you wouldn’t believe,” Soni says. “So what short-sellers wanted to happen … has happened.”

Our anonymous broker agrees. “It’s being driven by people who can profit by millions by

clients who otherwise might not have been able to purchase a home.

Others will likely be preparing contingency plans, as our anonymous source outlines. “There are two scenarios as a broker: Clients with existing Home Trust mortgages

“They’ve supported my business and the broker channel for years, and I’m going to keep supporting them” Geoff Carnevale, Admore Financial Services driving the stock price into the ground,” the broker says.

So should brokers still be sending deals to Home Capital? Many, like Carnevale, will out of loyalty; after all, Home has offered properly underwritten mortgages for thousands of

– what are you telling them? In my opinion, you really shouldn’t tell them anything because you’ll create fear of the unknown. Is someone going to buy them? Are they going to get recapitalized? Let your clients with two years left on their mortgage to enjoy the

spring. When there’s a resolution, you want to update them.

“Scenario two: Brokers with approvals at Home Trust, funding in the next 10 weeks – my opinion is, you get a plan B in place. You have no choice. You don’t know what’s going to happen. Find two solutions before talking to the client. Present two approvals, and ask them how they want to proceed.”

After all, there are some worries about the company’s future.

“The outcomes could be that more news comes out that further perpetuates what has already happened,” Soni says. “That they’re not really able to make a business case – if they’re borrowing money on a line of credit at the effective rate, which appears to be close to 20% including fees, and you’re lending it out at 4%, that’s not a business case. That could further erode confidence.”

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UPFRONT

COMMERCIAL UPDATE NEWS BRIEFS Waterfront Toronto issues RFP for Quayside project

Urban revitalization organization Waterfront Toronto has announced it is now open to proposals for its Quayside community development project, which is meant to serve as “a testbed for emerging technologies, materials and processes” that would answer the challenge of developing a more “sustainable, accessible, inclusive and prosperous” dwelling scheme for large numbers of people. “[Demand] for space continues to outpace supply,” the organization said.

“In response, the city’s post-industrial waterfront is transforming into a compelling destination with a number of high-quality residential and commercial developments, best-in-class technology infrastructure, and vibrant public spaces.”

Residential, commercial activity to diverge in 2017

The Conference Board of Canada stated in its early April outlook that residential and non-residential construction starts will markedly deviate from each other this year, as the former slows down and the latter exhibits stronger activity.

“Not only is the residential construction industry seeing a downturn in housing starts, but spending on home renovations is now showing signs of weakness too,” said Conference Board industrial trends director Michael Burt. “Meanwhile, nonresidential construction is positioned for a turnaround this year, led by growth in the institutional segment and increased investment in warehouses and hotels.”

Asset manager refinances commercial properties

Real estate asset manager ReDev Properties has announced that three of its commercial properties – Imperial Square in Guelph, Ontario; Mall 58 in

Calgary, Alberta; and Parsons Place in Edmonton – have been approved for mortgage refinancing in the first quarter of 2017. “Refinancing our mortgages is the logical next step for these properties, allowing us to continue to grow and deliver strong returns for our group,” said ReDev Properties founder and president Richard Crenian.

Nearly a quarter of Calgary office space empty According to commercial real estate firm Avison Young, nearly 10 million square feet of space in Calgary’s downtown office towers stands empty and unused, and another 1.5 million square feet is still incoming as ongoing projects – some of which date back to the city’s oil boom around thee years ago – get completed within the next 18 months. The downtown office vacancy rate currently stands at 23.9%, while the overall Calgary vacancy rate is 22.5%, giving the metropolitan region the highest proportion of unused office space across Canada, the firm said.

Saskatoon plans $50 million development Saskatoon-based real estate developer Canwest Commercial and Land Corporation has taken the first steps toward erecting a $50 million tower in the inner city area, projected to commence construction this summer. The World Trade Center Saskatoon development is a 120,000-square-foot, eight- to ninestorey office tower that the developer hopes will capitalize on a potential turnaround for the local economy. “When the economy is a little slower, prices could be … lower on the construction side,” said former mayor and Canwest senior consultant Don Atchison. “And when you are through construction, hopefully the economy … has started to turn, as opposed to starting to build at the peak [and] paying a premium.”

Reliable commercial sales ahead Sustained foreign demand is expected to play a crucial role in commercial activity, especially in Toronto

A sharp upward trend in Canadian commercial property sales in 2016 will pave the way for the sector’s consistent performance this year, according to commercial real estate firm CBRE. The company’s mid-March report noted that sales of Canada’s office, hotel and retail properties reached record-breaking heights last year, fuelled by a strong influx of foreign capital. The election of Donald Trump, which has led to much uncertainty about the prospects of the US market, has been a major contributing factor to the growth of Canada’s commercial sector.

“The level of uncertainty that we see globally is at an all-time high – I would include geopolitical uncertainty and economic uncertainty,” said CBRE Canada executive vicepresident Paul Morassutti. “When you consider the most consequential economy on earth, the United States, we really don’t know at this point what type of foreign policy is coming out of the States, what type of trade policy. There has been no coherent economic strategy since the inauguration.”

Approximately $34.7 billion worth of Canadian commercial real estate deals were completed last year, and demand from foreign buyers likely won’t slow down any time soon, especially since the Toronto market is projected to remain inflamed for the foreseeable future.

“Toronto starts 2017 on the A list of commercial real estate markets,” Morassutti said. “Real estate players from cities across the globe are casting envious glances at its performance. The numbers are truly

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compelling. It has the lowest downtown office vacancy rate of any major North American city, with good rental growth projected for 2017; it has the second lowest industrial availability rate and the second lowest multi-family vacancy rate; and its hotels recorded record occupancy levels in 2016.”

The Conference Board of Canada supported CBRE’s predictions in its outlook released early April, saying that “non-residential construction output is forecast to expand by

“Real estate players from cities across the globe are casting envious glances at Toronto’s performance” 3.7% this year, led by growth in the institutional segment,” as well as “increased investment in warehouses and hotels.”

“Providing support to the industry’s commercial segment is the rise of online shopping, which is beginning to see a faster rate of adoption in Canada,” the Board added. “This will help support a US-style buildup in warehouses across the country, although Southwestern Ontario will be a key beneficiary.

The report added that “industry profitability is expected to improve slightly over the next five years. Pre-tax profits are expected to reach $2.2 billion this year and grow by an average of more than 4% between 2018 and 2021.”

Q&A

Steven “Skip” Walters Senior vice-president FIRST SOURCE MORTGAGE CORPORATION

Years in the industry 30+ Fast fact Walters was recently elected as a director of the Canadian Mortgage Brokers Association

Non-bank financing in Ontario As a mortgage professional working on creative non-bank solutions for commercial properties and other types of real estate in Ontario, what are the economic and policy factors that have had the greatest impact in your market?

The two big ones, whether you’re a non-bank lender or a Tier 1 bank, would of course be interest rate swings by the Bank of Canada and changes in government policy by Kathleen Wynne or Justin Trudeau to help control the overheated Ontario market.

What are the issues and challenges in the Ontario commercial market?

As mortgage brokers, we must remain ever cognizant of microand macroeconomic government decisions. We must be aware of the types of businesses that might soon fail due to less expensive exports. And we have to always look over our shoulder at what Trump is up to. As we do deals today that must produce or increase in value in the future, we need a crystal ball for almost all areas of concern.

Based on your experience, do increases in commercial lending volumes by leading banks affect activity in the non-bank mortgage sphere in Ontario?

Absolutely. However, leading institutions will still only approve up to a conservative LTV amount. I still, and will always, see a need for experienced non-bank lenders to reach a little further after measuring the risk and seeing an exit.

What developments should borrowers, brokers and lenders be on the lookout for in the near future?

Many top economic professionals are starting to suggest a levelling off of increased values, commencing in the fourth quarter of 2017. This 30% per annum value increase cannot be sustained, and I think we all know that. Should a borrower overpay today for a real asset in the hopes that inflation in the near future will make the purchase look brilliant, I suggest he rethink this very carefully. I believe cap compression is at the bottom, and I strongly believe brokers have an obligation to express this to their clients. I would hope that lenders know this and do not get caught in this trap.

When we determine a value for land or a project to be built, we of course look at the appraisal and study how the appraiser arrived at his final number. We also value it using different methods. We may look at land residual as opposed to comps; we may look at potential buildable square feet and then deduct 10%, depending on what submission they are at.

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UPFRONT

ALTERNATIVE LENDING UPDATE

Home Capital troubles merely a symptom One analyst argues that the alternative lender’s crisis is only part of a more complex problem

However, Pittis emphasized that several other factors were also responsible for stoking the flames of the crisis. “One was that [Home Capital] raised its mortgage funding from depositors through its banking division,” he wrote. “The other is the curse of all lenders suffering from a run: fractional-reserve lending.

As Home Capital shares began to slide, it was not just shareholders who began to unload.

Depositors began to pull their money out.

“Underlying Home Capital’s decline is its position at the bottom end of the mortgage market,” Pittis added. “By definition,

“If the company continues to weaken and fail ...

Home Capital could itself become the trigger of a larger real estate decline”

Home Capital’s present difficulties might be a by-product of the apprehensions surrounding the current business model for Canadian subprime lending. That’s the conclusion of market observer Don Pittis, who says the timing of the lender’s troubles, in the wake of various federal and provinciallevel moves to moderate the real estate market, was unfortunate.

“Anyone worrying about whether a soaring market is a bubble waiting to pop

NEWS BRIEFS

must be on the constant lookout for the trigger that could bring the market down,” Pittis wrote in a piece for CBC News. “Many of us in the media have been warning of an overheated Canadian property market for so long that homeowners, potential buyers and companies profiting from real estate have every reason to be skeptical. In the case of Home Capital, the OSC announcement in April that it was going to proceed against the company may have been the trigger …”

Chinese fintech invests in North American lenders

A subsidiary of Chinese fintech giant CreditEase has announced investments worth $30 million with North American online lenders OnDeck and LendingHome.

OnDeck offers alternative lending options for small businesses in Canada and the US, while LendingHome provides short-term bridging loans and consumer mortgages.

CreditEase Wealth Management has been “particularly diligent” in its investments in the wake of significant market volatility last year, according to Richard Williamson, the firm’s head of offshore business.

subprime lenders, who give out mortgages to people the big banks have rejected, would be first to suffer in a property downturn.”

Fortunately, the possibility of a major real estate crash remains unlikely at the moment.

“If the Canadian property market continues to rise, the portfolio of mortgages held by Home Capital is as sound as it was two months ago,” Pittis said. “But if the company continues to weaken and fail, leaving its borrowers without an alternative source of money when their mortgages come due, Home Capital could itself become the trigger of a larger real estate decline.”

Alternative lender’s stock shows good promise

Alternative lender Callidus Capital Corp.’s pursuit of a privatization takeover makes it stable choice “for investors looking for both short-term and long-term upside with a company that has largely flown under the radar on the Canadian exchange,” markets analyst Chris MacDonald observed recently. “[If] we expect a 10% premium over and above the upper end of the target price range for Callidus, we can expect a per-share price of $24 to $25 to be achieved within the next six months, providing investors with a very nice, quick return.”

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Q&A

Owen MacNeil

Alternative lending in Atlantic Canada

President GRAYSBROOK CAPITAL

Years in the industry 11 Fast Fact Graysbrook Capital got its start by flipping houses, eventually evolving into an alternative mortgage lender

What kinds of consumers usually come to you for assistance?

We have a varied group of clients, which we can generally place into three categories. A growing segment is new construction for small contractors or self-builds. Also, small multi-unit and/or multipurpose buildings in the $500,000 to $1.2 million range are now finding it harder to get traditional financing. Lastly, there is always a large segment with very strong equity but bruised credit. Other short-term clients with CRA debt or bridge financing represent a continual flow of business.

What steps do you advise clients to take to mitigate the effects of the recent mortgage rule changes?

We work very closely with the broker community, the B lenders and most of the major banks. Among the most consistent bits of feedback is that the clients still feel credit is relatively easy to get, and that their exit is limited if they do not follow the solid advice they can get only from their brokers or advisors.

What advice would you give to clients in the event of a hypothetical mortgage rate hike?

Rate hikes are always possible, and clients are always better positioned if they can afford a rate hike of a few points above where it might be today.

Without building that fiscal buffer for themselves,

Home Capital saga puts subprime bonds on hold

Home Capital Group’s current struggles are stifling the prospects of a national subprime mortgage bond market, prompting at least two deals to be put on hold. According to Bloomberg, one of the deals is marketed by RBC and backed by loans from Home Capital and Equitable Group, while the other one would be backed by loans from MCAP. Ridgewood Capital Asset Management’s Mark Carpani noted that this hesitation isn’t unique to these three companies, however. “At the moment, investors are a little bit gun-shy,” he said.

they are unnecessarily exposing themselves to tougher times.

How do you think the alternative lending sector in Atlantic Canada differs compared to the rest of the country, especially hot markets like Toronto and Vancouver?

I see our market as vastly different from the heated markets, in that we expect our loans to be relatively short-term, averaging less than two years with no substantial change in value – in essence, a flat market. So it is clearly equity lending, and the client needs real skin in the game (typically 25% or more equity). In the heated markets, there is an expectation – and for the last several years, a reality – that the home value will climb substantially.

Therefore, the risk level has been down, and the LTV is up.

Based on your transactions, what are the toughest financing challenges that residents of Atlantic Canada face at the moment?

The significant challenges that we see most frequently among our clientele are construction finance and stringent requirements in small towns with no B lenders. Over the years, finding an exit strategy for decent clients in rural areas has become much more difficult. This development has forced us to drop our LTV threshold.

Lender’s crisis could spur higher mortgage rates

Industry players have speculated that Home Capital’s troubles might lead to higher rates if concerns about the subprime sector raise other lenders’ funding costs. “Inevitably, this will likely affect all lenders in the alternative space, as it puts the spotlight on the risk and questions the integrity of some of the mortgages they are lending on,” said Steve Pipkey of Spin Mortgage. Marcus Tzaferis of MorCan Direct added that the Home Capital saga might lead to a “crisis of confidence,” affecting lenders that use the GIC market to raise cash.

Broker launches web-based lender search tool

Traditional rate sheets just aren’t cutting it following last year’s mortgage rule changes, according to one industry professional, who has launched a new tool to help brokers find the best mortgage options. LenderSpotlight.ca, developed by broker Jason Henneberry of Verico MortgagePal, rounds up mortgage options from Canadian lenders in a searchable database. More than 600 brokers have signed up for the free service, which features mortgage options from 16 lenders, spanning 800 different rates.

www.mortgagebrokernews.ca

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18/05/2017 1:12:56 PM

UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email mortgagebrokernews@kmimedia.ca

A collective voice is paramount Recent changes amount to a competitive blow to the industry, writes Paul Taylor, and the time to speak up is now THE CHANGES to mortgage insurance and eligibility announced on October 3, 2016, have affected everyone in our industry and hundreds of thousands of Canadians across the country. The removal of portfolio insurance eligibility for refinanced mortgages has dealt a competitive blow for many monoline lenders, who might be finding it difficult to source funding to keep their offerings competitive.

This restriction can also make refinancing more difficult and more expensive for homeowners who hold a mortgage with a monoline. In many cases, the homeowner cannot receive the same interest rate with their chosen lender, and if they are forced to move to a different lender, they might incur significant penalties. Mortgage brokers find themselves explaining the complicated provisions of mortgage insurance and its effect on rates to consumers daily.

First-time homebuyers are finding that the stress test means they have to consider buying smaller homes, waiting even longer to purchase (many having already postponed due to the last down payment rule change), or moving away from their community and facing longer commutes.

Additionally, consultation is underway by the ministry of finance regarding the concept of risk-sharing – requiring a lender to pay a deductible on mortgage insurance in the event of a default. Early analysis

16

indicates that this would increase mortgage rates in economically disadvantaged areas of the country.

Mortgage Professionals Canada’s board of directors and many of our members have met directly with more than 100 MPs to

roughly 2,000 letters to MPs across the country. Every MP in every riding will have received one.

Consistency is key. The large majority of MPs we’ve spoken with are not familiar with the changes or our concerns. We have taken the time to educate them about our marketplace and the over $80 billion of economic activity we manage.

To their credit, everyone we’ve spoken with has understood our concerns. We need to be mindful, however, that MPs are generalists and cannot be expected to understand the intricacies of every industry segment. As such, to assist MPs in their understanding, it is critically important that we all remain focused on simple messaging and are consistent with our requests.

If you haven’t spoken to your MP about these changes yet, please do so. We can assist with support tools, materials to leave with the MP and speaking notes. MPs need to understand the impact of these changes in their own ridings, and there is no one better qualified to do that than members of the local

“To assist MPs in their understanding, it is critically important that we all remain focused on simple messaging and are consistent with our requests” explain the impact that this recent round of changes has had on the marketplace. In our discussions, we have outlined some specific requests, including a pause on any measures the government is considering that have yet to be implemented (specifically the proposed risk-sharing provision), allowing for refinances to be included in portfolio insurance, decoupling the stress test rate from the posted Bank of Canada rate and requiring all mortgages, not just insured ones, to qualify at the stress test rate.

These were the main points delivered to the Parliamentary Committee in February and then reinforced through our first MPC Hill Day in March. Additionally, the letter campaign tool we provided the industry to contact their own MPs has resulted in

business community itself. Let the MP know about market activity and the impact to local first-time buyers and the housing market in general. Discuss the difficulties your clients are having refinancing their homes for home improvements, to fund education for their children or because of a divorce.

The changes are impacting real people. The more awareness we can raise with the government about the impact, the greater the likelihood we can affect some change to ensure a continued and healthy marketplace.

Paul Taylor is president and CEO of Mortgage Professionals Canada, Canada’s mortgage industry association representing more than 11,500 member mortgage brokers, mortgage lenders and mortgage insurers.

www.mortgagebrokernews.ca

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18/05/2017 1:21:05 PM

Angela Calla

Angela leads a successful DLC mortgage team, but she’s MORE than that.

She’s a radio and television star for the mortgage industry.

Whether it’s behind the mike as the host of the Mortgage Show or in front of the camera for national television networks, the media turns to Angela as a trusted source for her expertise and knowledge.

And in turn, she’s able to reach an audience of thousands, offering indispensable advice to help get people into the best money saving mortgage.

This is what success looks like when you’re with Team Blue. Isn’t it time you join a company that appreciates what you do - and who you are - both on and off the camera?

Dominion Lending Centres —

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18/05/2017 2:10:02 PM

PEOPLE

INDUSTRY ICON

LOOKING TO THE FUTURE Jared Dreyer is one of the brokers who helped shape Canada’s mortgage industry. Now he weighs in on where it’s headed next

JARED DREYER has quite the mortgage industry pedigree. Now the vice-president of corporate relations at Verico and president of Dreyer Group Mortgages, Dreyer got his start as a broker in 1992 at the recommendation of his father, Colin.

“I worked for Mortgage Source, a top alternative brokerage in British Columbia, and we had people such as Michael Lloyd, Garth Ellis – we were all together in that grouping,” he says. “We were eventually sold to form part of Invis in 1999.”

Dryer was, of course, one of the original brokers for the then-fledgling mortgage network – which is still around today – and became one of its top five brokers in Canada.

After a successful stint with Invis, Dreyer moved on to Verico in 2005 when the network was launched by his father. He worked as a broker and eventually took on the additional role of VP of corporate relations in the head office in 2013.

“It’s the same hustle and bustle, but at a different level,” he says. “It’s the same amount of work, just a different kind of work. I just want to help our lender partners out.”

Dedication required A 25-year industry veteran who just received

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the Lifetime Achievement Award at this year’s Canadian Mortgage Awards, Dreyer has ridden many waves of industry change.

“The business … is constantly evolving.

It’s always in a constant state of flux,” he says.

“Obviously we’ve had the most changes with the mortgage rule changes and government regulations. Everyone is still coming into full

unknowns, there are a few key things brokers can do to position themselves for success in this new environment.

“Brokers need to become even more professional than they already are,” he says. “They need to provide higher service levels to their clients, they need to become educators, and they need to know who their lender partners

“Brokers need to become even more professional than they already are. They need to provide higher service levels to their clients, they need to become educators, and they need to know who their lender partners are and the policies their lender partners have” adjustment to those rules. At this point in time, we’re still waiting to see how it’s going to come in, and we’re hoping no more rules come into place. We’re waiting to see how the dust will settle and allow everyone to find their footing.”

As for how it will all shake out, Dreyer says that while there are still plenty of

are and the policies their lender partners have.”

Dreyer also argues that because the various government regulations require a deeper knowledge of the rules and how each lender fits into the new reality, brokers need to dedicate themselves 100% to the industry.

“Mortgage brokering is a full-time business, in my opinion,” he says. “There is nothing wrong

www.mortgagebrokernews.ca

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PROFILE Name: Jared Dreyer Title: President Company: Verico Dreyer Group Mortgages Years in the industry: 25 Career highlight: “I would say there are three highlights. Once you start your own brokerage, that’s a highlight. Working at the Verico office has been a highlight as well. And being involved with Mortgage Professionals Canada – and becoming chair of it, of course – was a good move.”

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18/05/2017 1:26:02 PM

PEOPLE

INDUSTRY ICON

with starting out part-time, but at a certain point, you have to make a decision as to whether it’s a full-time career or not. To maintain it as a part-time career, as a secondary job – I think there is just too much to know and too much to keep up-to-date with. You have to be fully immersed in it.”

Another key to success is hiring the right people for the right roles.

“We’re in a business where we’re managing people constantly,” he says, “and we need to figure out if they’re a match for us sooner rather than later, and have the courage to say we’re not a fit.”

Meeting the challenges In terms of where the industry is headed from here, Dreyer points to a few emerging trends brokers need to have on their radar.

world – that’s still going to be a big part going forward. I don’t think it’s going to overtake our business, but we definitely have to have a presence on there.”

However, Dreyer believes that fears about technology eventually replacing brokers altogether are overblown.

“I see technology as a tool to get leads in,” he says. “There’s a great stat from Filogix – for Rocket Mortgage [an online originator in the US], 90% of all mortgages that are funded, the client talks to a mortgage representative through the process. Especially with the mortgage rule changes, you need a professional broker to give advice more than ever. But you have to use the online tools to attract clients.”

Ultimately, Dreyer says, the continued success of Canada’s mortgage industry depends on brokers and lenders working together to

“I see technology as a tool to get leads in.

Especially with the mortgage rule changes, you need a professional broker to give advice more than ever. But you have to use the online tools to attract clients” “I think we’re going to have to look at lender efficiencies and funding ratios,” he says. “I think they’re going to be even more critical.

I think we’re just going through a transition period with the rule adjustment and figuring out what’s going to fit and what’s not going to fit with certain lenders.”

He also highlights the increasing role technology is playing in today’s mortgage industry. “[Brokers] definitely have to look at social media adoption more,” he says. “I think getting into the digital world, the online, the mobile

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make the whole process as smooth as possible for clients.

“Having been on both sides of the fence, it’s critical to get back to the fundamentals,” he says. “The lending partners that have had great success long-term in this industry have really serviced the brokers well and have good underwriting models, have good review of conditions, and don’t create a lot of stress when it comes to funding of the mortgage. Those are the critical elements for a mortgage broker as to where they are going to send their business, in my opinion.”

JARED DREYER’S CAREER HIGHLIGHTS

1992 Becomes a broker

1999 Is one of the first brokers to join Invis

2005 Moves to Verico

2013 Becomes director with Mortgage Professionals Canada

2014 Joins Verico head office as VP of corporate relations

2014 Appointed chair of MPC

2017 Receives Lifetime Achievement Award at the CMAs

www.mortgagebrokernews.ca

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18/05/2017 1:26:07 PM

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2017-05-05 3:58 18/05/2017 1:26:11 PMPM

BRO YOU

11 ANNUAL CANADIAN MORTGAGE AWARDS TH

A record number of nominations flooded in for this year’s Canadian Mortgage Awards. Now, CMP reveals all the winners across 21 categories

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www.mortgagebrokernews.ca www.australasianlawyer.com.au

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5/19/2017 3:52:14 PM

BROUGHT TO YOU BY

CMP ANNOUNCED the winners of the 11th annual Canadian Mortgage Awards at a James Bond-themed event on May 12.

Tuxes, cocktail dresses and a few martinis – shaken, not stirred – were spotted at the gala, which was sponsored by the Canadian Mortgage Brokers Association.

So too were hundreds of the industry’s top professionals, who eagerly anticipated the announcement of this year’s lucky winners. The victors included Bernadette Laxamana of VERICO Xeva Mortgage, who took home The Canadian Mortgage Brokers Association Award for Mortgage Broker of the Year (Fewer Than 25 Employees).

“Thank you God, and thank you to my better half … my husband said I’m his Wonder Woman because he always wonders what I’ll do next,” Laxamana told the audience when accepting her award. “To my partners at Xeva Mortgage, I’m honoured to share this journey with you.”

Overall, the awards cut a wide swath across the broker channel, with winners in 21 categories drawn from Vancouver to Toronto, as well as many smaller markets. The event was produced by KMI Publishing and Events, the organization behind CMP magazine and MortgageBrokerNews.ca.

The celebration and its impressive turnout speak to the industry’s perseverance and victory over increasingly competitive forces. Brokers have been quick to adapt to yet another round of mortgage rule changes, which have made it much more difficult for them to do their jobs.

Today’s challenging market did not stand in the way of our honourees, however, including CanWise Financial, which took home the award for Best Newcomer, Mortgage Broker Firm.

“It feels good,” James Laird, president of CanWise Financial, told CMP. “I’m extremely proud of what we’ve accomplished in three years. It’s the team we have that makes this possible, and we’re excited for what’s ahead.”

An unprecedented year for the industry’s largest broker network did not go unnoticed, either. Following a year of acquisitions, continued growth and government advocacy, Dominion Lending Centres took home the award for National Broker Network of the Year.

“Wow – it’s been a really great night for us,” Gary Mauris, president of DLC, told the audience. “I want to thank all the sponsors, nominees and partners. So many on this team in the early days took a chance on us. We have an incredible family now. It’s been so much fun to be on this ride.” www.mortgagebrokernews.ca www.mortgagebrokernews.ca www.australasianlawyer.com.au 23

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5/19/2017 3:52:12 PM

THE XCEED MORTGAGE CORPORATION AWARD FOR

BEST MARKETING EFFORT OF THE YEAR WINNER

WITH HUMOUR and affection, Dominion Lending Centres is showing Canadians that “We’ve got a mortgage for that!” – and that campaign helped them take home the hardware for best marketing effort this year. DLC has become known for its creative and engaging advertising campaigns, and its fall and spring initiative aims to educate homebuyers about the value brokers provide.

“With the 15-second commercials, we’re really trying to tap into a little bit of humour and what’s current,” says Dave Teixeira, VP of marketing, public relations and communications at DLC. “Regardless of who won the American election, Obama needed a new home. With Christmas, we wanted to tap into that. In 2017, we have three or four more [commercials] coming out as well.”

DLC

We've Got a Mortgage for That!

FINALISTS Bridgewater Bank 20 Years

Fundever

Connecting Brokers with Lenders

Home Trust

Making Mortgage Great Again

“I’m here collecting the award on behalf of a lot of people who made this happen. Thanks to the marketing team for trusting us with this campaign”

MogoMortgage

MogoMortgage Launch

Mortgage Intelligence, Can Force Mortgage Military Campaign

Martin Beaudry XCEED Mortgage Corporation

DAVE TEIXEIRA DLC

Dave Teixeira DLC

“I think now more than ever, consumers need to know they can rely on experts,” said Martin Beaudry, VP of single-family mortgage at XCEED, which sponsored the award. “You need this kind of awards visibility for brokers – brokers need the [recognition], and consumers need to know they have other options than the banks.”

PROUDLY SPONSORED BY

MCAN Mortgage Corporation is a public company listed on the TSX under the symbol MKP since 1991. MCAN’s primary objective is to generate a reliable stream of income by investing in a diversified portfolio of Canadian mortgages, focused on single-family residential and residential construction loans, as well as other types of loans, real estate and securitization of investments.

For more information, visit www.xceedmortgage.com

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5/19/2017 3:52:22 PM

BROUGHT TO YOU BY

THE CMP MAGAZINE AWARD FOR

EMPLOYER OF CHOICE WINNER Durhammortgage.com The Mortgage Centre

FINALISTS Bridgewater Bank DLC Canadian Mortgage Experts Neighbourhood Dominion Lending Centres Sherwood Mortgage Group VERICO Compass Mortgage Group PROUDLY SPONSORED BY

THIS IS a special award, in that it recognizes the efforts made by an employer to help its employees thrive. Nothing gives brokers the confidence to do their jobs – and get Canadians the best possible mortgages – more than knowing that they have the backing of a rock-solid employer.

The industry is beloved by those who work in it, and having a supportive employer can really make or break a broker – especially considering that increased competition among both their peers and their big bank counterparts is making it increasingly difficult to stand out among the crowd. However, the leadership of a good

“This is the best team in the whole world. I’m honoured to accept this award. I am so proud” SHARON FERGUSON Durhammortgage.com

Canadian Mortgage Professional magazine has developed a reputation for offering insight on important issues and trends that affect the mortgage industry. Through our print and digital editions, subscribers receive the benefit of the most comprehensive coverage in the industry.

employer can give brokers the encouragement and tools needed to get through even the worst days.

And as everyone knows, a good leader shares the spotlight, which Sharon Ferguson did by recognizing her entire team in her acceptance speech at the awards gala.

For more information, visit www.mortgagebrokernews.ca

The team at Durhammortgage.com

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5/19/2017 3:52:47 PM

BROUGHT TO YOU BY

THE CANADIAN MORTGAGE BROKERS ASSOCIATION AWARD FOR

DIVERSIFIER OF THE YEAR WINNER First Foundation

FINALISTS Blue Pearl Mortgage Group DLC Expert Financial DLC Home Capital Solutions DLC North East Mortgages VERICO SafeBridge Financial Group PROUDLY SPONSORED BY

The Canadian Mortgage Brokers Association [CMBA] is an inter-jurisdictional umbrella association consisting of provincial mortgage broker associations in Canada. CMBA is a mortgage broker association created by mortgage brokers for the benefit of all players in the mortgage broker industry.

For more information, visit www.cmba.ca

Troy Resvick Canadian Mortgage Brokers Association

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THIS IS the third year in a row First Foundation has taken home the trophy for Diversifier of the Year – and for good reason. Adding to a stable of business offerings that includes mortgages and insurance, First Foundation introduced two new lines last year that helped set it apart from the competition.

In January 2016, the company made headlines when it launched layoff insurance in hard-hit Alberta.

“We’ve been getting a ton of attention, and we’re barely keeping up with the lead traffic,” Gord McCallum, president of First Foundation, said at the time. “The commissions are quite small, and we don’t even have a compensation structure right now, but we think it’s the right thing to do.”

“I’m very grateful for the nomination, and congrats to my fellow finalists” GORD MCCALLUM First Foundation

McCallum added that even brokers outside his organization had contacted him in the hopes of offering it to their own clients.

That alone might have been enough to garner First Foundation this award, but McCallum wasn’t done yet. In March 2016, the company launched its own banking products.

“This is the fourth piece of the puzzle,” McCallum said at the time. “We now offer full-service banking – everything you can get at a branch, you can get through our location.”

Troy Resvick, British Columbia president at CMBA, which sponsored the award, says it’s important to celebrate innovative brokers such as McCallum.

“Brokers need to be acknowledged for their hard work,” Resvick said. “They advise and instruct Canadian homebuyers, and I think this is a real opportunity to celebrate their success and excellence.”

Rob Campbell, who accepted the Diversifier of the Year Award on behalf of First Foundation’s Gord McCallum

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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5/19/2017 3:52:55 PM

WHY MORTGAGE ARCHITECTS? HAVING MORE THAN A DECADE OF EXPERIENCE IN THE MORTGAGE INDUSTRY HELPING SERVICE PROVIDERS, I WANTED TO TAKE MY KNOWLEDGE AND APPLY IT TO HELPING CANADIAN HOMEOWNERS. THE MORTGAGE ARTICHECTS NETWORK SHARES MY PASSION, AND VALUES FOR ALLOWING INDIVIDUALS TO ACHIEVE THEIR DREAMS OF HOME OWNERSHIP.

Ryan Poyntz

To learn more about why this industry executive decided to launch his brokering career with MA, contact Ryan at ryan.poyntz@mtgarc.ca.

Join an organization that is defined by it’s people. visit

JOINMA.ca

© Copyr ight 2017, Mor tgage Architects Inc ., All r ights reser ved.

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5/19/2017 3:54:03 PM

THE MANULIFE BANK AWARD FOR

BEST CUSTOMER SERVICE FROM AN INDIVIDUAL OFFICE WINNER Loewen Group Mortgages

FINALISTS Champion Mortgage DLC GLM Mortgage Group Invis Pure Mortgage Mortgage Intelligence LA Mortgage Team Mortgages.ca Sherwood Mortgage Group

JAMES LOEWEN has had quite the career – which is saying something, considering he’s only been in business for just over a decade. He has been featured on CMP’s Hot List, and his brokerage has been ranked as one of the top brokerages in the country. Personally, Loewen had a record-breaking year in 2016, coming in at number 14 on CMP’s Top 75 Brokers list with 360

“Our industry is filled with people who care. This award is for our team, really – it’s because of their passion and care. It’s really because of them” JAMES LOEWEN Loewen Group Mortgages

Jeff Spencer Manulife Bank

James Loewen Loewen Group Mortgages

deals and a volume of $117.6 million. And now he can add the CMA for Best Customer Service – one of the most important aspects of this business – to his list of accomplishments.

“Especially in the mortgage broker business, I think it’s extremely important to recognize customer service,” said Jeff Spencer, VP of retail sales and distribution at Manulife Bank, which sponsored the award. “There may be winners and losers tonight, but I think every broker in the business sets out to put the customer first, and that’s why they need to be celebrated tonight.”

PROUDLY SPONSORED BY

Manulife Bank serves clients across Canada in all provinces and territories. With a high-quality loan portfolio, the majority of loans being in residential mortgages, Manulife Bank is a profitable and well capitalized organization.

Rhiannon Fillmore Loewen Group Mortgages

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For more information, visit www.manulifebank.ca

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5/23/2017 10:58:20 AM

BROUGHT TO YOU BY

THE AWARD FOR

BEST COMMUNITY SERVICE EFFORT OF THE YEAR WINNER Mary Grace Tatangelo MCC Pilrock Mortgages

FINALISTS Bridgewater Bank Dave Teixeira Dominion Lending Centres Home Trust Company Carmen Alpaerts Invis Any Mortgage For You Quantus Mortgage Solutions Leo Ragusa VERICO The Mortgage Professionals Sabeena Bubber VERICO Xeva Mortgage 100 Brokers Who Care

BROKERS WORK hard for clients and their employees, but many

also go above and beyond for their communities as well. They care not only about their businesses, but about ensuring that the community around them thrives as well. Mary Grace Tatangelo is one such broker. She dedicates some of her free time to Hospice Vaughan, where she is a board member.

Since 1995, Hospice Vaughan, a charitable organization, has provided compassionate support to people of all ages, as well as their families and friends, who are coping with a life-limiting illness or dealing with the loss of a loved one. Their trained staff and volunteers work with caregivers, community agencies and healthcare professionals to offer services in the community and at the orginization’s Woodbridge Centre. Hospice Vaughan serves all residents living in Kleinburg, Maple, Woodbridge, parts of Concord and Thornhill.

“Thank you and congrats to the finalists. Giving back to your community is so important because we should be really grateful for what we have. We’re in a great industry, and it’s important to give back to those who need it most” MARY GRACE TATANGELO MCC Pilrock Mortgages

CMA17 Commemorative Guide-SUBBED2.indd ehouse securitisation of GE assets

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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THE CANADIAN MORTGAGE APP AWARD FOR

BEST USE OF MOBILE TECHNOLOGY WINNER MogoMortgage

FINALISTS Fundever Loewen Group Mortgages Nationwide Appraisal Services VERICO Financial Group

PROUDLY SPONSORED BY

Canadian Mortgage App is the number-one-ranked mortgage mobile app in Canada. This popular app has reached more than 5 million screen views to date and is featured in the Top 25 free business apps on both iTunes and the Google Play Store.

TECHNOLOGY’S GROWING importance is felt every day in every

industry, and the mortgage broker industry is no exception.

“Millenials and the usage of mobile technology – that’s increasing day by day, exponentially,” said Ben Salami, CEO and founder of Canadian Mortgage App, which sponsored this award. “We want to build an affordable way for the industry to grow without having the big banks dominating the market.”

MogoMortgage is one of the newest players on the block, having just launched in Canada earlier this year. It relies on the speed of technology to help clients get their mortgages entirely through their smartphones – a revolutionary way of funding mortgages that helped the fledgling company take home this year’s award for Best Use of Mobile Technology.

“We are very proud to be here and to be welcomed by brokers. It’s our first year in the business” CARLOS MEDEIROS MogoMortgage

For more information, visit www.canadianmortgageapp.com

Shima Eghanian Canadian Mortgage App

Shirley Chen MogoMortgage

Carlos Medeiros MogoMortgage

Ben Salami Canadian Mortgage App

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Warehouse securitis

BROUGHT TO YOU BY

THE HOME TRUST COMPANY AWARD FOR

BEST ALTERNATIVE LENDING MORTGAGE BROKER OF THE YEAR WINNER Ameera Ameerullah Canada Mortgage and Financial Group

FINALISTS Andrew Roper Dominion Lending Edge Financial Christine Xu Mortgage Architects

AMEERA AMEERULLAH seemingly came out of nowhere a couple years ago and has since become one of the country’s top-funding brokers. Her specialization in alternative mortgages has helped set her apart from the competition.

“These days, alternative lending is so important because of the changes in the mortgage lending world – financing is a little more difficult to find,” said Ron Cuadra, VP of mortgage lending at Home Trust, which sponsored this award. “Alternative lending is going to play a big part in the way mortgages are provided in the future.”

“Thank you so much, everyone. We’re a team of quality people”

David Clarke Finevo Lending Group (powered by DLC) Leanne Myles VERICO Premiere Mortgage Centre Ronald Alphonso Mortgage Broker Store

AMEERA AMEERULLAH Canada Mortgage and Financial Group

Ameera Ameerullah Canada Mortgage and Financial Group

PROUDLY SPONSORED BY

Shaunese Lawrence Canada Mortgage and Financial Group Home Trust Company is one of Canada’s leading trust companies, providing Canadians with a wide range of financial products and service alternatives dedicated to helping mortgage brokers help their clients realize their homeownership dreams.

For more information, visit www.hometrust.ca

Ron Cuadra Home Trust Company

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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BROUGHT TO YOU BY

THE VECTOR FINANCIAL SERVICES LIMITED AWARD FOR

BEST COMMERCIAL MORTGAGE BROKER OF THE YEAR WINNER David Beckingham DLC Commercial Capital

FINALISTS Andrew Bennett Nexus Investment Corporation Brennan Wood Foundry Mortgage Capital Michel Durand Mortgage Alliance Commercial Neil Shopsowitz DLC Commercial Capital Omid Jalili OMJ Mortgage Tina Mu DLC Acer Mortgages Vic Cotton Avenue Financial

DAVID BECKINGHAM is one of the country’s most experienced commercial brokers. He has been recognized as the top-funding commercial broker by volume and this year took home the CMA for Best Commercial Mortgage Broker of the Year. Like all other brokers, he could not have done it without the support of his lender partners.

“We think it’s really important to support the brokers and support the event,” said Noah Mintz, a mortgage broker at Vector Financial Services Limited, the award’s sponsor. “As the industry gets more and more regulated, the lenders and brokers need to work together. We rely on them.”

“David Beckingham has been nominated for numerous years; he runs a very good, successful business, and he’s one of the most genuine people we know. We’re so proud – to know David is to love David” GARY MAURIS DLC

PROUDLY SPONSORED BY

Vector Financial Services Limited is a private mortgage lender in the business of originating/administering mortgages.

Vector has successfully funded residential, commercial and construction loans in Ontario since 1969. Investments comprise commercial/industrial first mortgages on properties across Ontario.

Noah Mintz Vector Financial Services Limited

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Gary Mauris, who accepted the Best Commercial Mortgage Broker of the Year award on behalf of David Beckingham

For more information, visit www.vectorfinancialservices.com

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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Our people are the real deal.

Talk to an expert to get your deal done.

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BwBbrokerinfo.ca

5/19/2017 3:54:32 PM

THE TRANSUNION AWARD FOR

LIFETIME ACHIEVEMENT IN THE MORTGAGE INDUSTRY WINNER Jared Dreyer VERICO Dreyer Group Mortgages

This award celebrates a leading industry figure who has contributed much to the advancement of mortgage brokering in Canada. This award will acknowledge someone who has actively advanced the profession, served as a coach and mentor to others, put the interests of the industry at the top of their priorities, and who has consistently “worked wonders” within the profession of mortgage brokering.

IN HIS 25 years in the mortgage industry, Jared Dreyer has held

just about every role imaginable. He has run brokerages, helped networks get off the ground and even been at the head of the industry’s largest association, Mortgage Professionals Canada.

For Dreyer, working in the mortgage industry was a natural fit.

After all, his father, Colin Dreyer, is one of the most recognized and respectable leaders in the entire channel – and the apple doesn’t fall too far from the tree.

“As I look back as a broker and business owner, it’s not about one person. It’s about the fantastic people around me. A lot of this is due to the people I grew up with for the past 25 years – they’re mentors, friends and great people” JARED DREYER

PROUDLY SPONSORED BY

Information is a powerful thing. At TransUnion, we realize that.

We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources.

VERICO Dreyer Group Mortgages

“It’s guys like Jared who have been around the industry for a long time – he can show the younger folk who are coming up what it’s all about,” said Todd Skinner, president of Transunion Canada, which sponsored this year’s Lifetime Achievement Award. “He’s been a vocal voice in the industry, and he gives back to the community.”

To hear more from Dreyer, check out this month’s Industry Icon feature on page 18.

For more information, visit www.transunion.ca

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5/19/2017 3:54:38 PM

BROUGHT TO YOU BY

Todd Skinner Transunion

Jared Dreyer VERICO Dreyer Group Mortgages

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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5/19/2017 3:54:42 PM

THE STREET CAPITAL BANK OF CANADA AWARD FOR

MORTGAGE BROKERAGE OF THE YEAR (FEWER THAN 25 EMPLOYEES) WINNER

RUNNING A brokerage is no easy feat – and doing so with fewer

Champion Mortgage

FINALISTS DLC Brokers For Life Dominion Lending Centres Smart Debt Loewen Group Mortgages Mortgage Intelligence Rasha Ingratta & Mortgage Associates VERICO Anthem Mortgage Group

Cheryl Buhs Street Capital Bank Of Canada Doug Adlam Champion Mortgage

than 25 employees makes it arguably harder. But Doug Adlam of Champion Mortgage seems up to the task.

Considering the fact that Adlam’s brokerage was also nominated for the award for Best Customer Service, it’s obvious Champion Mortgage is passionate about its business, its brokers and its clients.

“It’s really been an honour to be among all the distinguished brokers this year,” said Cheryl Buhs of Street Capital Bank, which sponsored the award. “Being able to come here together as a group and celebrate these awards is important.”

“I’d like to congratulate all the other finalists and thank CMBA, Street Capital and my wife for all her patience and support. I really believe we’re changing the future of the business; this business is about partnerships and realizing everyone around us contributes to our success” DOUG ADLAM Champion Mortgage PROUDLY SPONSORED BY

Street Capital Bank of Canada is one of this country’s largest broker-channelsourced residential mortgage lenders by market share, having originated more than $40 billion since inception and currently with $25 billion in mortgages under administration. We are an approved MBS issuer/CMB seller and an approved lender with the Canada Mortgage and Housing Corporation [CMHC], Canada GuarantyMortgage Insurance Company and Genworth Canada.

For more information, visit www.streetcapital.ca

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5/19/2017 3:54:51 PM

BROUGHT TO YOU BY

THE CENTUM FINANCIAL GROUP AWARD FOR

BEST INDUSTRY SERVICE PROVIDER WINNER

JASON HENNEBERRY has evolved from a broker to a technology

DocAssist

guru over the past few years. With last year’s launch of DocAssist, Henneberry provided brokers with help on the back end.

“It’s harder to process a mortgage than it was 10 years ago or even five years ago – you’ve got revenue compression and an increased administrative workload, so mortgage brokers have to work harder for less money,” Henneberry said when launching the company last year. “We’re dealing with that by creating this administrative process to free up a broker’s time.”

The difficulty brokers face today speaks to growing importance of service and technology in the industry.

“With regulation changes and challenges in the alternative lending channel, it’s more important than ever to recognize the service providers,” said Chris Turcotte, president and COO of Centum Financial Group, the award’s sponsor. “There are so few things that make a job easier, and service providers do that.”

FINALISTS D+H GoMax Solutions HomEquity Bank Paradigm Quest Teranet Purview

“It’s spectacular; I don’t know what to say. The competition for the award was incredible.

I’m at a loss for words”

Jason Henneberry DocAssist

JASON HENNEBERRY DocAssist

PROUDLY SPONSORED BY

Chris Turcotte Centum Financial Group

Federally incorporated in 2002, the CENTUM Family is home to over 200 franchised mortgage offices with more than 2,500 mortgage professionals across Canada. As a division of the Charlwood Pacific Group, our network benefits from over 40 years of global franchising expertise of recognized brands, which include financial services, real estate, travel service, property management and hotel accommodations.

For more information, visit www.centum.ca

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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THE CANADA MORTGAGE AND FINANCIAL GROUP AWARD FOR

BEST NEWCOMER, INDIVIDUAL AGENT OR BROKER WINNER

MCKAY WOOD took the stage to accept his award in a bespoke

McKay Wood VERICO Paragon MortgagePal

suit replete with a bow tie, which he quickly poked fun at.

“Just over two years ago, I looked at myself in the mirror and thought to myself, ‘How can I be different?’” he said. “I put on a bow tie. But now that I look around here, I realize I’m not all the different from everyone else.”

And that may not be a bad thing, considering that Wood has now been recognized as one of the top brokers in the country – a true peer to the many veterans who attended the awards ceremony this year.

Wood, like all brokers starting out, received support from mentors as well as his lender partners.

“We really believe in promoting and encouraging people within the industry to be successful,” said Linda Gibson, operations manager at Canada Mortgage and Financial Group, which sponsored this award. “When you’re starting out, it’s so important to have support.”

FINALISTS Etienne Beaudoin VERICO Xeva Mortgage Kevin Mayer Invis The Wilson Team Samir Jaroudi VERICO Matrix Mortgage Global Sarah Fenwick Bespoke Mortgage Group Scott Nazareth Mortgages.ca

“Thanks, Jason Henneberry – my mentor, my friend. It’s exciting to win and quite a surprise” MCKAY WOOD VERICO Paragon MortgagePal

PROUDLY SPONSORED BY

Linda Gibson Canada Mortgage and Financial Group

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McKay Wood VERICO Paragon MortgagePal

Canada Mortgage and Financial Group [CMFG] is an independently owned and operated mortgage company specializing in both institutional and alternative financing in Canada and the US. We also offer a platform for international investors to invest in Canadian real estate. The company’s niche expertise is in construction finance, land acquisitions, and residential and commercial mortgages.

For more information, visit www.cmfg.ca

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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5/19/2017 3:55:01 PM

BROUGHT TO YOU BY

THE AWARD FOR

BEST NEWCOMER, LENDER UNDERWRITER WINNER

AN UNDERWRITER’S job isn’t easy on the best of days.

Sarah Spearn First National Financial

Considering that this year’s Best Newcomer, Sarah Spearn, decided to embark on her underwriting career during one of the most complicated times ever for mortgage underwriting, her achievement becomes that much more impressive.

FINALISTS Brett Van Driel Paradigm Quest Bryan Campbell Street Capital Bank of Canada Christina Matticks Equitable Bank Janel Melo Street Capital Bank of Canada Krista Valadao Home Trust Company Natasha Alli Home Trust Company

“My heart is beating a million miles an hour. It’s a huge honour to have won” SARAH SPEARN First National Financial

Walter Traub (judge) Goldman, Sloan, Nash & Haber LLP

Sarah Spearn First National Financial

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THE MORTGAGEBROKERNEWS AWARD FOR

BEST LENDER UNDERWRITER OF THE YEAR WINNER Ida Guilbault Bridgewater Bank

FINALISTS Alan Colby Paradigm Quest Angela Molyneaux Equitable Bank Christina Abate Equitable Bank Dave Tett Home Trust Company Helga Peller RMG Mortgages Kara Kinakin Bridgewater Bank Lianne Smith Street Capital Bank of Canada Mita Desai Equity Financial Trust Thomas Squires Optimum Mortgage

PROUDLY SPONSORED BY

MortgageBrokerNews.ca is powered by Canadian Mortgage Professional magazine, a monthly title that is Canada's leading independent magazine for mortgage brokers and professionals.

For more information, visit www.mortgagebrokernews.ca

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AS ANY broker will tell you, underwriters are worth their weight

in gold. Not only are they tasked with being some of the most knowledgeable professionals in the industry, but they bear responsibility for the prudence of the mortgages they write while also doing their very best to get deals done.

“She would like to thank everyone for this. She’s a very hard worker” TODD POBERZNICK Bridgewater Bank

A hard-working and diligent underwriter can be the difference between a client getting their dream home or not. The best underwriters love a good challenge – getting tough deals done is often a puzzle that takes countless hours to assemble, but many are up to the task.

This award may be the ultimate feather in the cap for all lender employees. To be recognized by their broker peers is no small feat for an underwriter, and this year Ida Guilbault was named by brokers as one of the best.

Todd Poberznick, who accepted the Best Lender Underwriter of the Year Award on behalf of Ida Guilbault

BROUGHT TO YOU BY

THE SHERWOOD MORTGAGE GROUP AWARD FOR

BEST NEWCOMER LENDER BDM WINNER Chris Woodhouse Street Capital Bank of Canada

FINALISTS Dan Pauls Magenta Capital Corporation Darren Campbell MCAP Mortgage Service Corporation Elena Robinson Home Trust Company Linda Elkjar Street Capital Bank of Canada Michael Dixon Radius Financial Nicole Thomson Home Trust Company Paul Jardine Optimum Mortgage

THE NAME of the game for BDMs is building relationships with

brokers, which can be hard for a newcomer, considering that most industry players already have a stable of business development managers they go to. But that hasn’t stopped Chris Woodhouse from distinguishing himself from the crowd, so much so that brokers named him this year’s Best Newcomer Lender BDM. “[BDMs are] the liaisons between the lenders and the brokers,” said Anthony Contento, president and CEO of Sherwood Mortgage, which sponsored this award. “What they do – it lets us get back to the customers and execute our plans for success.”

“Thanks to my brokers and agent partners. I’m very surprised. I work for a great company that gives me amazing support” CHRIS WOODHOUSE Street Capital Bank of Canada

Robert Gibson Equitable Bank Tania Melnyk Equitable Bank PROUDLY SPONSORED BY

Anthony Contento Sherwood Mortgage Group

Sherwood Mortgage Group is a seasoned team of licensed mortgage professionals and part of the Mortgage Architects organization, one of the largest and most well respected brokerages in Canada. Our boutique-style brokerage opened its first independently owned office in Toronto in December 2008 and has continued rapidly expanding into other parts of Ontario and Canada, including offices in Sarnia and Saskatchewan.

For more information, visit www.sherwoodmortgagegroup.com

Chris Woodhouse Street Capital Bank of Canada www.mortgagebrokernews.ca www.australasianlawyer.com.au

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5/19/2017 3:55:19 PM

THE INVIS/MORTGAGE INTELLIGENCE AWARD FOR

BEST LENDER BDM OF THE YEAR WINNER Catherine Halkyard MCAP Mortgage Service Corporation

FINALISTS Ajay Kaith Oppono Lending Company Geoff Semple Street Capital Bank of Canada Ian Tenggardjaja Street Capital Bank of Canada John Papadopoulos RMG Mortgages Karim Awad Equitable Bank Kristen Linde Ferrier Manulife Sam Samadi CMLS Financial

CAM STRONG said it best: BDMs are like family to brokers. They get to celebrate the good times with their broker partners, but also have to deal with the bad – like whenever a deal has trouble funding.

“Because our company works very closely with them, our brokers really value their service,” said Strong, CEO of Invis Mortgage Intelligence, which sponsored this award. “They’re like family to our brokers. This award is very significant for us.”

BDMs are tasked with keeping brokers apprised of any lender changes, ensuring they’re completely up-to-date on offerings and various rates. That has become even more difficult in the current mortgage environment, where rate sheets just don’t cut it anymore.

The best business development managers – including this year’s Best Lender BDM winner, Catherine Halkyard – realize that the relationships they build with brokers ensure that the lender/broker partnership flourishes.

“Thanks for this award. I’d like to thank my brokers and MCAP” CATHERINE HALKYARD MCAP Mortgage Service Corporation

Shannon Parker Home Trust Company

Catherine Halkyard MCAP Mortgage Service Corporation

Tim Hurlbut Alta West Capital

PROUDLY SPONSORED BY

Be Bold. National brokerage Invis and Mortgage Intelligence is the professional home for brokers adhering to the highest industry standards.

Our exceptional suite of bold resources makes it easier to run your business, help you earn long-term annuity income, and give you the marketing and customer relationship management programs you need to succeed.

For more information, visit www.invis.ca

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Cam Strong Invis/Mortgage Intelligence

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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5/19/2017 3:55:24 PM

BROUGHT TO YOU BY

THE FCT AWARD FOR

MORTGAGE BROKERAGE OF THE YEAR (25 EMPLOYEES OR MORE) WINNER Neighbourhood Dominion Lending Centres

FINALISTS Centum Metrocapp Wealth Solutions Sherwood Mortgage Group True North Mortgage VERICO The Mortgage Advisors VERICO Xeva Mortgage PROUDLY SPONSORED BY

At FCT, our relationships with our customers, employees, stakeholders and communities are guided by strong values.

We are committed to serving with passion, to exceeding expectations, to thinking differently and always acting with integrity. We work to ensure that our activities produce minimum negative impact on our environment and the people around us.

THIS IS, without a doubt, the biggest award a brokerage can take

home. Not only does it take perseverance and dedication to assemble a quality team of 25-plus brokers, but to succeed at the upper echelon of the business is an entirely new ball game. Most brokerage owners continue to originate mortgages themselves, while also taking on the responsibility of training new brokers and ensuring the success of current brokers.

Neighbourhood Dominion Lending Centres has been at the top of the industry for years, and this award solidifies its place among the industry’s greats.

“It’s important to recognize leadership in a market environment and regulatory environment with challenges,” said Kate Wybrow, national director of business development at FCT, which sponsored this award.

“It takes a lot of people to win this award. I want to thank everyone on my team and my wife – she’s made this happen” GARY MEGER Neighbourhood Dominion Lending Centres

For more information, visit www.fct.ca

Danielle Cawley Neighbourhood Dominion Lending Centres

Bill Nugent Neighbourhood Dominion Lending Centres

Kate Wybrow FCT

Gary Meger Neighbourhood Dominion Lending Centres

Jason Nugent Neighbourhood Dominion Lending Centres www.mortgagebrokernews.ca www.australasianlawyer.com.au

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BROUGHT TO YOU BY

THE AWARD FOR

NATIONAL BROKER NETWORK OF THE YEAR WINNER Dominion Lending Centres

FINALISTS Broker Financial Group Centum Financial Group Invis/Mortgage Intelligence MCC Mortgage Centre Canada Mortgage Architects TMG The Mortgage Group VERICO Financial Group

DOMINION LENDING CENTRES is not just Canada’s largest network – boasting more than 2,600 mortgage professionals across the country – it is also one of its most vocal in advocating for the industry. Following last year’s mortgage rule changes, DLC representatives attended a number of meetings with government officials to discuss the implications of those changes on both homebuyers and the mortgage broker industry.

Along with its advocacy, DLC has grown in recent years through the acquisitions of several rivals – all of which have been left to run independently – as well as a technology company. Just under two years ago, DLC also launched an insurance brokerage, proving it’s so much more than just a mortgage network.

All eyes will certainly be on Dominion Lending Centres as it continues to grow and influence the channel.

“I want to thank all the sponsors, nominees, lenders, partners – so many people on this team in the early days took a chance on us. We have an incredible family now. It’s been so much fun to be on this ride” GARY MAURIS DLC

The team at DLC

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BROUGHT TO YOU BY

60 ways to make

$1 BILLION.

Congratulations to the sixty superb professionals who catapulted us to the $1 billion mark in mortgages funded in 2016.

And to the forty assistants who helped them do it.

Not to mention the many awards won along the way – just more proof of the smarts these over-achievers bring to the industry.

Big business. Big productivity. Big ambition. Thanks a billion to all of you.

And to anyone else who thinks these figures sound alluring, give us a ring.

Here are sixty good reasons why.

ORIANA FINANCIAL GROUP OF CANADA

HEAD OFFICE 4300 STEELES AVENUE WEST, SUITE 34, VAUGHAN, ONTARIO L4L 4C2 www.mortgagebrokernews.ca www.australasianlawyer.com.au

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THE AWARD FOR

BEST NEWCOMER, MORTGAGE BROKER FIRM WINNER CanWise Financial

FINALISTS Blue Pearl Mortgage Group DLC Origin Pinsky Mortgages DLC Coultish Lawton Capital Group Invis PG Mortgage Brokers Mortgage Alliance Pinnacle Capital

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THE MANY accomplishments James Laird has achieved during his short time in the industry are nothing less than amazing. He was the COO and partner of True North Mortgage before launching his own brokerage, CanWise Financial, just under three years ago. As if that weren’t enough, he’s also a director at Zoocasa and co-founder of RateHub.

“It’s the team that makes this possible, and we’re excited for what’s ahead” JAMES LAIRD CanWise Financial

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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BROUGHT TO YOU BY

Walter Melanson (judge) PropertyGuys.com

James Laird CanWise Financial Bryan Freeman CanWise Financial

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5/19/2017 3:58:09 PM

THE BRIDGEWATER BANK AWARD FOR

MORTGAGE BROKER OF THE YEAR (25 EMPLOYEES OR MORE) WINNER

DUSTAN WOODHOUSE likes to joke that he was nominated last

Dustan Woodhouse DLC Canadian Mortgage Experts

FINALISTS Anthony Contento Sherwood Mortgage Group Collin Bruce DLC Mortgage Mentors Nick L’Ecuyer VERICO The Mortgage Wellness Group Shawn Allen Matrix Mortgage Global Steven Levine True North Mortgage PROUDLY SPONSORED BY

Helping broker partners meet their business goals has been Bridgewater Bank’s focus since 1997. The bank began as a Calgary-based residential mortgage lender providing a single product in just two provinces.

For more information, visit www.bwbbrokerinfo.ca

year for Broker of the Year after having written a book on brokering. He didn’t win the award in 2016, so he went ahead and wrote two more books.

Those who have read the books know it’s no fluke that Woodhouse is regularly featured on CMP’s list of Top 75 Brokers and that he is often a go-to source for industry knowledge.

This year, Woodhouse funded a total of $112.8 million in mortgages – all while writing those two books, as well as speaking and training at various industry events.

He also made his way to Ottawa this spring to speak on the impact of the recent mortgage rule changes and to advocate for the industry with various government officials.

“Everyone strives to be the best, and everyone wants to achieve at the top,” said Stephen Watton, BDM for southwestern Ontario at Bridgewater Bank, which sponsored the award. “Recognizing the Broker of the Year is about showing the way for the younger brokers.”

“Although this really cool award is not the destination, but rather a part of the journey, I think I will pause here for a day or two and enjoy it. Thank you to each and every person who tolerated my own special brand of crazy and helped me reach this goal” DUSTAN WOODHOUSE DLC Canadian Mortgage Experts

Dustan Woodhouse DLC Canadian Mortgage Experts

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Stephen Watton Bridgewater Bank

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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5/19/2017 3:58:15 PM

BROUGHT TO YOU BY

THE CANADIAN MORTGAGE BROKERS ASSOCIATION AWARD FOR

MORTGAGE BROKER OF THE YEAR (FEWER THAN 25 EMPLOYEES) WINNER Bernadette Laxamana VERICO Xeva Mortgage Group

FINALISTS Christine Xu Mortgage Architects David Hetti Mortgage Intelligence Oshawa Enza Venuto CENTUM InTouch Mortgage Solutions Sally Kwan ETC Mortgage Scott Travelbea DLC Travelbea & Associates Skye Mclean Axiom Mortgage Solutions Tracy Valko Dominion Lending – The Valko Team Win Lui DLC Clear Trust Mortgages

THE AWARD for Broker of the Year (Fewer Than 25 Employees)

acknowledges those in the industry who truly punch above their weight – they may be smaller than some of their counterparts, but they strive to achieve similar volume levels and, indeed, the same level of service. This year, Bernadette Laxamana of Xeva Mortgage rose to the top of the bunch.

“In these times, the services of a mortgage broker are so relevant to the Canadian consumer and the Canadian real estate industry,” said Ajay Soni, national president of CMBA, the award’s sponsor.

“We have to recognize the great jobs and the value proposition that the mortgage broker is able to provide to the borrowing public.”

“Thank you God, and thank you to my better half … my husband said I’m his Wonder Woman because he always wonders what I’ll do next.

To my partners at Xeva Mortgage, I’m honoured to share this journey with you” BERNADETTE LAXAMANA VERICO Xeva Mortgage

PROUDLY SPONSORED BY

The Canadian Mortgage Brokers Association [CMBA] is an interjurisdictional umbrella association consisting of provincial mortgage broker associations in Canada. CMBA is a mortgage broker association created by mortgage brokers for the benefit of all players in the mortgage broker industry.

For more information, visit www.cmba.ca

Bernadette Laxamana VERICO Xeva Mortgage

Ajay Soni Canadian Mortgage Brokers Association

www.mortgagebrokernews.ca www.australasianlawyer.com.au

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SPECIAL PROMOTIONAL FEATURE

CENTUM

New leader, new direction CMP caught up with Centum Financial Group’s new president and chief operating officer, Chris Turcotte, to find out what the future holds for the network

CMP: You’ve now had time to get an understanding of how Centum operates – how are you feeling about your initial assessment?

Chris Turcotte: Coming from a franchise

players. I feel like we’re exactly where we need to be now: the right people, the right attitude and the right plan. Now it’s time to execute – execution is everything.

network over to the corporate side of a superbroker brand certainly had its advantages, and I’m very grateful for that. We took time to understand what we were doing well and what needed improvement. Most importantly, we took time to be self-aware and objectively decide what our network really needed from a broker perspective.

CMP: Have you had any early wins you’d like to share?

CT: Absolutely. We had a very successful VISION2017, the annual conference for our network. The day consists of learning and motivation, and the evening is a gala and awards for all to celebrate the successes of 2016. We had our best attendance in years

“In my opinion, there’s quite a bit of money being wasted out there on technology that’s a lot of sizzle but very little steak. What we’ll be bringing to our network will add a ton of value to their business, is easy to use and fills a current gap in their day-to-day efforts” That was only the beginning, because most companies will figure that out and then just forge ahead. A game plan is great, but it means nothing if you don’t have the right

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and an exciting lineup that included Chris Johnstone and Jon Montgomery, Olympic gold medallist and host of The Amazing Race Canada.

We’ve also successfully established our social media presence in an incredibly short time, and our content has arguably the highest level of engagement in the industry, all in four months. This was just us re-establishing ourselves – we’re just getting started, and we’re thrilled to see our network so engaged and using the content to advertise themselves. We’ve piloted a few offices on lead-generating campaigns via their newly formed Facebook pages, which provided proven, undebatable results. Our franchisees are seeing the value of social media and its importance in marketing in 2017.

CMP: We’ve seen numerous brands leverage new technology in their networks as of late. Is there any plan for Centum to follow that trend?

CT: I can confirm that we’ve committed to new technology for our network. The challenge was finding a way to offer the best technology at no cost to our agents. This was an ambitious task, but this team worked hard to really find out what was fluff and what were actual tools that would make our people more successful.

We felt this was a competitive advantage, as I personally utilized technology in my offices back when I had them. We were out-producing offices across Canada because we had the right tech for the task. In my opinion, there’s quite a bit of money being wasted out there on technology that’s a lot of sizzle but very little steak. What we’ll be bringing to our network in the next six months will add a ton of value to their business, is easy to use and fills a current gap in their day-to-day efforts.

CMP: What have you learned during your time at Centum?

CT: I’ve learned to trust my gut and stick to who I am and what’s made me successful.

Sure, you’ve got to develop and grow – you can never stop – but don’t forget the things that brought you this far. I lied to myself, thinking I had to change, to somehow be

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“People need to know you understand and that you’re there for them. I can talk broker talk because I am a broker; I always will be”

that we know what they need, that we get it now and that the future looks bright for the Centum family.

different because of the title, I guess. What brought me success before was getting in the trenches, shoulder to shoulder, and investing in people one at a time. They need to know you understand and that you’re there for

more units and more mortgage volume this Q1 than any Q1 of the last four years, and with fewer agents. Everyone is firing on all cylinders, and I’m so proud to be a part of this team.

them. I truly believe I might be the only brand leader who can do that right now. I can talk broker talk because I am a broker; I always will be. Franchises and agents are providing great feedback. They feel confident

CMP: Does it?

CT: Our first quarter is done. We’ve done

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FEATURES

NETWORKING

The power of the tribe Recognizing and realizing the value of business networks is crucial, writes entrepreneur and networker Janine Garner

IN THIS incredibly fast-paced business and economic landscape, we can no longer do it alone – realistically, we never could; we just thought we could. Building a powerful and diverse network, your own personal tribe, is a critical must-have within the new operating system of commercial collaboration. Moving from the isolated ‘me’ space to the collaborative ‘we’ space will future-proof careers, leadership and your own personal success.

A powerful and diverse network drives your success by: creating new opportunity for growth stretching, pushing, driving and inspiring you enabling you to contribute and influence more and leverage your position further This ‘we’ space of commercial collabora-

52

tion requires courage, confidence and bravery, and is one in which networks of connected individuals, communities and businesses work together to drive success. We can bring our skills, strengths and talents to the table and together amplify and share expertise to create progressive, results-oriented solutions.

Collective intelligence means we work smarter and quicker together. In fact, diversity and difference of opinion are actually the new competitive advantage.

Networking, connecting, meeting, doing coffee, lunch dates and even speed-connecting – all these terms are synonymous with meeting others to drive skill sets, contacts and ongoing business and personal growth. And however much you might want to hide under

the white tablecloths of a corporate breakfast, powerful and effective networking has evolved and is now a business must for all who want to forge ahead. It’s not simply about building up a Rolodex of business cards (or, more accurately, a smartphone full of virtual ones), a mass of LinkedIn contacts or a significant number of social media followers. It’s about a true meeting of minds and skill sets, and skilfully parlaying said meetings into successful long-range relationships.

Networking is a must-have for successful collaboration, and the diversity of that network is the tipping point between average connections and those that collaborate to create magic. The cross-fertilization of connections, skills and brainpower, and the ideas that are

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openly discussed and shared through network creation, in their turn create new opportunities, innovation and new solutions to existing problems. It’s a domino effect – the way your initial networks interact provides a guideline for the subsequent networks that spring up from these collaborations. They will only benefit from your experience and way of working together.

Building your network The most innovative businesses and organizations are finding that effective and powerful networking is giving them an edge. So how do you find, build and manage a diverse network? How do you gain entry to a true circle of excellence that will work with you and not against you?

The critical element of a powerful network that can become your lifeline, and an absolute must-have for successful collaboration, is diversity. Building an effective and powerful network is so much more than finding a safe, like-minded tribe. It requires diversity, a width and breadth of contacts, a willingness to embrace the opportunity that exists in differences, and finally, an understanding that you may not always agree with or understand certain points of view, but that through the connection, you will build awareness and knowledge.

An effective network is a diverse network that consists of people who differ in expertise, age, gender and experience.

Powerful networks are those that are cross-functional and cross-industry. Think about it: a like-minded network limits the breadth of conversation. Lawyers sit in a room with lawyers, sharing their legal experience. CEOs play golf with CEOs; fashion industry PR experts mingle with other fashion industry PR experts. Now imagine the color of the conversation if instead you had lawyers, accountants, creatives, athletes, marketers and business owners discussing the various solutions to a problem. Imagine the different perspectives shared, the varying insights, the depth of conversation that would stretch thinking and push perspectives wider.

Diverse connections challenge thinking, drive further questions, push boundaries, increase awareness and open our eyes to another way. They also bring to the forefront

opportunities that were previously not in your direct line of vision, present solutions that weren’t on your radar and create innovations that you once thought were not possible.

Who do you need to surround yourself with to inspire you and your business to achieve more? As Jim Rohn said, “You are the average of the five people you spend the most time with”.

A powerful network is one that consists of people who have similar mindsets but diverse experience and will stretch thinking and push boundaries. Furthermore, those within a powerful network realize the power of sharing

ness similarities or ethical focus, or a desire to advance the same cause – and expecting nothing in return – this creates a fantastic opportunity for collaborative relationships, and also for a true value exchange, where ‘What’s in it for me?’ turns into ‘What can I do for you?’.

The ‘we’ space is not a pipe dream. There are businesses and leaders who are clearly succeeding by operating within this framework. It is the center of discussion among academics, thought leaders and consulting groups. Those corporations and entrepreneurs who are using the space well are seeing procedures streamlined, the bottom line coming up,

Building an effective and powerful network is so much more than finding a safe, like-minded tribe. It requires a willingness to embrace the opportunity that exists in differences ideas and of coming together, and value-add to each other’s businesses through the power of plural perspectives.

Those who are willing to be a part of a collaborative working environment are doing so because they want to be challenged. They want the opportunity to constantly learn from others and to share what they’ve learned, to engage on an intellectually challenging level with like-minded thinkers, to see their own business benefit from the knowledge of specialists, and to be happy knowing that they are on the edge of technological advancement, constantly pushing the ‘what if ’ button – because, as a team, they feel secure enough to take risks.

Harnessing the network’s power The concept of commercial collaboration is not for the faint-hearted; it’s for those who can see the far-reaching benefits of what the ‘we’ space is about – and yes, it is a gradual move that involves challenging thinking. But it is not something that one has to contemplate in solitude.

Understanding the power of your network and using its potential is intrinsic to the ‘we’ mentality. To care about the well-being of those who are connected to you through busi-

and employees becoming more engaged and happier. Their ‘communities’ are becoming communities without the quotation marks.

It is not enough, in the words of Sheryl Sandberg, to ‘lean in’ to future-proof our success, our businesses and our careers. For leaders who are taking teams into an uncertain future, it’s now about leaning out and collaborating with others. Because to lean out means to embrace and engage on an unforeseen aggregated level – where thinking bigger than ever before will bring rewards to a collective commercial mind.

The barriers between genders, between generations, between cultures, between the inventors and the investors, between the change-makers, the visionaries and those that make it happen – these all have to be broken down.

This is all a part of the evolution of ‘me to ‘we.’ This is all a part of collaborative business. This is not about a revolution; it’s about evolution.

Janine Garner is the founder and CEO of LBDGroup and works with senior leaders to build high-performing teams. She is also the author of It’s Who You Know .

www.mortgagebrokernews.ca

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PEOPLE

CAREER PATH

UP AND COMING

Anthony Contento has come a long way in the mortgage industry, but he still has his eye on the next horizon The child of first-generation Italian immigrants, Contento came to Canada at the age of eight and spent much of his ARRIVES IN childhood and adolescence CANADA helping out in his father’s butcher shop, an experience that left an indelible mark “That’s where my work ethic comes from – when my friends were out playing 1982 soccer, I was learning to interact with customers and sell a product. I became well TRIES OUT BANKING versed with business early” Fascinated by numbers and looking for a way to continue working with 1990 customers, Contento took his first steps into the world of finance in the DISCOVERS MORTGAGES form of a co-op placement at an RBC branch. Later, after leaving school, he During the course of his work at various banks, Contento sampled several returned to banking as a teller roles, ultimately finding himself intrigued by mortgages. In 1990, an “I was looking for a way out of my dad’s butchering business, and I thought putting on opportunity with BMO led him to take the position of mortgage development a suit and tie would serve me better” manager, and he realized it was a field where he could build a career

1973

1999

LAUNCHES MOBILE SALES FORCE

1996

WINS ROOKIE OF THE YEAR AWARD After switching to the commission side, Contento’s first year’s quota was set at $12 million, with the incentive of two tickets to Barbados. He bargained it up to four tickets if he could bring in $15 million; he eventually reached $87 million “I had to go and hustle business – it was new for me to be the hunter. When they were calling me up for Rookie of the Year, my manager said to me, ‘Remind me never to take another sucker bet!’”

Contento tapped into his experience in clientele-building when BMO approached him to help launch a mobile sales force. He went on to lead a team of 25 to fund more than $900 million in two years’ time

“I’d go knocking on doors with my suitcase in my hand, hoping the next referral would be mine. I wore out a lot of pairs of shoes.

BMO asked if I would lead their sales force to the next level with a very similar vision” 2009

TRANSITIONS TO THE BROKER SIDE Changes to the commission structure at RBC prompted Contento to switch to the broker side. He opened Sherwood Mortgage Group and hasn’t looked back since “As a broker, I have access to not only the big bank products, but also monolines, credit unions and trust companies. Offering my clients an entire marketplace of products, along with high level of service, ultimately results in a great client experience”

2001

BECOMES A MENTOR Contento made a triumphant return to RBC as a sales manager. Under his guidance, the sales force went from 13 people to 50, and $180 million of funded volume in his first year ballooned to $1.2 billion two years later. The experience of leading his team to such heights prompted Contento to give back by mentoring many young mortgage professionals “Making sure you hire the right mortgage specialists is key. You’re only as good as the people who work for you”

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PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email mortgagebrokernews@kmimedia.ca

7,600

The amount of ground, in kilometres, the Richards covered on this year’s adventure

ON THE ROAD For many of the coldest months of the year, Calgary broker Chris Richards heads south and goes off the beaten path

CHRIS RICHARDS and his wife are no strangers to the call of the open road. In 2002, the Calgary-based broker sold his house and spent five years visiting 32 countries on a 40-foot sailboat with his wife and their two young sons. Now, the couple escapes the Calgary winter by spending two to three months a year ‘boondocking’ – travelling around the southwestern United States, devoting their days to hiking, cycling and sightseeing, and living in their 29-foot travel trailer, where Richards carries out the business of Quantus Mortgage Solutions remotely.

This year marks the third such adventure, and the second time with their trailer (the first was spent in a rented condo in Mexico). The experience of living on a boat made paring down possessions and living in remote loca-

35

Typical temperature on a March day in the Southwest US

72

Average cost, in US dollars, to fuel up their truck with diesel

tions second nature; Richards also applies this organizational skill set to his work. “I’m 99% paperless,” he says, “and the 1% is a singlepage lead sheet that I fill out by hand when the phone rings.”

Thanks to an “incredible” roaming wireless deal, lower prices south of the border and free camping in most places, the Richards are able to keep expenses low. Kids at university and remote monitoring on their house in Calgary enable the rest.

The day he spoke with CMP, Richards started work pre-dawn, ended his working day in the early afternoon and planned to spend the rest of the day hiking a nearby mountain. “The mortgage brokering keeps your brain active and your income stream going,” he says. “I don’t see this ending.”

56 www.mortgagebrokernews.ca

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