CMP 15.09

CMHC CONTROVERSY

How much responsibility should lenders bear for keeping the economy moving?

BEYOND THE PANDEMIC MORTGAGEBROKERNEWS.CA ISSUE 15.09 | $12.95

A closer look at COVID-19’s lingering effects on mortgage underwriting

NEW WAYS TO CONNECT What happens when a digital marketing expert becomes a mortgage broker

BROKERS ON LENDERS 2020 Brokers reveal where lenders are excelling – and where they could stand to improve

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We’ve expanded our reach in Ontario!

(Because we’ve learnt a thing or two about distance.)

W m

communitytrust.com

$

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ISSUE 15.09

20 BROKERS ON LENDERS 2020 SPECIAL REPORT

Which Canadian lenders have been able to rise above this year’s constant challenges to come through for borrowers? CMP checked in with brokers to find out

Why can’t your lenders be as creative as your architect?

With over $3 billion under administration and ready for immediate deployment, Romspen is a boutique non-bank mortgage lender specializing in commercial real estate in Canada and the US. For your financing of $10 million to $400 million we bring speed, agility, and a commitment to complex execution you will not find in larger institutions.

Blake Cassidy or Pierre Leonard | 800 494 0389 | www.romspen.com

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ISSUE 15.09

36

08

UPFRONT 04 Editorial

How to keep investors from crowding first-time buyers out of the market

06 Statistics

Canada’s economic rebound is underway – but who’s paying the price?

10 Alternative lending update UPFRONT

NEWS ANALYSIS Industry players push back on CMHC CEO Evan Siddall’s controversial memo to lenders

12

FEATURES

THE FUTURE OF UNDERWRITING

Borrowers are beginning to regain confidence, but inflation and other worries still loom large

14 Opinion

Canada’s real debt problem doesn’t lie in mortgage borrowing, but rather in unsecured consumer debt

PEOPLE 40 Other life

In the ring with mortgage broker and boxer Linda Tosini

What long-term changes has the COVID-19 pandemic brought to mortgage underwriting?

UPFRONT PEOPLE

INDUSTRY ICON How Veronica Love of TMG The Mortgage Group is using her industry connections to foster a culture of education and empowerment

16 2

BROKER UPDATE Why brokers need to be on high alert for mortgage application fraud right now

PEOPLE

38

THE NEW KID ON THE BLOCK

Paul Davidescu reveals how he’s using his digital marketing savvy to make the mortgage process more client-friendly

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

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UPFRONT

EDITORIAL

A fear of two tiers

I

n an interview with BNN on August 11, Mortgage Professionals Canada president and CEO Paul Taylor addressed what he described as MPC’s “philosophical concerns” with CMHC policies that many feel limit firsttime buyers’ access to the housing market.

“If we continue to dissuade and make it more difficult for would-be first-time buyers or owner-occupiers to get into the space,” Taylor said, “in the event that we do start to see some price softening because there is more inventory on the market, what we’re effectively doing is reserving those now-on-sale properties for investor purchases, and we’re actually exacerbating the wealth gap, and we’re creating far fewer opportunities for people to own their own homes.”

Taylor raises an important point: Today’s lending environment is one that rewards people who have already won. Investors have more buying power, more flexibility and more opportunity than first-time buyers. That’s not a new concept, but at a time when so many Canadians are being denied the generational wealth-creating power of owning a home, shouldn’t we be looking at ways to disincentivize property gobbling by investors? Just because a person is lucky enough to own one property – and let’s not discount the role that privilege, like being born into a family that owns property already, plays in a person’s real estate journey – are they entitled to own a third or a fourth?

“It shouldn’t be easier for investors to amass a portfolio of properties than it is for the average person to get into a single home” No one is suggesting a cap on the number of investment properties one person can own. But what if each additional investment purchase carried with it an increased down payment requirement? Let’s say a first investment property requires 20% down, but the down payment requirement increases by 10% for every property after that, peaking at 50% for the fourth property and beyond.

Owners would still have an advantage over first-timers, but the rate at which they can use that advantage would be slowed considerably.

Here are some potential outcomes: More owner-occupied properties, which would encourage better upkeep and more attractive neighbourhoods. Fewer Airbnbs would be crowding our condo towers. Investors would have more equity in their properties right off the bat, greatly decreasing their exposure to any dramatic falls in pricing. What’s the downside for consumers?

It shouldn’t be easier for investors to amass a portfolio of properties than it is for the average person to get into a single home. But that’s the track we’re on, and if we don’t find a way off of it, another 10 to 20 years of appreciation and competitive bidding could see us living in a country where the only way you can afford to buy is if you’ve already bought.

The team at Canadian Mortgage Professional

www.mortgagebrokernews.ca ISSUE 15.09 EDITORIAL Managing Editor Clayton Jarvis

SALES & MARKETING Vice-President, Sales John Mackenzie

Writers Ellen Burkhardt Ephraim Vecina Kasi Johnston

National Account Manager Corey Bahadur

Copy Editor Clare Alexander

Global Head of Communications Adrijana Monevska

CONTRIBUTORS Chris Kolinski

ART & PRODUCTION Designer Joenel Salvador Production Manager Alicia Chin Production Coordinator Kim Kandravy Client Success Coordinator Cole Dizon

Sales Executive Alan Stewart

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

EDITORIAL INQUIRIES

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Canadian Mortgage Professional is part of an international family of B2B publications, websites and events for the real estate and mortgage industries MORTGAGE PROFESSIONAL AUSTRALIA rebecca.pike@keymedia.com T +61 2 8437 4787

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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

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Congratulations!

To all of our CENTUM family winners at this year’s Canadian Mortgage Awards!

CENTUM took home the award for: DIGITAL INNOVATOR OF THE YEAR for our Piper technology, two years in a row!

Clinton Wilkins won: Mortgage Broker of the Year (fewer than 25 employees) for the THIRD consecutive year!!!

The team at Champion Mortgage were the silver winners for: Brokerage of the Year (fewer than 25 employees) The team at Loewen Group Mortgages were the silver winners for: Outstanding Customer Service by an Individual Office

thecentumnetwork@centum.ca | thecentumnetwork.ca ®/™ trademarks owned by Centum Financial Group Inc. (C) 2020 Centum Financial Group Inc. The intent of this communication is for informational purposes only, and is not intended to be a solicitation to anyone under contract with another mortgage brokerage operation.

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UPFRONT

STATISTICS

Is the worst really over?

BUYERS IN FOR MORE PAIN

Summer has brought encouraging signs, but COVID19’s effect on provincial coffers has been brutal THE CANADIAN economy certainly feels like it’s back on track. Home sales set records in July, employment continues to improve, and consumer spending is up. The country’s half-empty flights, bars and restaurants, however, tell the gloomier side of the story.

Whatever the truth may be, the perceived stability is costing provincial governments and the feds billions.

45.4%

Year-over-year decrease in consumer insolvencies in the second quarter

37.7%

Year-over-year decrease in business insolvencies in Q2

More price growth is likely on the way this fall as housing markets across the country continue to rebound from COVID-19, according to Re/Max’s fall housing market outlook. If the company is right, buyers will be pushed to the sidelines in more than a few markets – Charlottetown, Muskoka and Durham are expected to see the biggest price jumps in the coming months.

While government finances are a longterm macroeconomic concern, recent statistics say they aren’t having much of an impact on homebuyer sentiment. Buyers appear confident entering the market. Lenders seem to perceive a manageable amount of risk. It’s possible that the golden goose of Canadian real estate will keep laying its eggs well into the fall.

26%

Increase in home sales activity between June and July 2020

14.3%

Year-over-year increase in the national average sale price Sources: CAIRP, CREA

A DIFFERENT TAKE ON PRICE GROWTH

SPENDING ON THE MEND

The gulf between the country’s priciest real estate and its cheapest is enormous, according to Century 21’s latest survey on prices per square foot. Condos in downtown Vancouver are more than 10 times the price of those in Newfoundland’s largest city.

Consumer spending largely improved throughout the summer, but concerns remain about whether the momentum can continue once CERB payments run out on September 26.

YEAR-OVER-YEAR CHANGE IN SPENDING

FIVE MOST EXPENSIVE MARKETS 1 2 3 4 5

Vancouver, Downtown (condo) Price per square foot: $1,192 Toronto, Downtown (condo) Price per square foot: $1,082 Vancouver, West Side Price per square foot: $1,004 Montreal, Downtown and SW Price per square foot: $958 Vancouver Price per square foot: $816

FIVE LEAST EXPENSIVE MARKETS 1 2 3 4 5

St. John’s, NL (condo) Price per square foot: $116 Saint John/Fredericton, NB Price per square foot: $123 Moncton, NB Price per square foot: $124 St. John’s, NL (detatched) Price per square foot: $135 Owen Sound, ON Price per square foot: $167 Source: Century 21 Price Per Square Foot Survey, 2020

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40% 20% 0 -20% -40% -60% -80%

Books/ Consumer Household Restaurants Travel Department Groceries Enterstore/hobby/ tainment/ music/ spending spending specialty retail art/movies entertainment goods Source: RBC, as of August 11, 2020

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CANADIAN CITIES WITH THE HIGHEST PROJECTED PRICE GROWTH FOR Q3-Q4 2020

5%

TORONTO, ON

10%

THUNDER BAY, ON

5%

10%

BRAMPTON, ON

5%

10%

HALIFAX, NS

SAINT JOHN, NB

SUDBURY, ON

14%

15–20%

25%

DURHAM, ON

MUSKOKA, ON

CHARLOTTETOWN, PEI

4–6%

NIAGARA, ON Source: Re/Max 2020 Fall Market Outlook Report

THE BANKS WILL BE OK

PROVINCIAL BUDGETS IN THE RED

The third-quarter figures from Canada’s largest banks pointed to, for the most part, robust market conditions. Revenue was down, but the Big Six still generated combined earnings of almost $10 billion.

The price for this tenuous rebound in economic prosperity? Provincial budgets are projecting painful deficits from coast to coast.

REPORTED NET INCOME, Q3 2020

Projected deficit for 2020-2021 $400bn

Projected net debt for 2020-2021

$397.2bn

RBC $3.2 billion $189.5bn

TD BANK $2.2 billion $50bn

SCOTIABANK $1.3 billion

$40bn

BMO $1.2 billion

$30bn

$61.9bn

$68.9bn

$38.5bn $26.4bn

$24.2bn

$20bn

CIBC $1.2 billion

$10bn

NATIONAL BANK $602 million

$14.8bn

$12.5bn

$2.1bn

$0

BC Sources: RBC, Scotiabank, BMO, TD Bank, CIBC, National Bank

AB

SK

$12.3bn $2.9bn

MB

$14.1bn

$305m

ON

QC

NB

$16.7bn

$15.7bn

$55m

NS

$2.5bn $2.1bn $173m

PEI

NL Source: RBC Economics

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09/09/2020 12:06:51 am

UPFRONT

NEWS ANALYSIS

Who’s minding the store?

Industry players were quick to push back when a leaked letter from CMHC’s Evan Siddall put the onus on lenders to consider the negative impact high-ratio lending could have on the Canadian economy

THE CANADIAN mortgage space was once again frothy with rage and confusion in midAugust when a letter sent to CMHC lenders

by CEO Evan Siddall was leaked to the press.

In his letter, Siddall appeared to draw a line in the sand: On one side stands CMHC; on the other, lenders and mortgage insurers who don’t share Siddall’s concerns over the threat posed to the Canadian economy by high-ratio mortgages.

“While we would prefer that our competitors followed our lead for the good of our economy, they nevertheless remain free to offer insurance to those for whom we would not,”

future consumption and economic growth.”

By overleveraging themselves with highratio mortgages, Siddall feels Canadian homeowners will be forced to restrict their spending in other areas.

As support, he referenced data from the Bank for International Settlements (BIS), which showed that GDP growth is hampered once national household borrowing climbs above 80% of household income – a bench­ mark that Canada, where the household debt ratio is around 115%, blew past years ago.

“People will indeed pay their mortgages, but in order to do so, they will conserve so

“There are so many incentives that people don’t understand in this business to keep lenders doing the right thing” Rob McLister, RateSpy Siddall wrote. “We have sustained a reduction in our market share to promote a more competitive marketplace for your benefit.”

He went on to express what he describes as “economic systemic concerns” – namely, the “dark economic underbelly to this business” that he wants to “expose.” In Siddall’s view, excessive household borrowing has “predictable and consequential negative impacts on

8

much spending that they hold back our economy,” Siddall wrote.

It’s a bold – some would say unfair – assertion that private businesses should be held responsible for the well-being of a national economy, particularly at a time when said economy’s greatest threat is not mortgage lending, but a viral pandemic. Lenders, braided as they are into the fabric of Canada’s economy,

do carry considerable influence, but Siddall’s “We care about Canada; don’t you?” tone implies that these companies, who underwrite billions of dollars in mortgages every year – and have for several years since Canada’s debt-to-income ratio passed the BIS’ 80% threshold – don’t know what they’re doing.

The response to Siddall’s letter was, predictably, less than appreciative. “It was one of the more bizarre things I’ve heard a senior executive or the head of a Crown Corporation ever say,” Royal LePage’s Phil Soper told the Calgary Sun. Comparing CMHC and its mortgage insurance competitors to CBC and CTV, Soper said CMHC’s decision to tighten its own underwriting guidelines is like CBC cutting service and then complaining that CTV swooping in with desired products and absorbing CBC’s market share is bad for the country.

“That’s basically what Siddall wrote, but he didn’t [mention] CMHC’s drop in service levels, the fact they abandoned bank customers, that they’re going to make things better in the future,” Soper added before hazarding a guess that the next head of the CMHC will make

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DIFFERING OPINIONS ON PRICE TRENDS CMHC’s concern that home prices might fall by 18% in 2020 isn’t shared by other industry experts, many of whom foresee home prices improving during the remainder of the year.

PROJECTED GROWTH IN THE AVERAGE SALE PRICE OF CANADIAN HOMES 5% 4% 3% 2% 1% 0% -1%

4.6% 3.3% 2.3% 2.3% Re/Max

RBC

Royal LePage

TD

-4%

-2% -3% -4% -5%

Scotiabank Source: Re/Max

the corporation more client-centric. “Siddall’s a strange guy, and CMHC is suffering as a result of it.”

RateSpy founder Robert McLister took issue with Siddall’s implication that lenders are threatening the Canadian economy. “No lender wants to lend such that their arrears

issues it raised. Peter Routledge, CEO of CDIC, which insures more than $800 billion of deposits at banks and federally regulated credit unions, tweeted his support for Siddall on August 13.

“CMHC is not alone in its risk concerns,” Routledge wrote. “CDIC stands beside Evan Siddall and CMHC’s warning to lenders.”

“The COVID story isn’t over ... [but] Canadian housing has been a resilient asset, and I’m not ready to bet against it” Paul von Martels, Equitable Bank rate is noticeably above average, because then they stick out and bad things happen,” McLister told BNN Bloomberg, citing increased cost of capital and harsher regulatory action as possible examples. “There are so many incentives that people don’t understand in this business to keep lenders doing the right thing.”

Some in the industry looked past the tone and wording of Siddall’s letter to focus on the

Others, like Equitable Bank’s Paul von Martels, who described Siddall’s letter as containing some “well-intentioned hyperbole,” acknowledge the elevated risk present in the market but didn’t go so far as to point fingers.

“I do feel there’s an argument to be made for a sustained approach to extending credit through times like this,” von Martels told MortgageBrokerNews.ca. “In my view, the

COVID story isn’t over, and no one knows what’s ahead in the coming chapters. That said, Canadian housing has been a resilient asset, and I’m not ready to bet against it.”

Near the end of his letter, Siddall told lenders that if they “want us in wartime, please support us in peacetime.” But McLister says it’s precisely CMHC’s peacetime performance – stress test, anyone? – that is largely responsible for making it harder for Canadians to enter the housing market.

“His solutions to indebtedness, mortgage tightening and shifting homebuyers to renters have their own set of consequences,” McLister says. “The ultimate solution to high home prices and runaway debt loads is ensuring there’s enough affordable housing for families in roughly the 40th to 90th percentiles of income.”

After enduring several days of angry fallout, Siddall hit back in a tweet of his own. “My private letter of last week was leaked and then twisted and misrepresented by multiple real estate commentators, funded by fees gained from increasing house prices,” he wrote. “They lobby for longer amorts and a weaker stress test. Vested interests are strongest right before the fall.”

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UPFRONT

ALTERNATIVE LENDING UPDATE NEWS BRIEFS Mortgage originations, delinquencies rise in Q2

Outstanding debt in Canada grew by 4.3% to reach $1.9 trillion during the second quarter of 2020, according to TransUnion. Mortgage debt, which rose by 5.3%, contributed $1.3 trillion to that total. Mortgages were also the only product category to experience an increase in origination volume in the first quarter, surging 29.2% year-over-year.

Meanwhile, the proportion of consumers with delinquent balances fell by 10 basis points during the second quarter, led by a 14-basis-point decrease in the credit card delinquency rate. However, the rate of mortgage delinquencies crept up by three basis points to 0.31%.

Private space good to go for upcoming Equifax changes

The private lending sector is largely ready for the changes to Equifax credit reporting that will go into effect on September 14, according to Ryan Spence, Filogix’s director of strategic accounts for Western Canada, who revealed that 70 to 80 new private lenders have been added to the Filogix platform over the past few months.

“Those lenders have gone out and reviewed the tools that are available, they’ve picked the tools that work for them, and they’ve done the work to be registered with Equifax, so they’ve prepared themselves for whatever changes are coming up,” Spence said.

Home Trust prepared for sudden price fluctuations

Home Trust is well equipped to respond to any upcoming fluctuations in residential property prices, Home Capital Group CEO Yousry Bissada said in

mid-August. The lender has set aside $18.7 million in provisions for credit losses for the second quarter of 2020. While this is 38.1% lower than its Q1 provisions, it’s significantly larger (207.2%) on an annual basis.

As of July, Home Capital’s payment deferrals amounted to nearly $1.3 billion, representing 2,698 loans. “What I do know is that we are prepared for a decline,” Bissada said. “That’s what all these allowances are doing.”

Dolphin Enterprises inks alliance with Filogix

A new partnership between Filogix and Dolphin Enterprises has increased connectivity options for private lenders.

Lenders using Dolphin’s MIC Manager software can now receive applications directly from any agent using a pointof-sale system connected to the Filogix Marketplace. “The big value of this partnership for the private lending industry is the electronic transmission of data, particularly for the compliance requirements for Equifax,” said Shannon Dolphin, CEO of Dolphin Enterprises.

Mortgage payment deferrals reach $247 billion in Q2

Canada’s total balance of mortgage payment deferrals stood at more than $247 billion at the end of the second quarter, according to TransUnion. In an analysis of the data by borrower category, Better Dwelling reported that households with the best credit scores accounted for $78 billion of this total, while prime borrowers comprised around $45 billion. While subprime borrowers represented only around $21 billion of Canada’s Q2 deferrals, Better Dwelling found that this segment also had the largest share of deferrals relative to loan size on average, at 25%.

A tentative rebound in confidence Canadians are gradually becoming more confident in their ability to pay their debts – but significant concerns remain Consumers are more confident now than at any time since the onset of the COVID-19 pandemic, according to TransUnion’s most recent Financial Hardship Report, which was based on an August 1-3 survey of 1,050 Canadians. While a still worrying 53% of respondents reported that their household is being negatively impacted by COVID-19, that represents a 10% improvement compared to the high seen in April.

But consumers feeling the bite COVID-19 has taken out of their earnings are still having serious doubts about their ability to stay on top of their debts and bill payments. Sixty-two per cent said they are “concerned” about their ability to meet their future obligations; 26% were worried about not being able to pay their mortgage. Impacted consumers predicted they would be unable to pay their bills or loans within 7.7 weeks of taking the survey.

No surprise, then, that the number of respondents indicating that they plan to make use of programs such as payment holidays or deferrals to help manage their debt loads increased from 10% to 13% month-overmonth. Twenty-six per cent of those reducing or holding off on making their payments said they hope to extend their deferral periods further. Still, TransUnion found that 52% of mortgage customers surveyed have already returned to making full payments.

Canadians are also concerned that official inflation figures don’t accurately reflect the burden of the rising costs they are struggling

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against, according to Lawrence Schembri, deputy governor at the Bank of Canada.

In an address to the Canadian Association for Business Economics, Schembri said this “perception gap” will influence bank policy, which has targeted annual inflation at 2% for around three decades now. He added that COVID-19 is proving to be a litmus test of the “well-anchored expectations” that targeted inflation has traditionally set.

“When people and businesses feel confident that they know what the rate of inflation will be, they can make better long-range plans” The BoC is currently reviewing its inflation target prior to the renewal of its agreement with the federal government on the monetary policy framework in 2021. In late August, the central bank launched an online poll to take stock of Canadians’ preferences regarding its policy.

“It’s more than just a number. Achieving our [inflation] target on a continuing basis contributes to rising standards of living for all Canadians,” Schembri said. “When people and businesses feel confident that they know what the rate of inflation will be, they can make better long-range plans for their careers, their savings and their investments.”

Q&A

Michael Carragher Vice-president, mortgage investments FIRM CAPITAL CORPORATION

Years in the industry 25+ Fast fact Carragher is a frequent speaker on various real estate discussion panels

Business is still booming How has Firm Capital been doing over the past year?

We have been pleased with the quality of the portfolio and our ability to deliver stable results for our investors. Our 32-year track record has allowed us to gain market knowledge and experience in navigating various real estate cycles. Nevertheless, operating in the current environment is obviously very different, given the impact of the global pandemic on governments, businesses and consumers.

What were your most notable milestones?

The close working relationship of our management team to position the portfolio to have the liquidity necessary for seeking out new lending opportunities during COVID-19 while other market participants were not able to do so. In addition, the public MIC, Firm Capital Mortgage Investment Corporation, has completed 21 years of operation with no realized losses. Earlier this year, we also surpassed $10 billion in funded transactions.

What impact has the pandemic had on your operations?

We did have to act dynamically as most of our staff worked remotely, but the senior management team was in constant communication to assess the situation and ensure business continuity. Our alternative mortgage arm continued to be active during the pandemic, albeit with a more conservative approach during the early stages, as there were still many unknowns.

What are the most significant lender- and client-side challenges in the current environment?

The lack of recent market comparable sales has made it more difficult in certain market sectors. This has led us to rely on our years of experience to determine loan amounts that meet our comfort levels. Our common-sense approach has allowed us to support clients when others have taken a step back, as our focus on asset quality and equity criteria allow us to help borrowers who do not meet GDS/TDS qualification ratios but still qualify for a mortgage. A short-term loan of one to two years can help these borrowers transition back to an institutional lender or a credit union.

In spite of these challenges, we have made the decision to grow our alternative residential mortgage business. We will also be launching our FC Mortgage direct to the consumer portal this fall.

What does Firm Capital bring to the table to help clients during these times?

Firm Capital is a non-bank direct lender with proprietary capital.

Our mortgage assets under management total $1.1 billion. Deal sizes for alternative residential mortgages range from $500,000 to $3 million. Our goal is to provide a high level of service, to understand a deal quickly and to structure a transaction that makes sense for the client.

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UPFRONT

BROKER UPDATE

Brokers must be extra mindful of fraud One lender is cautioning brokers to keep an eye out for desperate borrowers in the midst of COVID-19

might choose to tag the prospective purchase as an owner-occupied house instead. “The intended purpose of the property usage may be a subtle detail, but nonetheless it can be form of misrepresentation,” he says.

To filter out application fraud attempts, Stolarchuk encourages brokers to look for any gaps, as well as basic mistakes such as typographical errors or mismatched/unusual fonts on letters of employment.

“Clarifying question marks with borrowers and getting any potential issues sorted early can save a lot of headaches”

As the COVID-19 pandemic and its economic fallout continue, brokers need to be on the lookout for mortgage application fraud, especially when it comes to overstated income and other exaggerated qualifications, according to Mitch Stolarchuk, vice-president at CWB Optimum Mortgage.

“There’s a correlation between income and employment levels and the ability for one to qualify for a mortgage,” Stolarchuk says. “And especially as we all go through very

NEWS BRIEFS

trying times amidst the COVID-19 crisis, with employment and income levels impacting a lot of people, there will be some who may be just a bit more desperate feeling the need to embellish their income or employment status in order to qualify for that mortgage.”

Another form of fraud that brokers should look out for, Stolarchuk says, is twisting the facts about the purpose of the property.

Because lenders tend to think of investment properties as higher-risk choices, an applicant

Former M3 president opens up about departure

In June, Albert Collu became Marathon Mortgage Corp.’s new president and CEO, a month after leaving M3.

Speculation abounded regarding his reasons for moving, but in an interview with CMP, Collu put it down to personal reasons. “I valued the time [at M3], but I just felt, personally, that it was time to make a change and look for something a little more rewarding in terms of my own personal interests,” he said. “I’ve always had this little fire that I could not put out, which was actually to return to the lender space.”

“Everyone is busy, which sometimes leads to brokers or lenders taking shortcuts, but that’s when mistakes happen and issues arise,” he says. “Clarifying question marks with borrowers and getting any potential issues sorted early can save a lot of headaches for everyone in the end.”

Brokers should also closely review applicants’ documentation, reports and employment histories, Stolarchuk adds.

“Look at the applicant’s credit bureau history and whether it aligns with the age and stage of that borrower,” he advises. “If a 40-year-old applicant is applying for a mortgage loan and they only have three years of credit history, that doesn’t really align.”

CIMBC expands its presence in British Columbia

CIMBC has expanded its footprint in BC, bringing Vancouver-based City Wide Mortgage Services into the fold.

CIMBC founder and CEO John Bargis said his network sought to partner with City Wide because of its experience, scale, professionalism and business philosophy.

“I was so impressed with their industry background and their foresight of what lies ahead, which was very much aligned with our outlook,” he said. “Their business acumen and experience will definitely make for a strong partnership opportunity.”

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Q&A

Niki Cuthbert

The value of strong network support

Mortgage broker/owner ASK ABOUT MORTGAGES – MORTGAGE ARCHITECTS

Years in the industry 12 Fast fact Cuthbert and fellow broker Marci Deane formed the Ask About Mortgages team at Mortgage Architects in 2013

How has your business been so far this year?

Navigating the beginning of the pandemic, with businesses shutting their doors, it was not looking good for our economy. As most people did, I quickly moved into survival mode, but also survival mode for my clients. With the introduction of mortgage deferrals, it was a time of learning and problem-solving.

With the economy improving but market rates remaining low, it is encouraging people to refinance and buy/sell their homes. Thus far, I am most proud of how our industry as a whole has come together to support each other and revise our practices to maintain our client experiences while being safe.

What milestones were you most proud of?

We noticed a big trend of people moving into singlefamily detached homes and homeownership. My business has almost doubled from 2019, and we have been lucky enough to add a new admin member to our team due to the unprecedented growth. I am very proud of myself and my team for how we have maintained our philosophy of “we are here to help.”

What has been the biggest impact on your business from COVID-19?

By far, the biggest impact COVID-19 has had on my operations is the face-to-face client experience.

Meeting clients, getting to know them and their situations, understanding what they’re looking for, and providing guidance were the highlights of my days.

Clear Trust meets $1 billion funding goal

Despite the uncertainty and volatility brought about by the COVID-19 pandemic, Clear Trust Mortgages recently passed the milestone of funding $1 billion in mortgage volume for 2020, marking the third time the brokerage has hit this goal since its inception in 2011. Clear Trust CEO Robert Afan attributed the brokerage’s success to its ability to stay connected during the pandemic. “I thought meeting this goal was far-fetched, but our brokers stayed energized and focused, and we kept going,” he said.

Doing this virtually hasn’t had a big impact on my business, but it is a big change for me and my clients.

What has Mortgage Architects brought to the table to help you through COVID-19?

Mortgage Architects has been excellent through the pandemic; being open and supportive is all I have ever asked of them, and they deliver. Right away, they communicated new information and held sessions to provide guidance through the industry changes.

Mortgage deferrals and the CERB have had big impacts on mortgage applications, and not all of the details were known at the onset of the programs.

Mortgage Architects has been there with us and worked hard to provide clear, thorough information.

I cannot speak higher of the community they have created and the support they offer to every one of their brokers.

What’s your advice to new brokers who are still looking for a network?

My recommendations would be to look for a company with a mentor or a resource centre where you can sit in the office with industry professionals and soak in information and observe best practices while maintaining a safe social distance. Don’t focus on the fees right now – focus on educating yourself.

Most professionals spend tens of thousands on their university education; make sure you are investing in making yourself the best broker you can be.

Business booming for brokers in the Prairies

Since June, brokers in Manitoba, Saskatchewan and Alberta have been seeing an unprecedented wave of new business, which has been driven by rock-bottom interest rates, low prices and, simply, boredom. “Things have been absolutely crazy,” Chris Kolinski of iSask Mortgage Brokers in Saskatoon told CMP, noting that he’d already closed more deals by mid-August than in all of 2019. “Now that things are kind of opening up, everyone’s like, ‘We need to get out of here. We need a new place.’”

MPC reports uptick in consumer sentiment

After a significant drop in the second quarter, home-buying made a comeback in Q3, according to a new report from Mortgage Professionals Canada, which also noted increasing confidence in Canadians’ plans to purchase a home in the next year. At the end of 2019, only 7% said they planned to purchase, compared to 14% now. In addition, consumers’ average rating of how much they regret taking on a mortgage dropped from 3.81 at the end of 2019 to 3.54 for Q3 2020.

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09/09/2020 12:08:25 am

UPFRONT

OPINION

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

The consumer debt problem Some industry players might worry about mortgage borrowing, but it’s reckless consumer debt that should be cause for concern, writes Chris Kolinski I THINK it’s safe to say that government intervention is needed when it comes to borrowing money. If you leave it up to consumers, a lot of people will overextend and bury themselves in debt.

I see it all the time with mortgages. A client will come in and ask for a $400,000 mortgage when they can only afford $200,000. They always try to justify it in different ways. “I’ll be running a day care out of it, so I’ll be getting an additional $3,000 a month” or “I just started this new job, and I’ll be making a ton of commission soon, so I know I’ll be able to afford this mortgage.”

But filling those day care spots isn’t guaranteed, and the associated expenses are often far larger than anticipated. (Kids can eat a lot.) For people dependent on commission, the expected payouts are almost always lower when starting a new job.

This is why we have mortgage rules. You don’t want people to get into more house than they can afford. We need rules to help protect the economy. This makes sense.

What doesn’t make sense is how we approach unsecured debt. Recently, I left the bank I’ve been with for almost my entire life and moved to a new one. I booked a meeting with an account manager to get new chequing and savings accounts, credit cards, and lines of credit to replace my old ones. We went through the application process, and to my surprise, the system automatically generated an approval for almost $100,000 in unsecured debt. (I only asked for a $15,000 credit card and a $15,000 line of credit.) I

14

asked my new account manager what he needed from me. He spun the paper around, looked at the conditions and said, “Hmm. Just your photo ID.” That absolutely blew my mind. The only thing I had given him up until this point was a verbal confirmation of my information. I gave him my address, SIN and told him how much I made. I also told him how much I

explain a small credit card that was sent to collections five years prior (aka my ‘young and stupid’ moment).

But to issue me $100,000 in unsecured debt, all the bank needed was a current photo ID. I had the exact same vetting experience when I leased a new Mercedes from the dealership: photo ID and nothing else.

Why is this even allowed? Consumer debt is not an investment. The fact that it is rarely secured to anything only adds to the risk.

Mortgage rules have been getting tighter and tighter every year, but it has never been easier to get a credit card or car loan.

The government is so worried about the shadow the debt-to-income ratio casts over the Canadian economy; we hear about it in the media all the time. But to combat this rising number, why implement mortgage rules to limit how much someone can spend on a home – an actual investment? Their thought process seems to be: Lower mortgages equal a lower debt-to-income ratio.

That may be true. But you know what else lowers that ratio? Lowering consumer debt.

“Consumer debt is not an investment. The fact that it is rarely secured to anything only adds to the risk. Mortgage rules have been getting tighter and tighter every year, but it has never been easier to get a credit card or car loan” had in assets. This bank did not require any documentation to prove how much I made or how much I was worth, but they were willing to issue me $100,000 in unsecured debt.

If this had been a mortgage application, I would have needed to show confirmation of my down payment assets via a 90-day transaction history, two years’ worth of T1 Generals with Statement of Business Activities (as I am self-employed), two years of Notice of Assessments confirming that I do not owe any income tax, and a mortgage statement and property tax statement confirming my payments on the home I already own. I also would have needed to

Here’s an idea: Let’s hold off on putting more restrictions on qualifying for a mortgage and work on making it a little harder to take on consumer debt. A strong start would be requiring lenders to confirm borrowers’ income and debts before they can qualify, which could be followed by regular audits of lenders to make sure they’re complying with the new standards – just like they do with mortgages.

Chris Kolinski is a top-producing mortgage broker with Centum iSask Mortgage Brokers and the co-host of the I Love Mortgage Brokering podcast.

www.mortgagebrokernews.ca

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09/09/2020 12:08:51 am

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2020-02-20 9:19 09/09/2020 12:08:55 am AM

PEOPLE

INDUSTRY ICON

MAKING CONNECTIONS Veronica Love of TMG The Mortgage Group is one of those people in the mortgage industry who knows everybody. You don’t get to that level of trust and connectedness without everybody wanting to know you, too

VERONICA LOVE got used to change at an early age. By the time she reached fifth grade, she and her parents (her dad a disc jockey, her mom a waitress) had moved 21 times before settling for good in Ontario. Yet over the years, Love came to associate a change in scenery not with the end of a beloved story, but with the first exciting pages of a new chapter.

“I don’t get very frazzled by change,” she says. “I kind of get excited by it and look for the opportunities. There are always some amazing silver linings with change.”

That philosophy has allowed Love to transition seamlessly from industry to industry, moving from public relations to real estate to mortgages. Once she fell in love with the Canadian mortgage space, she stayed put – but still moved from company to company (DLC to Merix, then TMG). Her 10 years of viewing the mortgage game from almost every conceivable angle have resulted in levels of insight and connectedness most people in the industry spend their entire careers trying to cultivate.

It’s one thing to know a lot of people; it’s another to know they’ll come through for you when you need them, even if it’s years down

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the road. Central to Love’s success, whether as DLC’s VP of network development, as Merix’s VP for Eastern Canada or as TMG’s current SVP of corporate development, has been the belief that no one working Canada’s mortgage space should ever burn a bridge.

“This is a very small industry,” she says – one that people don’t tend to leave. Love explains

for advice from time to time. She hasn’t worked with them in more than a decade, but they’re always willing to pick up the phone. Because when Veronica Love calls, you know it’s going to be something good: an introduction to someone you need to know or an idea that’s going to change the way you think.

“I love being able to pull the best of what I

“I love being able to pull the best of what I see everywhere I go and relay that to agents.

I love being a connector” that when BDMs or underwriters move on from their current employers, there’s a strong possibility that they’ll pop back up with a competitor. When they do, they’ll have taken their memories of unpleasant brokers and poorly constructed deals with them.

“You’ll eventually work together again, so take the time and care about building solid relationships,” Love says.

She still calls on her Royal LePage colleagues

see everywhere I go and relay that to agents,” she says. “I love being a connector.”

Always more to learn But Love is far more than a facilitator. Her experience and intelligence make her a go-to source of expertise, and the joy she gets from helping others is unmistakable. No surprise, then, that one of her deepest passions is for education. Love feels most agents, when they

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09/09/2020 12:09:24 am

PROFILE Name: Veronica Love Title: Senior vice president, corporate development Company: TMG The Mortgage Group Based in: Toronto Years in the industry: 10

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PEOPLE

INDUSTRY ICON

first enter the industry, have received far too little practical training on what goes into a well-submitted deal.

“You might not know you’re submitting your deal poorly because you’ve never been trained on how to submit a deal,” she says. “The [licensing] course doesn’t do that. When an agent is released from whichever course they took and they’re doing their first mortgage transaction, they really don’t know the nuances.”

Love helps to fill those knowledge gaps by teaching TMG’s agents the kind of fundamental, structural skills that will make life easier for them – and, critically, for their under-

the most professional agents and brokers are the ones who adapt quickly to change.”

Levelling the playing field As a woman with an impeccable reputation in the industry, Love is constantly disappointed by the aggressive treatment her female colleagues have been forced to endure by some male counterparts. She says many female agents and brokers have been harassed to the point where they no longer feel comfortable attending events like golf tournaments and awards shows – valuable networking events that they deserve equal access to.

“There’s still a ton of women who are avoiding industry events because they don’t feel safe.

So is there equality? If men feel safer going to those events than women do, no. Clearly not” writing partners. Her courses, which cover topics like Underwriting 101 and Filogix Done Right, are a way to ensure TMG’s agents won’t be the ones submitting sloppy deals that gum up the works for lenders.

“Agents don’t know what they don’t know,” she says. “It’s a terrible phrase, but it’s so true.”

But it’s not only young mortgage agents who need to quell their bad habits; Love trains industry veterans as well. Some stubbornly try to hold onto what they learned when they started out in the business (“When I was at RBC 25 years ago …”), but once they’ve been schooled by Love on new policies or the vast web of technology that holds the industry together, even the most hard-headed brokers tend to realize she has just made their lives easier.

“I could never have predicted the amount of changes that have come,” Love says. “I think

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“There’s still a ton of women who are avoiding industry events because they don’t feel safe,” she says. “So is there equality? If men feel safer going to those events than women do, no.

Clearly not.”

Love has been a vocal advocate for women’s empowerment in the Canadian mortgage industry. She recently delivered a passionate presentation on recruiting more women into the industry on the Mortgage Magnates training platform and has been instrumental in increasing awareness of the Women in the Mortgage Industry Facebook group and the number of female voices being heard at industry panel discussions.

“Some of these women are producing more than their male counterparts on the panels, yet they don’t feel like they have anything to add,” she says. “That’s a really sad state of mind. You do have value to add. You do have a voice.”

LOVE’S COMMUNITY INVOLVEMENT In addition to helping agents and brokers be all they can be, Veronica Love has a busy second life as a fundraiser. The organizations she has either supported or worked for over the years include:

Make-A-Wish

Breakfast Club of Canada

Diabetes Canada

Canadian Cancer Society

Canadian Lung Association

MLSE Foundation

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09/09/2020 12:09:36 am

SPECIAL REPORT

BROKERS ON LENDERS

BROKERS ON LENDERS 2020 To find out which Canadian lenders stand out above the rest, CMP asked hundreds of brokers to tell all about their lending partners

NOW IN its 14th year, CMP’s annual Brokers on Lenders survey offers a thorough and timely look at how well the nation’s lenders are performing. Unlike last year, which saw scores decline in seven of the 10 categories brokers used to grade lenders, this year’s survey turned up improved scores in every single category.

CMP asked brokers to rate up to six of their lender partners a scale of 1 (very poor) to 5 (very good) in 10 key categories,

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including turnaround time, interest rates, product range, BDM support and more.

Overall, lenders received positive feedback and high scores from their broker partners, although there’s still plenty of room for improvement when it comes to turnaround time and technology.

As the pandemic continues to keep the residential and commercial markets across the country on the edge, brokers made it clear that they could use more support from

their lender partners than usual. Moreover, they want more personalized communication: underwriters and BDMs who pick up the phone rather than firing off an email.

With regulations changing so quickly, being on the same page in every step of the process is more important than ever, and that’s something all brokers are seeking.

Read on to find out which lenders received top marks this year and what brokers had to say about their lenders’ performance.

HOW WELL DID LENDERS PERFORM ON AVERAGE? Lenders secured higher scores this year in all 10 categories. In addition, their average scores fell above the ‘good’ threshold in all but two categories: turnaround time and IT/technology. That represents a considerable jump up from last year, when five categories fell below the ‘good’ threshold.

Transparency of commission structure remains the top-performing category in 2020 for the second year in a row, while BDM support again took second place.

Interestingly, the biggest jump in broker satisfaction came in lenders’ overall service levels, which moved from a score of just 3.85 in 2019 to 4.10 this year – the highest rating increase of any category.

2020

2019

2018

Transparency of commission structure

4.30 4.27

4.36

4.22 4.17 4.32

BDM support Broker support

4.00 4.00

Underwriter support

3.97

4.18

4.16 4.22

4.13 4.00 4.20

Satisfaction with credit policy

3.85

Overall service levels

4.10 4.10

Product range

4.09 3.91 4.06

Interest rates

4.03 4.00 3.97 3.77

Turnaround time IT/technology

3.71

1 Very poor

2 Poor

3 Average

3.97 4.06 3.89 4.01 4 Good

5 Very good

THE TOP PERFORMERS These lenders earned the highest average scores across all 10 categories in 2020.

A LENDERS

ALTERNATIVE LENDERS

Gold RMG Mortgages

Gold (tie) Equitable Bank, Haventree Bank, Hosper Mortgage

Silver (tie) First National, MCAP

Silver (tie) CWB Optimum Mortgage, HomeEquity Bank

Bronze MERIX/Lendwise

Bronze (tie) Home Trust, BlueShore Pacifica

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SPECIAL REPORT

BROKERS ON LENDERS TRANSPARENCY OF COMMISSION STRUCTURE TOP LENDERS Gold RMG Mortgages Silver MERIX/Lendwise Bronze First National TOP ALTERNATIVE LENDERS Gold (tie) Equitable Bank, Hosper Mortgage Silver (tie) CWB Optimum Mortgage, HomeEquity Bank Bronze (tie) Haventree Bank, ICICI

Transparency of commission structure was once again lenders’ top-performing categor y, and R MG Mortgages and MERIX/Lendwise retained their gold- and

BDM SUPPORT TOP LENDERS Gold RMG Mortgages Silver MERIX/Lendwise Bronze (tie) MCAP, Manulife TOP ALTERNATIVE LENDERS Gold (tie) Haventree Bank, HomeEquity Bank, Hosper Mortgage Silver (tie) CWB Optimum Mortgage, BlueShore Pacifica Bronze (tie) Equitable Bank, ICICI, Bridgewater Bank

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Average score, 2020 4.36

Average score, 2019 4.30

silver-medal positions among A lenders with average scores of 4.80 and 4.65, respectively.

Close behind was First National with an average score of 4.63. Among the alternative lenders, there was a tie in all three medal levels, proving that lenders of all stripes are doing an excellent job on the commission side. In fact, brokers had little criticism of their lenders’ commission structures, other than the typical note that commissions could always be higher.

When asked to single out the bestperforming lenders in the industry, several brokers highlighted First National, saying they’re impressed by the lender’s fast and efficient service, great rates, and quick turnaround times. On the alternative lending side, one broker heaped praise on HomeEquity Bank: “Processing time is quick

Average score, 2020 4.22

Average score, 2019 4.17

After ranking as the top category for lender performance in 2018, BDM support gained some ground in average score in 2020 but ranked as lenders’ second bestperforming category for the second year in a row. Responsiveness, excellent communication and efficiency were the most common areas of praise from brokers for their lenders’ BDMs. One broker described their BDM as “by far the best in the industry.” Another said: “My BDM always answers my calls and is so supportive. I love sending deals to Equitable thanks to him.”

It seems many brokers feel that way about Equitable Bank, which earned the bronze medal in alternative lending alongside ICICI and Bridgewater Bank. There was also a three-way tie for gold and a two-way tie for silver among the alternative lenders. For the

HOW HAVE B-20 RULE CHANGES IMPACTED YOUR BUSINESS? Given all the evidence of B-20’s adverse effects over the last few years, it’s not surprising that more than half of brokers are still experiencing a negative impact from the changes.

NEGATIVELY 54% POSITIVELY 9% NO IMPACT 37%

and easy, they have simple closing steps for the client, they always give a quick response to any concerns or questions, and they have a high level of understanding for clients and brokers. BDM support is the best.”

A lenders, RMG Mortgages climbed from bronze in 2019 to take gold this year with a score of 4.83. MERIX/Lendwise nabbed silver for BDM support for the second year in a row, while MCAP and Manulife tied for bronze.

Many brokers mentioned BDMs when asked about the best thing a lender had done for them over the past 12 months. “My BDM worked behind the scenes to get a line of credit approved,” said one broker. “My BDM has assisted with mining my database to find opportunities that I wouldn’t have identified without their support,” reported another.

But other brokers weren’t as enthusiastic about the support they’re receiving. Among the pointed criticism were comments like “underwriting policies not correctly interpreted by the BDM assigned to our office,” “limited knowledge on own platform/products,” “BDMs not picking up the phone” and “[our] assigned BDM always feels like she is working against me instead of with me.”

MORTGAGEBROKERNEWS.CA

Jerry Weiliczko

LENDER SPOTLIGHT

HOSPER MORTGAGE Headquarters: Toronto, ON Year founded: 2016

Known for fast approvals and quick closings, Hosper Mortgage lends on residential first, second and third mortgages across Ontario.

“In order to best serve our broker partners, we focus on three core lending principles: speed, consistency and flexibility,” says business development manager Jerry Weiliczko. “The faster we can say yes, the faster our broker partners can provide a solution to their client.

Consistency is important so that brokers can anticipate our terms and timelines to prepare their client. Lastly, flexibility has won us many deals. Many brokers choose Hosper when their clients don’t fit into the rigid boxes required by A lenders.”

Year-to-date, Hosper’s average response time from submission to approval is less than two hours. Commitments are provided the same day, and once a file is broker complete, Hosper operates with a mandate to provide the borrower’s lawyer with closing instructions in under 48 hours. “We understand that the broker’s [and agent’s] role is critical to the entire industry,” Weiliczko says, “and we act deliberately to support our brokers in return.”

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SPECIAL REPORT

BROKERS ON LENDERS BROKER SUPPORT TOP LENDERS Gold RMG Mortgages Silver (tie) MERIX/Lendwise, First National Bronze MCAP

TOP ALTERNATIVE LENDERS Gold (tie) Haventree Bank, HomeEquity Bank, BlueShore Pacifica Silver (tie) CWB Optimum Mortgage, Hosper Mortgage Bronze (tie) Equitable Bank

Average score, 2020 4.18

Average score, 2019 4.00

Coming in at a solid third among lenders’ best-performing categories and enjoying a healthy boost in average score from 2019, broker support – loosely defined as brokers feeling like lenders have their back and that everyone is on the same page – plays a huge role in making brokers’ jobs more streamlined and enjoyable. Because of its importance, the category was mentioned several times in both brokers’ most positive and most negative experiences with lenders over the past 12 months.

“The capacity to communicate to the brokers as a ‘partner’ is lost to most lenders today,” said one broker. “The lenders want brokers to partner with them and support them, but the lenders do not have the capacity to support the brokers. It is by the

UNDERWRITER SUPPORT TOP LENDERS Gold (tie) First National, RMG Mortgages, Marathon Mortgage Corp.

Silver MERIX/Lendwise Bronze (tie) Scotiabank, MCAP TOP ALTERNATIVE LENDERS Gold (tie) Equitable Bank, Hosper Mortgage, CMI Silver (tie) CWB Optimum Mortgage, Hosper Mortgage Bronze (tie) Haventree Bank, HomeEquity Bank

Once again breaking the ‘good’ score threshold after falling below it last year, underwriter support was called out by several brokers as the best thing their lender

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Average score, 2020 4.16

book, and interpretations are not generous.”

Another broker called out their lender’s “limited support, perhaps due to our location. No portals at all; documents are all processed through email.”

On the flipside, some brokers had glowing things to say about the support they receive.

“Very supportive and resourceful reps. If they can’t fund a deal, they will sometimes direct you to the funding source who can,” said one broker. “Very good working relationships; they offer outstanding support and assistance,” said another.

Among the A lenders, RMG Mortgages and MERIX/Lendwise traded places from last year’s rankings – RMG took the gold, while Merix shared silver with last year’s bronze medallist, First National. MCAP, which missed the podium last year after claiming gold in 2018, came back to take the bronze. The alternative lenders again shared the wealth, with ties for gold, silver and bronze.

BANKS OR MONOLINES? Average score, 2019 3.97

has done for them over the past year. “There’s nothing better than having an underwriter who will look for a way to get a deal approved instead of just declining it,” one broker said, while another enthused, “My dedicated underwriter has been the best.”

This increased support was seen in the top rankings. There were three-way ties for gold for both A lenders and alternative lenders; the highest honour went to First National, RMG Mortgages, Marathon Mortgage Corp., Equitable Bank, Hosper Mortgage and CMI. Ties also happened in the A lender bronze medal (shared by Scotiabank and MCAP) and the silver and bronze for alternative lenders (where CWB Optimum Mortgage and Hosper Mortgage took silver, and Haventree Bank and HomeEquity Bank earned bronze).

In terms of areas of improvement, brokers are looking for better communication, faster turnaround times and underwriters who are

Brokers still largely prefer banks over monolines; as was the case last year, around half of brokers said that’s because of the banks’ product offerings.

50% 40% 30% 20% 10% 0%

50%

20%

17%

12%

Product Client Underwriter/ Rates offering preference BDM service

1% Compensation

more familiar with their cases. “The biggest challenge I had with my lender in the last 12 months was getting answers quickly or being told to speak to an underwriter, which was never the case before,” lamented one broker. Another complained that “there’s a disconnect between the BDM and underwriters as to what can and can’t be done.”

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SPECIAL REPORT

BROKERS ON LENDERS SATISFACTION WITH CREDIT POLICY TOP LENDERS Gold RMG Mortgages Silver Scotiabank Bronze (tie) MCAP, First National

After holding firm for two years at an average score of 4.00, satisfaction with credit policy ticked up a notch in 2020 to 4.13, but it’s still an area where brokers would like to see a lot of improvement from their lenders.

Especially in light of the ongoing COVID-19 pandemic, changing credit policies are

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TOP ALTERNATIVE LENDERS Gold (tie) CWB Optimum Mortgage, Hosper Mortgage Silver (tie) Haventree Bank, BlueShore Pacifica Bronze (tie) Equitable Bank, HomeEquity Bank

proving to be a big stressor for brokers in 2020. When asked about the biggest challenge they’ve faced with lenders in the past 12 months, several brokers pointed specifically to policy changes tied to COVID-19 and a lack of communication from lenders about those changes.

Average score, 2020 4.13

Average score, 2019 4.00

Other criticisms centred around slow turnaround times brought about by increased documentation requirements, as well as a desire to see a float-down policy option. This feedback is nothing new for this category; however, given the extremely uncertain circumstances caused by COVID19, brokers’ desire for more transparency, consistency and flexibility with credit policies is much more urgent this year.

RMG Mortgages reclaimed its gold medal in this category after slipping to bronze last year, while Scotiabank took

MORTGAGEBROKERNEWS.CA

WHAT HAS BEEN YOUR BIGGEST CHALLENGE WITH LENDERS? “I feel some lenders haven’t been keeping us up to date on policy changes due to COVID-19, which can put us in a bad position with clients” silver for the third year in a row, and MCAP and First National tied for bronze. Among alternative lenders, there were ties in each medal ranking, with CWB Optimum Mortgage and Hosper Mortgage coming out on top, Haventree Bank and BlueShore Pacifica earning silver, and Equitable Bank and HomeEquity Bank rounding things out with the bronze.

HOW DO YOU PREDICT COMMISSIONS/BONUSES WILL EVOLVE IN THE NEXT YEAR OR TWO? Two-thirds of brokers expect commissions and bonuses to remain stable in the near future; of the remaining third, most expect commissions to increase rather than decrease – a reversal of last year’s results.

Stay the same

66%

Decrease

12%

Increase

19%

Move to a flat-fee commission

2% 0%

10%

20%

30%

40%

50%

60%

70%

www.hospermortgage.com 1st, 2nd, and 3rd mortgages No income documents required No credit qualification required Quick closings Flexible solutions for each deal 3 month or 6 month terms available, fully open Will lend behind private lenders* *Subject to underwriting Hosper Mortgage provides fast approvals and quick closings in the alternative lending space. We lend on residential 1st, 2nd, and 3rd mortgages all across Ontario. We’re an equity based lender, with no income or credit qualifications & no hidden fees.

ADRIANO MORRIELLO Business Development Manager 647-868-1941 — adriano@hospermortgage.com JERRY WIELICZKO Business Development Manager 416-904-9749 — jerry@hospermortgage.com

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SPECIAL REPORT

BROKERS ON LENDERS OVERALL SERVICE LEVELS TOP LENDERS Gold RMG Mortgages Silver (tie) First National Bronze MERIX/Lendwise

TOP ALTERNATIVE LENDERS Gold (tie) Equitable Bank, BlueShore Pacifica Silver (tie) CWB Optimum Mortgage, Hosper Mortgage Bronze (tie) Haventree Bank, HomeEquity Bank

Average score, 2020 4.10

Average score, 2019 3.85

WHO IS YOUR STRONGEST REFERRAL PARTNER? Past clients continue to be a hugely important source of referrals for brokers; nearly two-thirds of those surveyed listed them as their strongest referral partners.

Experiencing the biggest year-over-year increase in average score, overall service levels rose from a score of 3.85 in 2019 back to its 2018 score of 4.10. After two years of silver in this category, RMG took gold among the A lenders, while First National fell to silver after two years at the top of the heap, and MERIX/Lendwise made it onto the podium to take the bronze. For the alternative lenders, there were once again ties for gold (Equitable Bank and BlueShore Pacifica), silver (CWB Optimum Mortgage and Hosper Mortgage) and bronze (Haventree Bank and HomeEquity Bank).

The service provided by lenders plays a key role in their relationships with brokers and clients. Consistency across platforms and good communication foster quick turnarounds – something that brokers made it clear is a top priority.

Service was mentioned by several brokers when asked about the best experience they’ve had with a lender over the past year. Words like “excellent,” “outstanding” and “best” and were used frequently to describe their

WHAT’S THE BEST THING A LENDER HAS DONE FOR YOU? “It was clear that the lender was as invested in the client’s satisfaction with a mortgage deferral as I was” “Approved a file that was tough, but [they were] willing to think outside the box to make it happen” experiences. “Exceptional service from start to finish and through the entire term of the mortgage!” one broker exclaimed. “They are just great to deal with. They are very efficient, and their service is impeccable,” said another.

Even so, the category still ranked fifth out of the 10 areas lenders were graded on, so there’s plenty of room for growth here.

Inconsistent service levels, delayed service, and poor or a complete lack of service were all mentioned by brokers as major challenges they’ve faced in the last 12 months.

THE MOST IMPORTANT BROKER-LENDER ISSUE As in previous years, brokers are most concerned about the move to an efficiency ratio affecting their relationships with lenders over the next six to 12 months.

50% 40% 30%

PAST CLIENTS 63% REAL ESTATE AGENTS 26% FRIENDS/FAMILY 6% FINANCIAL PLANNERS 5%

20% 10% 0%

35% Move to an efficiency ratio

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29%

23%

Higher volume requirements Lender concerns about from individual lenders fraud during originations

13% Commissions

MORTGAGEBROKERNEWS.CA

Frank Tuzi

LENDER SPOTLIGHT

MAGENTA CAPITAL CORPORATION Headquarters: Ottawa, ON Year founded: 1994

Established in 1994, Magenta Capital Corporation is one of Canada’s oldest and largest mortgage investment corporations, with current assets under administration exceeding $300 million. “To better serve our broker partners, our team is investing significantly in research and development for new products and programs,” says Frank Tuzi, vice-president of underwriting, who adds that “2020 hasn’t been an easy year for anyone, and we wanted to renew our commitment to making our partnerships with brokers straightforward and simple, starting with a refresh of our offerings. I’m particularly excited about a true equity mortgage we’re working on. This no-doc product will be our easiest and fastest solution yet for brokers and their clients.”

Magenta partners with brokers to provide custom solutions for clients with short-term credit challenges and helps facilitate their return to traditional lending channels. Magenta lends across eastern and southwestern Ontario, including the greater Ottawa, Kingston, Guelph, Kitchener-Waterloo and London areas, and its team of sales managers and underwriters helps brokers guide their clients through every step of the borrowing process, no matter how quick the close is.

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SPECIAL REPORT

BROKERS ON LENDERS

LENDER SPOTLIGHT

RMG MORTGAGES Headquarters: Toronto, ON Year founded: 2012

RMG Mortgages is a division of MCAP Financial Corp., which was founded in 1981 and today is one of Canada’s leading independent mortgage financing companies.

MCAP’s longstanding history as a lender in residential and commercial mortgages and construction loans is reflected in the company’s strong results: $106 billion in assets under management, $17 billion combined annual asset production, more than 259,000 mortgages on repayment and eight offices across the country.

RMG offers an alternative to the big banks, credit unions and trust companies by providing financing options at competitive rates, offering a variety of mortgage products and working with a professional network of hundreds of licensed mortgage brokers.

“Since 2012, RMG has focused on the loyalty of our brokers,” says Bruno Valko, vice-president of sales. “In the last eight years, the mortgage industry has gone through a lot of changes, and we work closely with our broker partners to work through those changes, providing them with dedicated underwriters and quality BDM service. Our goal is to work directly with our broker partners to ensure their needs are met, which in turn benefits their clients.”

Bruno Valko

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MORTGAGEBROKERNEWS.CA

PRODUCT RANGE TOP LENDERS Gold Scotiabank Silver (tie) MCAP Bronze (tie) RMG Mortgages, B2B Bank

Coming in sixth out of the 10 categories in terms of average score, product range continues to be an area where brokers want to see more from lenders. Scotiabank reclaimed the top spot among A lenders after ceding it to Merix last year, while MCAP snagged silver and RMG Mortgages and B2B Bank tied for bronze. For the

TOP ALTERNATIVE LENDERS Gold (tie) CWB Optimum Mortgage, Hosper Mortgage Silver (tie) Haventree Bank, HomeEquity Bank Bronze (tie) Equitable Bank, BlueShore Pacifica, Magenta

alternative lenders, Magenta fell from gold to bronze, which it shared with Equitable Bank and BlueShore Pacifica, Haventree and HomeEquity Bank tied for silver, and CWB Optimum Mortgage and Hosper Mortgage took home the gold.

While brokers made plenty of requests for additional products, they also gave

Average score, 2020 4.09

Average score, 2019 3.91

several shout-outs to the lenders who were doing right by them in this area. “In the last 12 months, they added innovative new products and expanded their offerings,” one broker said. Added another: “They advised on upcoming products and specials and offered better education on product guidelines. They’re working to provide innovation and support for brokers and homeowners.”

In terms of how lenders can improve in this area, it’s pretty simple: do all of the above. Expand options, provide education around the products and make sure those products line up with borrowers’ needs.

Again, it all boils down to communication and staying ahead of trends.

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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SPECIAL REPORT

BROKERS ON LENDERS INTEREST RATES TOP LENDERS Gold (tie) RMG Mortgages, Marathon Mortgage Corp.

HOW MANY LENDERS HAVE YOU SUBMITTED DEALS TO IN THE LAST 12 MONTHS? In today’s competitive market, most brokers are submitting deals to a wide range of lenders.

Silver (tie) First National, CMLS

Gold (tie) Equitable Bank, Hosper Mortgage, Community Trust

FIVE OR MORE 79% FOUR 11% THREE 5% TWO 3 ONE 2%

Silver (tie) Haventree Bank, ICICI Bronze (tie) CWB Optimum Mortgage, BlueShore Pacifica

Average score, 2020 4.03

Average score, 2019 4.00

Even after almost three years since B-20 guidelines were updated, more than half of brokers surveyed this year say the stress test is still negatively impacting their business. Interest rates’ fall from the third best-

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“The lender approving a deal then changing conditions after the commitment was signed” “Turnaround times and over-conditioning on deals”

Bronze (tie) MERIX/Lendwise, RFA Bank of Canada

TOP ALTERNATIVE LENDERS

WHAT HAS BEEN YOUR BIGGEST CHALLENGE WITH LENDERS?

performing category last year to seventh best this year suggests that brokers are intensely focused on rates right now.

The concern was apparent in brokers’ feedback about the biggest issue they’ve had with their lenders over the past year. “Rates fluctuate, sometimes on a daily basis,” one broker said, adding, “I have lost four deals since January due to non-competitive rates offered through the broker channel.”

“Not accepting documents as submitted or needing more documentation at a later date” Another bemoaned the “rapid changes in rates due to the pandemic.”

Even so, it wasn’t all bleak. Simplifying rates, allowing f loat-downs and finding ways to provide competitive rates against all odds were among the positive experiences brokers have had with lenders this year.

RMG and Marathon took top honours in this category among the A lenders, trailed

by First National and CMLS with silver and MERIX/Lendwise and RFA Bank of Canada with bronze. For the alternative lenders, Equitable Bank, Hosper Mortgage and Community Trust all tied for gold, while Haventree Bank and ICICI shared silver, and CWB Optimum Mortgage and BlueShore Pacifica took bronze.

MERIX FINANCIAL IS THE PROUD WINNER OF

THE EMPLOYER OF CHOICE AWARD AT THE 2020 CANADIAN MORTGAGE AWARDS

We are extremely honoured to have won the 2020 Employer of Choice Award. At MERIX Financial, we understand that our employees and their commitment to the customer experience is a huge contributor to our success. We work hard to create an exceptional, professional family here and would like to take the opportunity to thank our talented staff for putting forth 100% effort every day to help Canadians achieve the dream of homeownership. Thank you past and present staff for your contribution in making MERIX the company that it is today.

If you are interested in a career with MERIX, reach out to us at marketing@merixfinancial.com

SPECIAL REPORT

BROKERS ON LENDERS TURNAROUND TIME TOP LENDERS Gold First National Silver (tie) MCAP Bronze RMG Mortgages TOP ALTERNATIVE LENDERS Gold (tie) Equitable Bank, Hosper Mortgage Silver (tie) Haventree Bank, HomeEquity Bank, BlueShore Pacifica Bronze (tie) CWB Optimum Mortgage, Magenta

IT/TECHNOLOGY TOP LENDERS Gold RMG Mortgages Silver (tie) First National, MCAP Bronze MERIX/Lendwise

TOP ALTERNATIVE LENDERS Gold (tie) HomeEquity Bank, Haventree Bank Silver (tie) Equitable Bank, BlueShore Pacifica Bronze (three-way tie) Home Trust, Magenta

There’s no slowing down the impact of technology on the mortgage industry, but right now, brokers are not happy with lenders’ performance in this area. Although lenders’ average score in this category increased from

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Average score, 2020 3.97

Average score, 2019 3.77

Lenders’ turnaround times once again proved to be one of the biggest thorns in brokers’ sides. As was the case last year, this category was one of lenders’ worstperforming areas for 2020. Given the everchanging interest rates and complexities caused by the pandemic, as well as the lingering negative effect of B-20 regulations, this doesn’t exactly come as a surprise.

Some brokers acknowledged the role COVID-19 is playing in slowing down turnaround times, but others felt it’s been an ongoing issue. “Turnaround time remains the biggest flaw,” said one broker. Others simply noted that turnaround time was the

Average score, 2020 3.89

Average score, 2019 3.71

2019, it’s still not back up to the high of 4.01 reached in 2018 – and once again, it was the lowest-scoring category in the survey.

Brokers made it clear that they prefer to partner with lenders that have invested in efficient, intuitive tech solutions to satisfy clients’ expectations that their mortgage application process will be smooth, easy and transparent. When asked about their best experiences with lenders over the past 12 months, no brokers mentioned technology – but plenty brought it up when describing the biggest challenge they’ve had with a lender’s service in the past year.

The same A lenders made the top three this year as in 2018 and 2019: RMG again took gold, while First National rose from bronze to share silver with last year’s silver medallist, MCAP. MERIX/Lendwise also joined the podium for 2020, earning bronze.

Among the alternative lenders, Magenta fell from its 2019 gold to bronze, tying with Home Trust, which dropped from last year’s silver; Equitable Bank rose from bronze in

biggest challenge they’ve had with a lender’s service in the last 12 months.

Despite the low scores, brokers also had plenty of good things to say. “They provided quick turnaround times and picked up rush deals for me to get the answers I needed to win the deal,” one broker raved. “I’ve known my lender since 2010, so I know what to expect,” said another broker. “He is amazing and true to his word, always tries to help to the best of his abilities. I also love that he includes CTB as income, his rates are competitive, and his turnaround time is fast.”

First National earned an impressive sixth consecutive gold medal in this category, while MCAP vaulted onto the podium with silver, and RMG took bronze for the second year in a row. Among the alternative lenders, more ties saw a total of seven lenders receiving medals for turnaround time.

WHERE DO LENDERS NEED TO IMPROVE? “Make documentation processing more streamlined and pay more attention upfront to documentation submitted” “Consistent communication” “Loosen credit policy as we come out of COVID-19” “More personal contact as opposed to electronic contact” “More flexibility with policies” “Banks can offer same rates/ exceptions they offer on a branch level. Not a fair game at this point” 2019 to share silver with BlueShore Pacifica.

HomeEquity Bank and Haventree Bank, both of which missed the podium last year, tied for gold.

SPECIAL PROMOTIONAL FEATURE

LENDING

The future of underwriting Lorraine Sato, VP of mortgage originations at Haventree Bank, tells CMP how underwriting will continue to evolve as a result of the COVID-19 pandemic

CMP: How is underwriting changing in the post-COVID-19 environment?

Lorraine Sato: Canadians adapted virtually overnight, and the team at Haventree Bank was no exception. We adjusted to a workfrom-home environment, and I’m proud to say we did this while maintaining full capacity and adapting to the situation.

Our underwriters acted quickly to pivot and precisely respond to economic and industry changes. We had to adjust how we accommodated home appraisals and how we reviewed income. Almost immediately, we began to allow the Canada Emergency Response Benefit [CERB] and included ‘return-to-work income’ in our calculations for qualifying income where it made sense.

As the economy continues to change, our underwriting teams will continue to adapt. More than ever, underwriters need to quickly gain an understanding of the different programs released by the government and to remain empathetic to our customers.

CMP: What are some of the biggest challenges underwriters are facing in the new normal?

LS: Pivoting quickly to assess income and implement appraisals was easier for us than some other banks, as we had already

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implemented many of the digital tools like bank statement verification and a simplified income verification process. Using these tools, in addition to our low-cost auto valuation models for home appraisals and beginning to accept e-signatures, helped to ensure that we continued to provide a safe way for our brokers to help their clients reach homeownership goals without an interruption in their mortgage process.

We also consider modified appraisals for our customers in many situations. This allows for the appraisal officers and homeowners to remain healthy and still provide the information we need.

Our Seconds+ mortgage allows borrowers to leverage their home equity to provide some needed financial relief. During the height of the pandemic, we wanted to help our first responders, so we waived the lender fees on their mortgage financing.

CMP: How can brokers work with underwriters to ensure the best possible client experience?

LS: The best way to support our underwriters during the application process is to be upfront about the borrower’s story in the underwriter notes. This allows us to find the best solution. Consistency in supplying the proper documentation is also key.

CMP: How has Haventree Bank adapted to help borrowers during these challenging times?

CMP: How is Haventree Bank supporting its broker network?

LS: When the pandemic hit, our underwriters were all hands on deck, and they provided cross-departmental support to our client care team. Many of our brokers and borrowers had questions, and we didn’t want to leave any question unanswered in a time of uncertainty.

The first thing we did was offer payment deferrals to help provide relief to our borrowers with their uninsured mortgages. We also introduced new products to help Canadians.

LS: We understand that our broker business volumes may be impacted due to COVID-19.

Our digital tools make it easier for brokers to conduct business with their clients and our underwriting teams during a time of physical distancing. In addition, we have launched several promotional opportunities that provide a way for our broker partners to earn bonus Elite Loyalty points, which brokers can use to equip their homes or help manage their daily needs.

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CMP: Will non-prime lending become more of a staple in the mortgage landscape going forward?

LS: Haventree Bank is here to provide solutions to help borrowers bridge a gap in their credit. The pandemic may leave a higher percentage of borrowers in a difficult financial position, and some of these borrowers may not qualify with a traditional bank.

We are also strong supporters of small business owners and business-for-self clients and will continue to support these important customers with unique needs, who are often underserved by the larger banks.

“Underwriters need to quickly gain an understanding of the different programs released by the government and to remain empathetic to our customers” CMP: What long-term effects do you think COVID-19 will have on the mortgage industry?

LS: As we move toward becoming more digital and turn to technology for solutions to enhance the mortgage funding experience, I expect the time to review and approve a deal will become faster. Some of the traditional ways of doing business will change; faceto-face meetings may become less frequent.

We will also see the business development manager role change and evolve to leverage more technology. There has also been talk in the industry that it might accelerate open banking in Canada.

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PEOPLE

BROKER INSIGHT

The new kid on the block A serial entrepreneur backed by high-level customer service experience, Paul Davidescu of Level Up Mortgages is on a mission to transform the mortgage process

PAUL DAVIDESCU is a jack of all trades.

He’s the founder of Tangoo, a social media and digital marketing agency; he has participated in the development of educational programs; and he regularly speaks at universities and organizations across Canada on business development and entrepreneurship.

When he was looking for a way to help Tangoo’s mortgage clients attract borrowers and market themselves in a more authentic way, Davidescu realized he needed to learn more about a business that can be opaque and is misunderstood by many. He decided to fully immerse himself in the industry by becoming a licensed mortgage broker in Ontario.

Davidescu immediately realized there’s a huge gap in the education and information available to Canadians about the mortgage process. He knew he could do better, drawing on his proven experience in building client-centred businesses to make lasting changes that would improve the mortgage experience for all Canadians. Thus, Level Up Mortgages was born.

“It doesn’t matter what business you’re building; the key is to be customer-centric,” Davidescu says. “It’s all about observing customers and thinking about their experience from the get-go.”

One of the first things he found was that transparency is still very much lacking in the mortgage industry, which he also felt needed a

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refresh in terms of customer engagement and building meaningful relationships. He began employing some of his customer discovery strategies, using data, analytics and user testing to learn about the customer experience and discover the pain points.

Through his research, he found that clients often felt unprepared and stressed throughout the mortgage process. To counteract these feelings, Davidescu spends a lot of time and energy on setting expectations early, laying out exactly what’s needed at the beginning of the process and helping maintain a positive mindset through constant communication.

He’s also designing courses for homebuyers to make information more readily available and digestible at their own pace.

“Consumers want to do their own research and reach out when they are ready,” he says.

“Content is the beginning of the customer journey and gives borrowers a chance to digest

information without feeling under pressure.”

Being accessible in a variety of channels is also important; Davidescu connects with clients via various social media sites, his personal blog and contributions to wellknown publications like Forbes. To address the challenge of helping different buyers during any part of their journey, he uses email automation to ensure monthly newsletters are sent to both referral partners and end consumers.

Instagram and LinkedIn have been major drivers of business, allowing for content distribution, networking and meeting like-minded referral partners. He’s even on TikTok, the newly popular social media platform that allows for short-form mobile videos.

“TikTok is a new frontier, which can be crucial to connecting to the younger generation,” Davidescu says, although he adds that “YouTube is still my biggest focus, as I post a new video every week interviewing industry

DAVIDESCU ON THE CHALLENGES NEW BROKERS FACE “I was surprised at how much you have to learn on your own when breaking into the industry. As an entrepreneur, it’s something I’m used to, but new brokers can learn faster with better systems and technology in place. I was surprised at the lack of tools in the industry for brokers and end users, especially considering their relationships with lenders. Many lenders have opaque and inconsistent policies that brokers are left to decrypt and relay to clients. My hope is to provide a transparent process and eventually build tools to make it easier for the end user to understand what they need to come to the table with in order to be best positioned.”

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FAST FACTS: LEVEL UP MORTGAGES

PRINCIPAL MORTGAGE AGENT Paul Davidescu

BROKERAGE MortgagePal

NETWORK Verico

LOCATIONS Vancouver and Toronto

“It doesn’t matter what business you’re building; the key is to be customer-centric. It’s all about observing customers and thinking about their experience from the get-go” experts and share other educational posts.”

Sharing content helps to create a level of trust long before a potential client picks up the phone. As a newcomer to the mortgage industry, Davidescu is tapping into his pre-built network and his expertise in digital branding to attract new clients and referral partners. Being a scrappy entrepreneur himself, he’s especially well placed to guide other self-employed borrowers.

“It’s all about how these borrowers position

themselves,” he says. “Sometimes I need to give them a reality check on where they stand and what they need to do to level up, and I’m always willing to use my network to help my clients be better prepared.”

For Davidescu, everything is about adding value. A lot of his business comes from referral partners, for whom he offers coaching on how to be more entrepreneurial. And with a belief that the mortgage process starts way before the application and essentially never ends,

SPECIALTIES Business-for-self, real estate investors, first-time buyers

COMMUNITY SERVICE INITIATIVES Davidescu serves on the board of Food Stash Foundation, a non-profit that diverts food waste to households experiencing food insecurity he also makes sure to deliver value to clients beyond closing.

“After inheriting the biggest debt of your life, most brokers just wipe their hands clean,” Davidescu says. “I try to help with that continuation plan though financial modeling and advice throughout the entire homeownership journey.”

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PEOPLE

OTHER LIFE

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

PULLING NO PUNCHES Broker Linda Tosini’s relationship with boxing was love at first fight LINDA TOSINI took her first boxing class purely by accident. Five years ago, after finding out the class she had signed up for at the gym had been cancelled, the Montreal-based broker was persuaded by one of the instructors to give boxing a try.

As she laced up a pair of borrowed gloves, she had no idea that boxing would turn

out to be exactly what she was looking for.

“It was hook, line and sinker,” she says.

“I felt strong. I felt empowered.”

When the gym where she trained shut down, Tosini decided to open a boxing club of her own. It was her way, she says, of showing younger women that “there’s nothing that can stop you from doing

what you want to do.”

Tosini guided the gym for three years before selling it to one of her instructors this summer, but she continues to train there and serve as an inspiration to the gym’s dedicated, growing membership.

“It turned out exactly the way I wanted it to be,” she says.

5

Years Tosini has been boxing

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Tosini’s age when she opened her boxing gym

110

Peak membership at Tosini’s gym

After purchasing her boxing g ym, Tosini re moved a wall to dou ble its size a nd curated a rustic, industrial vibe

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“

I just spoke with the clients and they are very appreciative.

Being caught in this unpredicted situation has been very difficult on them. You have helped this family to have a home in these crazy times of uncertainty.

Thank you for your help and support.

“

Maya Feldman – Mortgage Broker

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Everybody has a story

And a mortgage application doesn’t tell it all Let’s partner and ask the right questions to truly understand your client’s story.

Together, we can develop the right financial solution. To see the whole picture, visit hometrust.ca/realstories

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