CMP 9.07

g n u o Y

MORTGAGEBROKERNEWS.CA ISSUE 9.7 | $6.95

s n u G RE MAKING A YOUNG PEOPLE WHORATG AGE INDUSTRY DIFFERENCE IN THE MO

2014 BROKER KIT BAG LIFE LINE? OSFI THROWS IN A SAFETY NET

LEAD GENERATION AUTOMATING THE PROCESS

INVESTMENT LESSONS BROKERS TAKE CLIENTS TO SCHOOL

great mortgages great relationships great rewards radius supports your success and rewards your loyalty Radius Financial believes in doing our very best for Canadian homeowners.

We also believe in rewarding our brokers through lucrative loyalty programs.

Radius Financial is an approved Canadian lender insured by CMHC and Genworth.

1.877.369.6398 sales@radiusfinancial.ca www.radiusfinancial.ca/contact Š Copyright 2014 Radius Financial Inc. All Rights Reserved.

mortgages that fit.

CONTENTS

MARKET MATTERS 4 | Editor’s letter 6 | Letters to the editor 8 | Reading between the Lines: OSFI safety net already in place

NEWS 10 | News analysis 18 | National picture-ata-glance

FEATURES 14 | Broker advice: It can be tough – what with constant rule changes and increased difficulty funding deals – but having a positive attitude will help your business, writes Jake Abramowicz of Mortgage Edge

34 | Kit Bag: Brokers have spoken and CMP has listened. We’ve put together an essential collection of tools no broker should be without 46 | When it comes to commercial brokering the first impression is paramount 48 | Profile: Urma Mollema established the mortgage broker business in South Africa. She’s now brought her talents to Canada

issue

9.7

Young

s n u G 20 COVER STORY

Young Guns

CMP pays homage to the up-and-coming players in the mortgage industry

HOW PLANS BECOME SQUARE FEET. Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $1 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M. Blake Cassidy | 800 494 0389 | www.romspen.com

DATE:

July 2, 2014_11 aM

License # 10172

LIVE: 7.5” x 2.875”

AD NUMBER: RoM CMP 14 07

COLOUR: CMyK

AD / JOB TITLE: SquaRe Feet

CLIENT:

RoMPSen

2014 |8.75” 1 x 4.125 TRIM: 8.25” x 3.625” JULY BLEED:

CONTENTS

MARKETING 50 | Investment properties: School’s in session for brokers looking to update their knowledge of investment properties 54 | Private lending: With a growing number of players in the private lending space how can a broker ensure she finds the right match?

60 | Adapt and thrive: How can coaching assist us in adapting to change? Dr. Hillary Armstrong explains

2 | JULY 2014

REGULARS 58 | Forum discussion Broker vs. Appraisers 62 | Favourite Things 64 | CMP Service Directory

42

MARKETING

Automated lead generation: Why not automate the lead generation process, writes Doren Aldana

Twitter.com/ CMPmagazine Like Us on Facebook Canadian Mortgage Professional

Accelerate your career with HLC With innovative programs, sales incentives and value added benefits, HLC Home Loans Canada empowers you to achieve more.

Contact a Regional Sales Director today.

Grant Bennett British Columbia

Jag Singh Alberta

Fatima-Zohra Nazehi GTA & Ontario East

• 1-866-978-9919

• 1-866-467-2434

• Fatima-zohra.Nazehi@hlcmortgages.com • 1-866-827-5971

Mark Buller

Suzanne Lass

Geoffrey Woodford

• Mark.Buller@hlcmortgages.com

• Suzanne.Lass@hlcmortgages.com • Geoffrey.Woodford@hlcmortgages.com • 1-855-263-2241 • 1-866-217-5159

• Grant.Bennett@hlcmortgages.com • Jag.Singh@hlcmortgages.com

Ontario West

• 1-866-236-5765

Quebec

Atlantic Canada

3877337 Canada Inc. is a subsidiary of CIBC Mortgages Inc. and carries on business as HLC Home Loans Canada (“HLC”) in BC, AB, SK (Licence #316461), MB, ON (Licence#10423), NB, NS, PEI, NFLD and carries on business as HLC Hypothèques Logis Concept in QC licensed as a mortgage agency. ™ HLC Design is a trademark of CIBC. ® Registered trademark of CIBC. TM

CONTENTS / EDITOR’S LETTER

MORTGAGEBROKERNEWS.CA

YOUNG GUNS COPY & FEATURES SENIOR EDITOR Vernon Clement Jones STAFF WRITER Justin da Rosa CONTRIBUTORS Davin Lok, Jake Abramowicz, Olivia D’Orazio, Doren Aldana, Skip Walters, Maia Espejo, Hilary Armstrong COPY EDITOR Rachel Naud

ART & PRODUCTION SENIOR GRAPHIC DESIGNER Red Redrico

SALES & MARKETING ASSOCIATE PUBLISHER Trevor Biggs GENERAL MANAGER - SALES John Mackenzie MARKETING AND COMMUNICATIONS Claudine Ting PROJECT COORDINATOR Jessica Duce

CORPORATE PRESIDENT & CEO Tim Duce OFFICE/TRAFFIC MANAGER Marni Parker EVENTS AND CONFERENCE MANAGER Chris Davis

Editorial enquiries vernon.jones@kmimedia.ca Advertising enquiries trevor.biggs@kmimedia.ca Subscriptions tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca KMI Publishing 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 mortgagebrokernews.ca Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as CMP magazine can accept no responsibility for loss.

The broker channel – unlike other sectors of financial services such as financial planning – is skewed toward a younger member base.

It’s a markedly different demographic than, say, insurance advisors whose ranks are filled with players considerably older than the average mortgage broker.

The industry will look to its young members as it looks to grow and strengthen its roots in Canada. This issue features CMP’s first-ever nod to the torch bearers of tomorrow.

As we put together our list of “Young Guns” – this month’s main feature – it was hard not to conjure up the image of a band of gun-twirling cowboys rolling into a western town, intent on leaving their mark.

In this day, that metaphor may not be too far off – the mortgage broker industry has long been dominated by an old guard of familiar faces.

But we’ve put together a collection of a few dozen fresh faces intent on blazing a path. That feature can be found on page 20.

Back for the second time is CMP’s “Kit Bag,” an essential guide of tools that belong in every savvy mortgage broker’s repertoire; tools that aid in communication, business development and organization – assembled with the help of a few notable players. Flip to page 34 for that.

Cheers, Vernon Clement Jones Editor

CONNECT

Contact the editor:

vernon.jones@kmimedia.ca

4 | JULY 2014

START BUILDING TOMORROW’S BUSINESS

TODAY! In an increasingly competitive mortgage market it is important to cultivate new relationships and utilize proven strategies to secure future business. Axiom’s industry leading software has been doing it for years and best of all we make it really simple!

FEATURED PRODUCT:

THE PERSONALIZED MORTGAGE PLAN: YOUR PATH TO HOMEOWNERSHIP Have you ever had clients who sit on the fence or are simply unable to qualify?

Typically it is because of one, or a combination of, three roadblocks: ICE (Income, credit or equity). Learn how to not only turn these clients into future approvals, but get them referring you like

THE PERSONALIZED MORTGAGE PLAN WILL:

crazy before, during and after the process.

•

Turn your declines into future approvals

•

Build customer loyalty

•

Build a stream of steady client referrals

•

Add value to your referral partners (Realtors, Planners etc.)

•

Create custom client coaching programs at the touch of a button

•

Cost you nothing. That’s right. It’s absolutely FREE!

MORE THAN A MORTGAGE COMPANY… WE’RE A MOVEMENT. JOIN THE REVOLUTION!

If you would like to learn more about this product or to request a confidential discussion about joining Canada’s most efficient mortgage network, CALL US TODAY AT 1.866.504.0516!

INFO@AXIOMMORTGAGE.CA | WWW.LEARNMORE.CA

CONVERSATIONS / LETTERS TO THE EDITOR

MORTGAGEBROKERNEWS.CA

CHANGE IS COMING RE: WOMEN OF INFLUENCE (CMP 9.5 CMP celebrated the contributions of industry pioneers in June, with its second Women of Influence issue. The feature also highlights the challenges the channel continues to face in achieving equity.

THANK YOU… I am proud of the accomplishments of the industry’s women.

Congratulations to all of those on the list, but also to the many of us who have dedicated our professional working lives to making this industry of better service to consumers.

PLUS!

Private lend ing guide Pg. 32

-Mindy Phelps

My wife, Lynda, has been a broker for more than a decade and I see her as a shining example of the very strong interpersonal skills that many women bring to brokering.

They have a knack, many of them, for touching the lives of their clients beyond the transaction.

MO RT GA GE BR OK ER NE WS .CA ISS UE 9.6 | $6 .95

-Wayne Marks

The truth is that I see women someday representing the majority of brokers in this industry. They are coming on strong in a way that they did 50 years ago in real estate.

I think the industry will benefit from a softer, more personal approach.

-Armand Jones

OF INFLUENC E2 Meet the pro

fessionals h

elping shape

Congratulations to all the women on the list. Thank you, too!

014

the industry

-Michael

I don’t wish to take away from the accomplishments of the women on the list of influence, but I think the time to distinguish between men and women brokers is over. We are all professionals. Lenders don’t care if the deal comes from a man or a woman.

This is 2014.

-Kay Minns

6 | JULY 2014

THE BI HABITS OF SUG 10 COMMERCIAL CCESSFUL BROKERS

STRUCTURE SU OPTIMIZING CCESS YOUR BUSINESS MO DEL

GET CLIE HELP BREAKNTS DO BARRIERS WN

MARKET MATTERS / READING BETWEEN THE LINES

BROKER:

SAFETY NET

ALREADY IN PLACE

3

The Office of the Superintendent of Financial Institutions has teamed up with mortgage lenders and insurers to better protect the housing market against risk, but is this latest move necessary? Davin Lok, with of Centum Fundsource Financial, is reading between the lines of a MortgageBrokerNews.ca story on that initiative

1

2

4

5

8 | JULY 2014

MORTGAGEBROKERNEWS.CA

There are “Real Advantages” to joining RMA

MORTGAGEBROKERNEWS.CA

1. The Canadian housing market has experienced ups and downs over the last few decades, but both OSFI and Canada Mortgage and Housing Corp. have done a very good job to make changes to the lending guidelines for the mortgage market over the years.

“Unbelievable! I only pay one flat fee a month and I get all of these services! In all the years that I have been a broker I have never experienced such great service from an organization AND had such great commissions!!!”

2. Since 2012, OSFI introduced

Bernie Klacer RMA Mortgage Broker London, ON

the B20 rules, which minimized the risk of lending to stated income borrowers. CMHC also reduced the maximum amortization from 40 years to 25 years and introduced the benchmark rate on mortgage application to ensure the affordability of borrower. Under these new tighten guidelines, the risk of lending to a qualified borrower on a mortgage loan is reasonably low.

3. According to CMHC, Canada’s rate of home ownership reached 69% of households in 2011, only 60.3% of households owned their residences in 1971.

With low mortgage rate, more renters are seeking homeownerships - This demand is driving the home prices upward. However, the fact that most of these new homeowners are already qualified under the newly strict lending guidelines, and majority of them are end user - using their homes as their primary residents. In my opinion, the market will soon find a price and affordability point where the home price will be stabilized.

4. For larger homes, however, since lenders and banks are under a cautious attitude, it seems to me that it may see a lower stabilized point.

5. The mortgage broker industry is highly regulated

by FSCO and MBLAA, lenders are protected by mortgage professionals to minimize the risk. OSFI should also regulate retail banks, since FSCO and MBLAA do not apply to retail banks. Most retail banks still have their own or double standard when it comes to mortgage lending, which is putting more pressure on the risk and encouraging unsuitable mortgage loan.

It’s in your best interest ™

Learn more about the advantages of joining our team at

www.RMArocks.ca | 1.877.677.7778

JULY 2014 | 9

MARKET MATTERS / NEWS ANALYSIS

THE FOUR LEADERSHIP TRAITS OF SUCCESSFUL LEADERS

Great leaders inspire, motivate and engage their teams, and they often do so by leading by passionate example.

What surprising traits and qualities do the most powerful leaders generally possess, and how can you use these qualities to inspire your broking team to reach great heights?

1. They trust in their employees Do you find yourself micro-managing every element of your brokerage? If so, you’re not alone, but this is a bad habit that needs to be broken.

According to Terry Reynolds, regional managing director, Asia Pacific, rogenSi, a surprising number of leaders are reluctant to let go of the reigns by trusting their employees to get the job done, without micromanaging.

“Giving your employees a sense of empowerment can motivate them to succeed, which in turn drives better results for the company,” he says.

“Having a high level of trust in your employees generally leads to a more proactive team.”

2. They show their vulnerable side “The best leaders are not afraid to show vulnerability, often choosing to take the road less travelled,” Reynolds says.

“Ask yourself what key events, decision and turning points have made you the leader you are today, and what passions and values have developed as a result? What baggage must you let go of to be the leader you know you could be?”

3. They build genuine rapport Effective leadership is about building rapport and motivating your team, said Hillary Armstrong, director of education at the Institute of Executive Coaching and Leadership (IECL).

You can inspire others by telling a compelling story of the future, and engage fully by connecting peoples’ passionate interests with their roles,” she says.

4. They allow a margin for error Creating an environment where people feel safe to make mistakes is a surefire way to encourage true innovation and growth, Reynolds says. ”Sometimes to get better results, we need to take some risks and tackle some fears,” Reynolds says.

“Create an environment that encourages your people to take risks and be more courageous ... good employees will learn from their mistakes and grow.”

MORTGAGEBROKERNEWS.CA

RATE PREDICTIONS

Fixed Rates: Unchanged

Fixed-rate mortgages will continue to be competitively priced.

With the best five-year options below 3 per cent.

Variable Rates: Unchanged

Despite encouraging signs of economic recovery both in Canada and the U.S., it’s too soon to tell if changes to central interest rates would be sustainable. Higherthan-expected inflation numbers mean a rate cut is off the table.

Source: ratesupermarket.ca

10 | JULY 2014

HOW TO PICK THE BEST NEW BROKERS

Iconic Home Loans’ James Pibworth brought in 11 new brokers in the space of nine months, and currently has 13 trainee brokers on his books. Bringing in such a large amount of fresh talent in a small space of time may sound like a herculean task, but Pibworth knows what he’s looking for.

“I’m not really after reams of finance industry experience for our trainee guys,” he says.

“Obviously I’m after the usual intelligent, presentable, attention to detail professional but also I need something different: Passion oozing from them, enthusiasm, drive, determination, hard work and, more importantly, someone who really really wants it. Someone that won’t take no for an answer, that doesn’t give up, that picks themselves up after a knock – someone with a point of difference.”

When it comes to finding these driven individuals, he does benefit from a close family connection who can help to make the talent drive a lot easier.

“We are lucky in the main as we use a specific recruiter, Pathways Recruitment, who only specialises in finance brokers and the finance industry,” he says.

“Carla Pibworth, who is my wife, recruits trainees for us and for many other brokerages. Carla organizes the trainee’s registration for their diploma plus works with them with a checklist so that they obtain the proper memberships, sit the exams etc. In doing this the candidates are well on their way when we onboard them.”

Another pipeline that Pibworth targets is bank staff and finance and insurance industry employees who have experienced a working environment that bears similarities to mortgage brokering.

That said, he notes that some of his more senior brokers who were trainees four to five years ago came from various backgrounds including gardening, electrical engineering, pizza delivery and cleaning.

For Pibworth, what’s more important than the trainee’s background is that they have a personality that fits in with the company’s culture.

“Due to the way Iconic is, young, energetic, forward thinking and passionate, we need these guys to have explosive personalities – guys that woo and captivate you,” he says. “If they have all of these things, I, along with our systems, processes and fantastic mentors/senior brokers, can teach them the rest.”

What’s important, he says, is that the trainees have a point of difference that they can present to clients who are shopping around for brokers.

“They have to woo them and captivate them and impress them with their personality, intelligence and skills,” he says.

He added that, with one eye on their career progression, he also aims to bring in individuals that show an aptitude for networking – as ultimately they’ll be on the hunt for referral partners.

41,330.

Just a few of

the keys

Our keys to success. Our commitment to you.

First National provides the experience, technology and service to ensure you the broker do more business. What’s more, we’re here to help your customers realize dreams beyond simply taking the keys, like solving debt concerns to fulfilling dreams with clever refinance solutions. Together we arranged 41,330 mortgages in 2013.

That’s strength in numbers.

Ontario Mortgage Brokerage License No. 10514

Strength in numbers. firstnational.ca

MARKET MATTERS / NEWS ANALYSIS

CPI CHANGES

STATS

+7.6% TOBACCO -0.2%

MEDICAL AND HOSPITAL SERVICES

$9.65 BILLION Value of municipal permits in May

+1.7%

TRANSPORTATION

20.8% +1.5% FOOD +9.1% FUEL +1.5%

Jump in non-residential construction

$1.85 BILLION Nationwide permits for multiple unit housing, including apartments in May

MORTGAGEBROKERNEWS.CA

TOP FIVE WAYS TO RETAIN YOUR TOP TALENT

What can you do to retain the brokers who are most critical to the success of your business?

Latest research from Insync Surveys’, Why people stay: how to keep your best employees, suggests it comes down to implementing five key themes. Nicholas Barnett, CEO of Insync Surveys, explains that these are “fulfilling jobs, inspiring leadership, a performance focus, values driven culture, and to feel proud.”

Here are five tips to consider: 1. Job fulfilment and growth: Offer meaningful work via mechanisms such as job fit, mission alignment, role clarity, job enrichment, personal development and career progression.

“Employees are more likely to stay when they enjoy their work, are satisfied with their jobs, are able to fully use their skills and talents and perceive that their organizations has effective plans for developing and retaining its people,” says Barnett.

2. Inspiring leadership: Employees are more likely to stay when the senior leadership team has an inspiring vision, encourage innovation, are good role models, act with integrity, and get the maximum from people’s individual talents and knowledge. Senior leaders set the tone for the whole organisation, and this influences employees’ views about whether the organisation is right for them in the long term.

3. Performance focus: Employees are more likely to stay when they consider their organization to be high performing and well run, according to the research. Items highly related to retention include the perception that their organisation is committed to best practice; being able to link everyday actions and performance to the organization’s goals; and the belief that the organization is committed to high standards of performance.

4. Values driven: Organizations that have clear values that are demonstrated in practice are more likely to retain their staff. Items highly correlated with retention include equity in resource allocation, being advised about organizational changes that will impact the employee, belief that the organization cares about and is committed to the employee, and seeing the organization’s values and behaviours being demonstrated every day in the employee’s work group.

5. Pride and advocacy: Employees who can envisage a future for themselves in the company have a strong sense of connection with, and pride in, their organization, according to the survey. Items highly correlated with retention include being willing to recommend the organization as a workplace to others, being proud of working for the organization, and having a strong sense of belonging. These items emphasize the reciprocity inherent in the employer-employee relationship.

“When the employer provides the employee with a fulfilling job within a positive organizational context, the employee typically reciprocates by performing to the best of their ability and being an advocate for the organization to others,” Barnett says.

CONSUMER FINANCE

• Consumer credit: +2.2%

ELECTRICITY

+1.5%

• $1.23 trillion -amount of outstanding mortgage debt in Canada

OVERALL CPI

Source: ABS, CPI March quarter 2014 Source: Bloomberg

12 | JULY 2014

Source: RBC household credit report

• $1.75 trillion: amount of outstanding househodl credit in Canada

• $9.22 billion -amount of outstanding mortgage credit due to the banks

• +4.2 per cent -- y/y credit growth

• $260 billion -amount of outstanding mortgage credit due to non-banks

VERICO PURCHASE PLUS

HOME IMPROVEMENT CONTEST

CONGRATULATIONS TO RYAN AND ELAINE BOHONOS!

“

”

We are so very grateful for Aaron's assistance in the whole mortgage process, but winning VERICO's renovation contest is icing on the cake.

Elaine Bohonos, New Westminster, BC Winner of VERICO Purchase Plus Home Improvement Contest

YOUR CLIENT COULD BE NEXT! Please contact us at info@verico.ca to find out more about the contest.

WINNER 2013

WINNER 2014

1.866.983.7426 | info@verico.ca | www.verico.ca ® & ™ : Trademark of Verico Financial Group Inc. Each VERICO Broker is an independent owner and operator.

®

MARKET MATTERS / BROKER ADVICE

MORTGAGEBROKERNEWS.CA

BROKER-TO-BROKER ADVICE:

STRUCTURE YOUR BUSINESS

FOR OPTIMAL SUCCESS

It can be tough – what with constant rule changes and increased difficulty funding deals – but having a positive attitude will help your business, writes Jake Abramowicz of Mortgage Edge

I believe that the true path to success in this business starts with attitude. I know this opening sentence may truly be one of the most captain-obvious statements of our time, however I will back it up with some experiences that I have had in the past eleven years to prove my point.

Recently I had a conversation with a fellow agent who had a deal declined by a certain lender.

You know what their reaction was? Complete and utter negativity towards the lender, going so far as to say “I will never support them again.” Was it a knee-jerk reaction? Most likely. However, the sheer fact someone would say this makes me question their approach in this business. How can 14 | JULY 2014

we ever say we will never support a certain lender because of one decision? Would you want a client to never come back to you because you were not able to help them in one specific case?

A positive attitude in this business requires a very short memory, and very thick skin. We can’t be hung up on each and every decision that our lender partners make and think we’ll never want to do business with them. This also extends to disagreements we have with our underwriters – we can’t take them personally, ever. Once you do that, and once you develop a certain perspective of an underwriter, it’s very difficult to change back.

After all, isn’t our business all about relationships?

HOME TRUST

MARKET MATTERS / BROKER ADVICE

Another major faux-pas is when my colleagues talk about their clients and referral partners in a not-too-positive light. I hear it all the time; how a client is being overbearing, or questioning their rate, or any other potentially “annoying” trait. We have to remember that these people are not who we are, and they do not know what we know.

When an agent tires of answering client’s questions is when that agent will really see a drop in business.

We have seen mortgage rule changes that have affected our business in a great way. Deals I was able to approve in three hours three years ago now take three business days if not longer. Gone are the days of rubber-stamp approvals, and maybe this is a great thing for our industry. We cannot get angry at things we cannot control, and develop a negative attitude that won’t help us get those approvals done. Having a positive attitude really helps in becoming very creative and innovative in how to package a deal. It also helps through the underwriting process when negotiating with a lender on how to get this approved.

Sure, having a positive attitude seems basic but in my experience as a mortgage broker, getting back to basics can be the key to growing your business.

It only took me eleven years of trying but I’m finally at the point in my career where I’m going back to the basics, and I’m noticing that they are truly working. Since I did not come from a marketing background and/or did not really have much direction in that field, I thought that my work and accomplishments would serve me well in trying to get new clients. On the contrary, it seems. Since turning over a new leaf I have noticed a lot more firm commitments from clients especially in a time where rate-heavy brokers and flash-inthe-pan offers are taking their attention away from me to these other offers. When the IG 1.99% offer came in I had six clients who started humming and hawing about moving, but not a single one did and it 16 | JULY 2014

MORTGAGEBROKERNEWS.CA

was all because of my value proposition: true service.

I cannot imagine being a mortgage agent who does not truly serve each client separately and to the fullest capacity. What does it mean to truly serve someone? To me it’s simple: I’m always ‘on’.

I’m always available and I’m always patient with my clients. I will literally fight tooth & nail with my lenders on my client’s behalf. I hold multiple meetings with them at times, and I find that faceto-face meetings are really helping me solidify my relationship with them.

Lately I have noticed that many of my clients really appreciate the multi-touch service that they get from me. An example is being available on offer night to help them through the offer, meeting them once after offer is made and accepted to go through the next steps, providing them with constant updates during the decision-making process and then giving 2-3 good options and showing some out-of-the-box thinking.

The truth of this business is your past is not sacred; you can never ever sit on your accomplishment because a volume you do this year may never repeat itself. Obviously we are all wanting to grow our numbers as we are in sales – that’s a given. However I never ever think to myself “oh, it’ll be fine, I did this much last year”.

Another reason that I am heavily focusing on the service side is when I see the lack of competent help at the branch level. Many times I would try and help a client I meet only to be rebuffed that they feel more confident dealing with their home branch. In the majority of cases they will inevitably come back to me after waiting for not days but sometimes weeks for a pre-approval, or, a straight answer. Being honest and up-front with my clients (not to mention knowing what I’m doing) really shines in this case when they experience a level of service and knowledge they are not used to. It takes a lot of time and attention to do this right, but in my experience it is well worth it in the end.

To end things, what I have learned so far is simply this: I can never stop learning and working on my craft. I can never forget that my referral sources are my lifeblood. I can never forget the power and strength of relationships in this business. Most importantly, I am truly blessed to be able to help people in this capacity, and I carry that positive attitude with every meeting I hold and ever day I carry on.

TODAY

IT’S THE DAY YOU FINALLY STOP FEELING...

OVERLOOKED!

OUR MARKETING TOOLS MAKE SURE YOU STAND OUT. With Mortgage Architects award winning in house branding and advertising at your finger tips you’re guaranteed to get a second look… or third.

WEBSITES

CRM PROGRAM

OUR BRAND

We’ve made the web easy, simple to setup, SEO optimized with a fresh look to give you the tools you need to succeed online.

Staying in touch with your clients is easy. With 38 touches over a 5 year period your sure to stay front of mind.

As the Winner of Best Advertising at the Canadian Mortgage Awards, you have the best opportunity to get noticed!

Begin your journey to incredible success with MA!

JOIN US TODAY! JOINMA.ca

© Copyright 2014, Mor tgage Architects Inc., all rights reserved.

STATISTICS / RESIDENTIAL SALES ACTIVITY

NATIONAL PICTURE AT-A-GLANCE Sponsored by TM

Sales continue to rebound after slow start The Canadian housing market continues to make up for lost ground due to slow sales in the beginning of the year, with the number of sales making a modest 0.8 per cent month-over-month jump from May to June.

“Sales have improved compared to their slower start earlier this year,” CREA President Beth Crosbie said in an official release. “That said, there are still important differences in how housing markets are faring depending on location, housing type and price point.”

Year-over-year sales activity edged up 11.2 per cent country-wide in June, led by British Columbia (+24.9 per cent), Alberta (+14.3 per cent) and Ontario (+10 per cent).

A total of 51,381 homes were sold in June 2014 compared to 46,222 a year ago.

The average home price rose by 6.9 per cent country-wide on a year-over-year basis. Ontario enjoyed the largest price jump, with an average price of $436,620, up from $407,210 in June 2013.

Newly-listed homes were little changed in June, however, dropping 0.1 per cent from May to June of this year.

“At least some of the recent burst in new supply reflects the slow start to the year, when a harsh winter caused many sellers to delay listing their home in many parts of the country,” said Gregory Klump, CREA’s Chief Economist. “In markets with tight supply and strong demand, the strength of sales in recent months reflects how many properties were snapped up once they finally hit the market. Because the impact of deferred listings and sales has likely run its course, activity over the second half of the year may not be able to maintain the kind of pace we’ve seen over the past couple of months.”

18 | JULY 2014

44.1

per cent

46.2

per cent

44.9

per cent

Lloydminster

13.0

per cent

South Okanagan Medicine Hat Brandon

TOP PERFORMING CITIES

June Sales Activity

(year-over-year percentage change)

MORTGAGEBROKERNEWS.CA

HOT TO COLD: SALES ACTIVITY BY PROVINCE (year-over-year monthly percentage change) Source: CREA

+11.2 per cent

Yukon: +40.9 per cent British Columbia: +24.9 per cent Alberta: +14.3 per cent Ontario: +10.0 per cent

Overall Canadian sales activity

Nova Scotia: +7.4 per cent Newfoundland and Labrador: +8.2 per cent

13.1

per cent

Manitoba: +5.0 per cent

112.5

per cent

Quebec: +2.1 per cent

Northern New Brunswick

56.8

per cent

Tillsonburg District 1

D+H CMT Mortgage ad final.pdf

Saskatchewan: +5.8 per cent

Highland

4/16/2014

10:53:44 AM

JULY 2014 | 19

COVER / YOUNG GUNS

g n u o Y

Guns

M

Meet the young up-and-comers shooting to the top of the mortgage broker industry

ortgage brokering – like all other entrepreneurial pursuits – forces newbies to pay their dues and slog through years of networking and education to rise to the top of an ever-competitive industry.

But a handful seem to have the ability to rise to the top in shorter order and this feature – a first for CMP and the industry, as a whole – pays homage to those young professionals who are influential and successful well beyond their years.

Cutting a wide swath across the country, this list even includes one hardworking broker making a go of it in the Arctic.

More generally, think of the list as a coming out for these 35 individuals, all of them 35 years of age or younger. Still, as their profiles suggest, these players have already arrived.

20 | JULY 2014

MORTGAGEBROKERNEWS.CA

Angela Calla Age: 31 Mortgage Broker, Dominion Lending Centres National Ltd. Years in the industry: 10 Total dollar volume/number of loans for the last two years: $81.7m/239 deals for 2013 (#10 on CMP Top 75); $75m/266 deals for 201 2: (#11 on CMP Top 75) Calla continues to lift the industry’s public profile as a media personality for radio and television. By creating relevant content both nationally and for her local market, she is credited with steering consumers to a better understanding of the mortgage qualifying process. She was AMP of the Year in 2009 and a CMP Woman of Influence in 2013.

Mick Hayward Age: 34 Mortgage Professional, Verico Select Mortgage Years In Industry: 4

Steven Levine Age: 29 Certified Mortgage Broker / Quebec Regional Manager of True North Mortgage Years in the Industry: 3 Total dollar volume/number of deals in last two years: $40.8m/178 deals — “The office submits deals under my name as well, however these are my personal numbers,” he says.

Levine was the winner of the 2013 Canadian Mortgage Award for best newcomer individual agent/broker, and was a finalist in the same category in 2014. He joined True North three years ago where he has been in charge of operations and growing its Quebec Division since the doors opened in La Belle Province in 2011.

In less than five years, Hayward has amassed a book of business that many industry players with more than double the experience have yet to claim.

Following his time in construction, specializing in rigging concrete and steel, he entered the mortgage business as another way of helping others within his community, says Shayne Gorman of Verico Select Mortgage. Hayward is also an accomplished boxer who holds an amateur record of 10-1.

Sean Widdess Age: 35 National Sales Manager at Verico Financial Group Inc In ascending to the office ofVP at Verico Financial Group Inc., Widdess is now a key member of the executive team, overseeing and implementing growth strategies, along with sales and member services. In the eight years he has been with Verico, Widdess has not only developed relationships with many top lender executives and mortgage brokers, but has been seen as instrumental in bringing on board many of Verico‘s largest firms.

JULY 2014 | 21

COVER / YOUNG GUNS

Jennifer Gaudet Age: 34 Mortgage Broker with Mortgage Intelligence Years in Industry: 2 Volume: 2012 - $4.5 million; 2013 - $8 million Representing the small market of Greenwood, N.S., Gaudet funded $8 million in 2013 — her first full year as a mortgage broker. She specifically focuses on the military community, earning an office on the Greenwood Military base directly across from IRP Brookfield Military Relocation Office.

Sarah Makhomet Age: 33 Principal Mortgage Broker & Owner with Dominion Lending Centres Mortgage Village Years in the industry: 8 Total dollar volume/ number of loans for the last two years: 2013, $40m; 2012, (#35 on CMP Top 75) $45.4m/180 deals

Jessi Johnson Age: 34 Mortgage Broker and Broker Owner Years in the industry: 8 Johnson has twice been chosen by Oprah Winfrey’s team to be featured on a reality show for her O Network. As he puts it, he is the CEO, recruiter, secretary, payroll and janitor of his own brokerage (in addition to being a mortgage broker) with revenues in excess of $1 million. He boasts 20,000 Twitter followers, with another 5,000 on Facebook, and has had his own radio spot for two years. No stranger to philanthropic efforts, Johnson has helped collectively raise $20,000 for the Habitat for Humanity.

22 | JULY 2014

Makhomet runs a large franchise (more than 40 agents) with very little turnover — something team members chalk up to her stewardship. That work is in addition to to completing her own deals to the tune of $40m for last year.

Nick Bachusky Age: 31 Broker with Mortgages in Ottawa Years in the industry: 5 Beyond his professional activities, Bachusky plays host to the highly successful and informative Lunch Out Loud weekly podcast (www. lunchoutloudottawa.com). The role is helping to wring out new leads for brokering in a market seen as one of Canada’s most mature. It may have also helped net the former TD specialist Ottawa’s Mortgage Broker of the Year award, along with the kind of client testimonials some brokers can only dream of.

“His advice was personalized for my case, adding piece of mind during what could have been a stressful process.,” says past client Michael Scholz.

MORTGAGEBROKERNEWS.CA

Ron Lefebvre

Chris Turcotte

Age: 33 Mortgage Broker with Invis Years in Industry: 5 Volume: 2012 = $40m; 2013 = $45m

Age: 32 Broker/Owner - CENTUM Mortgage Choice Years in the Industry: 3.3

Lefebvre won the CMP Best Newcomer Award in 2012, having achieved $28 million in volume in 2011 after only two years as a broker. Now two years later, he continues his quick assent to the top with a 61 per cent increase in volume, finishing 2013 at $45m.

Turcotte has already closed more than 100 deals in his first two years and is on pace to close another 60 in 2014. Not only managing his own clients, he also acts as sales manager for eight brokers in the office, which, all told, has increased by over 200 per cent.

“We trend anywhere from 200-300 per cent on growth ... this is due to the relationships we create and the online presence we have in our city,” Turcotte says. “As of today, three of our brokers have already exceeded their numbers from last year and that’s only in the first six months.”

UNITY! M M O C R BROKE E H T S ’ R DA E VEHICLE FO A N A C TH INT AND ONLIN I W R E Over 15,000 Print Subscribers: PARTULNTI-AWARDED PR Reach the mortgage industry with thought leadership AND M Over 45,000 monthly online visitors: Grow your business with an engaged audience Daily Newsletters: Ensure constant brand recognition with direct inbox access to brokers

CONTACT: MBN_Sales_HP_ad.indd 1

Trevor Biggs, Associate Publisher KMI 416 644 8740 x 236 / trevor.biggs@kmimedia.ca 4/06/2014 4:38:58 PM

JULY 2014 | 23

COVER / YOUNG GUNS

Andrew Ramdeholl Age: 30 AVP Commercial Lending & Broker Services, DUCA Financial Years in industry: 10 Ramdeholl both created and launched DUCA Broker Services on April 23, with $115 million in residential originations (Ontario only) in less than seven weeks. His is a one-of-a-kind program that allows brokers to underwrite their own deals.

David Parkinson Age: 32 Mortgage Associate with Invis Year in the Industry: 4 Volume 2012/13: 19 million. 80+ deals

Stuart Matheson Age: 25 Franchise Owner / Mortgage Broker with Dominion Lending Centres Arctic Home Mortgages Years in the industry: 1.5 Based in Northwest Territories, Matheson is not only operating within one of Canada’s toughest housing markets, he is thriving.

“We may not be a large brokerage by volume, but we have made large impacts on the NWT as a whole, and not just one city because we represent the mortgage needs of all the communities in the territory,” says Stuart. What has been achieved in such a short time is quite impressive, with Stuart taking a territory with no brokerage to become a household name, offering financial advice, education and pushing the industry forward in how it views the North.

“We’re offering greater service and options to residents here,” he says.

24 | JULY 2014

The majority of Parkinson’s clients are first-time buyers and he has successfully used new marketing through social media. Eighty per cent of his new business is generated directly through his personal Facebook page, Facebook Business page, Linkedln and a personal website.

Dave Griffin Age: 34 Mortgage Broker & Owner with Dominion Lending Centres Griffin Financial Group Years in the industry: 10 Total dollar volume/number of loans for the last two years: 2013 (#31 on CMP Top 75; #5 on Small Market Top 20) $52m/231 deals; 2012 (#44 on CMP Top 75; #6 on Small Market Top 20) $42m/208 deals Griffin is a consistent top performer – both within DLC and the industry – in a smaller market area. He does a lot of advertising and educating about the values of using a mortgage broker.

MORTGAGEBROKERNEWS.CA

Adil Mawji Age: 29 Mortgage Broker with Invis Years in Industry: 5 Volume: 2012 = $48m: 2013 = $42m

Elie Melki Age: 33 Mortgage Broker with Centres Hypothecaires Dominion Years in the industry: 8 Volume: $30m in both 2012 and 2013 Melki’s office has funded over $150 million and the team hopes to grow that number to over $1 billion in the coming year. Individually, he is credited for promoting the mortgage broker profession in Quebec with the hopes of attaining more market share for the industry.

A CMP Top 75 Broker by volume for three years running, Mawji was recently elected to AMBA as vicepresident and is poised to become president next year.

He works primarily with financial planners, winning him established customers and their complex mortgage needs.

Jon McKay Age: 25 Mortgage Agent with Dominion Lending Centres Mortgage House Years in the industry: 1 Number of loans for the last year: 45 McKay specializes in hard-to-place mortgages. He works with clients who are searching for first, second or third mortgages despite the bruised credit associated with spotty mortgage, property tax, credit card or income tax payments. He’s also found success with power of sale and bankruptcy cases — deals usually left to industry veterans.

®

JULY 2014 | 25

COVER / YOUNG GUNS

MORTGAGEBROKERNEWS.CA

Diana Lee Age: 32 Senior Mortgage Consultant with Invis Years in the Industry: 2 Volume: 2012 - $15m; 2013 - $42m

Dustin James Age: 29 Mortgage Agent, Dominion Lending Centres Premier Financial Group Years in Industry: 7 Total DollarVolume Funded for the last 2 years: $47m In a record that may never be surpassed, James was nominated by an astounding 28 different individuals for the Young Guns list. “He works tirelessly for his clients and has a passion for assisting them in achieving their dreams of home ownership,” says Sarah Watts of Dominion Lending Centres, voicing what so many supporters told CMP “He is committed to providing the best rates, products and service possible.” Dustin was recognized for his efforts when he earned the No.18 spot in CMP’s Top 20 Small Market Brokers.

26 | JULY 2014

Lee spent nine years on the banking side of the business before transitioning to the broker industry. In her first half-year as a broker, she funded $15 million, but the next year she turned it on to fund $42 million.

Alim Charania Mortgage Broker with Dominion Lending Centres Regional Mortgage Group Age: 31 Years in Industry: 2 Volume: 2012 — $10m; 2013 — $17m In 2012, Charania was a finalist for DLC’s Rookie of the Year Award and exemplifies the industry’s growing mastery of social media.

“He has a series of videos on YouTube, which he uses to educate his clients on a variety of subjects,” says Pam Pikkert of DLC Regional Mortgage Group. “Alim also uses Twitter and LinkedIn to connect and educate.

“He is very consistent across the spectrum of social media forums.”

Narish-Emile Maharaj Age: 34 Team Lead— Mortgage Associate with Dominion Lending Centres Mortgage Mentors Years in the industry: 10 Total dollar volume/number of loans for the last two years: $51.2m for 2013 (#34 on CMP Top75); for 2012, $37.1m (#59 on CMP Top 75) In one year, Maharaj climbed 25 spots on the CMP Top 75! In addition to continually growing his business, as a team leader, he is actively mentoring and assisted other mortgage associates as they work to develop and deepen their books.

COVER / YOUNG GUNS

Megan Carey Age: 26 Mortgage Agent, Verico Personal Choice Mortgage Services Inc. Years in the industry: 8 Total dollar volume/number of loans for the last two years: $20m for 2012/93 loans; $25m for 2013/121 loans Carey was born to be a mortgage broker, following in the footsteps of a 26-year veteran of the industry, her mother. While studying business full time at college, Carey worked every available hour at the brokerage, answering phones, tackling office administration and marketing, and providing IT support. When first eligible, she earned her mortgage agent licence, then AMP designation, before attaining her broker qualifications earlier this year. Her starting volumes speak to that bottom-up training.

Annie Mirza Age: 33 Mortgage Broker with Mortgage Intelligence Years in the Industry: 13 Volume: 2012 = $23m; 2013 = $48m With offices in Mississauga and Kitchener, Ont., Mirza has already found a formula that works — her year-over-year volume has more than doubled from $23 million to $48 million. She did, in fact, start in the industry as an administrator, later becoming a licensed agent before receiving her mortgage broker credentials two years ago.

28 | JULY 2014

Kyle Green Age: 26 Mortgage Broker, Mortgage Alliance Meridian Mortgage Services Inc. Years in the Industry: 7 Volume: Just under $40m in 2012 and 2013; on pace for $50m on 2014.

“This is a broker that is a consummate professional who makes it all about the client first, lender second, and himself last,” says one of industry’s most respected players, Dustan Woodhouse of Dominion Lending Centres. “He suits up, shows up, and embraces opportunity.”

Jason Georgopoulos Age: 35 Mortgage Broker with Dominion Lending Centres Estate Mortgages Years in the industry: 7 Total dollar volume/number of loans for the last two years: 2013: $39m for 2013 (#59 on CMP Top75) ; $32m for 2012 While managing a team of 14 agents, Georgopoulos still consistently funds high personal volume amounts. In 2013 DLC Estate Mortgages funded $110 million as a company, while he personally funded $39 million to win 59th spot on the CMP Top 75.

MORTGAGEBROKERNEWS.CA

Hercules Mina

Sarah Davison

Age: 34 Mortgage Broker with Verico Excel Mortgage Years in Industry: 6 Total Volume: 2012/2013 = $43.4m Total # of Deals: 2012/2013 = 184 deals

Age: 33 Mortgage Specialist with Mortgage Intelligence Years in the Industry: 7 Volume: 2012 = $36m; 2013 = $39m

“I believe I am a very good ambassador for the industry as a whole. I’m very confident in what I do, and have gained the respect of many colleagues in the industry as well as local business owners/partners in my area,” Mina says. “I also help mentor newer agents within my firm, to help make them successful as well. I truly believe that each client should be treated as I would hope that a business professional would treat me, if it were me in their shoes.”

Davison is notable for her volume success in the small market of Grande Prairie, Alta. And she has been recognized for this through her inclusion in the CMP Top 20 Small Market brokers list for the last three years running. Davison has diversified her business to include a high percentage of mortgage insurance deals and is consistently an award winner for insurance sales nationally and in the Prairie region for Invis MI.

The FiNANce cOMPANY ThAT TAkeS A “cOMMON SeNSe APPrOAch” TO LeNdiNg.

YOur PArTNer FOr • Personal loans • 2 nd Mortgages • ConstruCtion Mortgages

www.tribecca.ca 261 Sheppard Avenue West | Toronto, Ontario | M2N 1N4 Tel: 416.225.6900 | Fax: 416.225.6905 | Licence # 12225

It’s time for a new perspective.™

JULY 2014 | 29

COVER / YOUNG GUNS

MORTGAGEBROKERNEWS.CA

Bryan Baker Age: 30 Mortgage Professional, Invis Years in Industry: 1.5 Volume: 2013—$12m; YTD (June15, 2014) —$11m

Andrew Thake Age: 33 Mortgage agent, Dominion Lending Centres Ottawa Mortgage Man Years in the industry: 4 years A true diversifier, Thake was in the top 20 for Mortgage Protection Sales for DLC in 2014 as well as the top 100 for mortgages funded with the national network. And this year he has picked up right where he left off, currently placed number 45 in the country for mortgages funded within DLC.

Baker takes a unique approach to building his mortgage business by focusing exclusively on referrals from financial planners. He works with each to accelerate a client’s financial plan through more efficient debt and cash flow management to increase the creation of wealth. Just new to the mortgage broker world, he had a very successful first year and is on track to more than double his first year volume in 2014.

James Laird Age: 29 Formerly with True North Mortgage Years in the industry: 6 Total dollar volume/number of loans for the last two years Volume Funded: Opened, and managed all three stores in Ontario and the store in Quebec. Ontario stores funded $246m in 2013, and the Que. store funded $61m, for a total of $307m in 2013.

“Laird is a natural leader that inspires others to achieve the best results possible,” says Andrew Ramdeholl of DUCA credit union. “He continuously improves himself and his organization through self-development courses, community service work, and industry presence.”

Chad Oyhenart Age: 32 Mortgage Broker/Owner of Dominion Lending Centres Aegis Mortgage Services Years in the industry: 10 Total dollar volume/number of loans for the last two years: 2012/2013 combined: $56 million/121 deals Oyhenart is a consistent producer who took over the business following his father Jack’s sudden death. He grew up in the business and learned from one of the best. He now brings that passion and experience to bear in his own work for clients.

30 | JULY 2014

Here at Invis-Mortgage Intelligence, we don’t just attract some of the

best new brokers in the business...

to n s! i d en eg m e L th w o r g e W

RON LEFEBVRE

VÉRONIQUE SERGERIE

SARAH DAVISON

DAVID PARKINSON

Best Newcomer 2012 CMP Young Guns 2014

CMP Young Guns 2014

CMP Young Guns 2014

CMP Young Guns 2014

ANNIE MIRZA

CMP Young Guns 2014

BRYAN BAKER

CMP Young Guns 2014

ADIL MAWJI

CMP Young Guns 2014

JENNIFER GAUDET CMP Young Guns 2014

DIANA LEE

CMP Young Guns 2014

LA MORTGAGE TEAM

Best Newcomer Brokerage Office, CMP Awards 2014

COVER / YOUNG GUNS

MORTGAGEBROKERNEWS.CA

Rob Jennings

Véronique Sergerie

Age: 31 Years in the industry: 10 Job Title: Mortgage Adviser with East Coast Mortgage Brokers Total dollar volume/number of loans for the last two years: 125 loans for $23m in 2012; and $25m from 105 for 2013

Age: 26 Years in the Industry: 1 Job Title: Courtier Hypothecaire with Mortgage Intelligence Volume: $4.3m for 4 months in 2013; YTD to June 15, 2014 — $25m

Jenning’s approach to business development is simply to outperform and outservice his competition. According to Claude Sullivan of East Coast Mortgage Brokers, “he works long hours and truly enjoys his job, which shows. Rob is a real people-person, who enjoys communicating with people and has a very personable approach.”

Wyatt Tunnicliffe Age: 35 Job Title: Franchise Owner, Dominion Lending Centres Gold Financial Services Years in the industry: 9 Total dollar volume/ number of loans for the last two years: $49m/186 deals “Honest Wyatt.” That’s what one underwriting centre has nicknamed Tunnicliffe because of his character and compliance practices, says Jen Fuentes of Dominion Lending Centres Gold Financial Services. His volume is testament to that.

“Wyatt firmly believes in the strongest of ethical practices and stresses the importance of excellent funding ratios,” says Fuentes.

32 | JULY 2014

At only 26 years of age, Sergerie completed $25 million in mortgage volume during the first five and a half months of 2014. That was without complete numbers for June — the biggest funding month in Quebec.

A true professional, she is passionate about her work and dedicated to clients, developing very strong and exclusive relationships with her referral sources, says Kelly Neuber of Invis MI. “We are proud to have Véronique with us.”

Adela Clement-Allen Age: 34 Mortgage Broker/Franchise Owner: Dominion Lending Centres Regional Mortgage Group Years in Industry: 10 Volume: 2012 -- $19m; 2013 -- $17.4m Clement-Allen is the epitome of a young gun; in 2013 she managed to fund $17.4 million despite the fact that she was off for five months as a stay-at-home mom to a newborn son and a three-year-old daughter.

As Pam Pikkert of DLC Regional Mortgage Group notes, “she is one of the franchise owners here at Regional Mortgage and is in charge of training all new agents to the team.”

She also volunteers in her spare time, sitting on the board of Magdalene House last year. The organization’s goal it is to build a long-term care facility for victims of human trafficking. This year, Clement-Allen is on the board of the Golf/Build A Kid to a Cure Foundation.

Su

Au bmissio gu ns Clo st se 10

Rank, Reward, Roust (?) ...your lenders THIS IS YOUR OPPORTUNITY TO SEND THE MOST INFLUENTIAL MESSAGE TO YOUR LENDERS Change today’s lending environment now!

• Acknowledge your best lender • Provide positive feedback • Ask lenders to step up to the plate CMP magazine is calling for submissions for the annual Brokers on Lenders special report featured in the September issue.

Sponsored by

Submit before August 23 to have your say!

www.mortgagebrokernews.ca

FEATURE / KIT BAG

Broker

Kit Bag 2014 Think of this as the broker equivalent of carpenter’s toolbox – no mortgage professional should be without it

L

ast year’s mortgage environment was marked by loads of competition, and 2014 is providing more of the same. But mortgage brokers across the country can breathe a collective sigh of relief: CMP is retrofitting your old kit bag with several new tools – and some oldies but goodies that you may have forgotten about.

Some of these seemingly high-tech products are surprisingly easy to use, and have been tried, tested and suggested by your peers. They may seem daunting, but once you start using these systems, platforms and softwares, you’ll find it easier to build – and maintain – your business.

34 | JULY 2014

MORTGAGEBROKERNEWS.CA

1

E-SIGNING

Last year, broker Deepak Bansal advocated for both third-party CRMs and e-signing. Bansal said he appreciated how these technologies took the fuss out of business. “Instead of hauling around 10, 15 or 20 pages of documents, all I have to do is call up the contract on my iPad and the client can initial and sign off with the stylus. No paper, no fuss.”

Many clients are concerned with how secure e-signing is. However, Bansal has taken several steps to ensure that the information of the 30 or 40 per cent of his clients who use e-signing is safe from theft or fraud. “For starters, having a pass code on our tablet devices is a must, as well as being on Apple iCloud allows you to use Find My Phone to track your device in the event it is lost or stolen, so you can wipe out all data virtually.”

2

THREE MOBILE APPS

Assuming you have a smartphone – and you should have a smartphone – we detailed three apps to help you work smarter in 2013.

Brewster is like an instant Rolodex, drawing from Facebook, Twitter, LinkedIn and your email to develop full-fledged contact information. Here on Biz, meanwhile, brings those contacts (or, at least, your LinkedIn contacts) to life, informing you whenever one of your contacts is close by. The app even allows you to facilitate a meeting.

Finally, HootSuite combines your social media accounts, making it easy to post updates and messages to multiple accounts from where ever you are.

3

REVODOC

Perhaps you’ve already conceded to some of these new technologies that promise to streamline your day-to-day workload, and perhaps you’ve found yourself spending more time with each of these technologies, resulting in the opposite effect that they were supposed to have.

Enter Revodoc.

As a cloud-based mortgage collaboration system, Revodoc helps brokers and their assistants manage deals and workflow – all in one place.

“It eliminates the use of disparate systems that brokers currently use to manage their business,” says Phillip Slen, president of Revodoc, and himself a mortgage broker.

POLL RESULTS MortgageBrokerNews.ca polled brokers and asked which of this year’s tools is their number one business tool • Social Media (13%) • Canada Post (20%)

• e-Newsletters and e-Cards (53%) • Online Faxes (6%) • Revodoc (6%)

“[Revodoc] is more efficient [because] all the tools are in one place, integrated within the deal dashboard.

“So all your documents, your task reminders, all your communications, workflows, deadlines, deal underwriting – everything is in one place.”

Slen developed the system himself, building it from the ground up specifically for use by brokers.

“It is truly a complete system that handles all the mortgage business from leads to pre-approval to live deals, and sending and sales service,” Slen says.

“In between all that, it handles all the deal collaboration documents, management and distribution, task reminders, sales pipeline, audit and compliance.”

Because the system is cloud-based, brokers, their assistants, and even their clients can not only view the live data in real time, but can also make and track certain changes. Elite users, who pay $70 per month, instead of the $35 per month for the value tier, are also able to upload and store documents in the cloud – and invite their clients to upload directly to the document condition. The icing on the Revodoc cake lies in the fact that the system is compliant to the industry’s online security regulations, which means you and your clients can upload sensitive information worry-free.

Revodoc also recently took on several syndicated and commercial mortgage brokers – something Slen said the company was able to do because of the platform’s unique system configuration.

“Our workflow is customizable,” he says, “so commercial and syndicated mortgage brokers can use our system to manage their workflows and deals.”

JULY 2014 | 35

£

Join the revolution

£

Diverse revenue streams

Gain a dedicated support team

Smart moves for your business

We’ll prove it. Call 1.888.928.1338

*An illustration of one CENTUM franchises growth based on office production and is not a guarantee of success.Results may vary according to several factors and CEN Centum Financial Group Inc. The intent of this communication is for informational purposes only, and is not

INDUSTRY EXCLUSIVE Consumer Loans

When you’re exceeding your Own expectations NO PLATEAUS HERE 624% individual office growth in three years*

centum.ca

NTUM does not guarantee these results for all franchises.Independently Owned and Operated. ®/™ Trademarks owned by Centum Financial Group Inc. © 2014 intended to be a solicitation to anyone under contract with another mortgage brokerage operation.

FEATURE / KIT BAG

4

ONLINE FAXES

Everyone thought faxes would go the way of the Dodo once email secured its stronghold on communication, but those phone-line messages have managed to stick around.

Now several companies are catching on to the idea of the 21st century fax with online fax services, like MyFax.com. These services allow users to send and receive faxes online. The document is sent or received as an email attachment, though the process is facilitated through a traditional fax number.

“I love the online fax because I can literally fax everything from my computer,” Daniels says. “I don’t even need my physical fax, except for original copies. I can scan something, go to [the online fax system], and send it to someone.

“The faxes all come to me in an email so there’s no paper and I always have [the message] right there for wherever I want to send it or store it.”

This way, you can fax your client an important document, even if you’re away from the office and don’t have access to a fax machine. Likewise, you can receive faxes from clients and colleagues while on the go. And, since your fax machine is virtual, you won’t ever run out of paper or ink.

According to Daniels, the greatest benefit to the system is the fact that it saves time.

“Anything that saves you a little bit of time in this business is helpful,” he says.

38 | JULY 2014

5

REVERSE MORTGAGE LENDER

Approval for reverse mortgages, which now requires no income credit or medical qualifications, is a strong selling point for lenders and clients alike.

“The more competitive rates and the tighter underwriting guidelines at many lenders have made reverse mortgages more attractive,” Invis agent Brad Compton said last year. “I think they’re now an option more brokers will feel comfortable offering to the right client, especially older ones with the equity to pull out of their homes but without the income needed to qualify for a second mortgage or a refinance or HELOC.”

6

THIRD-PARTY CRM

Your customer relationship management (CRM) is your right hand tool, helping you manage your interactions with clients, and using technology to organize, automate and synchronize sales, marketing and technical support. With thirdparty CRMs, brokers have the ability to take those contacts and that support with them where ever they go.

Ken Quigley, president of Keystroke Quality, one of several third-party CRM providers that are gaining traction among brokers, says you get better support with a third-party CRM and can better adjust to new operating systems and programs.

Third-party CRMs are also completely customizable.

“You can customize it to meet all of the compliance needs, record every contact with a client, whether it is a phone call, email or during a meeting,” Quigley said. “It is crucial for brokers to stay on top of renewals, to have better client maintenance and simultaneously be able to handle a bigger client workload. With the right third-party CRM solution, you can craft and tailor it to your specific needs.”

MORTGAGEBROKERNEWS.CA

7

CLOUD COMPUTING

Cloud computing uses the power of the Internet to access a pool of networks, servers, storage and applications. The data files are stored in the cloud, meaning brokers can start a file at the office, and finish it on any device, anywhere else.

The cloud also offers better security than simple storing data on a computer or a server.

“In our industry, most brokers are making efforts to protect their clients’ sensitive data, however the constant risk of data loss or data theft can be greatly reduced for a small monthly investment that pays large ‘peace of mind’ dividends for both clients and brokers alike,” Dustan Woodhouse, a high-volume broker with Dominion Lending Centres Canadian Mortgage Experts on B.C.’s Lower Mainland, told CMP last year. “Also not having any client data stored on the device I am carrying around is a relief.”

8

TRAILER FEE LENDER

The current market is still as competitive as ever, and brokers are still looking to alternative compensation options.

Mike Hattim, an agent with Dominion Lending Centres Forest City Funding told CMP last year that he was planning on doing more trailer-feeoption deals. “I’m truly starting to realize where the competition really lies now and it’s not just with other brokers or the banks, but also with some monolines.”

Mick Noble, meanwhile, said he’s recognized the importance of planning for periods of slow house sales. “I’m still really in favour of getting all my compensation upfront, but doing more deals with a trailer fee means that I can better withstand slower periods of home sales in the future.”

9

A CREDIT UNION

Brokers were excited by the advantage credit unions were preparing to reap amid the OFSI’s move to cut maximum LTV for HELOCs offered by federally-regulated lenders. As a provincially regulated lender, credit unions can offer competitive products that other federally regulated lenders, like banks and monolines, cannot.

10

SOCIAL MEDIA

If you haven’t yet jumped on the social media bandwagon, now is the time.

Twitter is one of the forerunners in breaking news

and Facebook connects more than a billion people – many of them mortgage brokers.

These social platforms are particularly unique because they enable you to create and develop a personalized profile, allowing others – including potential clients – to get a better sense of who you are as an individual.

Don’t limit yourself from any possible lead you can generate.

“It’s creating brand awareness,” says Ravi Gosal, a broker with Dominion Lending Centres.

You can really let your personality shine through your social media profile since these types of platforms forge more of an informal relationship between you, your clients and your potential clients. Gosal says it helps when potential clients can see a real human behind the business, making it easier for them to feel comfortable approaching you for mortgage help.

Invis broker Mary Cancelli says she considers her social media presence a way to reconnect with her satisfied clients.

“It’s a re-acquainting,” she says.

That re-acquainting, however, has led not only to repeat business, but to new business, too.

“Through that I get referrals,” she says.

Indeed, a social media profile can tell potential clients a lot about how you approach your business.

It can also provide you with the opportunity to share important information about the industry, prompting new and old clients to contact you for more information, if necessary, which can lead to new products.

“Every few weeks or when something is news worthy, I will write a little news tidbit [on Facebook] just to keep my clients up-to-date on the industry,” Gosal says. “Some people have privately messaged me to say thanks and keep posting.”

Cancelli says she uses Twitter to inform her following.

“I’ll tweet things about interest rates going up or down,” she says.

Once your online relationship with your clients is both open and beneficial to them, social media can also create a portal through which clients and potential clients can contact you with ease.

“Everyone’s on Facebook,” Gosal says. “Some people have it open all day. They have their phones JULY 2014 | 39

FEATURE / KIT BAG

MORTGAGEBROKERNEWS.CA

with Facebook, so people always have that avenue open where they can reach you 24/7.”

But before you start a Facebook account, be forewarned: you shouldn’t expect an influx of business after just one week. Social media profiles are like flowers; you need to spend the time nurturing them before you’ll see a return. Gosal says it took almost three years before Facebook brought him a deal.

“It took a while, but it’s possible if you keep your brand out there,” Gosal says. “It’s free, too, so you don’t have to pay anything to market on Facebook.

“Don’t limit yourself from any possible lead you can generate.”

email addresses in the system,” explains Raymond Daniels, a mortgage broker with Dominion Lending Centres.

“You’re constantly on people’s minds. They may not need you for three or four years, but when they do [need you] they remember you.”

Daniels says he’s gotten new and repeat business from the emails – a happy result of always being on his clients’ minds.

After all: if you’re out of sight, you’ll also be out of mind when a client needs additional products or when it’s time for renewal.

11

Last year, we said “playing by the book” was the most important tool in your kit bag. Mortgage professionals who fail to keep closely connected with past clients are increasingly losing out on those alternative revenue sources – from syndicate mortgages, GICs and credit cards, to life, home and auto insurance, just to name a few.

“More products are better than less products,” industry vet Ron Butler said.

E-NEWSLETTERS AND E-CARDS

Maintaining some kind of relationship with your past clients is important for a sustainable business. But with heightened competition and a longer task list, making cold calls and sending personalized emails every month is just not feasible. Automatic newsletters and electronic greeting cards are a great way to stay connected and remind clients that you’re still available for their ever-evolving needs.

There are a slew of electronic greeting card providers – and many of them offer their services free of charge. Invis broker Mary Cancelli says she uses Punchbowl to maintain a warm relationship with her clients.

“I send out St. Patrick’s Day cards, Easter cards, Rosh Hashanah cards, those types of celebrations,” she says. “I also send electronic birthday cards; clients think it’s great that I’ve remembered to send a birthday card.”

Online email campaign services are also extremely user-friendly and cost-effective, and can help you keep in touch. iMambo, for example, helps users build, send and maintain email campaigns.

“Once a week and once a month, [the system] automatically sends an email to all the

40 | JULY 2014

12

YOUR BOOK OF BUSINESS

13

CANADA POST

For most people, the only mail you’re likely to receive is bills. But don’t deny the child-like feeling of giddiness that you get when you open your mailbox to a handwritten letter.

Cancelli is often the person behind those letters in her neighbourhood.

When Cancelli became a mortgage broker just under a year ago – she was previously, and still is, a successful Realtor – she sent her realty clients a letter informing them of her expanded service offerings.

She has continued to reach out to her market in a personal way by sending out handwritten thankyou cards to potential clients after her initial appointments with them.

“It just shows that you’ve gone out, got the card, wrote the card manually, wrote the address on the envelope, got a stamp and that’s an additional cost,” she says. “It’s honest and shows that you really do appreciate their business.”

Cancelli says the response that she’s received from that seemingly small gesture has been incredibly positive. “[My clients] call me to say thank you. It’s nice that they appreciate the time it took to get the card.”

MARKETING MATTERS / SECRET #17

Automated lead generation Why not automate the lead generation process, writes Doren Aldana. Let technology take care of leads while you focus on your clients

42 | JULY 2014

MORTGAGEBROKERNEWS.CA

Most mortgage professionals have an instant knee-jerk reaction to this. Their hands get all sweaty, they cringe with anxiety and they feel overwhelmed. because they think…

• They have to be some kind of Internet marketing geek to make it happen, or...

• It’s going to cost them an arm and a leg, or...

• It’s not worth the hassle or the risk. Maybe they’ve watched one of their peers (who doesn’t have a clue about marketing) try it and of course, go down in flames with nothing to show for it but a glorified brochure on the Internet and a credit card bill they can’t pay off.

SECRET #17: THEY HAVE A LEAD GENERATION WEBSITE THAT ATTRACTS A STEADY STREAM OF QUALIFIED PROSPECTS – ON AUTOPILOT. Did you know that there are literally thousands of people every month in your local market that are searching for mortgage information online. At the time of this writing, just in Vancouver, British Columbia alone, there were over 2,240,000 local searches in one month for the keywords: mortgage calculator. Do you think there might be an opportunity here?

This is understandable. All of these are valid concerns. Perhaps one or more of these concerns has held you back from generating leads online.

Maybe you have a website right now but you’re frustrated that after all that investment of time and money, it still isn’t pulling the results you want. Well, I am here to tell you there is an easier, simpler and better way, and today I am going to show you how.

Here are the six most common (and costly) website marketing mistakes that all Superstar mortgage professionals avoid at all costs: Mistake #1: No niche-specific content. If you’re sending paid traffic directly to your home page with a million and one options for them to choose from, I guarantee you’re losing leads – and profits!

That’s why Superstar mortgage pros always send their paid traffic to customized landing pages, so the content is 100% relevant for that particular type of visitor, thereby increasing their visitor-to-lead conversion rate and ROI. Remember, think specialist, not generalist.

Mistake #2: ME, ME, ME focus. Which means stop selling yourself and how great you are, and start focusing on your prospects’ problems and their concerns and how you can solve them.

Mistake #3: NOT having a strategy to capture your prospects’ contact information. You do this by offering valuable information and advice in the form of free reports, consumer guides, 1-on-1 consultations, webinars, seminars, newsletters, etc.

You need to provide something of value in exchange for their contact info. I call this a “lead magnet”.

The moment they submit their information-JULY 2014 | 43

MARKETING MATTERS / SECRET #17

BOOM!--you have a hot, qualified lead. The more information you can get, including the prospect’s phone number and mailing address, the better quality the lead is.

Doren Aldana is considered by many to be Canada’s leading Mortgage Marketing Coach and has won the “Best Industry Service Provider” award three years in a row at the 2012, 2013 and 2014 Canadian Mortgage Awards. Since 2005, he has been dedicated to helping mortgage professionals attract more clients with less effort, regardless of market conditions.

For a free copy of Doren’s new CD titled, “21 Secrets of Superstar Mortgage Brokers,” visit: www.

SuperstarMortgageBroker.com

44 | JULY 2014

Mistake #4: Weak headlines or worse, no headlines.

Studies have found that you only have about three seconds to grab your prospects’ attention before they click off your site. If you don’t let them know what’s in it for them to stay on your site, they’re gonzo! That’s why you need to use compelling, benefit-laden headlines to grab the attention of your visitor and draw them into your content.

Mistake #5: NO follow-up marketing system. This costly marketing sin might have been more excusable a hundred years ago when all we had was snail mail, but today, with the advance of technology, you can set up a cheap and simple follow-up system that works on autopilot. For example, you can use a robotic mailman, otherwise known as an autoresponder, to send out follow-up emails to your clients while you’re sleeping.

That’s right. It works 100% on autopilot! The beauty of this system is it allows you to stay “top mind,” so when the time comes that your

MORTGAGEBROKERNEWS.CA

prospects are ready for a mortgage, you’re the only logical choice!

Mistake #6: No strategy to drive traffic to your website. Unlike the Field of Dreams, they will NOT come... unless you market like crazy! Most mortgage professionals design their sites with absolutely no plan for driving traffic to their site. People don’t plan to fail they simply fail to plan. There are countless inexpensive ways to drive traffic to your site but if you don’t have a marketing plan to implement them, chances are, it won’t happen.

In my Mortgage Superstar Inner Circle, you’ll learn how to side-step the trouble and struggle of doing all this stuff yourself with samples and examples of high-converting mortgage websites and proven templates that you “swipe and deploy” for your own website. Plus, you’ll also receive checklists, tools and templates to help you optimize your current website so it actually makes you money instead of just being a money-suck.

In next month’s 18th secret, you’ll learn a little known secret that unlocks the mystery about how Superstar mortgage professionals can consistently increase their productivity while decreasing their workload. It’s all about working smart not hard.

Stay tuned...

Increase your monthly cash flow with the best mortgage rates available on WhichMortgage.ca WhichMortgage.ca is an investor’s one-stop resource for: • Daily interest rate updates • Latest property news • FREE reports

• Rate comparisons • Mortgage calculators

PLUS! • Get access to hundreds of mortgages from all major lenders • Choose from over 10,000 mortgage brokers across Canada • Get FREE expert, no-obligation advice!

Visit whichmortgage.ca to get started on your next mortgage today!

FEATURE / COMMERCIAL LENDING

Commercial Lending Tips

You only get one chance to make a first impression.

The initial meeting between a lender, a borrower and a broker is the most important meeting, writes Steven (Skip) Walters, vicepresident, loan origination for First Source Mortgage Corporation.

Regardless of whether there are more meetings or not, the first meeting between these three parties is what sets the stage of moving forward.

For a lender, meeting eye to eye with the borrower and the broker reaps rewards far beyond what even a good underwriter can surmise and collate.

A good underwriter can go to many sources and spend hours dissecting the most minute aspects which may include: cost of land per foot or per door. The diligence may also include an analysis of 46 | JULY 2014

soft and hard costs per foot and absorption studies.

Review of extraordinary limitations in an appraisal is critical. The due diligence never ends.

Whereas the numbers do tell a story and can make or break any funding request, the human aspects and touch points on a deal go a long way to understanding the borrower, the dynamics of the deal and those involved, and provide insight that one cannot simply pull out of the numbers.

The figures are no doubt important. Equally as important, however, is how the individuals involved carry themselves. Do they exude confidence, experience? Do they plunge right into business talk or take the first 10 to 15 minutes to “break the ice�?

Those first 10 minutes can be especially important.

A great way to commence the first face to face is for the lender to personalize the meeting. With gentle coaxing or humour, urge the borrower to talk about what they do, their family and their personal interests. This is a very effective way of breaking the ice – most people relish the chance to talk about themselves. Easy, loose discussion relaxes everyone around the table and introduces interests and topics independent of the purpose of the meeting. You may find and probably will find that you know several people in common, both

News

InternatIonaL

MORTGAGEBROKERNEWS.CA

&

u.s.

90.6% 52.1%

inspectors have found problems; appraisals showed a home was worth less than the bid; a buyer lost a job before the closing.

U.S. housing market worse than thought More than two years after the recession The number of Americans who bought previously inside andhomes outside your industry.

Hopefully, a or sales in place. officially ended, many people can’t qualify for occupied roseof in October.

But the National higher down payment Associationis ofstarting Realtorsto says connection gel.it overstated more than Since time was taken at theloans onsetorofmeet the meeting requirements.

Eventhe those with excellent credit three million sales during and after the Great Recession, The borrower is usually rate- and fee-sensitive to get to know the borrower, it’s hoped that and stable jobs are holding off because they fear showing the housing market was weaker than and the lender’s thoughts are focused on value and borrower at this stage comfortable enough Percentage of will feelthat home prices will keep falling. Sales are also previously thought. an exit strategy. The broker tries to be the mediator to explain in depth the “how”, “why”, “where” and homeownership being hurt by a decline in first-time buyers, who The private trade group says sales rose four per and be assessing each point made. “what”costs, of theincluding project to be financed. are critical to reviving the housing market. centshould in October to a seasonally adjusted annual rate of mortgage payments, It really isThat’s a typebelow of interview.

At this juncture, the lender canSales now have expect to be fallen in four of the five years 4.42 million. the roughly six million homes property Oncethat theeconomists initial ice has broken, it’s for in autilities positionand to better assess the risk.

He’s gotten to went bust in 2006. since the housing boom a year say been are consistent withtime a healthy taxes that take up a andthe record-low mortgage rates housing market.

But it’s aheadin ofgeneral 2008’s revised sales, the lender to start inquiring, terms, about know the borrower a little.Declining He hasprices heard typical household’s haven’t been enough to boost sales. now considered the worst in 13 years. the borrower’s experience, past projects and status strategy and can often offer certain suggestions and monthly pre-tax At the same time, The trade group revised its sales from 2007 to 2010 of same. alsoincome be in ainbetter position of being creative in thehome construction has Vancouver begun a gradual comeback and should add to the down 14 per cent, from more than 20.6 million to nearly The answers should tell the lender if projects loan structure. and Toronto, economy’s growth in 2011 for the first year since 17.7 million. Among the reasons for the lower figures, were successfully brought fruition, The lender and have had the respectively (RBCthe broker the Great Recession began in 2007. Last month, the Realtors group says: changestoin the way thewhich Census Economics institutions tookdata, himpopulation from bridge to term financing opportunity toHousing get to knowbuilders the borrower, hison an annual rate of broke ground Bureau collects shifts and some sales orbeing whether the “exit” was to sell. Status of the strengthsTrends and and weaknesses, 685,000 his successes and homes, the government said recently. counted twice.

Affordability Report) That wasprocess. a 9.3 perThis cent jump from October and The Realtors consulted with government and ongoing projects will usually tell the lender how misfortunes - in effect - his thought the fastest paceable sincetoApril 2010. private the housing experts,net including Federal Reserve, diluted borrower’s worththe statement is, prior puts them in the unique position of being Most economists say home prices will keep the Department of Housing and Urban Development, to even seeing it. think laterally and creatively to arrive at a loan falling, by at least five per cent, through 2012. the Mortgage Bankers Association, the National The next step on the agenda is to get into scenario that truly now makes sense (and cents!!).

Many forecasts don’t foresee a rebound in prices Association of Home Builders, mortgage giants Fannie specifics project to be financed. untiluncovered at least 2013.some Mae and about Freddiethe Mac and CoreLogic, a California-based The lender may very well have The executive given to the theannual lender is extra security he/she could hold to lessen the Loan The high rate of foreclosures has made data firm that first summary raised doubts about critical. may be missing some of the to Value and thus lower theresold risk, homes resulting in athan new ones. The cheaper numbersHowever, earlier thisityear. median price of a new home is roughly 30 per CoreLogic has estimated that the Realtors group pertinent information. slightly lower rate and lesser loan losses. centdeal, abovethe thebudget, price of one that’s been occupied overstated in 2010 depending by at least 15on per cent.

Items tosales be covered the nature of Of course the specifics of the before – twice the The changing numbers could affect how economists the project should include: a) is an interest reserve the studies, the projected analysis are vital ….butnormal so markup. Investors are taking advantage of the discounts. view the trade group’s data. It could also affect companies required; b) has an appraisal been done and by is the human aspect.

The housing market is struggling even that use the figures for hiring and expansion plans. whom, c) is the site clean andbuyers has anclose environmental Not only will the broker see more has improved in asthe the lender broaderas economy Sales are measured when on homes. assessment beenare carried out;before d) hasthat a geotechnical professional, more approachable, personable recentand months.

But many deals collapsing point. report been e)said when dohad approvals expect to and bring him/her more loan opportunities, butgrew it’s at an annual pace of two The economy One-third of done; Realtors they at least one contract per the centborrower in the July-September quarter. Many scuttled in October, from 18 per cent in September. be received; f ) areupseverances, zoning, site plan hoped that repeat business from is a economists expect slightly better growth in the Contracts are being cancelled for several reasons: approval to be received; g) when is a shovel given as they have witnessed the lender as being October-December quarter.

Banks have declined mortgage applications; home CMP expected to go in the ground; h) are there any leases professional, sincere and reasonable.

THE BEST APPRAISERS IN CANADA ARE CERTIFIED AND REGULATED BY

LOOK FOR THE PROFESSIONAL DESIGNATIONS

DAR & DAC

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

28

mortgagebrokernews.ca

JULY 2014 | 47

PROFILE / URMA MOLLEMA

CROSSING OCEANS In 1996, she founded and built the very first independent mortgage origination business in South Africa.

Urma Mollema shares those experiences

48 | JULY 2014

MORTGAGEBROKERNEWS.CA

It was an uphill climb, but Urma Mollena opened the doors for independent mortgage brokers to flourish.

In 2000, she created the single-largest mortgage origination company in South Africa. Political change and increased crime created an environment of instability and the family made the decision to leave the home that they loved and start a new life in Canada. In 1998, Mollema was named Gauteng’s Business Woman of the Year, in 2005 was named Mrs. South Africa’s Business Woman of the year, in 2006 Pretoria Business Woman of the Year, and in 2008 nominated for South Africa’s Business Woman of the year.

You left what was a full life in South Africa.

Why did you choose Canada?

My successful businesses gave me the opportunity to travel the world where I had the privilege to see the best, and worst, parts of the world. I had known from around 2006 that it would become inevitable to leave South Africa due to the political instability.

For that reason I started looking at the world with different eyes while traveling. It was in the back of my mind that my family may need to find another “home.”

North America was my favourite continent, but I wasn’t convinced that the U.S. was where we wanted to be. My husband and I then started looking at our options and Canada came up repeatedly because it has some of the best education in the world, the infrastructure of the country is very good and the economy is healthy. It was the right decision, and of course I am now a fan of hockey and a Canucks supporter!

What was it like being the first independent mortgage originator in South Africa?

This was the most exciting time of my life! At first South Africa was not ready for origination and I faced strong opposition. The banks tried very hard to block the business model, but I stayed focused and never gave up on the dream. The harder the opposition, the harder I fought for what I believed.

The most difficult part was that I never had a book to work from. I had to invent every system that I used in my business, learn to do mortgages, and make sure to hire the right people to work for me. We were inventing the wheel after all!

No matter the opposition, I kept moving forward and decided that franchising was the way to go.

This allowed me to grow faster and within four years I had 65 franchises. We become the only

franchised originator in South Africa and are still to this day. An Australian-based company made me an offer I could not refuse and I sold the company.

It ended a brilliant era for me.

Are there many similarities between the industries in the two countries?

Yes, there are quite a few I would say. Marketing strategies are very much the same and the way brokerages in the industry are run is similar, but much less structured. Canada is lacking the business modeling; everyone seems to run their shops differently, and I wonder if that is why it has been more difficult for the industry to compete with the banks here.

I have something here I can truly believe in You have chosen to hang your hat at Centum Financial Group Inc., can you tell us why?

I took three years to investigate the market and test the waters before coming to a decision. I gave some serious thought to starting another brokering company, joining other brands, but in the end I chose to join Centum. I value a company’s leadership, core values, and ethics more than a name, or anything else. I am proud to be a part of a company that has the same values. If you were to ask me, I suppose what attracted me the most was the strong sense of family at Centum, not just at head office, but with the whole network. These are not just franchise owners; they are valued members of a family.

When I met Paul Therien I was impressed, and his persona represents everything that I want to be part of. I believe that under his leadership Centum is the place to be, the one to watch out for. The welcome and support I have experienced since joining is something I cannot describe in a few words. I can only say it is a pleasure working with them and being a part of such a dynamic and forward-thinking organization has brought back the excitement I felt when we started the industry in South Africa. I have something here I can truly believe in.

JULY 2014 | 49

STRATEGY/ STUDENT INVESTING

N I S ’ L O O H C S S R E K O R B FOR ARE YOU THE GO-TO GUY FOR YOUR CLIENTS? Are the returns really worth the stress and hard work of student rental properties?

That is the question most investors ask. But do their brokers have the answer?

50 | JULY 2014

Late night calls to complain about a broken toaster.

Being called in to act as referee in mini-dramas amongst fighting roommates. And the fear of having to constantly repair furnishings, or worse still, the need to invest thousands in refurbishments thanks to late-night parties and unwelcome guests.

It’s a helluva welcome to the world of student rental investing for your clients. But is this picture a true representation of today’s student housing or a dated stereotype?

MORTGAGEBROKERNEWS.CA

TIPS FOR BROKERS TO SHARE WITH CLIENTS

“We hired a cleaner for when the students moved out on April 30 and were really surprised to see that we really did not need one. If you treat your students with respect, and offer a good property, they too will treat it well,” advises Angela Nolan, a real estate broker that also owns a property near the McMaster University in Hamilton.

Modern day students, argues Nolan, or more so the type that investors should target, are more sophisticated and mature than this traditional stereotype.

RICHES VS. RELUCTANCE If it is now so easy, why are so many landlords reluctant to get into this investing strategy? Having to deal with six different renters under the one roof is very hands-on, and that is arguably one of the main obstacles and pitfalls to this property type. It is advisable to get each tenant to pay their rent individually, with each having to sign a separate one-year lease term.

“It’s a lot of extra management and you are also dealing with young adults who are out of their home environment for the first time,” says Sandy MacKay from Joint Ventures for Profits. “It’s definitely not for every investor.”

But the numbers, however, are beginning to prove too lucrative to ignore. “A four-bed townhouse near Brock University in St. Catherine’s will rent to a family for, on average, $1,300 per month. But by charging per bedroom, you could get $2,000.

Student rentals are by the bed so it’s more of cashgenerating business,” says Derek Lobo, CEO and sales broker at Rock Advisors.

RISING NUMBERS Canada’s student population continues to rise steadily. Over 940,000 full-time students enrolled at 82 university institutions across Canada in September 2013. Of that number, over 424,000 came from outside the universities’ host communities, many of whom are looking to stay in private accommodation.

More than 100,000 of that overall number hailed from outside of the country, with over 265,000 international students now currently studying in

Once students vacate the property at the end of April, investors can use the summer months to undertake any necessary renovations and clean up. Here are some of the main features that student landlords need to look for: 1. How is the condition of the flooring?

2. Are the toilets flushing well and not constantly running?

3. Is the painting tired and scuffed in need of freshening up?

4. Are eavestroughs clean and directing water away from the house?

5. Is the outside of the property clean?

6. Are there and dents in drywall to fix?

Canada, marking an increase of over 94 per cent since 2001.

The International Education Strategy aims to double the number of international students and researchers — to 450,000 — in Canada by 2022 in an effort to create jobs and stimulate the domestic economy. The country currently derives $8 billion from international student expenditures including tuition and living expenses with Canada now ranked 7th as the most popular destination amongst academics.

Despite these growing numbers, there are currently only 114,297 beds on all university campuses to serve students. Most educational centres have a policy of only providing residence to first-year students, with most having to depend on the private sector to accommodate them.

Many districts, such as Scarborough for example, are suffering from a severe housing shortage.

Thomas Liu, the man behind the new student residential complex in the city, is one of the many developers trying to tap into this market. He says that safety and proximity to the university are two of the main prerequisites that students look for, especially international students who do not know the area.

“Almost all universities country-wide need more accommodation. The student market is one of the most under-served yet is the one of best opportunities,” adds Lobo. “Some investors do have a negative perception of students, and worry about the wear and tear in the property. But that is the risk landlords take with all properties, not just students,” he says.

JULY 2014 | 51

STRATEGY/ STUDENT INVESTING

Top 10-ranked Universities in Canada: 1. University of Toronto 2. McGill University 3. University of British Columbia 4. Université de Montréal 5. University of Alberta 6. McMaster University 7. University of Waterloo 8. Queen’s University 9. University of Western Ontario 10. University of Calgary

PROPERTY TYPES This generation of students are not accustomed or want to live in either undesirable neighbourhoods or properties. As such, many parents of universitylevel children are increasingly investing in “kiddie condos,” and keeping such units for longer to capture the appreciation.

But with the ability to charge by the door, and not the unit, other investors have been taking notice. Two years ago when a 58-unit development in Waterloo came on the market, it was landlords who snapped up the specially designed condos in four days. Such turnkey properties are popping up in a lot of university towns, with the promise of an occupied unit and management team in place proving a big selling tool for many.

However, Tim Collins from Student Rental Investing, advises investors to consider all options.

“I avoid town houses and condos where other fees may be an issue and focus on detached or semidetached homes,” he says.

Another popular route is to convert a singlefamily home with “limited renovations,” he adds.

“This enables you to not necessarily overpay by going for a turnkey property. Renovations can often be affordable and fairly minor when it comes to student rentals.” Installing hardware materials, especially in the areas of high traffic like the kitchen, is highly recommended by Collins as most properties endure a lot of wear and tear.

LOCATION MATTERS Location is naturally a big priority for investors and tenants, and this is especially the case for student rentals as very few have transport options. Collins says that most students like to be within a 15-minute 52 | JULY 2014

walking distance to the university, or at least on good transport routes. “Taking a look at Kijiji or the off-campus housing web site will let you know what typical rents are in the area and also how many rooms there are per house,” he advises.

Derek Lobo refers to student rental investing as the most location-sensitive business in the world, but the returns are worth the greater research and investment.

Sourcing finance for student rentals can be difficult, says Collins. “Some lenders have offered options for student housing mortgages in the past but these typically have more stringent stipulations on borrowing. The down payment is also likely to be in the 25 per cent plus range,” he says.

Most rentals are also all-inclusive as it’s not desirable to have student names on utility bills.

Almost all universities, countrywide, need more accommodations. The student market is one of the most underserved yet is the one of best opportunities KEEP IT LEGAL Many areas have strict city guidelines as to how many students they can have in one property, with some as low as four. The magic number of students in a good-size house tends to be six,” advises Collins. “Less than this and the numbers in terms of cash flow aren’t as attractive. More, and depending on the size of the house and number of bathrooms, it may be putting it under too much strain.”

Monthly site inspections are also necessary to maintain vigilance of the property, and its condition.

Considering the workload involved, many investors choose to hire a property manager to oversee the day-to-day running and hand-holding of the tenants.

MORTGAGEBROKERNEWS.CA

TIME TO HELP CLIENTS TAKE HOME EQUITY ABROAD? With three of the top 10 highest ranking universities in the world, the U.K. is now also a top destination for international students and investors in this sector.

According to Vita Student, a provider of private accommodation in the U.K., the increasing demand to study there has led to a drastic shortage of suitable housing for students.

A property type which has fared particularly well is student buy-to-let with global property consultancy Knight Frank stating that “total returns in the sector have outperformed all other traditional asset classes” in the U.K. and that this has been the case since 2011. It is predicted that this will continue well into 2014 thanks to a maturing market and increasing student demand.

This demand has been created by a number of factors; a shortage of suitable accommodations, a natural decrease of the old housing stock and the movement of students away from traditional shared houses.

Student numbers in the U.K. are also being boosted by the growing number of international students flocking to the country. Knight Frank has predicted that these numbers will rise by four per cent in the upcoming academic year, and the government has stated that they will continue to encourage this growth.

With mom not around to tell them when the garbage has to be left out or when to clean, Collins says that many students who are adverse to cleaning may be prepared to contribute to a monthly cleaning service.

Investors also need to be made aware of the regulations in place by respective cities, including fire safety standards, insurance, parking and noise for student properties. In cities that license student housing, such as Waterloo, the cost is typically circa $500 for the first year and then it drops slightly in subsequent years.

Despite this licensing system, Waterloo is often dubbed as the most developed student rental market in Canada. Facing difficulties over standard and number of houses in the area, local interest and government groups devised a student housing plan.

As a result, over 9,000 high-end units have been added within walking distances of both universities in the locality.

Ayaz Davidson is a 42-year-old investment banker from Toronto, who has been investing in property since he was 18 and a student at McGill University in Montreal. Rather than renting a room in a shared house, he decided to buy his own property and rent out the extra rooms to his friends.

“The success that I had with my first property paved the way for me to build an extensive portfolio and I now own multiple properties across the world. I do own shares as well but I have found that they don’t generate the same level of yield that property can over the long run, through both capital appreciation and rental returns.”

Due to rising house prices in Toronto, Ayaz was on the look-out for a new property investment in December 2013 when his wife, Sunita, came across an opportunity in the U.K. while they were on vacation in London. He explains: “My wife has always wanted to invest in the U.K. as she went to university at the London School of Economics (LSE) but unfortunately we just hadn’t found the right opportunity. After doing some research Sunita found out about Vita Student and we started to look into it in more depth.

Ayaz finalized his purchase in January 2014 and is now waiting for the development to be completed in September 2014. He is expected to receive 7 per cent rental returns annually for five years.

It’s a lot of extra management and you are also dealing with young adults who are out of their home environment for the first time MAXIMIZING THE RETURN The school term may end in May, but the lease does not have to. Most students like to arrange their accommodation for the following academic year prior to breaking up for the summer with almost all leases signed from May 1 to April 30 for the full 12 months. Seasoned investors in this field advise landlords to start advertising the property at the start of December to ensure it is filled by May. JULY 2014 | 53

FEATURE / PRIVATE LENDING

Finding The

Right Match Within A Growing Crowd

With a growing number of players in the private lending space, how can a broker ensure she finds the right match for her client?

Since March 2011 it’s become increasingly difficult for borrowers to be approved by “A” financial institutions in Canada. The lending criteria are simply more strict. Increasingly this past year brokers have successfully been turning towards private lenders.

Jennifer Verbejus is a mortgage broker with VERICO Groupe Conseil Hypothèque, also known as VERICO GCH in Montreal. Prior to brokering, she worked for 10 years at a bank in the mortgage sector.

“Regular banks follow strict standards,” Verbejus says, “If a customer has fallen into bad luck, chances are they won’t fit into these standards but a private lender is more personal. Case by case they are able to finance customers that the bank wouldn’t because they have different standards.”

54 | JULY 2014

It seems logical that as the successful use of private lenders is becoming increasingly popular and mainstream, the amount of people offering this service is, likewise, increasing.

And that’s where problems arise.

“There are more and more private lenders but unfortunately we can’t trust them all, they are not there for the customers,” Verbejus says. “Brokers need to make sure they’re working with a private lender that is there to help the customer get through a hard financial time.”

Peter Galli, president of PENTOR Finance, a private lender in Quebec, cautions that not only are there more private lenders surfacing, but a lot of these new lenders don’t have a grasp on the business.

“Private lending is perceived to be an easy way

MORTGAGEBROKERNEWS.CA

to get a big return on your money,” Galli says.

“There are lots of small guys coming in that don’t understand the business, the risks or how to deal with a borrower when there’s a problem.”

Galli advises brokers to check that the private lender in question is prepared to make a custom mortgage before suggesting them to their client.

Galli outlines the four most important points of a custom mortgage: creative structuring to work with the client’s cash flow problems; a customized length or term, the possibility of multiple collaterals; and an appropriate exit strategy.

Verbejus stresses that an exit strategy is a great gauge of what type of lender a broker is dealing with.

“I work with PENTOR Finance a lot because they have a plan for every customer they accept.

They really want to know where the customer is going in a year, maximum, and I know that they really want to get the customers back on their feet and back on track,” Verbejus says, “I think we know what type of company [a private lender is] when they work with me to develop an exit strategy.”

This philosophy is so important to Verbejus that she will not even consider working with a private lender that does not focus on the exit strategy.

“No, I will not consider them if they are not working with me on an exit plan,” says Verbejus.

Along with his initial checklist, Galli cautions that while a private lender might not have malicious intent, some of these newer lenders might fall short where it counts: ability to fund at the front end and dealing with problems on the back end.

The first thing a broker needs to look into is if the private lender has a credible source of funds as well as the ability to fund. After

that the broker must look into the lender’s transparency; the lender must fully disclose all terms, conditions, fees and penalties. Finally it comes down to that all important exit strategy and the lenders speed of execution.

“There are a lot of private lenders that are there to make money, they’re offering their services without a plan,” Verbejus says, “I think a really good company needs to have the cash flow and an exit plan. They also need to work both with the customer and the broker. It’s pretty rare, it’s not something that happens a lot let me tell you.”

Verbejus cautions that as a broker her reputation is on the line every time she uses a new private lender.

“My reputation is that I want to help my customers. I stick to the lenders who have the cash flow to help customers right away,” Verbejus says, “I don’t want to bring them to a private lender and then find out that they can’t fund. I don’t want to waste time calling around to find out a lender doesn’t have legitimate money, a game plan or a strategy. That wastes my time and my client’s money.”

Galli’s concern is for the clients that end up with a lender who doesn’t expect the realities of the business.

“I see more and more fair-weather lending, as long as the sun is shining it’s great. The minute there’s a problem, the individual private lender gets scared and the client is left in a financial disaster,” Galli says.

Verbejus consistently works with three to four different private lenders.

“It’s rare in the market now to find private lenders who are so focussed on the exit. I think [PENTOR Finance’s] vision is to help the customer now and to help them in 12months. Their vision is to get them back up on their feet.”

JULY 2014 | 55

FEATURE/ CYBER LIABILITY

THE DIGITAL THREAT:

How brokerage can mitigate cyber liability With an increasing number of Canadian organizations being affected by cybercrime, the time for mortgage firms to take action is now. Maia Espejo offers these tips to help ease the risk of cyber attack Cyber attacks resulting in theft are a growing risk for organizations. According to a recent report, cybercrime has become one of the four most common crimes in Canada, with 22 per cent of Canadian organizations having experienced digital attacks.

In early 2014, Bell Canada also found themselves on the list of big-name companies who had become ensnared in a hacking incident, announcing that a cyber attack on a third-party supplier compromised the confidential account information of more than 22,000 of its small business customers.

These frauds can end up costing businesses big money.

During the 2013 holiday season, Target saw the personal information, credit and debit card records of tens of millions of customers stolen. That security 56 | JULY 2014

breach cost the organization an estimated $61 million, offset by $44 million in insurance payouts.

Cybercrime can be an issue for any sized organization that has care, custody or control of any confidential information, whether in electronic or paper format, as well as any company with a computer system or website.

In the new normal of the online world, companies need to take steps to protect themselves against the financial loss that can result from online attacks. The cost of recouping the damages of an attack and the cost of investigation can build and result in significant financial loss for an organization.

However, there are important steps organizations can take to reduce the risk of cyber attack on client files.

MORTGAGEBROKERNEWS.CA

Here are some tips to mitigate the risk of cyber attacks for your mortgage brokerage and clients.

1

Any company with web-based servers should be tested frequently. Have the IT department perform automated scans of the web servers on a monthly to semi-monthly basis. Smaller companies should enlist the help of an external IT firm to assist with the testing.

Increase awareness and educate senior management and employees by subscribing to newsletters, magazines, blogs, Twitter feeds and Facebook groups with information on protecting your network from cybercrime.

Educate and train employees every few months on the risks of cyber attacks and data breaches. Remind them by sending monthly emails or have monthly discussions or seminars about the damage that can be done by opening unsolicited emails or attachments, loading software programs brought in from the outside and not protecting their passwords.

Passwords should be changed on a monthly basis by the company.

Monitor anti-virus software and ensure it is always up to date. Company devices such as smartphones, tablets, laptops on which corporate resources, email, applications and file sharing place sensitive information at huge exposure.

Procedures should be in place for when the devices are stolen or when an employee leaves the company.

Institute procedures to document the types of data collected by the company and where it is stored.

Determine what the cost would be should the organization lose data. Set aside a budget dedicated to recouping the loss.

Conduct a risk analysis, either in-house or through a third-party company, to determine how susceptible the organization is to data loss and in which areas. The organization may be at greater risk in a specific area, such as cyber theft, accidental deletion, hardware failures or other risks.

Institute loss prevention measures, such as backing up all your data at an off-site location or cloud server.

Provide employee training and assess which employees have access to sensitive data. If the employees have access to personal data, ensure they are properly trained on data protection protocol.

2 3

4 5 6

7 8 9

10 11

CYBER LIABILITY INSURANCE Even with the proper precautions in place, human error, accidents and malicious attacks are still a possibility. Therefore, it may be important to ensure your brokerage is properly covered with a comprehensive insurance product.

Cyber liability insurance provides both thirdparty liability and first-party computer security coverage for emerging data security and privacy exposures facing Insurers today.

As evident through the Bell Canada incident, thirdparty liability is an important element to a comprehensive product.

Standard policies generally include a include broad form policy wording offering coverage for security failure or privacy breach by paying the cost for privacy notifications, public relations and other services to assist in managing existing and preventing future breaches.

Additionally, policies can offer coverage for regulatory defences and penalties, cyber extortion, first-party data corruption, first party business interruption and crisis management.

Some insurance companies provide a hotline with the purchase of a cyber policy where the insured would have 24/7 access to a call centre for claims reporting as well as any guidance or questions with respect to data breaches. Other markets may provide consultation with a breach coach and breach response team to prepare for cyber attacks.

As cybercrime has grown to be one of the four most common crimes in Canada, it is increasingly apparent that organizations must protect their assets and the assets of their customers against attack. Instituting organizational policies related to data security is the first step towards mitigating the potential costs of cybercrime.

Mortgage brokerages, given isolated security breaches over the years, are particularly proactive about protecting client files against cyber attack.

But that must also be translated into action.

Maia Espejo, is the senior professional liability manager of D&O/E&O for Burns & Wilcox Canada

JULY 2014 | 57  

FORUM / COMMENTARY

VS.

BROKERS APPRAISERS Reader debate reached a boiling point as brokers and appraisers faced off in a discussion about the effectiveness of the appraisal process for homes

58 | JULY 2014

“I fully agree that the appraisal value must be unbiased and fully utilize all the comparable data to provide a fair market value. It is especially important at this time as the market is moving fast. Lenders are relying on the appraisal value to lend, especially in a refinancing situation. In view of the hot market in Toronto now, some properties are sold over the asking price and the purchaser should be fully aware of the potential risk if the property does not get appraised at the sold price.�

Angela Wong-Liao

MORTGAGEBROKERNEWS.CA

“It is not the appraiser’s job to ‘come in at the purchase price’ or ‘fill in the amount you need.’

It is their job to provide an unbiased opinion of value supported by the market data available. They are usually the only unbiased party in the transaction; if you want to know what happens when appraisers (sell) themselves to give you the value you want, look at the mortgage meltdown that happened below the border.”

Matt Cook Recall a number of national lenders doing their own inhouse appraising using software and technical data supplied from the real estate industry.

They are cutting out “independent appraisal companies” in order to cut costs and for “greater bank profits.” Similar to in-house brokers (unlicensed mortgage brokers). So, how is this arm’s length? Consider the “risk management” situation that is created.

DB In the rare instances when I believe an appraisal has come in unjustly low, I will first discuss the appraisal with the appraiser in a calm professional manner.

If I am still convinced the appraisal is low, I will have a Realtor dig up some actual sales prices on appropriate comparables. If those comparables seem to justify a higher value, in my unprofessional opinion, I will discuss with the lender/insurer and ask for a second appraisal.

But without proof that similar properties have sold for more, no broker has a leg to stand on arguing that an appraisal is low. If you want to be brokering 95 per cent LTV deals on properties being sold above list, give your head a shake.

That is how real estate bubbles are created. If your clients want to pay above list or actual similar sales prices, they better have cash for the down payment required to do so, or the deal won’t and should not fund.

Daniel McKay

Agree with MOST of the rational comments on the side of the appraisers; however, in view of the volume of business being thrown at a stagnant growth group of appraisers, do you not think that corners are being cut? A $350 appraisal, many times, is being done in half the time that it used to take. This is the result of NO NEW appraisers coming into a recently closed shop in Ontario.

John Van Driel Some brokers always seem to have something to complain about don’t they? Lately the banks, the government, and insurers have all taken hits, so what the heck - let’s turn our sights on appraisers now. After that... well then we can hit lawyers and notaries. I guess once that is done it will either be customers or back to the banks.

It never ceases to amaze me at how some brokers trash their partners on here. Brokers NEED these partners to SURVIVE, they are the bread and butter of our industry. Remember, like the consumer, they have choice about who they can deal with. Just like you as a broker has choice.

At the end of the day, these people are simply doing their job. They are not there just to make brokers happy. They are there to help make sure that our very strong Canadian housing market remains just that ... very strong.

M. Robertson JULY 2014 | 59

ADAPT& THRIVE

BUSINESS STRATEGY / MANAGEMENT

How can coaching assist us in adapting to change?

Dr. Hilary Armstrong provides best practice insights and outlines how neuroscience has shifted our understanding of brain function “If you’re in a bad situation, don’t worry, it’ll change.

If you’re in a good situation, don’t worry, it’ll change.”

— John A Simone, Sr. Change is constant and inevitable, or so we are told.

Yet we resist it, especially when the change happens to us, like at work. So in the uncertain climate of organizations today, it becomes more vital that we understand how to assist people and prevent change fatigue from setting in.

As a coach working increasingly with moving roles and restructured landscapes, cognitive and social neuroscience research has enhanced my (and my coachees’) understanding of responses to change.

60 | JULY 2014

Although our brain is built to relentlessly scan our environments for what has changed and then assess this in terms of the danger or delight—will it eat me, or will I eat it?—our brain is more likely to register danger. In other words, we are genetically programmed to avoid change. Research into brain plasticity over the past 10 years has, however, emphasized its capacity for change. In fact, our brains are designed to continually learn, change and adapt.

Scientists once believed the brain was ‘hardwired’ early in life. We now know that the 80-yearold brain has the same ability to make new connections as the eight-year-old brain.

Unfortunately, most people stop challenging

MORTGAGEBROKERNEWS.CA

themselves to learn new things around the age of 30, and when we don’t use it, we lose it!

Working with and adapting to change is one effect of plasticity and how we grow. Working with change responses from a coaching approach that models understandings from neuroscience assists change managers and change participants in many ways. Here are just three:

DEACTIVATE FEAR CIRCUITRY Coaches can explore with coachees their view of the change. Talking through an individual’s responses to change reduces the activation of their brain’s fear circuitry. This is important because arousing the fear circuitry overloads our prefrontal cortex, reducing function and decisionmaking. Even mild levels of uncertainty, like gossip or rumors with no evidence, can stimulate fear. We expect the worst, and unless these expectations are understood, underperformance and decreased productivity will set in.

It is the uncertainty itself—not the potential outcome—that generates change in neurotransmitter levels that inhibit thinking. Coaching assists by encouraging expression of concerns and uncertainty. It is a space to acknowledge the coachee’s viewpoint without forcing the change agenda, and it is the process of the coaching conversation itself that reduces the physiological effects of stress, and when this occurs people often move themselves forward. An effective coach sees this nonverbally often before it is spoken, and can gently guide the person towards acceptance.

GROW MINDFULNESS What is missing from many organizational change processes is quantity and quality time to focus on the development of new skills and behaviors as well as people’s ability to do this. Studies on neuroplasticity show that with focused attention new (physical) neural connections are made and stabilized so that people experience the change as ‘normal or automatic.’ Mindfulness is the key to this.

Unless we can mindfully focus our attention, stabilization of new neural connections cannot occur and people revert to old behaviors. This is amplified by research about our set point in terms of reactions to change as being tipped more toward negative emotions (irritability, frustration, etc).

The good news is that this set point can be moved toward more constructive emotions by coaching for mindfulness.

Although our brain is built to relentlessly scan our environments for what has changed and then assess this in terms of the danger or delight—will it eat me, or will I eat it?—our brain is more likely to register danger BUILD A ‘POSSIBILITY FOCUS’ What we focus on grows. A focus on problems grows problems. A focus on strengths and possibilities grows neural connections of possibility and strength. A coach is a champion of both the coachee and neural plasticity.

In addition, while our brains chatter along with thousands of unconscious thoughts every day, we do have a small window (seconds) to make conscious choices between automatic reaction and conscious response. The more the focus is on possibility, the more likely we are to make choices that fit these possibilities and strengths. This brings ownership of the change.

So get a coach, or include a coaching approach in your change processes. Then whether you are in a good or bad situation, the change won’t matter.

Dr. Hilary Armstrong is director of education for the Institute of Executive Coaching and Leadership. For further information, visit iecoaching.com

JULY 2014 | 61

PROFILE / FAVOURITE THINGS

Favourite things

Brian Lambert, Broker, Real Mortgage Associates

Favourite Book: Norman Vincent Peale’s The Power of Positive Thinking is one of the best inspirational books that teaches how to overcome defeat, win confidence and be successful.

Favourite Sport: Deep-sea diving and skydiving, but if I had to pick one, skydiving is the most exhilarating.

There is no other feeling than jumping at 14,000 ft and falling at 120 mph.

That one minute jump feels like an eternity.

Favourite Movie: Lawrence of Arabia: I love the desert scenes and the history behind this epic movie.

Favourite Food: I don’t think I have any one favourite food. I have travelled extensively and I am always looking at trying something different. The trick is never ask what it is first, until you have tried it.

62 | JULY 2014

Favourite Thing about working in the Mortgage Industry: More than purchases, I prefer to work the refinance market.

I see people today needing this service more than ever, and it gives me satisfaction knowing I can help service their debt and put them back on track with planning.

MORTGAGEBROKERNEWS.CA

Favourite Music: ‘70’s music; Fleetwood Mac, Foreigner, Bob Dylan, David Bowie. I recently blew the dust off my vinyl records and what a nice change to my music experience.

Favourite Celebrity:

Favourite Vacation Spot: Melia Cayo Coco, Cuba. Private adult-only resort, impeccable service and relaxation. I’ve been there many times.

Jack Nicholson: I’ve never been disappointed in a movie of his yet.

Favourite Drink: Glenrothe Scotch Whiskey (neat). I love that honeycaramel woodsmoke smell and that special warm bite it gives to the palate.

Favourite Place to be: At my home cottage surrounded by nature. A short drive from my office; it’s a place I can relax, unwind and enjoy life.

Sophie Bush

Marketing Manager

1-604-530-7430 sophie@vwrcapital.com www.linkedin.com/in/sophiebush

Your Private Mortgage Solution Funding Mortgages In: · · · · ·

British Columbia Alberta Saskatchewan Manitoba Ontario

Your Underwriting Team:

· Competitive rates and nominal lender fees · Purchases, refinances, ETO, and renovations · Rental properties, owner occupied, raw land, serviced land, small multi-family · No income qualification · No minimum beacon score

Dimitri Kosturos: VP Underwriting

Send Deals To: info@vwrcapital.com

Leah Wilson:

Or Call:

Associate Underwriter

1-866-907-5407

www.vwrcapital.com JULY 2014 | 63

SERVICE / DIRECTORY

MORTGAGEBROKERNEWS.CA

Banks

Insurance

B2B Bank b2bbank.com/mortgages Ph: 1 800 263 8349 Inside Back Cover Non-Bank Lenders

RMAI Financial Group www.rmaifinancial.com Ph: 1 866 955 7624 Page 9

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

First National Financial LP www.firstnational.ca Ph: 416 593 1100 Page 11

Axiom Mortgage Partners axiommortgagepartners.ca Ph: 1 866 504 0516 Page 5

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Page 15

Centum Financial Group Inc. www.centum.ca Ph: 1 604 257 3940 Page 36 & 37

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Page 25

Dominion Lending Centres www.DominionLending.ca Ph: 1 888 806 8080 Page 7 & 27

Radius Financial www.radiusfinancial.ca Ph: 1 877 369 6398 Inside Front Cover

Home Loans Canada www.hlcmortgages.com Ph: 1 866 452 1821 Page 3

速

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

Commercial Lenders

ROMSPEN Investment Corporation www.romspen.com Ph: 1 800 494 0389 Page 1 Technology & Softwares

TM

D+H Limited Partnership www.dhltd.com Ph: 1 866 345 6449 Page 19 Marlborough Stirling Canada www.morweb.ca Ph: 1 877 626 2022 Page 2 Real Estate

Tribecca Finance Corporation www.tribecca.ca Ph: 416 225 6900 Page 29

Canadian National Association of Real Estate Appraisers www.cnarea.ca Ph: 1 888 399 3366 Page 47

Invis / Mortgage Intelligance www.invis.ca Ph: 1 866 854 6847 Page 31 Services

V.W.R Capital Corp www.vwrcapital.com Ph: 1 866 907 5407 Page 63

64 | JULY 2014

Mortgage Architects www.mortgagearchitects.ca Ph: 1 877 802 9100 Page 17

Score-Up www.score-up.ca Ph: 416 479 9585 Page 41

At B2B Bank, we’ve got more ways to get your mortgage deals funded with: A full suite of conventional, expanded and alternative lending solutions Regional teams with local knowledge A wider range of qualifying criteria for a wider variety of clients

BANKING THAT WORKS FOR BROKERSÂŽ b2bbank.com/mortgages | 1.800.263.8349 All mortgages are funded by, registered in the name of, and administered and serviced by B2B Bank. Mortgages are subject to credit approval by B2B Bank. Some conditions apply. B2B BANK and BANKING THAT WORKS FOR BROKERS are registered trademarks of B2B Bank.

HELPING YOU DELIVER. Purchase Plus Improvements | When your client’s perfect home is only a reno away, Genworth Canada can help you deliver on their dream and close the deal with tailored improvements immediately after taking possession, one manageable mortgage and only 5% down.

800.511.8888 | Genworth.ca | Homeownership.ca | Genworthsmartshopper.ca Helping Canadians Achieve the Dream of Homeownership. Sooner.