CMP 18.01

MPAMAG.COM/CA ISSUE 18.01 | $12.95

Top MORTGAGE

EMPLOYERS 2023 Winning Canadian mortgage employers pay attention to employees’ values in the workplace

RED FLAGS

As title fraud increases, brokers and agents must know how to spot and prevent

CANADIAN MORTGAGE AWARDS Discover who is given top marks by employees in 2023

ALTERNATIVE LENDING

Amid high inflation and rising interest rates, lenders expertly adapt

ISSUE 18.01

CONNECT WITH US

CONTENTS

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UPFRONT 02 Editorial

More homebuyers realizing value of brokers

30 PEOPLE

11

BROKERAGE INSIGHT

East Coast Mortgage Brokers focuses on family values and community partnerships

Making sense of dynamic housing market

10 Opinion

OSFI urged to reconsider stress test

FEATURES 20 Paris beckons

MERIX incentive trip contest entices brokers

22 Self-employed homebuyers Home Trust equipped to help

24 A people-focused approach

SPECIAL REPORT

CWB Optimum invested in employees’ success

TOP MORTGAGE EMPLOYERS 2023 High inflation, rising interest rates, and housing market fluctuations raise importance of mortage professionals and this year’s award winners

04 Statistics

26 Title fraud

PEOPLE

38

34 Holistic financial planning

INDUSTRY ICON

FEATURES

The new normal: Leading in flexible workplaces

PEOPLE

COO and mortgage broker Dong Lee encourages others to seize opportunities

06

LEADERSHIP

How to recognize and thwart

32 Tackling turbulence

Adjusting to changing markets Added value for SafeBridge clients

40 Other life

Adrenaline rush: Skydiving revitalizes mortgage executive

SPECIAL SECTION

LENDING GUIDE Alternative lenders attentive to clients’ changing needs amid market challenges

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1

UPFRONT

EDITORIAL

www.mpamag.com/ca ISSUE 18.01

Brokers rise to new challenges

T

he share of Canadians turning to mortgage brokers for advice in their homebuying experience had already been on the rise in recent decades – but the unprecedented events of the last few years have only served to bring the importance of brokers in the mortgage process into even sharper focus.

By 2019 – the year before Canada’s housing market took off like a rocket – brokers accounted for 47 percent of total mortgage originations across the country, according to Canada Mortgage and Housing Corporation, a big jump from 26 percent in 2003.

While the precise number of Canadians who have used mortgage brokers since then remains unclear, the increasingly complex nature of the housing market and a host of new hurdles for homebuyers have highlighted the value of dealing with a mortgage expert every step of the way.

That’s especially true in 2023. The Bank of Canada’s series of rate hikes over the past 12 months have resulted in steeper borrowing costs and greater affordability challenges – yet homebuyer sentiment remains bullish, with a RE/MAX

Mortgage brokers and agents have stuck by their clients through thick and thin – and the importance of their role has never been clearer and Leger poll in February indicating 32 percent of Canadians are optimistic the housing market will regain balance.

Improving consumer sentiment also saw the Bloomberg Nanos Canadian Confidence Index jump at the end of February, and, with many analysts expecting a market uptick in the second half of the year, brokers can expect a busy few months ahead.

Not only have brokers and agents had to provide unsurpassed advice to clients amid a higher-rate environment and a challenging regulatory backdrop; they’ve also been required to adjust their own business strategy in 2023, moving away from the transaction-heavy approach of the pandemic market boom and taking a more proactive role: picking up the phone, asking clients whether they need help, and generating new leads in a calmer climate.

That experience will benefit brokers as homebuying activity gathers pace again in the coming months, having equipped them with new ways of cultivating a larger client base and establishing clear value despite a down market.

During good times and bad over the last three years, mortgage brokers and agents have stuck by their clients through thick and thin – and the importance of their role has never been clearer. That can only be good news for the mortgage industry.

The team at Canadian Mortgage Professional

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EDITORIAL

SALES & MARKETING

Managing Editor Paul Lucas

VP - NAUK Mortgage Chris Anderson

Editor Fergal McAlinden

Account Executive Shane Lakhani

Writers Desmond Devoy, Ephraim Vecina, Bryony Garlick, Kim Champion

Head of Marketing Soosyan Eng

Copy Editors Christina Jelinek, Allison Ingusan

Project Director Jessica Duce

CORPORATE CONTRIBUTORS Michelle Gibbings, J.P. Boutros

President & CEO Tim Duce

ART & PRODUCTION

HR Business Partner Alisha Lomas-Oliver

Designers Loiza Razon, Juan Ramos

Director – People and Culture Julia Bookallil

VP - Production Monica Lalisan Production Coordinator Kat Guzman Client Success Executive Cole Dizon

Chief Information Officer Colin Chan Chief Revenue Officer Dane Taylor Global CEO Mike Shipley Global COO George Walmsley

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KM Business Information Canada Ltd 317 Adelaide Street West, Suite 910 Toronto, ON M5V 1P9 tel: +1 416 644 8740 www.keymedia.com Canada • USA • UK • Australia • NZ • Philippines

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 claire.tan@keymedia.com T +61 2 8437 4772

AUSTRALIAN BROKER

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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

zoe_gridneff@centum.ca | joincentum.ca ®/™ trademarks owned by Centum Financial Group Inc. (C) 2022 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.

UPFRONT

STATISTICS CANADIAN MORTGAGES AND DEBT LEVELS

$2.37 trillion

Total Canadian consumer debt load (Q4 2022)

BOC RATE HIKES REVERBERATE ACROSS ECONOMY

INTEREST AND 10

The Bank of Canada’s 425-basis-point increase on its benchmark interest rate since early 2022 has made itself felt in the nation’s inflation levels. The central bank’s decision to keep the rate at 4.5% in its March announcement is also just a “conditional” pause that is still subject to economic trends, according to BMO chief economist Doug Porter. “If the economy continues to operate largely as they expected, the bank won’t move on rates, but they’ve definitely left themselves with the ability to hike rates.”

7.7%

8

6.7% 6

6.8%

5.7% 5.1%

4

2

6.2%

0.25%

Annual increase in Canadian consumer debt (Q4 2022)

0 a. As of press time, no inflation data for February 2023 onwards. b. Some months have no data as the BoC did not conduct policy meetings during said months.

Jan 2022

1%

0.5% Feb 2022

Mar 2022

Apr 2022

RATE HIKES REIN IN HOME PRICES

75%

Mortgage debt as a proportion of total Canadian consumer debt load

By mid-2022, the national home price hovered significantly below the $700,000 mark, according to the Canadian Real Estate Association. However, “with the Bank of Canada increasingly signalling that rates are now at the top, it’s possible the spring market this year could … surprise, particularly in areas where prices have been stable or are now stabilizing,” says CREA senior economist Shaun Cathcart. “2023 will probably be a good [time] to engage in a calmer home search.”

ACTUAL (NON-SEASONALLY ADJUSTED) NATIONAL AVERAGE HOME PRICE

$626,318

$612,204

May 2022

$632,802

Apr 2022

$644,643

Mar 2022

$665,850

Feb 2022

$640,479

Source: Equifax, Statistics Canada

$637,673

Portion of Canadian household income allocated to mortgage payment

$400,000

$629,971

7.66%

$711,000

$500,000

$746,000

$600,000

$796,000

$700,000

$748,450

$800,000

$816,720

$900,000

Jul 2022

Aug 2022

Sep 2022

Oct 2022

Nov 2022

Dec 2022

Jan 2023

$300,000 $200,000 $100,000 0

Jan 2022

Jun 2022

Source: Canadian Bankers Association

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May 2022

HOUSING INVENTORY STEADILY RECOVERING

INFLATION RATES: MONTHLY CHANGES

The downward trend in home sales activity since March 2022 freed up some much-needed supply, although the Canadian Real Estate Association stressed that current inventory is still considerably smaller than pre-pandemic levels.

Canadian annual inflation rate(a) 8.1%

7.6% 7%

6.9%

6.9%

MONTHS OF INVENTORY (NATIONAL)

6.8% 6.3%

Bank of Canada benchmark interest rate

(b)

4.25%

3.75%

5.9% 4.5%

4.5%

3.25% 2.5% 1.5%

Jun 2022

July 2022

Aug 2022

Sep 2022

Oct 2022

Nov 2022

Dec 2022

Jan 2023

Feb 2023

Mar 2023

Source: Bank of Canada, Statistics Canada, BMO

Jan 2022

1.6

Feb 2022

1.6

Mar 2022

1.8

Apr 2022

2.2

May 2022

2.7

Jun 2022

3.1

Jul 2022

3.4

Aug 2022

3.5

Sep 2022

3.7

Oct 2022

3.8

Nov 2022

4.2

Dec 2022

4.2

Jan 2023

4.3 Source: Canadian Real Estate Association

HOUSING ACTIVITY SHOWS STEADY DIP

HOUSING STARTS REMAINED ROBUST THROUGH 2022

The Bank of Canada’s rate hikes, coupled with mounting borrowing costs, have led to subdued home sales activity since early 2022. Demand for housing continues to grow, and supply remains the biggest issue across the entire spectrum.

The rate of new home construction continued at an elevated pace in 2022.

However, Bob Dugan, CMHC’s chief economist, says, “We need to find innovative ways to deliver more housing supply and keep building at a higher pace in the coming years in order to improve affordability.”

MONTHLY CHANGE IN NATIONAL HOME SALES ACTIVITY

TREND IN HOUSING STARTS (NUMBER OF UNITS)

+4.6%

300,000

+1.3%

+1%

+1.3% 275,000

-1% -5.4%

-5.6% -5.3%

-3.9%

-3.3%

-3%

250,000

225,000

-8.6% -12.6% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2023 Source: Canadian Real Estate Association

200,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2023 Source: Canada Mortgage and Housing Corporation

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PEOPLE

INDUSTRY ICON

LEADING THE WAY Mortgage leader Dong Lee has had lucky breaks but also the drive to meet those opportunities afforded him LUCK IS where opportunity meets preparedness.

This is a line that Dong Lee has had follow him, rather than one he has followed, throughout his life.

“I’ve been fortunate to have opportunities and I have been prepared,” says Lee, the chief operating officer at DLC Group of Companies.

In 1995, during his third year as a business student at Queen’s University in Kingston, Ontario, he got a rejection letter from TD Bank for their summer internship program. So what did he do when this letter arrived in the post?

“You know what, I’m just going to pick up a phone and call this lady and thank her for writing a rejection letter,” he recalls. He told her that “I got your letter and I appreciate you looking at my resume.”

Her reaction was unexpected. “No one ever calls,” he remembers her saying. As luck would have it, she was on her way up to Queen’s and wanted to talk to him. She was in Kingston to talk to MBA students, but “I ended up getting a job that summer” after they spoke.

The chance meetings did not end there though.

He happened to stop by a CMHC tradeshow in the lobby of his building years later.

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A conversation with the lady at the booth led, eventually, to him working for the national housing agency.

“There were a couple of ‘aha’ moments where it was just nothing planned,” he says.

Korean banking Once he entered the banking world, he helped TD with their community banking

built these referral partnerships, where we would open bank accounts for immigrants as they’re coming to Canada.”

During the long flight from Seoul to Toronto, businessmen would talk and mention that they needed a Canadian bank account. Referrals would be made mid-air, and “I’d have a plane full of people at the bank” the next day.

“One of my themes as chair was approachability and engagement. We wanted to make sure that we found a way to reach our members” program. A lot of programs at the time were focused on the Chinese community, but he helped expand it out to the Korean community. He put forward a paper on how to reach out to Korean-Canadians, and “my paper sort of fell on the right people’s laps.”

Working with a partner in Vancouver, they built relationships with banks in South Korea.

“There were a lot of investor immigrants coming from Korea,” Lee says. “We

It was rewarding, though also “exhausting,” speaking Korean for eight hours a day, as he can speak only at a Grade 2 level of the language.

Mortgage leadership Far more exhausting was his leadership of Mortgage Professionals Canada (MPC) during the pandemic, though he is modest with any credit and generous with praise for others, singling out MPC’s president, Paul

PROFILE Name: Dong Lee Company: DLC Group of Companies Title: Chief operating officer, mortgage broker Age: 49 Years in the industry: 27 Career highlight: Helping to bring HSBC back to the broker channel Most surreal moment: As a young banker, booking out a company board room to process as many as 40 to 50 bank accounts and debit cards in a day for South Korean investor immigrants

www.mpamag.com/ca

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PEOPLE

INDUSTRY ICON

Taylor, the board of directors, and the other “good people” there.

“I didn’t get the full experience of being the chair of the association. There was no travel; there were no events,” he says – as an observation, not as a complaint. “But in many ways, I got to meet more people because we did everything virtually.… It was an awesome experience. We kept the lines of communication open, and we adapted from the perspective of reaching members in a different means.”

It ended up being a good year for the organization.

like we’re above everybody else.”

As he leaves MPC, the organization has hit its highest NPV (net present value) scores, which he feels leaves everyone in “a good place. It was very gratifying.”

Family opportunities Mortgages have been a part of Lee’s life for decades, and he does not seek to be at the centre of an entourage – but a bit of fame and seeing his work from a different perspective came about last fall when he and his family were featured on an episode of the reality show Love It or List It.

“I give my kids the best opportunity going forward – putting my kids in a position to be better than me. To me, that’s it” “When I finished my term, we had hit record numbers for membership,” he says.

“It was a great milestone to hit.”

He attributes some of that success to an atmosphere change he wanted to bring to MPC. “One of my themes as chair was approachability and engagement. We wanted to make sure that we found a way to reach our members. And we found a way to be engaging and approachable.”

He remembers attending a national sales conference in downtown Toronto as a young man and seeing the association chairman striding in with an entourage of other men in suits.

“It was very intimidating.” When Lee took his chair at MPC, he told the board, “I never want anybody in our membership to feel that way. I don’t want anybody to feel

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“It was a great experience,” he says.

Lee is the son of Korean immigrants, who often would not come home from their convenience store until 11 pm.

He is grateful for the opportunities that his parents gave him when they moved to Canada, and he is glad he has made them proud – which is why it irks him when he sees opportunity squandered.

“You’ve got to find a way to get out there and make the most of your opportunities.”

He feels he is already making that most important impression. His parents have a general idea what he does for a living, but they know full well that he provides well for his family and is successful and can help them.

“I give my kids the best opportunity going forward – putting my kids in a position to be better than me,” he says. “To me, that’s it.”

DONG LEE’S CAREER JOURNEY

1996 to 2005

Manager, Korean banking, TD Bank

1996 to present

President, alumni class of 1996, Queen’s University School of Business

1998 to 2001

Business development manager, Canada Mortgage and Housing Corporation

2001 to 2003

Business development manager, Scotiabank

2003 to 2005

Senior manager, alternate channel delivery, Scotiabank

2005 to 2016

Vice president, operations, Mortgage Architects

2016 to 2019

President, Mortgage Architects

2018 to 2022

Chair, board of directors, Mortgage Professionals Canada (volunteer)

2019 to Present

Chief operating officer, DLC Group of Companies

More than just business, it’s personal.

Discover how Thomas Markandonis, Vice President, Software Engineering, embodies Blue Culture.

Visit MCAPblue.com/Thomas

MCAP Service Corporation | Ontario Mortgage Brokerage #10515 | Ontario Mortgage Administrator #11692

UPFRONT

OPINION

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

Weighing in on OSFI’s stress test Planned mortgage qualifying changes to Canadian homeownership can harm Canadian first-time homebuyers, says industry veteran J.P. Boutros OSFI’S MINIMUM qualifying rate (MQR) was designed to protect the big banks and the financial system, but we now know it has come with considerable consequences. In advance of further planned mortgage policy changes

by OSFI, the public and Ottawa need to fully understand these consequences.

OSFI’s desire to make it even harder for Canadians to qualify for a mortgage will worsen societal issues they have helped cause.

More than ever, mortgage brokers and agents meet new clients who would be “A” if not for MQR. And, despite best efforts to put good borrowers into good products, the stress test still means more end up in a “B”. Or maybe an MIC. Or they go private.

The mortgage stress test helped to protect Canada’s financial system while giving the mortgage brokering sector several great years of growth, but is it a good thing for Canadians?

Objectively, it’s ques tionable, and questions need asking.

OSFI’s obligation is to protect the “interests of depositors, policyholders, financial institution creditors, and pension plan beneficiaries.”

It’s in their mandate. Existing and aspiring homeowners – most average Canadians – aren’t on OSFI’s list of concerns. This leads to OSFI’s controversial upcoming plan to further alter Canada’s mortgage environment, and a need to discuss its consequences.

In January, OSFI launched a new public consultation on Guideline B-20: Residential Mortgage Underwriting Practices and Procedures, in which they insist that “heightened near-term [mortgage lending] risks underscore the need to consider complementary measures to mitigate them.” Does it, really?

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OSFI describes “near-term risks” as triggered by the recent past – “since the onset” of a once-per-century global catastrophe. They then reach for the good old SOP – Standard Operating Procedure – consultation playbook, only asking questions they want answered.

That SOP playbook tends to be useful only if the situation is “standard” and the “operation” works. “Procedure” alone doesn’t cut it.

Earlier this year, I told Canadian Mortgage Professional’s Fergal McAlinden, “I want to hear articulation from regulators that they understand what they’re doing already, and what

Perhaps elected officials should ask OSFI if its goal is to drive young Canadian first-time homebuyers to seek out private financing. Through its proposed tightening of income to maximum mortgage rules, that appears to be the case.

Additionally, can OSFI explain how their policies help an unattached individual maintain, let alone achieve, homeownership? Like NIMBY city officials who prefer zoning neighbourhoods for well-off couples, OSFI is effectively rezoning who federally regulated banks do business with.

Also, OSFI’s cited “near-term risks” have existed since late 2020, when the Bank of Canada had already warned that mortgage quality “deteriorated,” and while Governor Tiff Macklem pledged to Canadians that interest “rates will be low for a long time.” Through much of 2021 and 2022, the variable MQR remained at 5.25 percent as the fixed MQR climbed to around 7 percent; unsurprisingly, many Canadians took on variable mortgages.

OSFI’s role in allowing this to happen, after a 425-basis-point interest rate hike in under one year, merits discussion.

The MQR has helped OSFI meet its own narrow goals, but additional measures can

Can OSFI explain how their policies help an unattached individual maintain, let alone achieve, homeownership? effect it’s having, before they take the next steps.”

With this OSFI “consultation” and the particular questions they want answered, I don’t yet see an acknowledgement of the consequences of their past and proposed actions.

OSFI’s sole stated policy objective through this consultation is “to enhance the credit quality of residential mortgage assets and underwriting practices of federally regulated lenders.” Here’s the wider issue for the minister of finance and Parliament to consider: by continuing to focus solely on enhancing that credit quality for those specific institutions, OSFI will move more and more people down (or off) the lender ladder.

I doubt that a less diverse set of Canadian homeowners is the Trudeau government’s goal.

further harm Canadians. The consequences of the existing stress test – good and bad, intended and unintended – are evident. OSFI has created policies that unintentionally become far more consequential to the average Canadian than elected officials might realize.

With that, the effects of previous policy by OSFI should be debated, studied, and understood nationwide in the coming months, and any further regulatory changes being considered by OSFI should be paused.

J.P. Boutros is a nationally recognized government and public relations consultant, with many years’ experience crafting effective political strategies and messaging on behalf of housing-related entities, including MPC and CMBA.

SPECIAL REPORT

Top MORTGAGE

EMPLOYERS 2023

CMP reveals the Canadian mortgage industry’s leading employers – and some of the reasons they’re viewed by their employees as the best of the best when it comes to workplace culture

CONTENTS

PAGE

Feature article ..............................................

12

Methodology ................................................ 13 Top Mortgage Employers 2023 .................

16

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11

SPECIAL REPORT BUSINESS STRATEGY

TOP MORTGAGE EMPLOYERS 2023

TOP MORTGAGE COMPANIES TO WORK FOR IN CANADA MORTGAGE PROFESSIONALS are delivering in a particularly challenging environment as rising interest rates cause significant disruption. They are also weathering the storm as consumers and battling the increased cost of living outside of their professional lives.

This gives an added certification to Canadian Mortgage Professional’s Top Mortgage Employers for 2023, as industry

experts agree that employee satisfaction has never been more crucial.

“We have to be thoughtful of how we create an effortless experience for our employees, so that it is easier to do good work and add value back to the organization,” says Dean Koeller, chair of the CAMLA Board. “The easier it is for employees, the more they can focus on providing good service for our clients.”

The Top Mortgage Employers 2023 are

EMPLOYEE RESPONSES BY TENURE

“We’re communityoriented, and that client outreach is such a rewarding experience for employees” Sherry Dondo, HomeEquity Bank

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1 year

24%

1–3 years

34%

3–5 years

16%

5–10 years

16%

prioritizing their employees’ overall wellbeing with strategies such as: • competitive compensation packages • professional development • benefits that boost physical, mental, social, and financial health

10+ years

10%

Flexibility as a strength Three-time Top Mortgage Employer HomeEquity Bank is embracing a culture of flexibility and offering its employees: • competitive compensation practices • peer-nominated and corporate awards

programs, an online platform where leaders can award points to employees to redeem for prizes • one extra paid day off each year for volunteering • a community leadership recognition program that awards a $500 grant to an employee’s charity of choice The country’s leading reverse mortgage provider enables its more than 300 employees to achieve work-life balance with a permanent hybrid work policy. A new corporate headquarters slated to open in summer 2023 in the heart of Toronto’s financial district will feature a modern “resimercial” design that marries the comforts of home with a commercial space.

“Our employees are going to have this beautiful, functional workspace that offers a variety of ways in which they can work

engaged workforce for surpassing the $1 billion mark in reverse mortgage originations for two years running. That represents 30% year-over-year growth, and it is fuelling a focus on recruiting top talent.

Top mortgage lender empowers employees Founder and CEO Raj Babber had a goal when he started Oppono Lending Company: to cultivate an office culture where people not only come to work but also genuinely enjoy being there.

The broker-focused business was awarded a gold medal as one of this year’s Top Mortgage Employers in the lender with 10–100 employees category. The company achieved the highest overall employee satisfaction rating of 98.28%, with 100% satisfaction in the reputation and innovation categories.

“Our employees ... want to work for a company that’s continuing to grow” Heather Baker, MCAP and collaborate,” says SVP and chief human resources officer Sherry Dondo.

HomeEquity Bank’s award-winning corporate culture celebrates its employees’ passion and commitment to its purpose of helping Canadians aged 55 and older stay in the homes they love. Employees regularly reach out to check on clients’ welfare in times of crisis, such as when flooding or ice storms occur.

“We’re community-oriented, and that client outreach is such a rewarding experience for employees,” she adds. “Our purpose differentiates us, and it’s really quite special.”

The Top Mortgage Employer credits its

“It just comes down to empowering your team to constantly do better, ensuring they feel important and can accomplish things, and that everyone’s opinion matters,” says Babber. “Everyone’s happiness comes first.”

Oppono Lending Company offers its employees: • competitive and equitable compensation packages, including monthly bonuses based on originations and overall company performance • commissions to client retention and origination teams • professional development • paid gym memberships

METHODOLOGY To help recognize and narrow down the nominations for the Top Mortgage Employers 2023 in Canada, CMP invited organizations to fill out an employer form highlighting their various offerings and practices.

Employees of the 110 nominated companies were then asked to take an anonymous survey evaluating their workplace based on eight key factors: compensation; benefits; reputation; culture; advancement; innovation; sustainable programs; and diversity, equity, and inclusion.

To qualify, each nominee had to meet a minimum number of employee responses based on the overall size of the organization: employers with 10–100 employees must provide a minimum of 10 responses; employers with 101–500 employees must provide a minimum of 20 responses; and employers with 500+ employees must provide a minimum of 50 responses.

Gold, silver, and bronze medals are awarded to the top three companies in each category based on overall employee satisfaction.

Employees are regarded as team members at the growing company, and inclusion is celebrated, with a majority of the frontline and management teams reflecting the diversity of their local community. Its low turnover rate hovers near 0%, which is a source of company pride.

President Faheem Tejani says their team members’ input and ideas are key to innovating new and better ways of serving their customers.

“We encourage our team members to do better, and we always try to innovate every year to try and make that experience better

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SPECIAL REPORT BUSINESS STRATEGY

TOP MORTGAGE EMPLOYERS 2023

employees have been instrumental in driving Canada’s largest independent mortgage finance company to grow and evolve.

“Our employees see that, and they want to work for a company that’s continuing to grow,” says EVP of corporate services

WHAT IS THE MOST IMPORTANT FACTOR TO YOU WHEN CHOOSING AN ORGANIZATION TO WORK FOR? 1 = not important, 10 = very important

Culture

9.5

Compensation

9.44

Reputation

9.39

Innovation

9.11

DE&I

9.04

Advancement

9.03

Benefits

8.5

Sustainable programs

8.34

because, when you look at the mortgage market, there’s still a lot of room for innovation, and we want to try and be at the forefront of that,” he says.

Top mortgage lender providing worklife balance MCAP’s laser-like customer focus on

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brokers, homeowners, and its employees resulted in the organization once again being named one of the Top Mortgage Employers 2023.

A commitment to adopting policies and programs that reflect all stakeholders led to achieving a milestone of $150 billion in assets under management in 2022, and its

“We’re excited about putting in place a program that highlights our hybrid structure and ways we can continue to engage team members around our culture of wellness, inclusivity, flexibility, and collaboration” Michelle Liotta, MCAN Financial Group

Heather Baker. “We are really proud to win this award, and we want to continue listening to our employees, including through our annual engagement surveys, so that we can continue to act on their feedback.”

The Top Mortgage Employer has implemented a new way of working that combines in-office, hybrid, and remote options customized to employee roles within the organization. Management thoughtfully considered employee feed-

back about their need for flexibility, along with what leaders need to manage, and a variety of configurations in which people can work and be productive have been rolled out with success.

MCAP also offers its employees: • customized remote and hybrid work environments • competitive compensation and flexible benefits packages • free virtual wellness sessions for employees and their families • RRSP and TFSA matching programs • a short-term annual incentive plan to reward employees for their achievements of established performance objectives

Inclusion at the core of one best mortgage company to work for Working at Top Mortgage Employer MCAN Financial Group means being part of a community. Monthly virtual town halls highlight employees’ unique stories, cultures, and achievements, and a largely remote and supported work environment provides for an authentic work-life balance.

A commitment to DE&I informs its policies and practices, as does an intentional effort among management to get to know each employee and their career goals with annual manager-once-removed meetings.

More than 70% of its multi-generational workforce identifies as diverse, and over 45% of its executive team is female. The Top Mortgage Employer prioritizes promoting from within and has a team that boasts one of the lowest employee turnover rates in the industry. That team has also voted MCAN a Great Place to Work in multiple categories two years in a row.

MCAN Financial Group also offers its employees:

• a fully remote and supported hybrid work model • benefits for all staff on their first day of work • learning and development • community involvement, such as the ICON program, which helps cover borrowers’ mortgage payments in times of struggle “What differentiates us is that we view the relationship holistically between our stakeholders and we highlight their unique stories, including our team, brokers, clients, and the communities in which we work,” explains Avish Buck, SVP and COO at MCAN Financial Group and president of MCAN Home.

Employees receive competitive compensation and total rewards packages aligned with those at the executive level, along with extra paid days off tacked on to long summer weekends. Wellness days are inclusive and

empower team members with the ability to balance work with having fun at work, developing bonds, and building that trust and those social relationships.”

A big part of working at MCAN is the opportunity to experience its value-driven vision of living your best life outside of work, Buck says.

“Happy team members equal exceptional service, quality of work, and output to our partners and customers,” he adds.

“We take the time to talk to our team and fully invest in their career development, which shows them that we care about their success.”

Happier employees create more successful mortgage employers As this year’s awardees demonstrate, when employees are empowered and valued, Top Mortgage Employers thrive.

“We are in a learning phase in our sector

“It just comes down to empowering your team to constantly do better, ensuring they feel important and can accomplish things, and that everyone’s opinion matters” Raj Babber, Oppono Lending Company

can be leveraged for time off around religious holidays.

“We’re excited about putting in place a program that highlights our hybrid structure and ways we can continue to engage team members around our culture of wellness, inclusivity, flexibility, and collaboration,” VP of HR Michelle Liotta says. “It’s important to

and starting to recognize the change in the balance of power,” says Koeller. “For so long, it has been the employer who has held much of the power. What is amazing is that once you realize the power of empowering your employees and giving them purpose, resources, and tools, they will be better contributors.”

www.mpamag.com/ca

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SPECIAL REPORT BUSINESS STRATEGY

TOP MORTGAGE EMPLOYERS 2023

Top MORTGAGE EMPLOYERS 2023

BROKERAGES WITH 10–100 EMPLOYEES

Silver

Approved Financial Services

Compensation

Bronze

North East Real Estate & Mortgage Agency

Gold

Approved Financial Services

Silver

OMAC Mortgages powered by TMG

Bronze

Tribe Financial Group

Benefits

Gold

Approved Financial Services

Silver

Flare Mortgage Group

Bronze

SafeBridge Financial Group

Gold

Flare Mortgage Group Mortgage Savvy

Silver

MortgageLine – Mortgage Architects

BROKERAGES WITH OVER 100 EMPLOYEES

Bronze

SafeBridge Financial Group

Compensation

Reputation

Gold

Approved Financial Services Tribe Financial Group OMAC Mortgages powered by TMG Mortgage Outlet Ratehub.ca Mortgage Savvy Lend At Ease

Silver

Rock Capital Investments

Bronze

SafeBridge Financial Group MortgageLine – Mortgage Architects Verico Xeva Mortgage

Culture

Gold

Tango Financial

Silver

Sherwood Mortgage Group

Bronze

AKAL Mortgages

Benefits Gold

Tango Financial

Silver

Sherwood Mortgage Group

Bronze

Pineapple

Reputation Gold

Tango Financial

Silver

Sherwood Mortgage Group

Bronze

Pineapple

Gold

Approved Financial Services Flare Mortgage Group SafeBridge Financial Group

Silver

Tribe Financial Group

Gold

Tango Financial

Bronze

Lend At Ease

Silver

Sherwood Mortgage Group

Bronze

Pineapple

Advancement Gold

Approved Financial Services Flare Mortgage Group

Silver

SafeBridge Financial Group OMAC Mortgages powered by TMG Rock Capital Investments

Bronze

MortgageLine – Mortgage Architects

Gold

Approved Financial Services Flare Mortgage Group Ratehub.ca

Silver

SafeBridge Financial Group

Bronze

Blue Pearl Mortgage Group

Sustainable programs Gold

Approved Financial Services

Silver

Flare Mortgage Group

Bronze

Lend At Ease

Diversity, equity and inclusion Gold

www.mpamag.com/ca

Culture

Advancement Gold

Tango Financial

Silver

Pineapple

Bronze

Sherwood Mortgage Group AKAL Mortgages

Innovation

Innovation

16

Overall winners

MortgageLine – Mortgage Architects Lend At Ease

Gold

Tango Financial

Silver

Sherwood Mortgage Group

Bronze

Pineapple

Sustainable programs Gold

Sherwood Mortgage Group

Silver

Pineapple

Bronze

AKAL Mortgages

Diversity, equity and inclusion Gold

Sherwood Mortgage Group

Silver

Pineapple

Bronze

Tango Financial

Top MORTGAGE EMPLOYERS 2023

Overall winners Gold

Tango Financial

Silver

Sherwood Mortgage Group

Bronze

Pineapple

Silver

Calvert Home Mortgage

Bronze

Westboro Mortgage Investment Corp.

LENDERS WITH OVER 100 EMPLOYEES Compensation

LENDERS WITH 10–100 EMPLOYEES

RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca

Compensation Gold

Oppono Lending Company

Silver

Westboro Mortgage Investment Corp.

Bronze

RESCO Group of Funds

HomeEquity Bank Phone: 416 706 5464 Email: sdondo@heb.ca Website: homeequitybank.ca

Benefits Gold

Oppono Lending Company

Silver

Calvert Home Mortgage

Bronze

RiverRock Mortgage Investment Company

Reputation Gold

Oppono Lending Company

Silver

Westboro Mortgage Investment Corp.

Bronze

Calvert Home Mortgage

MCAN Financial Group Phone: (855) 213-MCAN (6226) Email: hello@mcanfinancial.com Website: mcanfinancial.com

Benefits HomeEquity Bank Phone: 416 706 5464 Email: sdondo@heb.ca Website: homeequitybank.ca Silver

Culture Gold

Oppono Lending Company

Silver

Strive

Bronze

Calvert Home Mortgage

Bridgewater Bank RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca

Reputation

Advancement Gold

Oppono Lending Company

Silver

Strive

Bronze

Alta West Capital

HomeEquity Bank Phone: 416 706 5464 Email: sdondo@heb.ca Website: homeequitybank.ca RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca

Innovation Gold

Oppono Lending Company

Silver

Alta West Capital

Bronze

Strive

Sustainable programs

MCAP Website: mcap.com

Culture

Gold

Oppono Lending Company

Silver

RESCO Group of Funds

Bronze

Alta West Capital

RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca

Diversity, equity and inclusion Gold

Alta West Capital

Silver

Oppono Lending Company

Bronze

Westboro Mortgage Investment Corp.

Overall winners Gold

Oppono Lending Company

MCAP Website: mcap.com

HomeEquity Bank Phone: 416 706 5464 Email: sdondo@heb.ca Website: homeequitybank.ca

www.mpamag.com/ca

17

SPECIAL REPORT BUSINESS STRATEGY

TOP MORTGAGE EMPLOYERS 2023

Top MORTGAGE EMPLOYERS 2023

Advancement

NETWORKS MCAP Website: mcap.com RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca HomeEquity Bank Phone: 416 706 5464 Email: sdondo@heb.ca Website: homeequitybank.ca

Innovation RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca HomeEquity Bank Phone: 416 706 5464 Email: sdondo@heb.ca Website: homeequitybank.ca MCAP Website: mcap.com

Sustainable programs RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca MCAP Website: mcap.com MCAN Financial Group Phone: (855) 213-MCAN (6226) Email: hello@mcanfinancial.com Website: mcanfinancial.com

Diversity, equity and inclusion HomeEquity Bank Phone: 416 706 5464 Email: sdondo@heb.ca Website: homeequitybank.ca RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca MCAN Financial Group Phone: (855) 213-MCAN (6226) Email: hello@mcanfinancial.com Website: mcanfinancial.com

Overall winners

www.mpamag.com/ca

Gold

Verico Financial Group

Silver

Mortgage Alliance

Bronze

M3 Financial Group

Benefits Gold

Verico Financial Group

Silver

Mortgage Alliance

Bronze

M3 Financial Group

Reputation Gold

Verico Financial Group

Silver

Mortgage Alliance

Bronze

M3 Financial Group

Culture Gold

Verico Financial Group

Silver

Mortgage Alliance

Bronze

M3 Financial Group

Advancement Gold

Mortgage Alliance

Silver

Verico Financial Group

Bronze

M3 Financial Group

Innovation Gold

Mortgage Alliance

Silver

Verico Financial Group

Bronze

M3 Financial Group

Sustainable programs Gold

Mortgage Alliance

Silver

Verico Financial Group

Bronze

M3 Financial Group

Diversity, equity and inclusion Gold

Mortgage Alliance

RFA Phone: 647 259 7873 Email: communications@rfamortgages.ca Website: rfa.ca

Silver

Verico Financial Group

Bronze

M3 Financial Group

HomeEquity Bank Phone: 416 706 5464 Email: sdondo@heb.ca Website: homeequitybank.ca

Overall winners

MCAP Website: mcap.com

18

Compensation

Gold

Verico Financial Group

Silver

Mortgage Alliance

Bronze

M3 Financial Group

Women in Mortgage Summit CANADA

JUNE 1, 2023 | LENNOX HALL TORONTO

WOMEN LEADING THE WAY – STRATEGIES TO EMPOWER WOMEN IN MORTGAGE The inaugural Women in Mortgage Summit Canada is uniting women and allies alike to celebrate achievements, share knowledge, and create a better industry for the current and next generation of female leaders.

Make connections, discover ideas, and welcome in an era of change, all in one place.

■ enhance your career with skill-building leadership strategies ■ make meaningful connections and network with top mortgage professionals

■ explore a new approach to business development and discover career-enhancing insights ■ find solutions to real challenges like women’s health taboos and fighting off fatigue

#WomenInMortgageCA Scan here to register GOLD SPONSOR

SILVER SPONSORS

www.mpamag.com/ca

Visit womeninmortgage.ca for more information

19

SPECIAL PROMOTIONAL FEATURE

MERIX LENDWISE

Now you’ll always have Paris MERIX Financial offers brokers a shot at the City of Lights with annual reward incentive trip

A TRIP to the City of Lights.

Networking with the top people in your field.

And a custom leadership development course in partnership with The Disney Institute.

All of this can be yours with MERIX Financial’s annual reward incentive trip.

Every year, the company takes a number of brokers on a trip to thank them for their support. In previous years, the winners have journeyed to New York City and, after the company’s 15th anniversary, European locations like Madrid and Milan. This year, it will be Paris.

“Anyone who submits business to MERIX is eligible for this contest,” says Jill Paish, EVP of national sales with MERIX Financial.

“Your support automatically enters you in the contest, but we have created eligibility criteria that is fair and allows for a variety of opportunities to win: for instance, you could win based on your individual support or on your pooling team efforts, and both use a weighted average calculation of equal parts annual funded volume and funded units to

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• • • •

park time at Disney Paris status originator social and networking events organized sightseeing tours of Paris free time to enjoy iconic sites and French culture

The contest runs until August 15 and winners will be notified by September.

Through the year, MERIX will share monthly updates to the top brokers in the running.

The 2023 journey is different not only for its final destination but also for the Disney partnership. The Disney Institute is the professional development and training arm of The Walt Disney Company, offering a range of training and consulting services that foster creativity and innovation.

“We are excited about our partnership with the Disney Institute, and we believe it can help brokers in enhancing their brand reputation and leadership skills by creating a culture of service excellence,” says Paish. On a more lighthearted note, the afternoon at Disney Park Paris is “a fun way to reconnect with our inner child and a chance to make lasting memories.”

“We are excited to offer this trip as an additional source of consistent value to support your business, and we hope to see you there” Jill Paish, MERIX Financial help level the playing field across the different markets. We also have two coveted wild card spots available so there really is opportunity for anyone to win, as long as you are funding business with MERIX, that is.”

More specifically, MERIX will be recognizing brokers in multiple categories: top 20 individual supporters (equal weighting of funded volume and units), top three lead brokers from their top funding teams (equal weighting of funded volume and units) and the two wild card spots.

The October departure includes: • flight and transportation costs • accommodation • a customized Disney Institute educational program

During previous trips, like the one to New York City in 2020, the excursion was tied to the annual World Business Forum, where originators had the opportunity to network with other professionals from around the globe.

The spirit of the annual MERIX trip is to “always revolve around an intimate and educational experience with likeminded individuals.” This year’s French sojourn has been expanded “to allow more individual supporters the opportunity to attend.”

Paish adds: “We are excited to offer this trip as an additional source of consistent value to support your business, and we hope to see you there!”

Interested in learning more? Email marketing@merixfinancial.com

Join MERIX Financial in Paris, France!

Every year MERIX Financial takes its top supporters on an all-expenses paid trip in appreciation of their outstanding support.

This October, we are thrilled to be travelling to beautiful Paris, France for sightseeing, networking, and an unforgettable learning experience with our broker partners.

All MERIX and Lendwise volume qualifies towards your Status trip eligibility.

“Of all the broker experiences I’ve had in the last 17 years, without question, the MERIX Status Trip was an over-the-top, first-class experience, which is the treatment I get every day as a MERIX partner.”

– Craig Nickerson, Verico Simpligo Mortgages

Will you be joining us? Reach out to your MERIX representative today for details.

SPECIAL PROMOTIONAL FEATURE

MORTGAGE BROKERS

Servicing self-employed homebuyers With millions of Canadians identifying as self-employed, Home Trust commits to listening to their unique financial stories FIGURES FROM Statistics Canada showed that more than 2.6 million Canadians identified as self-employed in 2022. But when applying for a mortgage from a bank, self-employed homebuyers face more challenges than their salaried counterparts because the nature of their income makes it harder for banks to verify it.

A good way for self-employed homebuyers to overcome these challenges is by working with brokers and lenders who understand their homeownership goals and take the time to listen to their unique financial situation.

For Cristie Smith, this is where Home Trust steps in. As director of the inside sales team at Home Trust, Smith is a tireless advocate for working with her broker partners to offer the best possible options around their clients’ stories.

“It’s our job to make sure our brokers and their clients know what all of their options are,” says Smith. “So, if you’re self-employed, you have options. Don’t just go to the bank.

Consult with a mortgage broker, too.”

According to Smith, the advantage of working with Home Trust is that they will take the time to listen to a borrower’s story. This

FAST FACTS ABOUT HOME TRUST

is particularly beneficial for self-employed homebuyers – such as entrepreneurs, small business owners, consultants, gig-workers, or tradespeople – with unique income flows.

“Not everybody fits in the same box,” says Smith. “Traditional financial institutions can be quite linear. But we have solutions for different borrowers, either in the prime space or the alternative space.”

It is for this reason that Smith says Home Trust is “very much an advocate for the broker channel.”

“Traditional financial institutions can be quite linear. But we have solutions for different borrowers, either in the prime space or the alternative space” Cristie Smith, Home Trust “Our broker partners are the subject matter experts and are central to our committing to providing a mortgage to a self-employed borrower,” says Smith. “They’re what drives us forward, and we have solutions for their self-employed clients.”

Listening to a borrower’s story Headquarters: Toronto Offices: Vancouver, Calgary, Montreal, Halifax Founded: 1977 Financial products: Mortgages, credit cards, and deposits

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Smith adds that brokers can help with the process by structuring deals around the right questions. “It is important for the broker to get in there and ask the right questions, understand what it is that their client does,” she says.

Smith says an experienced broker would then ask if their client is a sole proprietor and what their HST situation looks like, adding that these details can change how a lender evaluates the deal and can ultimately determine the type of solution that can be offered.

In the case of self-employed borrowers, Smith says Home Trust’s approach is to listen to a borrower’s entire financial story, starting with one of the foundations of any mortgage process: stated income. Smith says that Home Trust will then work with brokers to learn more about how that income is earned and determine its sustainability.

The Home Trust Advantage Smith says that the advantage of working with Home Trust is “we’re a one-stop shop” that offers sufficient latitude to suit the different needs of many self-employed borrowers.

Smith adds that another great benefit to working with Home Trust is that “we can go as high as 70 percent loan-to-value” for self-employed borrowers in the prime space.

Working with an alternative lender that takes the time to understand a borrower’s unique story is the first step toward providing self-employed homebuyers with the best possible solution. To learn more about what Home Trust can offer your clients, please visit hometrust.ca/mortgages.

Driven by what matters most Providing our broker partners with competitive solutions, responsive service, and a commitment to helping them grow their businesses is what drives us.

At Home Trust we…

Commit with Classic alternative mortgages

Empower with Equityline® Visa HELOC alternative

Grow with Accelerator prime programs

Build with Spire partnership program

Connect with LOFT broker portal

Get started at hometrust.ca/partners ®

Registered trademark of Home Trust Company. www.mpamag.com/ca

23

SPECIAL PROMOTIONAL FEATURE

MORTGAGE BROKERS

Brokerage industry leader CWB Optimum Mortgage The leadership team at CWB Optimum Mortgage is obsessed with their employees’ success CWB OPTIMUM MORTGAGE is an alternative residential lender, dedicated to the broker channel and their clients. As an employer, it is focused on providing an empowering and supportive workplace, and as an industry leader it wants to encourage others to thrive and grow. Marcia Lindberg, director national sales and marketing, is keen to show what sets CWB Optimum Mortgage apart from other lenders.

“We are a division of a Schedule I Bank, CWB Financial Group. Why is that important? Well, your clients are safe with us as we don’t require investment money to fund or sustain our mortgages.”

Optimum products offer solutions for those clients with untraditional income types, and they have a strong focus on business for

Tell me the story The entire team at CWB Optimum Mortgage prides themselves on their customer service; they are highly responsive to calls and emails, something that seems so simple yet makes a big difference in setting the company apart within the industry. The team is also great at structuring deals, has strong credit acumen, and has a knowledge of the competitive landscape that is second to none. Indeed, if Optimum is not the solution, the team will continue to help find the best result for the client.

“Optimum is a ‘tell-me-the-story’ lender and takes a personalized approach to every deal to customize that solution. We care about the end client and treat each deal as if it were our own.”

“Your clients are safe with us as we don’t require investment money to fund or sustain our mortgages” Marcia Lindberg, CWB Optimum Mortgage self. The company prides itself on being there to help those clients that need a financial leg up, and the team employs a common-sense approach to find a personalized solution for each client. All CWB Optimum Mortgage products offer multiple features such as accelerated payment frequencies to help clients pay their mortgage down faster.

“We have one of the best prepayment privileges in the industry, and our penalties are not calculated off the bond rate, nor do we need a bona fide sale to break a mortgage.”

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Mortgage are being nominated at the Canadian Mortgage Awards for categories such as Lender BDM of the Year and Underwriter of the Year.

That Optimum is a great place to work was further highlighted when the company was ranked at number 20 on the 2022 Best Workplaces in Canada list, the third year it has been featured.

Lindberg says, “We have several committees for our 120 [people] at Optimum that help us connect, recognize, educate, and engage.”

Focus on alternative lenders The company is keen to ensure that alternative/B lenders are at the forefront of brokers’ minds when dealing with clients who may now be finding themselves requiring alternative solutions after previously only requiring mainstream products. Lindberg discusses how her role supports this.

“My role allows me unique insight into what is happening in the market and competitive landscape, and then to provide direction to our marketing, sales, and internal teams on where we may need to pivot or focus our attention.”

Employees valued

Canadian Mortgage Awards sponsor

Optimum says on its careers page that it is “obsessed with your success,” a claim that is backed up by being named Employer of the Year at the 2022 Canadian Mortgage Awards.

It recognizes that providing a great service starts with a great team and works hard to maintain a supportive, respectful, and rewarding workplace. It encourages employees to be themselves and welcomes and supports diversity and creativity. Year over year top talent from CWB Optimum

As a leader and supporter of their industry, CWB Optimum Mortgage sponsors the Brokerage of the Year award at the Canadian Mortgage Awards for brokerages of 25 or more employees.

CWB Optimum Mortgage is a company that invests in its employees and gives back to the industry. It wants to find solutions for its clients and brokers. This internal investment gives their fantastic team the motivation, experience, and products to do so.

Broker login Username: broker Password: #1lender

OPTIMUMMORTGAGE.CA OBSESSED WITH YOUR SUCCESS™

www.mpamag.com/ca

25

SPECIAL PROMOTIONAL FEATURE

LEGAL SOLUTIONS

Putting a stop to title fraud FCT’s legal counsel reveals some of the best ways mortgage professionals can identify and stop title fraud

WITHOUT DOUBT, one of the hottest topics in the Canadian mortgage and real estate industries throughout 2023 has been a rise in efforts to defraud homeowners and lenders, often through impersonating a titleholder.

The numbers are striking: on average, at least one attempt at title fraud has taken place every four days in Canada this year, according to title insurance giant FCT, while a recent high-profile case has seen Toronto police call for help in identifying two individuals who allegedly sold a home using falsified identification.

For mortgage brokers and agents, what are some of the best ways that clients can avoid falling foul of title fraudsters? Unsurprisingly,

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“We’ve seen enough of these frauds. We know some of the red flags, so that way we can give assistance to lawyers when they’re acting on a purchase or mortgage” John Tracy, FCT FCT legal counsel John Tracy says there’s no better approach than having a title insurance policy in place, something that can protect both the buyer and the individual whose property has been fraudulently placed on the market and sold.

“From the point of view of the person whose property has been stolen – yeah, you’ll probably get the property back, depending on what province you live in, but there are legal fees and costs associated with that,” he tells Canadian Mortgage Professional.

Contact us on 1-844-484-2770 or e-mail us at mortgagebrokerlink@icicibank.com Terms & conditions apply.

SPECIAL PROMOTIONAL FEATURE

LEGAL SOLUTIONS

Taking the necessary precautions

Is mortgage fraud on the rise?

Another obvious but important approach should be carrying out the necessary measures for identity protection – the standard but essential steps, Tracy says.

“Keep a lock on your mailbox, or have your mail put through the door as opposed to in a box,” he advises. “And be careful online. Don’t give away your ID because it doesn’t take a lot for a sophisticated person to create [a fake] ID. So, I guess there’s prevention and then protection.”

While an individual’s chances of being impacted by title fraud remain low, Tracy says having a title insurance policy in place can provide peace of mind – and emphasizes the assistance title insurers can provide while a deal is currently closing.

“We’ve seen enough of these frauds. We know some of the red flags, so that way we can give assistance to lawyers when they’re acting on a purchase or mortgage, and [if] they get a policy from FCT, we’ll underwrite the deal for fraud, and if we pick up any red flags, we’ll dig deeper,” he says.

An October 2022 Equifax Canada report says mortgage and credit card fraud could see a spike due to growing financial pressures across the country.

While the rate of mortgage fraud fell by 13.3 percent in 2022’s second quarter compared with the same time the previous year, it was still up significantly – 29.5 percent – over pre-pandemic levels.

The credit reporting agency says that misrepresentation of financial data is rife in mortgage fraud cases. Fully 92 percent of fraud cases in the mortgage space include deliberately falsified financial data, according to Equifax, including fabricated bank state-

ments and income and job information.

Carl Davies, Equifax Canada’s head of fraud and identity, says that with higher interest rates making it more difficult to qualify for a mortgage in many cases, some individuals may be compelled to misrepresent or misstate their financial information.

“There was a huge increase in fraud rates in 2021 with record-high mortgage applications coupled with the race to qualify for high loan amounts,” he says. “It’s a slippery slope because homebuyers who are misrepresenting their finances are likely taking on debt they cannot handle, and they are breaking the law by committing mortgage fraud.”

On the best ways for mortgage profes-

“Homebuyers who are misrepresenting their finances are likely taking on debt they cannot handle, and they are breaking the law by committing mortgage fraud” John Tracy, FCT sionals and their clients to spot and prevent fraud, Davies highlights the importance of recognizing that criminals normally follow the same behaviours.

“A combination of technology and subject matter expertise is needed to identify and respond to this type of fraud risk,” he says.

“Collaboration among all stakeholders is key so we can work together and stay one step ahead of fraudsters.”

Where title fraud is concerned, Tracy says technology is hugely important to fraudsters in facilitating the creation of fake IDs, and AVMs – automated value models – can help criminals avoid detection.

“Having said that, [for] a lot of these frauds, appraisers showed up at the property, took pictures, gave a valuation,” he says, “and that can be pulled off only because there were accomplices posing as tenants.”

28

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When you’re facing unfamiliar terrain, choose a partner who has the experience and expertise to guide your success.

You don’t have to turn away potential clients or exhaust yourself searching for the perfect product. We’ll create rewarding experiences, thanks to our comprehensive strategies and devotion to providing optimal satisfaction.

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PEOPLE

BROKER INSIGHT

East Coast Mortgages covers The Rock East Coast Mortgage Brokers is embedded in, and supportive of, the Newfoundland and Labrador community, and makes sure to prioritize a worklife balance for their employees WHEN YOU think of mortgages in Newfoundland and Labrador, you think of East Coast Mortgage Brokers.

“We have many of the top brokers in Newfoundland,” says Deanne Whelan, who, with business partner Leslie Penney, is both an owner and broker at the firm. “We do quite well and we have established a very strong reputation.”

While headquartered in the provincial capital of St. John’s, they do have a network

ities across the province in more than just the business sense.

“We want to take the operational approach that speaks to our values,” says Penney.

The company, which won Brokerage of the Year Award (fewer than 25 employees) at the last Canadian Mortgage Awards, has also been lauded by the St. John’s Board of Trade for their community support. This includes sponsoring a local race car driver and a professional basketball team, the Newfound-

“We have many of the top brokers in Newfoundland. We do quite well and we have established a very strong reputation” Deanne Whelan, East Coast Mortgage Brokers of home-based brokers across the island.

(Penney and Whelan became the dual ownership team in December of 2021, having obtained an ownership stake, along with two other partners, in 2018.)

“All of our brokers benefit from our programs offered through the organization,” Whelan adds. “Half our brokers work from home because that’s how they like to build and establish their business.”

The company is embedded in commun-

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land Rogues, as well as filling backpacks with back-to-school supplies for families in need and supporting their employees in volunteering with the Salvation Army.

“He’s a young person who really makes an impact in his community,” Whelan says of race-car driver Noah Healey.

As for future plans, in the immediate term, Penney hopes to place a lot of resources into employee training.

“Our mandate is to hire more brokers,” says Penney. “That’s how you grow business.”

The company has hired an operations manager since 2021, and “our primary focus is making sure that new brokers are appropriately trained and supported to be successful. It’s imperative to have a dedicated support role in your company in order to nurture your agents to allow them to develop the skills to be successful brokers.”

EAST COAST MORTGAGE COMMUNITY PARTNERSHIPS Race-car driver Noah Healey: The teenager, sponsored by East Coast Mortgage, has just completed several races at the Citrus County Speedway in Inverness, Florida, this past winter in the Semi-Pro Legends division.

Newfoundland Rogues: The Rogues are a professional minor league team founded in 2021 and are part of The Basketball League (TBL). Their home court is the Mary Brown’s Centre in St. John’s.

Salvation Army of St. John’s: The St. John’s Citadel of the Salvation Army is the largest corps in Canada and home to about 600 families. The organization has been serving Newfoundland since 1886.

Leslie Penney, East Coast Mortgage Brokers

“We enjoy work-life balance. Family values are a big part of that work-life balance. And that is a big part of our company culture” Leslie Penney, East Coast Mortgage Brokers The duo are seeing a phenomenon, which may be unique to their corner of Canada, of Newfoundlanders returning home, using profits from house sales in places like Ontario to buy property back home in Canada’s Far East.

“We’re seeing this a lot more,” says Whelan.

A couple “may have bought a house 15 years ago” in Toronto at a much lower cost. With house prices having jumped substantially since that time, the profits from that sale can now afford them the ability to purchase a

decent home in Atlantic Canada. In fact, she did the same thing with her husband, moving to Calgary for five years before selling their home there and coming home.

Naturally, the pull of home and family proves to be strong for Newfoundlanders, something that they emphasize in their company.

“We enjoy work-life balance,” says Penney.

Those “family values are a big part of that work-life balance, and that is a big part of our company culture.”

Deanne Whelan, East Coast Mortgage Brokers

EAST COAST MORTGAGE FAST FACTS YEAR FOUNDED 2010 EMPLOYEES 30 BROKERS 27 MORTGAGES IN 2022 1,600 PARTNERSHIP Verico Financial Group

www.mpamag.com/ca

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FEATURES

AGENT & BROKER SPECIAL

The state of the profession How are the mortgage agent and broker professions faring in 2023? A recent Toronto panel explored some of their recent opportunities and challenges RECENT YEARS have been a roller-coaster ride for the mortgage agent and broker professions, with the initial chaos of the COVID-19 pandemic giving way to an unexpected housing market boom and months of long hours, intense workloads, and, in many cases, record-shattering mortgage volumes funded.

The ensuing market slowdown, meanwhile, presented a fresh set of challenges as borrowers faced a new environment of rapidly rising interest rates and a cost-of-living crisis while home prices and sales in most major markets began to fall.

Against that maelstrom of factors, just what is the state of the sector, and how has it performed over the last few years?

Those questions were explored at a Financial Services Regulatory Authority of Ontario (FSRA) event in Toronto in February, convening a panel of industry experts to run an eye over developments in the sector and its overall health.

Huston Loke, FSRA’s executive vice president for market conduct, noted that while the number of mortgages that were brokered in Ontario had gone up slightly (1.5 percent) in 2021 compared with previous years, the value of those mortgages had increased significantly, by more than 12 percent.

The number of new mortgage agents being licensed in the province, meanwhile, skyrocketed by 24 percent over the three years prior to 2021, Loke added, a trend that raised questions over whether that plethora of new agents was equipped with the education and experience required to service clients in the current turbulent market.

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“This presents a bit of an issue, because you may end up with a problem with rising indebtedness and now rising rates,” he said.

“You have a level of experience out there that may not necessarily match. Now we do have, of course, the two-tier licensing [for mortgage agents] that is being introduced this year.

“And that’s exactly why we need to do it – because we need the capacity, the proficiency, and the experience of the mortgage agents to match the need.”

Market challenges Veronica Love, senior vice president of corporate development at TMG The Mortgage Group, said a heartening development she had seen during the time frame mentioned by Loke was that many of the new agents entering the profession were coming over from the banking space, and therefore already had a wealth of experience.

“They’re not inexperienced – they do know mortgages, and they know consumer debt load,”

she said. “They … were limited in their previous spaces where they couldn’t provide as many options, [and] they’re seeking out this world so that they can truly advise the customer with all the options possible.”

While there is a learning curve for those professionals in getting up to speed with product and lender opportunities, Love said their existing expertise in the mortgage space meant they weren’t coming into the agent profession completely unprepared.

The future of part-time agent work Sadiq Boodoo, principal broker at Approved Financial Services, said the workfrom-home arrangements that dominated throughout the first two years of the pandemic might have accounted for slightly higher-than-expected agent registration numbers for 2021 as some people possibly viewed brokering as a part-time or side project.

He indicated that the number of licensed agents in the province was likely to return to more normal levels as that belief became less prominent.

“I think in 2021 those numbers were a little bit inflated because in the height of the pandemic, a lot of people who were working from home found that they had a little bit more flexibility in their schedule and decided to become part of that gig economy – and thought, wrongfully, that mortgage brokering is part of that gig economy,” he said.

“I think we’ll see some of those numbers being weeded out, because you realize that this is a full-time investment in yourself, in your education, in your clients. It’s not something you do on the side while doing your other stuff.”

BE PART OF THE EVENT OF THE YEAR Canada’s leading mortgage professionals will be gathering for the Canadian Mortgage Awards, where the deserving winners will receive their awards at a highly anticipated formal gala event.

Be sure to join us at this unmissable gala on April 20, 2023 at Toronto’s Westin Harbour Castle, celebrating with mortgage professionals from across the country.

For table reservations or sponsorship opportunities, visit canadianmortgageawards.com or scan the QR code.

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Standing apart in a crowded field SafeBridge Financial’s chief strategy officer talks CMP through an approach that helps agents and brokers show maximum value to their clients

THE RAPID cooldown in Canada’s mortgage and housing markets in recent times has seen purchase activity slow – and for mortgage agents dealing with that changing climate, the shift from a transaction-based to a more advice-driven approach starts with picking up the phone, according to a leading executive.

Chris Karram, co-founder and chief strategy officer at SafeBridge Financial Group, tells Canadian Mortgage Professional that the current market represents a valuable opportunity for mortgage professionals to set themselves apart by proactively offering solutions and financial expertise to existing clients.

“The reality is, mortgage agents have in the last 10-plus years established themselves and done a good job of marketing and branding and relationship building,” he says.

“A lot of what they did was pick up the phone and solve a problem.

“In this environment, they have to go back to the basics of … actually making phone calls, calling people: How are you doing? Can I help?

Can I give you some instruction, some guidance, or can I just help put your mind at ease?”

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Those discussions about how agents can be of service to their clients on an outbound basis are going to drive opportunities in a market that’s no longer red-hot on the purchase front; however, a mild uptick may occur as would-be buyers get off the sidelines following an apparent end to Bank of Canada rate increases, for now, Karram says.

“The term we’ve used for that from 17 years back is mortgage-centred financial planning, or MCFP. We’ve been doing this our whole life – it’s not new to our firm whatsoever” Chris Karram, SafeBridge Financial Group Advice beyond mortgage solutions A focus on alternative revenue opportunities for agents has been a central part of SafeBridge’s approach since its foundation, according to Karram. He articulates the

company’s view of a mortgage as just one piece of an overall holistic approach to wealth management, with its advisors tying that into other wealth-building strategies to provide comprehensive overall service to clients.

Those efforts have been bolstered by the extra-value proposition offered by the company to help clients make strategic decisions in investment, insurance, tax, or overall financial matters, depending on what they’re looking for.

“In doing so, it adds real credibility with the mortgage agents because now they’re solving more problems than just the mortgage, even when there is no mortgage problem solved,” he says. “At the same time, it’s a point of contact with the client and allows them to demonstrate, ‘Hey, I’m here to help you in all of what you’re doing.’”

Importance of a unique value proposition

“We’ve always [provided] the opportunity to speak with one of our advisors to help build out a proper financial plan – insurance strategies, tax strategies, wealth management strategies – to make sure all the decisions you’re making actually are working in a coordinated way together,” he says.

“The term we’ve used for that from 17 years back is mortgage-centred financial planning, or MCFP. So we’ve been doing this our whole life – it’s not new to our firm whatsoever. But in the environment that we’re currently in, there’s no question that, as a mortgage professional, there’s a fear of a slowdown in the market, which we’ve seen,

and whether that completely turns around or not is yet to be determined.”

Mortgage agents who persist with the same transaction-focused strategy they’ve followed in recent years without acknowledging that the market has shifted are unlikely to carve out new opportunities this year, Karram says.

That’s one of the reasons he is proud of the SafeBridge team for having taken an outside-of-the-box approach to differentiate themselves of late, whether through new social media or marketing campaigns, developing relationship skills, or pursuing educational or training opportunities.

With an experienced team available to agents to help them address clients’ other financial needs, Karram says the value-add would allow mortgage professionals to deepen trust with clients and potentially drive new referral opportunities.

Those agents who are picking up the phone to speak with clients, Karram says, are “isolating and separating themselves in a way that’s substantially better than anything [clients] could ask for.… This is a way to stand out from your competitors and make sure that you look different than any other mortgage agent out there.”

Ultimately, Karram says, that will prove the key difference between agents who thrive in the much-changed mortgage market and those who find themselves in difficulty.

“If you can become that person who is no longer just helping [clients] facilitate a purchase or refinance or pulling equity out, but who is the resource to the most trusted advice that they can get, you’ve absolutely elevated yourself to becoming the number-one asset in their life,” he explains.

“And if you can become that as a mortgage agent, your experience and relationship with that client is going to go to completely different heights every day.”

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Canadian Mortgage SUMMIT

SEPTEMBER 14, 2023 | PEARSON CONVENTION CENTRE

READY, SET, GROW! The Canadian Mortgage Summit is back with one primary goal in mind: to help mortgage leaders like you thrive in the year ahead.

We’re bringing together the industry’s top mortgage brokers, lenders, and solution providers to share their knowledge and help you take your career to the next level. They’ll be exploring the newest trends in the industry, sharing their insights, and providing strategies for the biggest challenges facing mortgage leaders today.

■ Enjoy a powerful combination of comprehensive conference sessions, networking opportunities, and expo hall with top organizations at no charge ■ Discover new insights and strategies during our panel discussions and solo presentations, all designed to keep you educated and informed ■ Absorb the collective knowledge and strategies of some of Canada’s top brokers, lenders, and organizations

Get ahead of the curve – be part of the conversation.

Visit canadianmortgagesummit.com for more information

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LEADERSHIP

Leadership in the post-pandemic workforce Since the social restrictions introduced in the pandemic forced much of the workforce to conduct business remotely, employers have been preparing for what the workplace will look like moving forward. Michelle Gibbings offers some tips for leading in the new working world COVID-19 came with challenge and opportunity for workplaces. As you look to the future as a business leader, what do you want to leave behind and carry forward in terms of how you work?

Answering this question is important on two fronts. First, it’s too soon to go back to pre-pandemic ways of working, and second, COVID has accelerated workplace change, with much of it here to stay.

Deciding how to go forward starts with identifying what’s working for you, your team, and your organization. Think about what you have enjoyed, the benefits you have gained, and why you want them to continue.

Write these thoughts down and reflect on why they matter.

Next, look at what hasn’t worked and why. Identifying the root cause is important to determine if a new way of working should be disbanded or just needs to be tweaked. It can be helpful to invite your team members to participate in this review so you get their perspective on the workplace. Doing this also

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helps build their buy-in and commitment to future change.

Recognize different needs As part of this process, recognize that the level of adjustment and adaptation required across workplaces has been and will continue to be mixed.

For some employees, the rapid move to working from home has been successful, meaning less commuting, better work-life balance, and access to effective technology to support productivity. For others, it has been stressful if they are juggling children’s needs or lack a defined workspace or the technology they need to work effectively.

Added to that, people who draw energy from connecting with their colleagues are missing the office banter and casual conversations.

These impacts translate into variations in productivity and engagement. Consequently, it’s essential to recognize each team member’s needs and understand what they require to be at their best at work.

Create choice Many organizations are now using the term “work from anywhere,” signifying that the traditional model of sourcing employees who are willing to be locally based or to travel frequently has shifted. This opens organizations to a broader talent pool. For employees, it also means they are no longer geographically hamstrung when it comes to applying for new roles.

Also, some people have been keen to get back to the office and others less so. Examine your workforce and roles to determine the options and flexibility that can continue.

Know when virtual doesn’t work Working from home is here to stay, but connection and time spent with team members and colleagues will always be necessary. Humans are tribal creatures who are hardwired for connection. Part of the joy that people experience at work comes from the banter and chats they have with their colleagues. Nothing can replace the

It’s essential to recognize each team member’s needs and understand what they require to be at their best at work casual corridor conversation or chat in the break room.

Recognize that not everything can be done remotely (or done as effectively remotely).

Leaders will want to consider where face-toface sessions are more productive and effec­ tive, and where remote will work just as well.

Step up and lead Leadership matters, whatever the working environment – be it the office or home. The best leaders appreciate this and are shifting and elevating their leadership style to suit

these new circumstances. They understand that in times of challenge and uncertainty, they need to provide more, not less, leadership.

People want to feel they matter and know they are valued. Leaders should continue to set regular times to check in with their teams.

These check-ins aren’t just about how tasks are progressing; they’re about finding out how the team member is doing in terms of emotional and mental health, too.

Support healthy practices

the relationship a leader has with their team.

Successful relationships are underpinned by psychological safety – an environment in which people are comfortable sharing what is or isn’t working for them and how they are feeling, and being their authentic selves.

It helps if leaders role model self-care behaviours. Encourage your team to take care of their physical and mental health. Suggest they take regular breaks, notice and manage workplace stress, and have a safe space where they can talk about their mental health and well-being.

Michelle Gibbings is a workplace expert and the author of Step Up: How to Build Your Influence at Work, Career Leap: How to Reinvent and Liberate your Career, and Bad Boss: What to Do if You Work for One, Manage One or Are One.

Central to creating a healthy environment is

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PEOPLE

OTHER LIFE

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

ge a nd “Ta k e th e p luung h to b e b ra ve e n o e ve ry th in g b e li e ve th a t o k a y” re a lly w ill b e

2015

Year Mann began skydiving

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Times in a row she rode the same roller coaster

5

Times she has ziplined

LIVING LIFE ON THE EDGE Extreme sports cultivate this mortgage executive’s personal and professional sides FOR SHAZMA Mann, vice president of mortgage credit operations at Rocket Mortgage Canada, the rush from extreme sports is its own reward.

“I like the thrill, the adrenaline,” Mann tells CMP. In particular, skydiving revitalizes her both in body and spirit, in a way that no other pursuit has done so far.

“I love the feeling of going through the clouds, trying to catch them on my way

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down,” Mann says.

“I did do my research. While I was excited to try jumping out of a plane, I also wanted to know I was going to be safe. I went to the same place [singer and actress] Shania Twain did – I figured her ‘people’ would have vetted the location, and it would be okay for me if it was okay for a celebrity.”

What aspects of skydiving gave Mann the most fulfillment?

“That I survived at the end,” Mann

quips. “All joking aside, each experience turned out to be the rush I was looking for.... It’s helped me not fear the unknown.”

For Mann, this fundamental courage is a valuable tool in every aspect of life – including her career in the mortgage industry.

“When you’re ready to jump out [of the plane], you have to throw caution to the wind. Take the plunge and be brave enough to believe that everything really will be okay.”