CMP 13.01

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HOT LIST Meet 45 movers and shakers who are redefining the Canadian mortgage industry

FACING THE CONSEQUENCES What effect have the B-20 changes already had – and what else might lie ahead?

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INTRODUCING THE NEW CENTUM Centum president Chris Turcotte outlines the changes he’s made since taking the helm

TIME TO GO COMMERCIAL Why this should be the year you move into the commercial space

25/01/2018 7:41:28 AM

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ISSUE 13.01

CONTENTS

2018

HOT LIST 20 SPECIAL REPORT

In spite of the many roadblocks placed in front of mortgage brokers over the past year, these 45 white-hot professionals still managed to thrive

IT’S ALL DONE WITH MONEY. Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $2 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M. Blake Cassidy or Pierre Leonard | 800 494 0389 | www.romspen.com

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ISSUE 13.01

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

CONTENTS

twitter.com/CMPmagazine plus.google.com/+MortgagebrokernewsCa facebook.com/MortgageProfessionalCA

UPFRONT 04 Editorial

What might the new year have in store for brokers?

06 Statistics

10

Will new lending guidelines send credit unions’ status skyrocketing?

08 Head to head

UPFRONT

44 38

NEWS ANALYSIS Even as they adapt to new B-20 guidelines, brokers continue to question the true impetus behind them

16

12 Alternative lending update

The commercial market is still going strong, but how long can it last?

In the face of tightening residential lending guidelines, there’s never been a better time to consider moving into commercial mortgages – and doing so might not be as hard as you think

The youngest-ever president of a broker network, Chris Turcotte explains how he’s bringing a fresh approach to Centum

Ready or not, digital mortgages are coming to Canada

14 Commercial update

IT’S TIME TO LOOK AT COMMERCIAL

INDUSTRY ICON

09 Opinion

Canadians’ appetite for private financing continues to grow

FEATURES

PEOPLE

Brokers weigh in on CMHC’s ‘shadow lender’ scrutiny

PEOPLE

42

BROKER INSIGHT

A real estate investor since age 18, Carmen Campagnaro has found success by catering to fellow investors

PEOPLE 47 Career path

From teenage DJ to brokerage owner, Anthony Spadafora has always sought to blaze his own trail

48 Other life

Ottawa broker Michael Maguire’s culinary adventures

44 FEATURES

BUILD A VIRTUAL WORKFORCE

Break free from the office chains and unlock the potential of an on-the-go workforce with these four steps

2

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

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REACHING NEW HEIGHTS WITH US!

UNDERWRITER SUPPORT Silver

SATISFACTION WITH CREDIT POLICY Gold

OVERALL SERVICE LEVELS Silver

TURNAROUND TIME Gold

INTEREST RATES Bronze

THANK YOU TO OUR BROKER PARTNERS. We appreciate your support and will continue to work hard to earn your business!

Stay tuned for upcoming broker recognition programs to show how much we value your hard work and loyalty to us.

e q u i t y fi n a n c i a l t r u s t . c o m

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UPFRONT

EDITORIAL

This year’s wild card

T

he lay of the land is changing once again, now that the OSFI’s changes to Guideline B-20 have officially gone into effect. The consensus is that housing markets country-wide will be slower through at least the first quarter of 2018 as agents, brokers and lenders learn to how to navigate the new rules. Adding to the usual chorus of doom and gloom were the eternal optimists – those who believe in the industry’s ability to conjure solutions so they can keep putting Canadians in homes.

What will likely transpire this year is that brokerages with more resources will recruit agents and brokers in droves, particularly those struggling to qualify their clients, as many already have. Several industry professionals have spoken to CMP about the difficulties they’re having securing mortgages for their clients,

While brokers seek – and usually find – solutions, buyers will invariably be forced to taper their expectations and settle for less than they initially hoped for and a few have made the move to organizations that have better lender relationships and more private money to fund mortgages.

Optimism, however, might not extend as easily to homebuyers as it does mortgage professionals. While brokers seek – and usually find – solutions, buyers will invariably be forced to taper their expectations and settle for less than they initially hoped for. This will also present a golden opportunity for the private channel, as it can help those disaffected buyers find their dream homes, albeit at higher rates. Whether or not the risk is worthwhile will be up to Canadian consumers.

The big losers, however, will be the buyers on the lowest end of the spectrum, typically those shopping for their first homes. While some could conceivably sneak into the market, many will be forced defer their dreams of homeownership and keep renting for another few years while they save more money.

Brokers who specialize in this segment of the market should prepare themselves to either come up with creative solutions or branch out into a new niche in order to protect their bottom line.

The team at Canadian Mortgage Professional

www.mortgagebrokernews.ca ISSUE 13.01 EDITORIAL Writers Neil Sharma Justin da Rosa Joe Rosengarten Libby Macdonald Ephraim Vecina Heather Turner Copy Editor Clare Alexander

CONTRIBUTORS James Laird Paul McGill Ruth MacKay

ART & PRODUCTION Designer Loiza Caguiat Production Manager Alicia Chin Advertising Coordinator Ella Dayandante

SALES & MARKETING Associate Publisher Trevor Biggs Vice President, 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

25/01/2018 7:50:00 AM

This is much more than a New Year, New Me.

This is an evolution.

Completely derived from brokers, innovation, future trends and the comfort of being different than the rest!

Opportunity@centum.ca | centumcanada.ca/franchises ®/™ Trademarks owned by Centum Financial Group Inc. © 2017 Centum Financial Group Inc. The intent of this communication is for informational purposes only, and is not intendedto be a solicitation to anyone under contract with another mortgage brokerage operation.

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UPFRONT

STATISTICS

Credit where it’s due

WHERE CONSUMERS GET THEIR MORTGAGES Among borrowers who took out a new mortgage during 2016 or 2017, more than a third opted to use the services of a mortgage broker, while just over 10% went to credit unions.

Credit unions’ current share of the market is small, but the updated B-20 guidelines could change that THE NEW year brings with it the implementation of revised B-20 guidelines from the Office of the Superintendent of Financial Institutions – and with it a shrinking pool of qualified borrowers. The new rules, which require all prospective homebuyers to prove they could afford their mortgage at a higher qualifying rate, are estimated to impact nearly one out of every six buyers.

Some purchasers who would have quali-

100,000

Estimated number of prospective buyers who will no longer qualify for a mortgage under new B-20 rules

50%–60%

Estimated number of disqualified buyers who will be able to purchase, albeit not as planned

2% 8% 2%

fied before the new rules went into effect might opt to borrow less or look for a cheaper property, while others could see the dream of homeownership slip beyond their means altogether. Others might turn to credit unions – because they are regulated at the provincial rather than the federal level, credit unions aren’t subject to the B-20 changes, and are thus more likely to lend to squeezed-out borrowers.

$31,000

All mortgage holders 61%

50,000

Average amount by which Maximum number of homeowners homeowners will have to reduce who could be “entirely removed their target price in order to qualify from homeownership” annually

Source: “Annual State of the Residential Mortgage Market in Canada,” Mortgage Professionals Canada, November 2017

UNABLE TO BUY

HOW LOW TO GO?

Mortgage Professionals Canada’s analysis of the new stress test’s potential impact estimated that up to 7.5% of buyers could be shut out of the market.

Prospective buyers who require mortgages 91% Proportion of those that would be stress-tested 91% Proportion of those that would be able to make their preferred purchase 82% Proportion of all prospective buyers* who would be disqualified by the stress test 15% Proportion of those who would make a different purchase 7.5-9% Proportion of those who would be unable to make any purchase 6%–7.5%

Most buyers who only need to make small adjustments to their target prices in order to qualify under new rules should be able to alter their plans successfully, but as the required price adjustment climbs, so does the likelihood that these would-be buyers will have to postpone purchasing.

7% 21% REQUIRED PRICE REDUCTION 15% Less than 2.5% 2.5–4.99% 5.0–7.49%

20%

Percentage of buyers affected

16%

7.5–9.99% 10–12.49%

21%

12.5% or more

*Includes those who can qualify based on their actual interest rates, plus those who don’t need a mortgage

Source: “Annual State of the Residential Mortgage Market in Canada,” Mortgage Professionals Canada, November 2017

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Source: “Annual State of the Residential Mortgage Market in Canada,” Mortgage Professionals Canada, November 2017

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Bank Mortgage broker

1% 2%

46%

Credit union Life insurance or trust company

12%

Other

4%

Purchased during 2016 or 2017

9% 39%

27%

64%

Renewed or refinanced during 2016 or 2017

24%

Source: “Annual State of the Residential Mortgage Market in Canada,” Mortgage Professionals Canada, November 2017

CREDIT GROWTH SLOWS

HOLDING STEADY

Several factors have led to the recent slowing of mortgage credit growth in Canada, including mortgage rule changes implemented at the end of 2016 and the market downturn witnessed in the spring of 2017. The latest B-20 changes will likely pump the brakes even further.

Credit unions, which are regulated at the provincial level, have had a stable share of outstanding residential mortgage credit in Canada for the past 15 years.

MORTGAGE CREDIT GROWTH IN CANADA 15%

15%

Actual

Forecast

12%

12%

9%

9%

6%

6%

3% 0%

3%

2015

2011

2007

2003

1999

1995

1991

0%

Source: “Annual State of the Residential Mortgage Market in Canada,” Mortgage Professionals Canada, November 2017

12.8%*

13.8%

12.7%

Credit unions’ Credit unions’ outstanding mortgage growth residential mortgage over the past credit in Canada 15 years

Credit unions’ mortgage growth over the past five years

Source: *Bank of Canada data; “Annual State of the Residential Mortgage Market in Canada,” Mortgage Professionals Canada, November 2017

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UPFRONT

HEAD TO HEAD

Are worries about ‘shadow lenders’ overblown?

CMHC has said it’s keeping an eye on “riskier mortgage activity by non-federally-regulated financial institutions”

Alex Lavender

Dustan Woodhouse

Graeme Moss

Mortgage advisor Centum Home Lenders

Mortgage broker DLC Canadian Mortgage Experts

Manager and broker Verico Fair Mortgage Solutions

“Of course the CMHC should have concerns about shadow lenders.

However, if the CMHC had different policies in place, they could reduce their concerns over these lenders and focus on building a fair and safe mortgage platform for the economy instead.

The only reason individuals approach these lenders is because they have nowhere else to go – it’s always the most desperate who end up paying for it in the end, through high fees and interest rates. Shadow lenders are in the business to make money; with no regulations to constrain them, they will continue to cater to their market.”

“Unregulated lenders do not pose a threat to the solvency of regulated lenders, as their self-regulation in fact encourages them to take on statistically far lower risk than mainstream, regulated lenders. Evidence of this can be found in arrears rates, of which the highest numbers are found in the biggest federally regulated institutions.

However, we need a better term than ‘shadow lender’; such a label seems to imply aspersions of shady practices, which are usually unwarranted. And furthermore, we need to clearly define what a ‘shadow lender’ is and stay on point.”

“Strict policy is forcing the private market to grow by leaps and bounds.

In my opinion, it’s out of balance because of policy, so it’s ironic that the same people [who instituted the policies] should complain. This is a huge engine – if you tinker with the giant engine, you better be sure you know what you’re doing, because the repercussions are vast.

Some so-called ‘shadow lenders’ are the best I have ever seen. I do a lot of private work, so I gain, but the overall banking system suffers. Canadians suffer. Many people end up with higher mortgage payments.”

IN THE SHADOWS Recent restrictions on mortgage lending, aimed at curtailing out-of-control prices, have led increasing numbers of would-be homeowners to seek financing from institutions that are beyond the purview of federal regulators. At the same time, CMHC found that 27% of low-ratio mortgages now have a loan-to-income ratio that exceeds 450% – a clear rise from the 19% recorded in 2014. Against this backdrop, CMHC CEO Evan Siddall said the agency will be collecting information on emerging risks with an eye to possibly further modifying mortgage rules. “We have a responsibility to isolate sound, solvent institutions from the contagion that can erupt when a lender fails,” Siddall said.

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UPFRONT

OPINION

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

The future will be digital Digital mortgages are coming to the Canadian mortgage industry, writes James Laird, and savvy brokers should be prepared to embrace them IN THE years to come, technology will be involved in every step of the mortgage process, from initial online research all the way through to close. The onus is on every mortgage company to embrace the future or be left in the past.

I’ve just returned from the Digital Mortgage Conference in San Francisco.

Over the course of two days, I watched 40 live demos, visited numerous trade-show booths, and conversed with the owners and managers who run these companies. I could feel the genuine sense of excitement as entrepreneurs demonstrated how their technology will make a part of the mortgage transaction easier or cheaper or more efficient.

All parts of the transaction were covered, including consumer-facing apps, documentation-gathering and verification, underwriting, e-signing, e-closing, appraisal ordering and management, marketing and CRMs, and home insurance.

As the conference came to came to a close, it became apparent to me that most of the technology required to digitize the mortgage process from start to finish already exists.

Unfortunately, we’re not quite ready for it yet.

In 10 years, the mortgage process in Canada will be far different than it is today.

The first step is for companies to use a combination of third-party solutions and in-house technology to digitize the process from start to finish. Once full solutions are available, consumers must be open to a digitized process, and regulators need to allow for a fully digital closing.

Consumer behaviour has already begun to change because many people are now used to doing their banking and making other financial transactions using a digital platform. Ratehub.ca’s 2016 Digital Money Trends report found that 87% of Canadians trust banking online, 73% of gen x-ers and millennials use rate comparison sites, and

notarizations for mortgage closings.

Those who become part of this change will be handsomely rewarded. Some of the largest venture capital firms are making significant investments in the people and technology they feel will emerge on top as our industry changes.

There are also other benefits for the industry as a whole. A digital mortgage is not only convenient, it’s also less expensive.

Lenders will profit from lower operating costs, which will improve their margins.

But what about the human factor?

Humans are no longer needed to open a chequing account, sign up for a new credit card or purchase a GIC. Canada will soon have all of the technology that makes humans no longer needed to get a mortgage.

However, will they be wanted at some point in the process? Will a consumer be comfortable enough to go through the entire process without consulting a professional in the mortgage industry? I believe some form of human touchpoint will remain

“Consumer behaviour has already begun to change because many people are now used to doing their banking and making other financial transactions using a digital platform.

The next step is mortgages” 30% of baby boomers and 47% of millennials applied for their most recent credit card online. The next step is mortgages.

However, provincial and federal regulators need to update their policies to allow the digital mortgage process to be legally binding and compliant. Currently, digital signatures and in-person ID verification are not universally trusted by all regulators.

In the US, some states allow webcam notarization, where the signer appears before the notary via webcam to verify their identity. Many other states are considering allowing similar legislation. And two government-sponsored enterprises that securitize mortgages, Fannie Mae and Freddie Mac, are both in favour of webcam

in the mortgage industry for years to come, simply because a mortgage is different from other financial instruments in its complexity and scale.

While future of the Canadian mortgage industry will be digital, the winners will be the businesses that also understand how and when consumers want a human touchpoint.

There will always be a place for human guidance, advice and assurance, even when mortgages are fully digitized.

James Laird is president of CanWise Financial and a co-founder of Ratehub.ca.

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UPFRONT

NEWS ANALYSIS

Brokers brace for B-20 The mortgage industry’s efforts to adapt are well underway, but many are still questioning whether the changes were truly necessary

THE LATEST incarnation of OSFI’s Guideline B-20 – mandating a stress test for uninsured mortgages, effective January 1 – blindsided most of the mortgage industry, but perhaps it shouldn’t have, considering how much governmental intervention has occurred in recent years. As soon as OSFI announced the proposed change in July, whispers began about the government’s hidden intentions.

The government maintains that Canadian household debt has reached dangerously high levels, and that if it doesn’t act, the housing market won’t be the only crash Canadians would wrestle with. The Bank of Canada has warned that historic debt levels, coupled with exorbitant housing prices – namely in Vancouver and Toronto – have imperilled the national economy, in spite of robust economic growth and job creation.

The government even provided convincing statistics; however, many industry players remain circumspect.

that only afflicted two cities.

“It’s extremely disappointing to see that 40,000 to 50,000 homebuyers, who’ve been carefully saving for a down payment, will be punished by the new mortgage lending rules that come into effect in the new year,” Ontario Real Estate Association CEO Tim Hudak said in a statement, referring to a report from Mortgage Professionals Canada that estimated 18% of those seeking a mortgage would be impacted by the stress test. “All levels of governments need to stop the piling on of new policies that will not only have a negative effect on the economy, but also shatter the homeownership dreams of the middle class.”

Meanwhile, many industry professionals have been left wondering why the government continues to tinker with the mortgage market while largely ignoring the issue of credit-card debt.

“I thought last year’s changes were more than enough,” says Hali Noble, senior vice

“Why are they not dealing with unsecured lines of credit or credit cards at 19.99%+? There’s no talk about that” Hali Noble, Fisgard Asset Management Corporation The industry consensus on the B-20 changes was that Canadians would see their buying power reduced by 20%, which many considered a jarring panacea for problems

10

president of residential mortgage investments and broker relations at Fisgard Asset Management Corporation. “The problem I have with that is I’m a believer that house-

hold debt on a mortgage is something tangible. Why are they not dealing with unsecured lines of credit or credit cards at 19.99%-plus? There’s no talk about that, no talk about qualifying those people.”

For his part, broker Dustan Woodhouse of DLC Canadian Mortgage Experts believes the government’s real aim is to rebalance the economy away from housing.

“The government sees Canadians making their mortgage payments as a problem because they won’t spend their money in other sectors of the economy,” Woodhouse says. “If the economy contracts just a little bit, Canadians who have big mortgage payments will continue making them and won’t spend money elsewhere in the economy.

“I really believe they’re trying to fix a

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A TIMELINE OF RECENT CHANGES

June 2012 Maximum amortization for insured mortgages reduced to 25 years; maximum LTV for refinancing reduced to 80%; insured mortgages no longer available for homes over $1 million

February 2016 For purchases above $500,000, buyers must put down 10% on the amount above $500,000

October 2017 Insured mortgages must qualify at the Bank of Canada’s five-year benchmark rate

January 2018 Uninsured mortgages must pass a stress test of +2% of the qualifying rate or the Bank of Canada’s five-year benchmark rate, whichever is higher

problem that doesn’t exist,” he continues.

“They’re fearful it will exist, but I genuinely believe the greatest threat to the Canadian economy and real estate sector is government over-regulation. I’ve never seen the

they’re pushing on the brake pedal harder than they realize.”

But despite their bewilderment, brokers are nothing if not prepared. After all, the mortgage industry has weathered a slew of

“As brokers, we have to take a step back and say no to consumers sometimes ... It’s going to be more relevant moving forward” Frances Hinojosa, Tribe Financial government make changes at the pace they’re making them at, and with so little industry consultation. They’re not giving things time to settle in. I’m a little worried

regulatory changes in recent years, and B-20 is simply the latest one, says Frances Hinojosa, a broker and managing partner at Tribe Financial.

“It’s how you find solutions and differentiate yourself,” she says. “There is a lot of room in there for thought leaders ... for people who think and look outside of the box, they will find solutions.”

Hinojosa, however, isn’t convinced that the government prevaricated in its reasons for updating B-20, saying she believes consumers need to be protected from overleveraging themselves.

“As brokers, we have to take a step back and say no to consumers sometimes,” she says. “We need to bring brokers back to a place where they’re also providing financial planning services. It’s going to be more relevant moving forward. Any good broker is going to sit there and look at the overall picture for their client.”

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UPFRONT

ALTERNATIVE LENDING UPDATE NEWS BRIEFS More Canadians could seek unregulated lenders in 2018

By all indications, the number of Canadians who will be forced to borrow from unregulated lenders will only increase this year, according to RateHub co-founder James Laird. “All of the recently added regulation, combined with the [OSFI stress test], will cause more Canadians to borrow from unregulated lenders at higher rates,” Laird said.

“Canadians who need to refinance and no longer qualify will be forced this way, while some who are looking to purchase and no longer qualify with a regulated lender will choose to go this way.”

Home Capital’s originations fall by 85% year-over-year

Home Capital Group has reported that its mortgage originations dropped 85% year-over-year in the third quarter of 2017, down to $385 million. “New loan originations were well below historical levels and are not adequate to replace loan assets reduced through sales,” Home Capital said. “Although the company successfully stabilized its liquidity position and quickly restored deposit funding, the process of restoring loan growth has been slower than planned and is management’s top priority.” However, the lender did report profit that exceeded expectations, with adjusted earnings per share of 37 cents, well above the 25 cents forecast by analysts.

Private lender predicts increase in mortgage fraud

Wasah Malik of private lender Mortgagepedia has highlighted a potential unintended consequence of the new mortgage rules: greater temptation for borrowers to forge documentation so they can qualify

with an A lender. “People want the best interest rate – if they qualify on the B side, they want better interest rates with the A banks, so they’re prone to committing fraud just to save an extra buck per month,” Malik said, adding that he has noticed instances of fraud increasing over the last decade from brokers and borrowers alike, but only because originations have grown commensurately with the population.

Laurentian’s flawed mortgages echo Home Capital troubles

In early December, Laurentian Bank of Canada’s shares experienced their biggest drop in nearly nine years after the lender reported it had found customer misrepresentations on some mortgage loans, echoing the issues that almost sunk alternative lender Home Capital Group in mid-2017. After the Montrealbased regional bank revealed that an audit “identified documentation issues and client misrepresentations” with some mortgages from its B2B Bank unit that were sold to a third-party firm, its shares fell 7.7%, dragging down Canada’s other large lenders.

Brokers turn to credit unions as B-20 rules take effect

Thanks to the latest round of B-20 rule changes, credit unions have emerged as among the most reliable lenders brokers can use. According to Raj Babber, principal broker and owner of CLN Mortgages, credit unions, which operate outside the purview of the OSFI, have been instrumental in closing deals.

“They’re regulated under the [Deposit Insurance Corporation of Ontario], as opposed to OSFI, and they’ve come out and said, ‘As of right now, it’s business as usual,’ and the rates are fantastic,” Babber said. “There’s going to be a big switch to credit unions, with brokering or mortgages being sent there.”

Appetite for private lending grows Observers warn about the possible consequences of highly indebted households seeking unregulated financing

As increasingly stringent lending guidelines continue to restrict their financing choices, more and more Canadians are shifting toward private lenders – and that has some experts concerned about the potential impact on the economy.

“We’re transferring risk from the regulated segment to the unregulated segment of the market,” said CIBC deputy chief economist Benjamin Tal in an interview with Bloomberg late last year. “If we have a significant correction, clearly the unregulated markets will suffer even more because that’s where the first casualties would be. And then you will see it elsewhere.”

Mortgage broker Samantha Brookes agreed with that observation, saying that more than 90% of her business in the past few months has been sent to non-bank and private lenders, compared to the previous 50/50 mix.

For the government, it may be a case of being careful what you wish for. In a bid to prevent a US-style housing crash, the federal government has been moving to reduce its exposure to the mortgage insurance market, first by adding a stress test for insured loans in 2016. That move sent a sizeable proportion of buyers to the uninsured space, where a 20% down payment is required.

But under the latest rules that took effect

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January 1, these borrowers will also need to qualify at a rate two percentage points higher than their offered rate, which could lower mortgage creation by as much as 15%, according to Canada’s bank regulator.

The risks to the financial system haven’t gone away, however. In the uninsured space, mortgages are increasingly going to highly

“If we have a significant correction, clearly the unregulated markets will suffer even more because that’s where the first casualties would be” indebted households and for amortizations for longer than 25 years, according to the Bank of Canada. And increasing numbers of borrowers are turning to lenders whose activities fall outside the scope of federal regulators, including credit unions and mortgage investment corporations.

According to the BoC, credit unions currently hold about 17% of uninsured mortgages, but many expect that number to rise in the coming months.

Q&A

Robert Goodall President and CEO ATRIUM MORTGAGE INVESTMENT CORPORATION

Years in the industry 30 Fast fact Goodall spent seven years with Royal Trust prior to founding Atrium’s manager, Canadian Mortgage Capital Corporation, in 1994

Exercising caution What are things looking like at Atrium Mortgage Investment Corporation right now?

We’re a $625 million mortgage investment corporation. We have business across Canada, but we’re strongest in Ontario and BC, where 90% or more of our portfolio is located. We continue to believe in those two provinces, and particularly in the GTA and Vancouver markets.

We’re continuing to originate a diversified portfolio of mortgages in both the residential and commercial space. In the residential space, we lend on existing single-family homes, as well as low-rise, mid-rise and high-rise developments. In the commercial space, we lend on all the major commercial categories – namely, industrial, retail, office and apartments.

Amid the rush of tightened rules and changing regulations, what are the most significant challenges for a mortgage investment corporation like Atrium?

What we’re doing is being more cautious. We consistently have an average loan-to-value of between 60% and 65% of appraised value, and we’re sticking to that. We think the market may well be soft for the first six months of the year, both in terms of prices for resale homes and new homes. We’re still actively lending, but we’re being careful.

How have all of these changes affected your relationships with clients?

Our largest clients are major developers. On the whole, they’ve had a very successful run these last 10 to 15 years. The mortgage rule changes really had no effect on them up to this point in time; rather, it’s new transactions that we will have to underwrite very carefully.

In terms of existing borrowers, they are in very good shape, whether they are residential or commercial developers.

What industry developments do you think brokers should look out for in the next few months?

I think we’re going to closely follow the volume of sales in Canadian markets to try and get a sense of the impact of these new OSFI rules, as well as the effect of higher mortgage rates. In the residential space, it will be sales volume and benchmark prices that we will focus on the most. On the commercial side, higher interest rates can also mean higher cap rates, which in turn can translate into lower commercial values. So we’re going to watch commercial sales transactions to monitor how cap rates are changing, if at all.

What advice would you give to clients in both segments?

I think it’s definitely the time to be cautious, and to make sure that you’re not stretching too far with leverage. Soft markets are inevitable at some point, and we’ll see whether we’ve reached that point or not. Tighter underwriting rules in the residential market and higher interest rates are both unfavourable developments for the market.

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25/01/2018 7:58:48 AM

UPFRONT

COMMERCIAL UPDATE

Is a slowdown on the horizon?

The commercial segment is chugging along, but a new report warns that it might not stay that way Calgary and Edmonton showing promise

real estate sector is having to re-evaluate challenges and opportunities in a technologically transforming world.”

Canada’s overall office vacancy rate increased by 20 basis points year-over-year to 11.8% near the end of 2017, which can be attributed to ongoing imbalances in supply and demand. Avison Young predicted that uneven demand and a healthy development pipeline will see vacancy rise by varying degrees in five of 11 markets and lift Canada’s overall office vacancy rate to 12.2% by year-end 2018.

“Despite the favourable market conditions, there is a sense that we are late in the cycle and a slowdown is inevitable”

In early January, Avison Young released its 2018 North America and Europe Commercial Real Estate Forecast, which predicted a dynamic future for the Canadian commercial real estate segment, albeit with some potential speed bumps along the way.

“Office leasing fundamentals are reasonably sound, and even the challenged markets in Calgary and Edmonton are showing promise,” said Bill Argeropoulos, principal and

NEWS BRIEFS

practice leader for Canada research at Avison Young. “Across the board, demand from traditional sectors is now augmented by growth in the tech sector and the increasingly prominent co-working movement, which is taking a larger share of the leasing pie.”

However, Argeropoulos warned that “despite the favourable market conditions, there is a sense that we are late in the cycle and a slowdown is inevitable … The commercial

Will residential brokers migrate to commercial?

The government’s emphasis on rental housing and new B-20 guidelines might play a crucial role in compelling brokers to switch from the residential to the commercial sector, according to MCAP’s Mark Yhap. “We think it may have already started happening,” Yhap said. “There’s an opportunity, given that the federal and provincial governments are pushing for rental housing. CMHC has been very accommodating in their policies, so there is a lot of opportunity for residential brokers to tackle multi-family rentals.”

Avison Young expects the industrial market to remain strong, despite the ongoing shift from bricks-and-mortar retail to e-commerce.

The firm predicted a nationwide industrial vacancy rate below 4% in 2018.

The report also observed that investment in Canadian real estate shows no signs of slowing down, despite lack of product, the lateness of the investment cycle and rising interest rates.

“It was another record year in 2017 for investment, with an estimated $32 billion worth of property changing hands in Canada’s major markets and asset classes through mid-December,” Argeropoulos said, “well above the record $28 billion in sales in 2016.”

Vancouver office sale prices reach stratospheric highs

In early November, the 30-storey Waterfront Centre by Bosa Development sold out in a week for more than $2,000 per square foot, well above the $830 average price per square foot for Vancouver commercial real estate. CBRE Limited senior vice-president Aaron Ulinder said the Bosa transaction shouldn’t come as a surprise, noting that the development’s status as a top-tier Class AAA building, along with the premium office space vacancy rate of less than 3% in downtown Vancouver, might have influenced the valuation.

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25/01/2018 7:39:07 AM

Q&A

Steve Foot Managing partner IQ COMMERCIAL MORTGAGE STRATEGY

Years in the industry 6 Fast fact Prior to joining iQ Commercial, Foot worked as a lender for two different banks and managed commercial properties

Challenges and opportunities abound in Halifax What’s the current situation in the Halifax commercial market?

Halifax has seen an explosion of commercial properties being built, both on the multi-residential side and most recently a new convention centre, which adds a significant amount of office space in the Class A segment. What’s mostly driving the market is the multi-res apartment side. Other major drivers are demographics – we’re seeing baby boomers exit their houses, take their equity and rent spaces in their retirement. Also, there’s a flight of people living in rural Atlantic Canada to major centres such as Halifax, which again is increasing the demand for new multi-res supply.

What are the most challenging aspects of the market right now?

You’ve got a big explosion of multi-res growth in the suburbs. Constructing those in areas where they don’t command premium rent means you’re working on very small margins. To be profitable here, you need to be a sophisticated developer with a good track record of costs.

However, the foremost challenge is an incredibly difficult approvals process, especially the length of time it takes developments to be approved. This could be anywhere from 18 months to three years. We’ve got multiple $50 million to $100 million projects in this city that are taking that long to get approved, and that has been challenging indeed.

What trends in the Halifax commercial property segment should brokers be aware of?

We are seeing a transition to newly built Class A offices,

Romspen ready for larger US presence in 2018

Coming off a stellar 2017 in which it notched $2 billion under mortgage administration, Canadian lender Romspen intends to make a lasting mark on the US commercial real estate market, which it first entered during the Great Recession. “As of a couple of months ago, we completed all our work on the creation of a new US-dedicated fund, which went live earlier this fall,” said managing partner Blake Cassidy. “Our new real growth curve of a couple of billion dollars will be further expansion into the US market.”

out of older properties and into newer ones. Also, Halifax and the surrounding area have a very strong rental market with low vacancy in multi-res apartments. On the office and industrial side, there’s an increasing need for up-to-date spaces that have larger clearances, more connected workspaces and high-tech facilities – most of which are available in the newer stock of properties.

Halifax has a very healthy market in the IT sector.

One of the major tech transactions in the downtown area is a 65,000-square-foot leasehold for Volta Labs, an IT incubator. Still, by and large, the Halifax economy is service-based, and we have service centres and regional offices for banks and other major financial institutions, along with large parts of the population in the education and healthcare fields.

What’s your advice for those who are looking to invest in commercial property in Halifax?

Certainly consult with as many professionals who have experience in this market as possible. Also, make allowances for your commercial spaces to be flexible and potentially have the capacity to be repurposed in the future as needed.

What can clients of iQ Commercial look forward to in the next few months?

We are definitely continuing to analyze and support new multi-res development in major centres in Atlantic Canada. We are also watching interest rates closely, so if people are hesitant to move forward or commit to projects, there might be some loss taken on from waiting as interest rates rise.

Edmonton market’s prospects looking up

As of the third quarter of 2017, office vacancies in downtown Edmonton have experienced a minor rise (up to 17.7%), while the suburbs saw a slight decrease (down to a matching 17.7%). Together, these developments point to overall positive prospects for the local economy, according to Craig Hennigar of Colliers International.

“I think it’s probably pretty good news,” Hennigar told the Edmonton Journal. “Really, there isn’t much change downtown, but my takeaway is we’re past the majority of any hiccups caused by the oil price decline.”

High times ahead for Canada’s pot capital

Smiths Falls, Ontario, has seen a revival of fortunes since medical marijuana producer Canopy Growth Corp. set up shop there a few years ago in an abandoned Hershey chocolate factory.

Young people have been relocating to the small town, which lies 75 kilometres southwest of Ottawa; Smiths Falls has also seen renewed interest in commercial property and even the odd bidding war on homes. “People are recognizing that Smiths Falls is a community that’s on the upswing,” said mayor Shawn Pankow.

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25/01/2018 7:38:15 AM

PEOPLE

INDUSTRY ICON

THE NEW GUARD From forward-thinking broker to president and COO of Centum, Chris Turcotte has had a meteoric rise through the mortgage industry – and it appears he’s just getting started

LIKE MANY industry veterans, Chris Turcotte initially cut his teeth at a big bank. But after stints in both financial planning and lending, Turcotte found himself disillusioned with the bank atmosphere.

“I was being trained to push the bank’s agenda and not necessarily the advice,” he says. “You weren’t there to educate them. It was: ‘Do they qualify or not? And they also qualify for three other products? Jam them down their throat.’”

That didn’t sit well Turcotte. So when he was offered a branch manager position at the age of 24, it forced him to do some soul-searching.

“I was entrepreneurial from the start, and I was thinking: ‘Is this really it? Is this the ceiling?’” he recalls. “At the time, I wasn’t willing to leave Manitoba, so I wondered if I had hit the glass ceiling. The alignment of wanting to spend time with these people and give them financial advice and help them, and also thinking, ‘Oh crap, I think I’ve peaked already’ – the combination of those two happening at the same time [forced me to look outside the bank].”

And when he did, he found the mortgage broker channel. He started as a junior mortgage broker, with no industry experience but a thorough knowledge of mortgages. Within a year, Turcotte was out-producing all the other agents in his office combined; six months later, he was out-producing the broker of record and his entire office combined.

However, he soon found himself looking for

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something new after not getting paid on time. “[The broker made excuses], but finally I cornered him after a few weeks of not being paid,” Turcotte says. “He said, ‘Fine, go get the deal sheet off the printer.’ On my way back, I looked down and asked, ‘By the way, what’s this volume bonus thing with a lot of fairly large numbers with my name beside them? I don’t get paid a volume bonus. What is this?’ He turned white as a ghost. I thought he was ripping me off, so I wanted to find something new. I

life forever.’ I thought, ‘He can’t make that statement. That’s not fair.’”

But as it turned out, the owner was right – he was getting on in years and wanted to hand the brokerage off to a young gun. Turcotte accepted his buyout offer and took over the brokerage – an older office in rural Brandon, Manitoba, with orange shag carpet and cedar-panelled walls – in 2010.

“I think we did about 50 deals a year when I started in 2010,” Turcotte says. “By 2011, we

“In my opinion, getting people into a room and spending half a million dollars and revving everybody up for three days [isn’t the best way to teach brokers]. We’re putting all our efforts instead into teaching them how to actually get deals done” opened my eyes and asked what was out there.”

Eventually, Turcotte was approached by a Centum brokerage across the street – but not for the job he thought he’d be taking.

“The owner of the Centum [franchise] took me out for lunch one day,” Turcotte recalls. “His email said, ‘If you come to this lunch, I think I have an opportunity that will change your

had five people and had doubled our size. When I left, we were 18 people across three locations doing almost $100 million in a farming community of 35,000 people.”

In December 2016, at the ripe old age of 35, Turcotte bid his brokerage good-bye and took on his current role as Centum’s president and COO. “It’s been a hell of a ride,” he says.

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PROFILE Name: Chris Turcotte Title: President and COO Company: Centum Financial Group Based in: Vancouver Fast fact: Turcotte has appeared on CMP’s Young Guns list three times in the past four years

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25/01/2018 8:02:05 AM

PEOPLE

INDUSTRY ICON

Laser focused

Building business

One of Turcotte’s major initiatives since taking over as president has been to update Centum’s technology offerings.

“Technology was hugely lagging behind at Centum,” he says, adding that the network had previously made a habit of over-promising and under-delivering on its technological updates. As a franchisee, it bothered him; he wanted to make good on those promises. With that in mind, the company recently launched Centum University.

“It’s a major undertaking because of how many products and how many income scenarios [there are],” Turcotte says. “I’m going to be able to confidently say we’re the only brand

Along with improving his network’s technology, Turcotte is dedicated to helping brokers grow their individual businesses.

“I think if we invest in making each broker more profitable, that means more royalty, and then you don’t have to worry about nickeland-diming them,” he says. “Maybe that’s naive, but it worked in Brandon, [Manitoba]. We invested in people and made sure they knew how to do more deals and get more referrals.

That builds loyalty.”

Along those lines, Turcotte names “the buying, selling and trading of mortgage brokers like they’re cattle” as the biggest issue facing the industry today.

“[The industry] focuses more on how we can own some of these brokers for as long as possible, more than how we can actually deliver for these guys. The ironic part is, if you just put all your effort into delivering, why would they want to go anywhere?” that teaches you how to do the role. Kudos to a lot of other brands that bring in big-name speakers … but in my opinion, getting people into a room and spending half a million dollars and revving everybody up for three days [isn’t the best way to teach brokers]. We’re putting all our efforts instead into teaching them how to actually get deals done – teaching them how to fund more deals, how to find more financing. We just launched the marketing division of Centum University. We’re taking them step-by-step through how to properly set up a Facebook business page and then how to market effectively. That’s how I built my entire business and brand.”

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“Sadly, the ones who are aware of this, who have been in the business for a long time, are strapped down by contracts,” he says. “It’s the most satisfying yet frustrating experience for me right now. I have very well respected and very successful offices in the industry reaching out to me. They love everything we’re doing, they love everything they’re seeing, but they’re strapped down by contracts. “[The industry] focuses more on how we can own some of these brokers for as long as possible, rather than how we can actually deliver for these guys,” he adds. “The ironic part is, if you just put all your effort into delivering, why would they want to go anywhere?”

WHAT’S NEXT FOR CENTUM IN 2018 Chris Turcotte outlines four things he’s focusing on for the network in the coming year.

GROWTH “More and more people are having conversations with us because they see we have a broker’s best interest at heart.”

TECH AND SOCIAL MEDIA “New technology, fully integrated, and a massive social media presence. Our brokers will be generating more leads than ever before.”

EDUCATION “Through Centum University, we’ll continue to support brokers in showing them how to market themselves, present themselves and [provide] deal-specific training.”

RESOURCES “More tools and support than the rest while not charging more to our network.”

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25/01/2018 8:02:11 AM

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25/01/2018 8:03:20 AM

FEATURES

SPECIAL REPORT

HOT LIST Discover the 45 professionals who met industry challenges head-on and set the Canadian mortgage world on fire last year CANADA’S MORTGAGE industry was subjected to a wave of changes in 2017, which kept everyone from corner-office executives to on-the-ground brokers on their toes as the industry navigated the new waters. But despite the challenging environment, these 45 professionals went above and beyond for both clients and peers,

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setting the bar for what makes a great mortgage broker.

From entrepreneurs changing the way buyers experience the mortgage process to philanthropic leaders who make a point of giving back to their communities, from industry veterans to fresh faces, this year’s Hot List is a true reflection of today’s evolving mortgage industry.

www.mortgagebrokernews.ca

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HOT LIST 2 8 2018

HOT LIST INDEX COMPANY

NAME

Blue Pearl Mortgage Group

Nitesh Prakash

34

Partner

Broker ONE

Joe Rosati

28

THE FUNDING DEPARTMENT

Canadian Mortgages Inc.

Bryan Jaskolka

27

CanWise Financial

James Laird

34

CanWise Financial

Matt Leggett

26

Capital Lending Centre

Kendall Marin

28

Capital Lending Centre

Shubha Dasgupta

36

Centum Financial Group Inc.

Caroline Rapson

21

Centum Financial Group Inc.

Chris Turcotte

22

Centum InTouch Mortgage Solutions

Enza Venuto

32

Centum Metrocapp Wealth Solutions Inc.

Anne Brill

30

CityCan Financial

Paul Meredith

29

Creative Soul Communications

Cindy Freiman

30

DLC Canadian Mortgage Experts

Chad Oyhenart

24

DLC Canadian Mortgage Experts

Christine Buemann

36

DLC Forest City Funding

Amber Mihm

35

DLC Forest City Funding – The Valko Team

Tracy Valko

24

Dominion Lending Centres

Dave Teixeira

36

Dominion Lending Centres

Gary Mauris

32

Equitable Bank

Jennifer Anne Burrage

37

Equitable Bank

Suzanne Fleur de Lys-Aujla

24

Equity Financial Trust

Michael Jones

23

Fisgard Asset Management Corporation

Hali Noble

31

GVC Credit Union

Julian Beckett

31

Home Trust

Helen Brito

24

Invis

Adil Mawji

31

JCMortgages

Janna Dawdy

32

Loewen Group Mortgages

James Loewen

23

MCAP

Megan McDonald

22

MCAP

Patrick Soy

27

Merix Financial

Veronica Love-Alexander

27

Mortgage District

Michelle Campbell

36

Pilrock Mortgages

Mary Grace Tatangelo

34

RateSpy.com and intelliMortgage Inc.

Robert McLister

26

Real Mortgage Associates

Meave Phillips

27

Shirl Funk Mortgages

Shirl Funk

22

Street Capital Financial Corporation

Brian Mason

26

ADAM COULTISH

“Adam Coultish is a leader in the industry who is passionate about helping brokers better their business and successfully assist more clients,” one partner says – and that commitment is evident in Coultish’s founding of The Funding Department [TFD]. A national mortgage broker support desk, TFD is a place where all brokers can seek help with challenging files as clients move from the A space to alternative lenders. TFD also promotes broker education and development in the alternative space.

Coultish is also the founder of Niche Lender, a Facebook series that features a new lender each week, showcasing a niche lending solution for brokers. In addition, Coultish’s firm, DLC Coultish Lawton Capital Group, was a finalist at the 2017 Canadian Mortgage Awards for Best Newcomer, Mortgage Broker Firm.

CAROLINE RAPSON Director of franchise services CENTUM FINANCIAL GROUP

Caroline Rapson has more than 21 years of combined experience in the real estate and mortgage industries, including stints with Charlwood Pacific Group and Century 21 Canada. Today, as director of franchise services at Centum Financial Group, Rapson oversees the overall coordination, communication and management of the franchise services team. She is also responsible for fostering and maintaining strategic partnerships with lenders, partners and suppliers. Armed with a wealth of experience in administration, accounting and finance, marketing, and operations, Rapson is focused on the expansion and overall growth of the Centum network.

Last year was a big one for Centum – the network welcomed a new president, launched Centum University, increased its social media presence, supported Easter Seals through Centum Tech4 Kids and most recently rolled out Piper, its new front- and back-end technology for the entire network. Rapson considers having been part of all of these milestones her most notable accomplishment in 2017.

Outside of her role at Centum, Rapson actively supports Mortgage Professionals Canada and CMBA-BC, and is currently serving her second year on the CMBA-BC board of directors.

PAGE

The Funding Department

Adam Coultish

21

The Mortgage Centre YourMortgageYourWay.ca

Lucy Gagliardi

28

The Mortgage Centre YourMortgageYourWay.ca

Terrilyn Moore

26

The Mortgage Centre Durham

Kurt Henry

30

TMG The Mortgage Group Regina

Todd Kristoff

28

Verico Premiere Mortgage Centre

Kerri Reed

34

Verico Xeva Mortgage

Casey Archibald

33

Verico Xeva Mortgage

Andreia Guariento

25

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25/01/2018 8:06:53 AM

FEATURES

SPECIAL REPORT SHIRL FUNK Owner/broker SHIRL FUNK MORTGAGES

Shirl Funk achieved a significant milestone in 2017 when she branched out and set up her own brokerage under The Mortgage Centre umbrella. Funk says the secret to her success has been consistently paying attention to detail and “working with clients through each step of the mortgage transaction, giving them extra confidence to trust that every detail has been looked after.”

Funk entered the mortgage industry in 2009 and eventually joined DLC for five years, where she managed to build great contacts and long-lasting friendships. On top of receiving the Mortgage Protection Plan Award every year since 2013, Funk also received DLC’s Gold Award in 2016, which placed her among the top 15% of DLC brokers in Canada.

CHRIS TURCOTTE President and COO CENTUM FINANCIAL GROUP

MEGAN McDONALD Vice president, sales MCAP

Megan McDonald attributes her success over the past year to her team’s ability to evolve with the changing landscape. In almost 15 years in the industry, McDonald has served as business development manager, servicing director and sales director at MCAP, where she has been responsible for serving the brokers in the BC market, developing mortgage insurance sales and customer service, and growing MCAP’s alternative channel. McDonald is most passionate about sales coaching, having facilitated a coaching program within the company that has inspired leaders to transform their team results.

To give back to the industry and community, McDonald participates in the Mortgage Brokers Association of BC and has served two terms on the board, which led her to win the association’s Individual Partnership Award.

She is also a member of the founding committee of K.A.R.E.S., a program run by mortgage professionals that supports charities and services that help youth reach their full potential. In addition, McDonald makes monthly donations to the SPCA and the Vancouver Food Bank.

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After becoming the industry’s youngest president of a broker network in late 2016, Chris Turcotte had a lot to prove.

In 2017, he spearheaded the launch of Centum University, an online learning environment that shows brokers how to market themselves on social media and present themselves to clients and referral sources, while also providing step-by-step guidance for handling different kinds of mortgage files.

Turcotte and his team also launched Piper, a new consumer-facing website coupled with a robust CRM, which helped Centum firmly establish itself as the leader in providing the most engaging social media content and tools for its agents.

Even so, Turcotte emphasizes that the key to success is “to not talk, just deliver, [because] ideas are nothing without execution. We worked in silence for a lot of 2017, because we were determined to bring so much value to our network … This head office, this amazing team, knows how to work.”

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HOT LIST 2 8 2018

JAMES LOEWEN Owner/broker LOEWEN GROUP MORTGAGES

Despite the Loewen Group’s small size, founder James Loewen and his team of six have been consistently recognized at the Canadian Mortgage Awards. In 2015, Loewen was awarded Mortgage Broker of the Year; in 2016, his office was named Mortgage Brokerage of the Year (Fewer

Than 25 Employees); and in 2017, Loewen Group won the award for Best Customer Service from an Individual Office. The team at Loewen Group has also been among the top 75 Canadian mortgage brokerages by volume for the past five years, coming in at number 14 in 2016 with more than $135 million funded.

Loewen and his team place great importance on family, community involvement and support. One of his proudest achievements for 2017 was teaming up with Food For Kids to help children without sustainable food sources; the brokerage was recognized in January with the Halton Community Spirit Award for their ongoing support of this charity.

Each year, Loewen issues the Loewen Group Business Bursary, a $2,500 cheque to support post-secondary education for those in need. In 2017, he was invited to participate as a panel member on Halton’s Python’s Pit, where he provided insight, mentorship and coaching to young entrepreneurs in the local community. The team also supports local Rotary groups by sponsoring and participating in charitable events.

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Prior to taking the reins at Equity, Jones spent more than a decade in senior leadership positions, including as president and CEO at XCEED Mortgage Corporation, where he oversaw much of the company’s rapid growth. Before joining XCEED, Jones served as VP of commercial mortgages at CIBC Mortgages and held senior positions with FirstLine Trust and BMO.

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25/01/2018 8:07:15 AM

FEATURES

SPECIAL REPORT SUZANNE FLEUR DE LYS-AUJLA Regional business manager, British Columbia EQUITABLE BANK

Since 2016, Suzanne Fleur de Lys-Aujla has worked as a regional business manager in British Columbia for Equitable Bank, where she thrives on building relationships. Fleur de Lys-Aujla has also served on numerous industry committees over the years. She is currently an active member of the CMBA-BC/MBABC and Mortgage Professionals Canada. She is also involved with several social media groups, such as I Love Mortgage Brokering, Mortgage Brokers Get Serious and Women in the Mortgage Industry, which she co-founded and currently has more than 3,300 members nationally. In addition, she is the co-founder of the BC Lender’s Group, which supports mortgage brokers provincially via lender ‘speed dating’ events and informative day-long education sessions.

HELEN BRITO Director, residential lending inside sales HOME TRUST

With a mortgage career that spans more than 20 years, Helen Brito has taken on a variety of roles, and she credits that experience with preparing her for her role as director of residential lending inside sales at Home Trust.

During the second half of 2017, Brito approached Home Trust’s executive team with an idea to create a new team dedicated to rethinking how Home Trust serves broker partners, in light of the new mortgage qualifying rules taking effect this year. “I was thrilled when my proposal was accepted and even more excited to be named to lead this new group,” she says.

“The next few months were spent refining the mandate for the team and staffing the new venture.”

Whether making it easier for new brokers to partner with Home Trust or providing education on the company’s mortgage products, Brito’s goal is to continuously improve and expand relationships within the broker community.

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CHAD OYHENART Mortgage broker and managing director DLC CANADIAN MORTGAGE EXPERTS

In 2007, Chad Oyhenart and his father, Jack, opened a DLC franchise, which Oyhenart took over in 2010. Six years later, his franchise merged with DLC Canadian Mortgage Experts, Canada’s largest DLC franchise, where Oyhenart took on the additional role of managing director. In his new role, he has helped grow the franchise to an annual volume of more than $1.4 billion. Last year, he hired a business coach and implemented a strong focus on improving service and experience that helped propel his success in 2017.

Actively involved in his community, Oyhenart has been part of the board of directors of the Richmond Adult Soccer Association for the past four years.

TRACY VALKO Broker DLC FOREST CITY FUNDING – THE VALKO TEAM

Tracy Valko has been in the mortgage and financial services industries for more than 20 years and has owned her own DLC brokerage in Kitchener, Ontario, for the past seven years. Valko and her team are consistently ranked among DLC’s top 10 performers nationally in terms of quantity and volume of deals. In 2017, Valko became a member of Mortgage Professionals Canada and has been striving for positive change industry-wide.

She prides herself on her ability to work as an advocate for her clients and deliver the best service possible. “Service is at the top of our priorities,” Valko says. “It is what truly sets my team apart.”

www.mortgagebrokernews.ca

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25/01/2018 8:08:07 AM

HOT LIST 2 8 2018

ANDREIA GUARIENTO Mortgage specialist VERICO XEVA MORTGAGES

Brazil-born Andreia Guariento has devoted her career to educating the community of Surrey, BC, about the home purchasing process. Her ultimate goal is to ensure that people know their options in order to arrive at the right decision for their situation.

She believes information truly makes a difference in people’s lives, and she works closely with clients to provide personalized mortgage plans that accurately reflect their needs.

Outside of the mortgage industry, Guariento is involved with the North Shore Multicultural Society, a nonprofit organization that has provided settlement and integration programs to immigrants and refugees since 1991. There, Guariento has presented and conducted workshops on mortgage and personal credit management to groups of new immigrants. She has also facilitated workshops on financial topics – including mortgages, credit history, debt management and financial strategies – for union workers and their families at the United Food and Commercial Workers Local 247.

www.mortgagebrokernews.ca

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25/01/2018 8:08:19 AM

FEATURES

SPECIAL REPORT BRIAN MASON Regional vice president STREET CAPITAL FINANCIAL CORPORATION

Praised by a peer for going “above and beyond in terms of solving problems,” Brian Mason has repeatedly been nominated as BDM of the Year at the Canadian Mortgage Awards, thanks to his tenacious commitment to serving clients. Prior to his mortgage career, Mason worked in the retail industry.

ROBERT MCLISTER Founder RATESPY.COM AND INTELLIMORTGAGE

Few are blazing a trail into digital mortgages like Robert McLister: Not only is he the founder of rate comparison site RateSpy.com, but he also co-founded the online brokerage intelliMortgage with his wife, Melanie. RateSpy.com, which is the only source to list pricing from every Canadian lender that publicly advertises prime mortgage rates, ended the second half of 2017 with 20% year-over-year growth in user traffic.

About a year ago, McLister decided that intelliMortgage would be a digital marketing company first, a technology company second and a mortgage company third. “That decision was a difference-maker,” he says. “You can have the best DIY mortgage experience in Canada, and we think we do, but if few people know it exists, what’s the point?”

So in early 2017, McLister shut down the company to completely retool intelliMortgage.com. The result was a 20% surge in self-directed client applications by the end of the year. “intelliMortgage grew this year by doing what traditional brokers preach against: not meeting clients, not giving one-on-one product recommendations, buying down rates and charging cancellation fees,” he says. “But in doing so, we empowered consumers to find their own best mortgage without bias, avoid pain points in the traditional mortgage process and save thousands.”

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MATT LEGGETT Vice-president and mortgage broker CANWISE FINANCIAL

Matt Leggett joined CanWise Financial as vice-president in 2015 to launch its Alberta

division. Now with more than 40 employees, CanWise Financial is one of the fastestgrowing mortgage brokerages in Canada.

Leggett himself has taken advantage of consumers’ growing preference for online transactions by mastering the use of rate comparison sites and revolutionizing what it means to be an online broker – offering low rates while maintaining exceptional customer service. Since 2015, CanWise has received more than 1,000 five-star Google reviews, more than any other mortgage brokerage in Canada.

Despite 2017 having been one of the more challenging years in recent memory, Leggett was still able to expand his team and increase both mortgage volume and revenue from 2016. He has been part of CMP’s Top 75 Brokers list for the past two years.

TERRILYN MOORE Mortgage broker THE MORTGAGE CENTRE YOURMORTGAGEYOURWAY.CA

Terrilyn Moore’s strong legal background, coupled with her extensive customer service experience, has helped her to truly understand each client’s needs and circumstances, allowing her to secure the very best mortgage product and rate, regardless of a client’s credit situation. A mortgage professional for the past nine years, Moore previously spent more than 15 years working at a law office, where she handled real estate transactions (purchases, sales and mortgages), survey development, estates, accounting, collections and office management, all of which laid a solid foundation for her smooth transition into mortgage brokering.

Moore built her brokering career from the ground up and is now a top producer who has secured a strong reputation in the industry for her hard work and sound ethical standards. She has assembled a team of five – four agents and a full-time assistant – that she coaches and mentors to help ensure their success, while also continuing to build her own business.

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25/01/2018 8:08:32 AM

HOT LIST 2 8 2018

PATRICK SOY Account manager, sales – Eastern Canada MCAP

Patrick Soy has been in the mortgage industry for more than a decade. Since age 18, he has held roles as a mortgage fulfillment specialist, broker development coordinator, residential mortgage specialist, renewal account manager and now account manager for sales in Eastern Canada for MCAP. In his current role, Soy recruits, trains and creates partnership plans with brokers in Eastern Canada to maximize MCAP’s sales revenue. Eventually, he hopes to move into a senior leadership position at the company in order to define MCAP’s success, become a mentor to young mortgage professionals and make an impact on the industry. Named one of CMP’s Young Guns in 2017, Soy believes the key to his success has been to “see the value in every relationship, whether it’s with peers, colleagues or broker partners – and never stop networking, as you are the brand to your success.”

Soy gives back to the community by volunteering at homeless shelters and seniors homes, as well as spending time with kids with Down’s syndrome.

MEAVE PHILLIPS Mortgage agent REAL MORTGAGE ASSOCIATES

RMA’s Meave Phillips is, in the words of a colleague, “efficient in conducting business and has fantastic deals. If this is year one of a relationship together, then the opportunities are endless in terms of what Meave can accomplish!”

BRYAN JASKOLKA Vice-president of business development CANADIAN MORTGAGES INC.

Since the inception of Canadian Mortgages Inc. in 2005, Bryan Jaskolka has been a managing executive at the company,

which started as a mortgage brokerage and has now expanded into additional divisions, including private lending, mortgage administration and the CMI Mortgage Investment Corporation.

Throughout his career, Jaskolka has been involved with thousands of residential mortgage transactions, and he has expertise in private mortgage underwriting, administration and enforcement. A licensed real estate agent through CMI subsidiary Canadian Real Estate Inc., Jaskolka is currently working to complete his real estate broker’s licence.

Jaskolka names “being blessed with an amazing team that helps support me and truly cares about what they do each and every day” as a critical factor in his success in 2017, including enabling him to fund more than $100 million in private mortgages.

VERONICA LOVEALEXANDER Regional vice-president, Ontario, Quebec and Atlantic Canada MERIX FINANCIAL

Over the course of her career, Veronica Love-Alexander has grown her skill sets within real estate, mortgage brokering, associations and lending. Since 2015, Love-Alexander has called Merix Financial home, currently serving as regional vicepresident for Ontario, Quebec and Atlantic Canada, representing the Merix, Lendwise and NPX brands. In 2017, she received the Ontario WIMI of the Year Award from Women in the Mortgage Industry.

For Love-Alexander, “plain old hard work and dedication” are the secrets to success. In 2017, her proudest achievement was keeping her team of nine business development directors positive and productive while the mortgage world was turned on its head. “We took last year as an opportunity to be true advisors on deals, policy, compensation, strategic business planning, etc.,” she says.

Giving back is a true passion for Love-Alexander. “I try to incorporate giving back into work events and invite work colleagues to fundraising opportunities, like the Make-A-Wish Rope for Hope event, where a group I formed called Women Wish Granters rappels 30 stories down Toronto City Hall to help grant wishes.

We’ve raised more than $109,000 in three years, and as a result have granted 11 wishes for children affected by terminal diseases and their families.”

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25/01/2018 8:08:42 AM

FEATURES

SPECIAL REPORT LUCY GAGLIARDI Mortgage agent THE MORTGAGE CENTRE YOURMORTGAGEYOURWAY.CA

JOE ROSATI CEO BROKER ONE

Joe Rosati began his career in the financial services industry in 1982 as a loan officer with TransCanada Credit. A year later, he joined the broker division of Guaranty Trust as an underwriter, and he hasn’t left the broker space since.

He has held senior executive roles with financial institutions such as Scotiabank, MCAP and Home Trust. After 30 years of working on the lending side of the industry, Rosati took on the role of CEO of Broker Financial Group in May 2016. A few months later, BFG acquired the Real Mortgage Associates network; recently, the combined network was rebranded as Broker ONE, which Rosati heads as CEO. “Great growth is built on great partnerships – not only with our brokers, agents and affiliates, but also building strong relationships with lenders, industry suppliers and business partners,” Rosati says. “We have been building strong offerings with our partners in home and auto, including group benefits for our brokers, agents, affiliates and their family members. We also just launched auto loans in Canada ... this is a valuable tool for our network, in having the ability to service their client base with the purchase or refinance of an automobile. Stay tuned for many more announcements of new products and services that we are cultivating for Broker ONE.”

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Lucy Gagliardi has built her reputation as a client-focused and goal-oriented mortgage professional. Her passion to help individuals achieve their goals has led to plenty of accolades from both clients and peers. “Lucy is a great asset to the company,” says one colleague. “She oozes confidence and ensures success in whatever challenge she takes on.”

Recently, Gagliardi was a guest on the show “On The Market” on 105.9 The Region, where she discussed new mortgage rule changes with Realtors. She also runs a weekly Facebook Live video called “Mortgage Minutes with Lucy G.” to help educate consumers.

“The secret to my success in the last year has been my focus on building relationships that foster the mindset of finding the right solution for the client, as well as a mindset of transparency and integrity,” Gagliardi says. “When you do things for the right reasons, with the right people and with integrity, everything just falls into place.”

TODD KRISTOFF Mortgage broker TMG THE MORTGAGE GROUP REGINA

Todd Kristoff joined the TMG Regina Team in 2014, where he’s found success by maintaining a relational, client-focused approach to mortgage lending. His persistence in investing significant time to better understand his clients’ needs and thoroughly discuss their options has garnered Kristoff quite a few accolades from TMG, including the Rising Star Award in 2016 for top year-over-year percentage volume growth in the Prairies, and the Summit 20% Award in 2017 for being in the top 20% of TMG brokers across Canada.

Outside of TMG, Kristoff serves on several football-related volunteer boards and alumni associations, including for the Regina Thunder and the University of Regina Rams.

KENDALL MARIN Principal broker CAPITAL LENDING CENTRE

For more than a year, Kendall Marin has served as principal broker and managing partner at Capital Lending Centre. Focusing primarily on the GTA, Marin offers homebuyers access to rate information and mortgage options from a wide range of lenders, including most of the major banks and lending institutions. Prior to joining Capital Lending Centre, Marin served as principal broker at InTrend Mortgage.

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25/01/2018 8:09:08 AM

HOT LIST 2 8 2018

PAUL MEREDITH Mortgage broker CITYCAN FINANCIAL

Paul Meredith marked 2017 with multiple notable achievements. In April, he released a book aimed at educating consumers, Beat The Bank: How To Win The Mortgage Game In Canada, which immediately took the number-one spot on Amazon’s bestseller list. “As I’m usually working 60 hours per week or more, my weekends were completely consumed with writing,” Meredith says. “It was an enervating process involving a lot of sacrifice. My motivation was fuelled solely by my passion for mortgage brokering and ensuring Canadian mortgage shoppers receive the right advice, regardless of whom they choose to handle their mortgage.”

A couple of months later, Meredith became the exclusive mortgage broker for the second season of the real estate reality TV show Top Million Dollar Agent, which premiered on Slice TV in June and on Global TV in October.

Meredith is big on giving back, regularly donating a portion of his income to Raising the Roof, a charity committed to ending and preventing homelessness in Canada.

He is also a volunteer skipper for the Blind Sailing Association of Canada and is one of their top fundraisers each year at the Toronto Boat Show.

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25/01/2018 8:09:16 AM

FEATURES

SPECIAL REPORT KURT HENRY Mortgage broker THE MORTGAGE CENTRE DURHAM

CINDY FREIMAN President CREATIVE SOUL COMMUNICATIONS

A former journalist who has focused on Canada’s real estate and mortgage broker industries for the past 12 years, Cindy Freiman launched Creative Soul Communications in 2017 to assist busy professionals in growing their businesses by getting their important messages across to existing and potential clients and referral partners. “Working hard over the years and forging strong relationships made the transition to becoming a business owner seamless,” Freiman says.

Prior to setting up her own business, Freiman was the director of public relations and communications for DLC, where she helped raise the network’s profile while boosting awareness of the importance of working with a mortgage broker throughout the home-buying and financing processes. Freiman then moved to CAAMP to serve as director of marketing and communications, spearheading the organization’s rebranding to Mortgage Professionals Canada to better appeal to consumers and continue to educate them on the value of using a mortgage broker.

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Backed by a well-rounded, highproducing team, Kurt Henry managed to meet the challenges of 2017 head-on, originating 286 mortgages with a volume of $93 million for the year. He was also recently accepted into an elite coaching program in the US, which will equip him to provide more value to his team, clients and referral partners.

For Henry, the secret to success is “working with a team that cares for each other like family, having amazing clients and referral partners, and recognizing the importance of [offering] the five-star client experience.”

Henry and his team are passionate about giving back to the community,

ANNE BRILL Principal broker CENTUM METROCAPP WEALTH SOLUTIONS

After several years of working for major banks, Anne Brill opened her own company, Think Tank Financial, in 2001. Since then, Brill has established herself as one of the most well-known and sought-after mortgage brokers by clients and lenders alike. Her dedication to exceed clients’ expectations and guarantee their satisfaction is evident

setting aside a portion of every mortgage they originate and donating the sum at the end of the year to local charities. In addition, Henry’s team hosts an annual golf tournament to support Hearth Place Cancer Support Centre; in two years, the event has raised $30,000.

in her commitment to find more efficient alternatives to the traditional banking system. She has garnered numerous awards, including one from Verico for closing a commercial mortgage worth $5 million, along with Top Performer Awards from DLC Prestige and Invis.

Brill joined Centum Metrocapp Wealth Solutions in 2012 and shortly received Centum’s Optimus Platinum Award, as well as recognition for the 206% increase in business the company experienced. Brill received the Optimus Platinum Award again in 2013 and won the Optimus Emerald Award in 2015 and 2016. She has also been a finalist for three Canadian Mortgage Awards, including Mortgage Broker of the Year, and has been awarded CEO status by Street Capital for outstanding leadership in real estate finance, professional mortgage consultation, business standards and ethics. Meanwhile, Metrocapp has received Centum’s Optimus Platinum Award three times in recent years and continues to grow its book of business, its mortgage agent base and its reputation in the industry.

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25/01/2018 8:09:45 AM

HOT LIST 2 8 2018

ADIL MAWJI

HALI NOBLE

Mortgage broker

SVP, residential mortgage investments and broker relations

INVIS

The current president of the Alberta Mortgage Brokers Association, Adil Mawji’s focus is on helping Canadians become homeowners and gain financial stability. Mawji also serves as a member of the mortgage broker advisory committee for the Real Estate Council of Alberta. As one industry peer puts it, “[Adil] knows and understands the importance of providing homeownership for his clients. He is honoured to be a voice for his colleagues in the industry, bringing forward concerns and developing ideas and initiatives to help everyone in the industry become successful. He is known as the go-to guy for agents, and he is considered a mentor in this industry.”

JULIAN BECKETT Retail credit manager GVC CREDIT UNION

Julian Beckett’s financial career began at the Greater Vancouver Community

[GVC] Credit Union 13 years ago. Since then, his passion for self-development and helping people has only grown. He briefly moved to TD Bank, where he gained high-paced and sales-driven experience, but he eventually returned to his credit-union roots at Compensation Employees Credit Union before returning to GVC. As GVC’s retail credit manager, he is tasked with centralizing the lending processes of four branches, diversifying the existing broker channel and providing ongoing training to existing managers and lenders.

Beckett’s passion and desire to educate and assist hard-working individuals and families plays a key role in his success.

Outside of the industry, Beckett gave back in 2017 as a volunteer for Cops for Cancer and the John Dumont Classic.

FISGARD ASSET MANAGEMENT CORPORATION

Hali Noble is the founding director and SVP of residential mortgage investments and broker relations at Fisgard Asset Management. In her 25 years at Fisgard, Noble’s experience, values and integrity have ensured customer service levels are at the highest standard. Her support of mortgage brokers’ success is evident in her ability to encourage brokers to educate themselves about MIC lending by working closely with Fisgard underwriters to ensure a good experience, even if Fisgard isn’t able to do the deal.

Noble has been extensively involved in industry associations, serving as president of MBABC, as well as chair of Mortgage Professionals Canada. She has received several industry awards, including induction into the Canadian Mortgage Hall of Fame and the MBABC Pioneer Award for Lifetime Achievement in the Mortgage Industry. In 2013, she was named one of WXN Canada’s Top 100 Most Powerful Women in the Trailblazers and Trendsetters category, and she has been named to CMP’s Women of Influence list a number of times.

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25/01/2018 8:10:46 AM

FEATURES

SPECIAL REPORT

ENZA VENUTO Principal mortgage broker CENTUM INTOUCH MORTGAGE SOLUTIONS

JANNA DAWDY Mortgage agent

With more than 45 years of experience in the financial industry, Enza Venuto began her career in banking and became a business owner and mortgage broker in 2009. She is a proven leader in the field, having brokered more than $2.1 billion in funded mortgages to date.

Last year was a successful transitional year for Venuto – she worked the first half as owner and principal broker at an awardwinning brokerage before beginning a new chapter in June with the launch of InTouch Mortgage Solutions, a boutique brokerage that promises to deliver a simplified mortgage experience.

Venuto’s passion for finance, commitment to service excellence and focus on what’s best for clients earned her many accolades during 2017, including Centum’s Top Mortgage Brokerage Award and spots on CMP’s Top 75 Brokers and Women of Influence lists.

Having survived the challenges of running her own business, Venuto is a strong supporter of women in business and local entrepreneurs. She is frequently invited to meet with teams of real estate investors and Realtors who seek her expertise in financing, and she readily shares her knowledge and provides clients and agents with essential coaching and planning strategies.

JCMORTAGES

Consistency has earned Janna Dawdy the number-one spot in Canada with Real Mortgage Associates in terms of origination volume and transactions for the past two years. “Even when you think [something’s] not working or going unnoticed, it will,” she says. “It can sometimes take two or three years to see the fruits of your labour, but you will see the rewards if you stay consistent.”

After 22 years in the industry and 15 years of home office collaborations, Dawdy’s proudest achievement was the opening of her first JCMortgages office storefront in January 2018.

Dawdy works closely with her team to provide a consistently innovative mortgage experience for each and every client. Dawdy is not only an advisor and trusted consultant for her clients, but also for industry professionals. She regularly arranges seminars and Lunch & Learn events to give comprehensive updates on changes in the industry and discuss emerging ideas and trends.

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GARY MAURIS Co-founder, president and CEO DOMINION LENDING CENTRES

Gary Mauris is the co-founder, president and CEO of Dominion Lending Centres; CEO of Mortgage Centre Canada; and chairman of Mortgage Architects. Together, these companies account for almost 40% of all broker-originated mortgages in Canada. A serial entrepreneur, Mauris sold two companies to the public market before helping to launch DLC. He has been recognized as a finalist for the Ernst & Young Entrepreneur of the Year Award in 2011 and won the 2016 Tri-Cities Chamber of Commerce Business Leader of the Year Award. He was also inducted into the Canadian Mortgage Hall of Fame in 2016. His companies have won multiple industry awards and have been recognized by Profit magazine as being among Canada’s fastest-growing companies.

As a business leader, Mauris is regularly called upon to share his views with media outlets throughout Canada. He was selected to be part of CBC’s Face the Nation, where he had an open and frank discussion with Prime Minister Justin Trudeau on a variety of economic topics. In 2017, he spoke on behalf of the industry during Standing Committee on Finance hearings related to mortgage rule changes.

Outside of the industry, Mauris has led multiple socially conscious initiatives. He is the co-founder and president of the I AM SOMEONE Ending Bullying Society and the co-founder of Bikes for Kids, a national program that collects new bicycles for underprivileged children.

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25/01/2018 8:11:19 AM

HOT LIST 2 8 2018

CASEY ARCHIBALD Partner VERICO XEVA MORTGAGE

Casey Archibald is a driving force behind one of the fastest-growing mortgage brokerages in the country, Verico Xeva Mortgage. In 2016, Archibald was named partner in the firm after having doubled the size of Xeva when he joined two years prior. With a team of more than 80, he co-manages agents all across British Columbia and also oversees marketing initiatives and compliance for the firm.

When asked what propelled his success in 2017, Archibald says, “I’m fortunate to make the conscious choice of who I surround myself with each and every day.

My Xeva family is such an incredible group, and we rise by lifting each other.”

As a founding member of K.A.R.E.S, a mortgage industry collective that helps underprivileged youth through housing and educational scholarships, Archibald is committed to giving back and encouraging others to do the same. He is also an active champion with Out in Schools and was a committee member for the Mortgage Professionals Canada National Conference in Niagara Falls. He also serves as champion for the BC chapter of Mortgage Professionals Canada. In recognition of his contributions to the industry, CMBA-BC honoured Archibald with its Individual Partnership Award in 2017.

“I’m proud of my professional achievements in 2017,” Archibald says. “However, what was most meaningful to me was being able to give – to my industry, to my community and also to complete strangers.”

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25/01/2018 8:11:40 AM

FEATURES

SPECIAL REPORT

MARY GRACE TATANGELO Mortgage broker PILROCK MORTGAGES

After a terrible experience with a mortgage in 1999, Mary Grace Tatangelo entered the industry herself, and she

has since actively educated and trained clients on how to take on responsible debt, setting them up for success for many years to come.

Since 2008, Tatangelo has funded more than 500 loans for a total volume of $150 million. “I love what I do,” she says. “I love sharing the knowledge I know – I just want to make a difference and help young purchasers to make informed decisions.”

Outside the industry, Tatangelo has been involved with the nonprofit Hospice Vaughan. She also actively co-chairs the Capital Campaign fundraising activities; to date, she has helped raise more than $2 million. In addition, she has been recognized by the City of Vaughan as an active community volunteer, and in 2017, she won the award for Community Service Effort of the Year at the Canadian Mortgage Awards.

NITESH PRAKASH President BLUE PEARL MORTGAGE GROUP

Nitesh Prakash has been in the mortgage industry for more than 10 years. At his core, he believes in developing the people around him and having compassion for the communities he and his team service. His driving belief has always been that “a company that rewards innovation is a company that truly excels in being innovative; it is a culture where everyone knows that in order to create something new, change is eminent and risks are high, but the overall rewards are much greater – where aiming high and having a big, bold idea is not frowned upon, but encouraged. Mistakes will happen, but it’s what you learn and do after is what counts.”

That belief has trickled through the entire Blue Pearl Mortgage team, which knows that in order to provoke an innovative thought process, you need to leave limiting beliefs behind, pushing the envelope and doing things that have never been done before.

JAMES LAIRD President CANWISE FINANCIAL

Before starting CanWise Financial, James Laird launched several successful entrepreneurial ventures and built a successful business with True North Mortgage. In 2017, Laird led CanWise’s growth from 25 team members to 38, while mortgage volume increased from $930 million to $1.1 billion. In addition, CanWise was recognized with the award for Best Newcomer, Mortgage Broker Firm at the 2017 CMAs. Apart from his success at CanWise, Laird is also part owner of the mortgage comparison site RateHub, which was named as one of the fastest-growing technology companies in Canada.

KERRI REED Vice president, Ontario VERICO PREMIERE MORTGAGE CENTRE

Kerri Reed led the way for Premiere Mortgage Centre’s Ontario branch to achieve upwards of 20% growth in 2017, despite the changes in the industry. “We all worked very hard to stay in front of the obstacles and worked together to break down the ones in front of us,” she says.

Reed has been recognized with the Verico National Network Ambassador Award, but she understands that no one succeeds alone. “The magic is in the people,” she says. “We are a group overflowing with leadership, support and excellence. We are accountable and work well together. I am so grateful for the agents and brokers of Premiere Mortgage Centre.”

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25/01/2018 8:11:50 AM

HOT LIST 2 8 2018

AMBER MIHM Mortgage agent DLC FOREST CITY FUNDING

After spending a decade working in mortgage lending at a bank, in 2016, Amber Mihm joined DLC Forest City Funding, where she oversees a team of nine agents at Forest City’s Hyde Park branch.

“It was a scary thing to leave an institution I worked for a very long time and go ‘independent,’” Mihm says. “Fortunately, I am not independent, since I work for the fastest-growing brokerage in the country; they have embraced me with the most generous arms and given me opportunities [that] I thought would take years, not months, to achieve.”

During her short tenure as a broker, Mihm has discovered a passion for commercial lending; going forward, she plans to pursue even more complex transactions while continuing to grow her

client base and experience in all types of lending. Mihm funded more than $20 million in 2017 and has built a $10 million pipeline for 2018, which will put her well on her way to achieving her goal of funding $30 million this year. She was also recently nominated for an Our London Readers’ Choice Award.

“The ‘secret’ to my success in the past year has been embracing all the reasons why I stand out and using them to set myself apart from the competition,” she says. “That’s the beauty of this business – being ‘different’ can be so advantageous!”

Outside of the office, Mihm is a sponsor of the FC London Mini Stars soccer team and an avid supporter of the London Women’s Community House and the London Sexual Assault Centre.

Email lender notes, application, and credit bureaus to:

deals@vwrcapital.com D IMITRI K OSTUROS

Chief Operating Officer dimitri@vwrcapital.com

P AULA H UTTON

BDM - Prairies paula@vwrcapital.com

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25/01/2018 8:12:00 AM

FEATURES

SPECIAL REPORT MICHELLE CAMPBELL Principal mortgage broker MORTGAGE DISTRICT

Within a short period of time, Michelle Campbell opened her brokerage, Mortgage District, while juggling the tasks of mentoring her new team and keeping up with her own clients.

But all that hard work has paid off – Mortgage District has only grown since its inception as Campbell and her team work to help homebuyers reach their goals.

Campbell’s accomplishments outside of Mortgage District include being a founding committee member of Kares.ca, which focuses on empowering marginalized youth through engaging programs and services that make a substantial impact at a critical time.

In addition, Campbell is a member of Women in the Mortgage Industry and a Mortgage Professionals Canada events champion.

DAVE TEIXEIRA Vice-president of operations, public relations and communications DOMINION LENDING CENTRES

SHUBHA DASGUPTA Mortgage broker CAPITAL LENDING CENTRE

When he joined the industry in 2008, Shubha Dasgupta focused his efforts on addressing the adversity of the then-down market with diligence and a direct approach. Dasgupta has found great success in bringing care and attention to his clients, which has established him among the top brokers across Canada. Most recently, Dasgupta co-founded Toronto-based Capital Lending Centre, which currently boasts more than 60 agents.

Dasgupta is dedicated to giving back to the Toronto community and is committed to improving the lives of those living with cancer through large-scale fundraising and awareness campaigns.

Prior to entering the mortgage industry, Dasgupta spent eight years leading a large group of volunteers for the Canadian Cancer Society. He co-founded and currently chairs CMI-Cancer Fighters, a group of Canadian mortgage industry professionals dedicated to the fight against cancer.

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In 2015, Dave Teixeira joined Dominion Lending Centres, where he serves as the VP of operations, public relations and communications. Teixeira was responsible for creating DLC’s award-winning “We’ve got a mortgage for that” advertising campaign. He also serves as a featured speaker at various industry events and hosts weekly technology segments on Global TV, CKNW and CFAX radio in BC. Heavily involved in his community, Teixeira has served as chair of the Terry Fox Hometown Run, director of the Terry Fox Foundation Advisory Committee, vice-chair of the Adoptive Families Association of BC, vice-chair at Douglas College and co-founder of Pink Shirt Anti-Bullying Day. His contributions to the community earned Teixeira the Queen Elizabeth II Diamond Jubilee Medal in 2012.

CHRISTINE BUEMANN Mortgage broker DLC CANADIAN MORTGAGE EXPERTS

Even before she became a mortgage broker in 2010, Christine Buemann had a passion for investing in real estate. Based in northern British Columbia, Buemann services a smaller market where she believes in getting involved and helping others whenever possible, valuing the relationships she has developed over the years.

Buemann attributes her success to the support of her team and community, and she is always eager to share and engage with other brokers in an effort to raise the bar of professional standards in the industry. Apart from her brokerage duties, Buemann joined the Northern BC Real Estate Board as a public director this year.

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25/01/2018 8:12:30 AM

HOT LIST 2 8 2018

JENNIFER ANNE BURRAGE Regional business manager, Atlantic Canada EQUITABLE BANK

Upon joining the mortgage industry in 2008, Jennifer Burrage hit the ground running, despite the global economic crisis. She quickly developed strong, trusting relationships with her lender and broker clients, industry partners and mortgage organizations such as Mortgage Professionals Canada. Currently, Burrage serves as a regional business manager at Equitable Bank, servicing brokers across

Atlantic Canada. As the first representative for Equitable Bank in the region, she has continued to develop solid relationships with her broker customers and partners, both locally and nationally.

With a deep passion for the mortgage broker industry, Burrage has served on the board of directors for CMBA Atlantic since 2014. She is also involved in planning industry events with both MPC and CMBA Atlantic, while serving as an active member of Women in the Mortgage Industry. In 2016, she was nominated as Best Newcomer BDM at the Canadian Mortgage Awards, and she won the Most Improved BDM Award at the 2017 CMBA Atlantic Conference.

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SPECIAL PROMOTIONAL FEATURE

COMMERCIAL SERIES

It’s time to look at commercial In this first part of a special series on commercial brokering, Paul McGill of The Financing Hub looks at a few of the reasons why you should consider moving into the commercial space – and why you should do it now THE REAL estate landscape in Canada is changing, but that doesn’t mean opportunity is disappearing. In fact, the time to transition to commercial brokering is now.

Over the coming months, this series of articles will look at the fundamentals of commercial real estate financing. I will touch on some of the differences between commercial and residential placements, as well as marketing ideas to help you build your commercial business. To launch the series, I thought it was appropriate to start by looking at why you should consider making the move to commercial brokering.

For many brokers and agents, the commercial side has always felt like a bit of a black hole, with different lenders, different acceptance criteria and different documentation – lots of documentation. Given the strong volumes in the residential market over the last few years, why go to all that effort to learn your way around what seems to be a more difficult area?

Frankly, it appears the regulators have now answered that question for us by tightening the rules and increasing the requirements on residential lending. Today, the effort to place a residential deal (and the documentation needed to support that

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submission) is not that far off from what is needed to place a commercial transaction.

Commercial transactions are typically much larger than residential, and many see the potential fee increase as a strong incentive for what may only be marginally more effort.

Yes, your initial venturing into the world of commercial will likely seem trying, but think back to your first few residential deals.

I suspect getting them across the goal line was just as challenging at the time.

Many agents who have already moved some or all of their business over to commercial financing tend to come back with comments like “it’s more interesting,” “the borrowers are more realistic with their expectations,” or “I’ve already started to build a reputation in my chosen niche area.”

REASON

1

It’s more interesting.

Consider the variety of transactions out there in the commercial space.

Each type of commercial structure needs a slightly different approach. Multi-tenant office buildings will have revenue considerations that won’t apply to a single-use factory. How you as an agent structure a land purchase versus a hotel renovation will

be very different. Differences in size, use and configuration, even within the same property class, will generate different requirements.

Your borrowers will differ as well, from small businesses to large corporations, from private developers to large investor groups. I guarantee no two will be the same.

REASON

2

Borrowers have more realistic expectations.

Whether your borrowers consider themselves developers, investors or single property owners, they are all businesspeople,

www.mortgagebrokernews.ca

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THREE REASONS WHY YOU SHOULD CONSIDER COMMERCIAL There are plenty of reasons to consider the commercial market, which I like to think of as the ‘pond factors.’

and they’re all in this business to generate money from the properties they hold. Their focus is most likely on what they can live with to get this done so they can move on to their next task. To be clear, no one is going to ignore costs or throw away money, but you will likely find that the norm is more about getting a deal closed than holding out over some fractional rate difference.

REASON

3

The government is working to cool the residential housing market through more restrictive lending rules, which means the residential pond is going to shrink.

The size of the commercial pond in 2016 was estimated

by CMLS Financial at approximately $215 billion; the firm also projected growth in many of its key sectors.

The sheer number of brokers and agents fishing for residential deals versus those fishing in the commercial pond puts the odds a little more in your favour.

You can build a niche.

For those not interested in a constant diet of variety, the good

With this in mind, why not consider dropping your line in a different pond this year?

www.mortgagebrokernews.ca

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SPECIAL PROMOTIONAL FEATURE

COMMERCIAL SERIES

REASON

4

Most Canadian brokers and agents can expect to face challenges generating the same levels of income this year as they have in past years.

Committing even a small portion of your business to commercial placements this year can help bridge any gaps news is that it’s easy (and profitable) to build a business around one or two niche areas in commercial mortgages. With all the various types of properties, you can define your own niche and build a reputation around it.

For instance, the growth of e-commerce is making commercial distribution centres a fast-growing category. Who will focus on funding all those new facilities in southern Alberta or southwestern Ontario or the Atlantic provinces?

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It generates revenue.

If I haven’t persuaded you to look into commercial yet, the opportunity to generate revenue for you and your brokerage should be the most compelling reason. Because commercial transactions are typically larger than your average residential transaction, even a comparable 1% fee generates a higher return. Thanks to market slowdowns and regulatory restrictions, most Canadian brokers and agents can expect to face challenges generating the same levels of income this year as they have in past years.

Committing even a small portion of your business to commercial placements this year can help bridge any gaps.

The good news is that there’s plenty of help out there for those looking to get started in commercial. There are any number of patient lenders that understand that agents new to the commercial side will need a little extra help the first time out. For those of you who would typically just refer a commercial opportunity on to a more experienced commercial broker, next time ask to co-broker the deal instead. If you have the right partner, co-brokering is a great way to learn the ins and outs.

There are also online platforms like ours that can help you structure and place commercial transactions so you can take advantage of the opportunities in the commercial mortgage market.

I hope I’ve captured your interest and that you will return to this series as we roll it out in the coming months. With each article, we will take you in a new (and hopefully interesting) direction that adds to your knowledge of the commercial sector in order to show you how you can better serve your borrowers.

Paul McGill is president of The Financing Hub, dedicated to delivering effective digital solutions for commercial real estate financing.

www.mortgagebrokernews.ca

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25/01/2018 8:17:51 AM

CMA1

R

12

F Y E A RS O

G

OGNIZIN EC

NCE ELLE EXC

COMING SOON

YOUR 2018 CMA FINALISTS ARE REVEALED You nominated in huge numbers for the 12th annual Canadian Mortgage Awards – and we’d like to thank each and every one of you for making your voice heard.

We’re currently putting together the shortlist of the industry’s best and brightest. The massive reaction to our call for nominations is testament to a thriving Canadian mortgage sector.

The full list of 2018 Finalists and Awards Gala reservation details will be posted on

www.canadianmortgageawards.com #MortgageAwardsCA SPECIAL THANKS TO OUR AWARD SPONSORS

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24/01/2018 PM 25/01/2018 11:37:07 8:17:55 AM

PEOPLE

BROKER INSIGHT

Investing in success Carmen Campagnaro of Pro Funds Mortgages tells CMP how she’s grown her firm over the past two decades by focusing on real estate investors

CMP: What made you first get into the mortgage broker industry?

Carmen Campagnaro: I used to design and manufacture clothing in the ’90s, but as an industry, it was very challenging.

Someone I knew suggested I get into the mortgage business, and I ended up following their advice. I literally started out in my basement with a fold-out table, my washer and dryer beside me, and my little ones running around upstairs. I started with a client who called me looking for a mortgage that no one wanted to touch, but I worked it really hard and finally got him approved.

He was so grateful, and little did I know that he was a public speaker for an investment training company. At the next event he spoke at, he put my name on the overhead projector in front of 150 investors as the best mortgage broker to call!

I’ve always been passionate about real estate, and I started investing when I was 18, so I loved that side of my business. I’ve now been assisting real estate investors with their investment financing for more than 20 years, and the company has grown tremendously.

CMP: How would you describe your time in the industry?

CC: There have been a lot of challenges, but I would also say that I love the industry. I like helping people, and it’s very rewarding to make such a difference. However, the amount of institutional and market changes

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in those 20 years have really affected what you’re able to get for people, and that’s why private money is such a big aspect of our company now.

In 2008, the new B-20 rules were launched and reduced the loan amounts you can get on income-producing properties.

Then in 2010, they changed again with even more restrictive regulations. In 2012, new regulations targeted self-employed people.

All of the rule changes have opened up a large window of opportunity for people to lend their cash or equity to people looking for financing. There is now tons of money to be made by investors and a lot of funding opportunities for people looking to purchase who would typically be declined by a bank.

That’s been a major direction for us.

clients are protected and are getting the service they need. When we’re working with investors who are putting their money into mortgage investments, we have a zero loss ratio. So if anything happens, our company will cover the loss. It’s all about how we treat our people. We are more of a big family here.

CMP: How has business been in your region this year?

CC: Burlington is booming; business has been really good, extremely busy. We service all of Ontario and fund mortgages outside of Ontario, too. Many people are buying income-producing properties, and it’s been very, very busy. It has been busier in the past three to five years than I’ve ever seen it.

CMP: What has been the secret to your success?

CC: I put it down to our culture here – the

CMP: What are your views on the recent tightening of mortgage approval rules?

CC: Personally, I don’t think it was the

way we are with our clients and how we make them a top priority. It’s not about our commission; it’s about making sure our

right thing to do, restricting the growth and capacity of what people can do here in our province. There are always restric-

CAMPAGNARO’S TIPS FOR OTHER BROKERS “The most important thing is to be honest, and the second is to offer top level service to clients regardless of how challenging it may be. Everything boils down to treating people well. You also have to be persistent and persevere to get approvals.”

www.mortgagebrokernews.ca

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FAST FACTS: CARMEN CAMPAGNARO

President of Pro Funds Mortgages

Based in Burlington, Ontario

Launched the company in 1997

“All of the rule changes have opened up a large window of opportunity for people to lend their cash or equity to people looking for financing. There is now tons of money to be made by investors” tions being imposed on us with the institutional lenders. I believe in some of it, and I know we have to be cautious, but I believe it is more of a Liberal government perspective, and I’m not Liberal. I don’t think it’s wise, and personally I think we could have kept the rules as they are, without the new rules in January. It opens the door to more private money, and I think the new rules

Started investing in real estate at age 18

Focuses on real estate investors, specializing in residential, multiresidential, commercial, construction and development properties

will slow down the market on the residential side by restricting people’s ability to purchase.

CMP: What do you get up to in your spare time?

CC: I love antiquing, and I also do a lot of Airbnb and furnished rentals. It may sound like work, but it’s fun for me.

Works with both institutional and private lenders

www.mortgagebrokernews.ca

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FEATURES

VIRTUAL WORKFORCE

How to build a virtual workforce From cutting costs to freeing up brokers to meet clients, ditching the office has a lot to offer if you can get it right, explains virtual working expert Ruth MacKay THE TRADITIONAL boundaries of officebased work no longer apply in the modern business environment. Thanks to the proliferation of mobile technology, professionals can now work from home, on the road, in their favourite café or almost anywhere there is a good internet connection. Never before have workers had so much autonomy over when, where and how they work.

This brings a long list of benefits to the forward-thinking companies that are using virtual workforces to maximize their competitive advantage, attract and retain the best talent, and become first-choice employers, all while cutting overhead costs and increasing productivity.

However, running a successful virtual workforce requires a completely new management philosophy. Traditionally, the manager’s role was to supervise, direct and interact face-to-face with employees.

For most managers, that was easy. With employees at their desks from nine to five, managers could stop by at any time and check in. Now they’re asking: “How can we maintain solid oversight while allowing our employees the freedom to work virtually?”

That’s a good question, and one that can only be answered with solid planning, training and a top-down understanding of how to implement, integrate and manage a virtual workforce designed to address the

44

challenges of doing business in the 21st century. Follow these four steps to build an effective virtual workforce that will take your business to the next level.

STEP 1 Evaluate Not every business is the same, so there is no one-size-fits-all virtual workforce that you can simply drag and drop into play. Some businesses will be more suited to a virtual workforce than others, as will certain business units within your company. Take some time to carefully evaluate your business for strategic fit by considering the following: How might a virtual workforce increase your competitive advantage? Consider how a mobile workforce might be able to outpace your competition by providing your clients with on-location service.

How will a virtual workforce impact your market position? Without the overhead drain of maintaining a bricks-and-mortar office, you may be able to offer discounts to high-value clients or become a lowercost provider.

Will a virtual workforce open entry into new markets? Having employees stationed around the country and even around the globe, operating in a range of time zones,

may open up new opportunities to expand your territory and enter new markets.

What is your competition doing? If they have moved or are moving to a virtual workforce, you are definitely at risk of being left behind the eight ball.

STEP 2 Assess Virtual workforces offer a range of potential benefits, but they also require investment in key areas to ensure maximum effectiveness. As with every business decision, you must assess the benefits against the costs to determine if a virtual workforce is the right fit for your organization. Here’s some food for thought to get you started: POTENTIAL BENEFITS The reduction in employee commuting time increases flexibility and improves work–life balance. This leads to reductions in staff attrition and associated recruitment and training costs.

Fewer in-office distractions can improve employee productivity and boost motivation and engagement.

Cutting overhead costs may offer an opportunity to rethink your pricing structure and improve your competitive advantage.

www.mortgagebrokernews.ca

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Sales and IT have worked with all areas of management to identify the most effective management of software, hardware and support.

Each business unit has clearly written policies that can be easily distributed to your virtual employees.

During your pilot program, look for gaps that might require training, new technology or infrastructure. Also, recruit staff – either internally or externally – with the attributes required to work virtually. Plan out the scope, tasks, timing, resourcing, costs and acceptance criteria (use these as the basis for your ongoing management metrics) so that the transition is as seamless as possible.

Be disciplined in completing the plan, and after a meaningful period (this should represent at least one complete business cycle), measure outcomes to goals. This will enable you to construct a new project plan that offers solutions to the gaps in the initial cycle. This may be improved by utilizing relevant outside expertise.

Staff stationed in various locations offers the potential to improve client relationships via face-to-face visits.

STEP 3 Implement

Training and support will be needed to assist employees as they transition to the new technology and work philosophy.

Once your evaluation and assessment are complete, it’s time to enter the implementation stage. Running a pilot program provides a positive pathway to transitioning to a virtual workforce in one part of your business without impacting overall operations.

Most important, you must have the various business units take full ownership of the transition to ensure they have clearly identified both the opportunities and the risks within a virtual workforce. Also, your managers will need to be trained and motivated so they are up to the challenge of effectively leading their virtual employees. To run a successful pilot project, ensure that:

Resources may be required to ensure buy-in up and down the management chain to prevent resistance.

Software and hardware selection and application are approved by all of the company’s units.

POTENTIAL COSTS Investment in new software and hardware technology to support the virtual model will be required.

Initial management training will also be required to convert to virtual workforce management practices and techniques.

STEP 4 Launch Your pilot project will have lessened the overall risk while gaining much-needed support for the virtual model across your organization. With all your evaluations, assessments and planning in place, it’s now time to pick a specific date to launch – because the only way you can identify what will work and what will need improvement is by doing it.

Ruth MacKay is the founder and managing director of Ourtel Solutions, where she manages a 100% virtual workforce. She is passionate about helping businesses gain a competitive advantage, improve profits and retain top talent by leveraging proven virtual workforce models. MacKay is also the author of the new book The 21st Century Workforce. For more information, visit www.ourtelsolutions.com.

www.mortgagebrokernews.ca

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PEOPLE

CAREER PATH

NATURAL ENTREPRENEUR Anthony Spadafora has been in mortgages for more than a decade, but his love for business goes back even further

Spadafora showed his entrepreneurial spirit early, borrowing funds to purchase two turntables and a mixer to start a DJ business at the age of 15. He played weddings and parties throughout his teens and while studying business administration at Sheridan College “I’ve always been an entrepreneur; I had three people working for me when I was 23. The year before selling up, I did 84 functions”

1987 STARTS

HIS FIRST BUSINESS

2002

SHARPENS HIS PEOPLE SKILLS Pressed by his wife to find a job that allowed for more regular hours, Spadafora began managing a Starbucks that went from being a loss leader to turning a profit. More important, the job gave him a chance to refine his people skills

“Connecting with people is something I’ve done my whole life. I learned at a very young age how to overcome objections, how to present myself in a professional way and how to earn people’s trust” 2011

GETS COURTED BY VERICO

After seven years in the industry, Spadafora had established enough relationships with lenders to make him desirable to headhunters, among them Verico Premiere Mortgage Centre. The brokerage ultimately pursued Spadafora for two years until he agreed to join “It impressed me as a very professional company. I thought I could learn a lot from Verico; I wasn’t learning anything anymore from Assured by then”

2015

STRIKES OUT ON HIS OWN After more than a decade in the mortgage business, Spadafora took the plunge and founded Mountainview Mortgage with a partner. He continues to work as a broker himself while running the 11-agent operation “It’s been fantastic; it’s been gangbusters since day one. We have an excellent reputation in the industry. [For 2017], we’re close to funding almost $200 million.

I’m still hands-on – I’ll fund over $40 million myself”

1997

LEARNS THE ROPES With the funds he had set aside from his DJ gigs, Spadafora achieved his long-held ambition of opening a bar – before quickly realizing how poorly recompensed the restaurant trade was “It was a growing experience to manage a big business. I negotiated a lease, got a liquor licence, worked with lawyers, did payroll, managed money and balanced books; I learned how to market and promote the business. It was my PhD”

2003

FINDS MORTGAGES At a time in his life when he was in search of a next step, Spadafora heard a radio interview on his commute home that changed his life forever “The host asked [a representative of a brand-name brokerage] to explain what mortgage brokers were and what they did – and it clicked. I thought, ‘I can do that.’

I went to work with Assured Mortgage Services and learned a lot. Just a few years later, I hit $10 million for that year”

2013

CONTINUES HIS EDUCATION With his broker licence in hand, Spadafora headed to Premiere Mortgage Centre to continue his quest to amass enough mortgage experience and knowledge to eventually open his own shop “I like responsibility, but I needed to learn. It was great – the three years at Premiere were confirmation to me that I was ready. I was running my own office, my own storefront, and I was mentoring agents.

I learned good business practices and got some great experience”

www.mortgagebrokernews.ca

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PEOPLE

OTHER LIFE

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

own s M a g u i re f fou r a t ot a l o t s ch e f’s h a

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Number of meals Maguire has cooked with Les Marmitons

6

Number of ingredients in a typical sauce prepared by Maguire

WHAT’S COOKING? When he’s not arranging mortgages, Ontario-based broker Michael Maguire can be found whipping up something delicious

$15

Amount Maguire has spent on each of his chef’s hats

MICHAEL MAGUIRE has been involved with the men’s cooking group Les Marmitons since the London chapter’s inception, and he is unarguably passionate about it.

Over the past seven years, he has been the group’s treasurer and president, and has represented his chapter at Les Marmitons’ annual international meeting.

The motto of the social group, which was founded 40 years ago and now boasts 18 chapters across North America, is “friendship through gastronomy.” And indeed, while Maguire has always enjoyed cooking, it’s the social component that

keeps him coming back – during the group’s meetings, Maguire cooks alongside up to 26 other amateur chefs.

“It’s a really fun group of guys; it’s a great night,” he says. “The friendships that form give the confidence to try different dishes, to get more adventurous. And then eating the meal is the bonus!”

Not only have some of Maguire’s industry colleagues joined Les Marmitons after hearing about his experiences, but he has also been able to turn fellow members into clients. “It helps to build a rapport,” he says. “A lot of people enjoy food!”

Photo by Suzanne Carroll, Lemontree Photography

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