CMP 10.01

2015 COMMERCIAL FORECAST Trends and tips for the year ahead

MORTGAGEBROKERNEWS.CA ISSUE 10.1 | $6.95

THE OVERNIGHT RATE RUNDOWN Why brokers have nothing to fear HEAD TO HEAD Is selling real estate a conflict of interest?

50 sizzling players who are setting the industry on fire

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ISSUE 10.1

Contents January 2015

22 COVER STORY

The Hot List Discover the 50 people who are changing the face of the Canadian mortgage industry

AmAzing how the right finAncing cAn shArpen your vision.

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

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ISSUE 10.1

14

MARKET MATTERS

Intelligence

Corporate moves and product news that could affect your business

52 FEATURE

Industry icon

MARKET MATTERS 8 | News analysis Industry insiders speculate on the Bank of Canada’s overnight interest rate 10 | Head to head Should mortgage brokers double-dip in real estate sales?

16 | Commercial update The perks and pitfalls of residential brokers taking commercial deals 18 | Private lending update What the future of private lending looks like now that more brokers are pursuing alternative deals 40 | Market insight A peek inside FCT’s new annual market review

FEATURES 42 | Preventing a nightmare In the age of online fraud, title insurance is more important than ever – how can you make sure your clients are protected?

The skills Centum VP Paul Therien learned at his first mortgage job are helping him drive the brand’s growth today 46 | The battle for BFS More Canadians are turning to selfemployment – but without the help of a knowledgeable broker, they could have trouble securing mortgages 60 | Make your web (re)design easier Follow these 5 tips to design a website that draws customers

12

STATISTICS

Which provinces closed out 2014 on top?

REGULARS 4 | Editor’s letter 6 | Letters to the editor Readers offer feedback on our Broker Lifestyle Survey 20 | Career path Sabeena Bubber’s steps from Big Five bank to thriving independent practice 64 | Favourite things The Mortgage Marketing Coach, Doren Aldana

56 FEATURE

How to convert a ratefocused client

Industry veterans offer advice on how to get clients thinking beyond the rate

2 | JANUARY 2015

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CONTENTS / EDITOR’S LETTER

EDITORIAL

BE CAREFUL WHAT YOU WISH FOR Salaried agents: It’s a genie most brokers wish had never been let out of its bottle. But the phenomenon is only growing – industry veterans point to year-over-year growth of 20% to 45% in the number of mortgage agents now collecting paycheques instead of commissions. That spike is unwelcome to veterans who argue that the practice of putting sub-brokers on the payroll undercuts a key tenet of the trade: sales initiative.

Mortgage professionals have traditionally cast themselves in the role of hunters, surviving solely on what they – forgive the metaphor – stalk, kill and eat. That kind of gumption has helped drive broker market share above yesterday’s single digits to the 25% to 30% that so gets up the noses of the Big Five today. Does an increase in salaried agents, popularized by successful online players Dan Eisner at True North Mortgage and Ron Butler, zap that entrepreneurial spirit?

The answer appears to be ‘no.’ At least that’s what both agents and brokers increasingly attracted to the model have to say. They argue that the spreading use of online lead generation has placed more and more responsibility on the shoulders of principal brokers to originate the business – i.e., bring the customer through the door. It then falls to salaried agents to close the deal, explaining the options, taking the orders and filling out the paperwork. So mortgage origination in the digital age has been divvied up, allowing those with the requisite business acumen to capture business off the web. At the same time, that sea change has encouraged those with the customer service and underwriting skills to support the evolving brokerage model.

It’s a partnership more and more mortgage professionals have wished for, with that genie I mentioned all too happy to oblige.

Vernon Clement Jones Editor

Mortgage professionals have traditionally cast themselves in the role of hunters, surviving solely on what they – forgive the metaphor – stalk, kill and eat

COPY & FEATURES MANAGING EDITOR Vernon Jones SENIOR WRITER Justin da Rosa JOURNALISTS Ryan Smith, Sam Richardson CONTRIBUTORS Nestor Arellano, Samo Ayoub COPY EDITOR Clare Alexander

ART & PRODUCTION DESIGN MANAGER Daniel Williams GRAPHIC DESIGNERS Loiza Caguiat

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 TRAFFIC Kay Valdez EVENTS AND CONFERENCE MANAGER Chris Davis Editorial inquiries vernon.jones@kmimedia.ca Advertising inquiries trevor.biggs@kmimedia.ca Subscriptions tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca KMI Media 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 Canadian Mortgage Professional is part of a international family of B2B publications and websites for the mortgage industry Mortgage Professional Australia sam.richardson@keymedia.com.au T +61 2 8437 4787 Mortgage Professional America ryan.smith@keymedia.com T +1 720 316 0154 Offices in Toronto, Sydney, Auckland, Manila, Denver 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 IB magazine can accept no responsibility for loss

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CONVERSATIONS / LETTERS TO THE EDITOR

MORTGAGEBROKERNEWS.CA

THIS IS THE LIFE

Brokers weren’t bashful about exposing themselves for the secondannual CMP Lifestyle Survey – and even less so about critiquing it RE: 2014 BROKER LIFESTYLE SURVEY (CMP 10.12)

Thank you for the glimpse you have provided into our personal and professional lives. The survey shows some of the strengths we have developed – specifically, how we have learned to invest in our retirement savings despite the feast or famine of a typical sales job. We are doing well.

-Phil Minns

I think we are as guilty as others of buying into some of the lies about mortgage brokers. The myth is that we are a bunch of flashy old boys looking out for number one. The survey provides a balanced picture. We are family men and women living a modest family life – no flashy Porsches here.

It is interesting to compare this year’s results to last year’s. Brokers seem to be making more money and saving more of that income in savings. Is that a sign that we are preparing for a slowdown in the housing market?

–May Blumberger

– Jon D.

I have been a broker for the last six years. I have often thought of myself as average, or representative, of the industry – hard-working, dedicated and ambitious. Next year, CMP might consider expanding on the survey to encompass the ideology of brokers, including questions about their ethical beliefs and their political affiliation.

– Howard Bishop

I believe most of the results of the survey, especially the family statistics and the results on work/life balance. On that point, we need to work a little bit less in order to reap the benefits of our hard work. You can’t take it with you!

– Ottawa Broker

I was hoping for more on the technology brokers are using to keep in touch with their borrowers after funding – for example, Salesforce, Maximizer, Incontact, Revo. Perhaps we could have a separate survey on those types of business-related CRM questions and choices.

–Jason Kline

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THE BANK THAT CRIED WOLF?

Will the Bank of Canada finally raise its overnight interest rate as projected – and what will happen when it does?

Is the Bank of Canada the boy who cried wolf? It’s a cheeky question, but one more and more brokers asked themselves as they read through last year’s announcements.

That wasn’t always the case. In the years immediately following the bank’s Sep­ tember 2010 move to stabilize its key over­ night rate at 1%, brokers nervously parsed through every word of those policy state­ ments, fearful then-governor Mark Carney would make good on his threat to raise the key rate.

Just the opposite happened on January 21, with current governor Stephen Poloz lowering the target rate to 0.75%.

Now, with an economy obviously in need of continuing stimulus, brokers openly question whether the bank will ever move that all-important rate upward.

But even if the wolf of a higher overnight rate does knock on the door this year, bro­ kers aren’t necessarily afraid. They’re confident – for good reason.

“Economic forecasts are that, with the BoC, we won’t see any increase in the first quarter of 2015, so maybe later in the year,” says Jackie Woodward, a veteran broker with TMG The Mortgage Group, echoing the thoughts of mortgage professionals from one end of the channel to the next.

“When the rate does rise, it’ll only rise maybe a quarter of a per cent at a time, so it will be easy to manage, I think. It won’t be a big slap to the economy.”

That assessment speaks directly to why so many mortgage brokers, who have ben­ efited from historically low mortgage rates, are so sanguine.

Photo courtesy of Taxiarchos228/Wikipedia.org

MARKET MATTERS / NEWS ANALYSIS

FROM CRISIS TO CURRENT DAY A recent history of the BoC’s overnight rate decisions January 22, 2008 Rate: 4.0% “The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point ... Financial market conditions have deteriorated since October, leading to a tightening of credit conditions ... ”

June 10, 2010 Rate: 0.5% “Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.”

July 20, 2010 Rate: 0.75% “Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.”

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MORTGAGEBROKERNEWS.CA

A recent MortgageBrokerNews.ca survey provides more evidence of that confidence. Nearly 75% of brokers surveyed estimated that Canada’s central bank will move to up the overnight rate by no more than 0.25 to 0.5 percentage points this year, and only after the first half of the year.

Only 5% predicted that Governor Stephen Poloz will bring in a hike of 1 percentage point or higher before July.

The lacklustre economic recovery simply rules out that kind of bold move, argue brokers, economists and, indeed, the bank’s governor.

“Inflation has risen by more than expected,” Poloz conceded in the Dec. 3, 2014, rate decision. “The increase in inflation over the past year is largely due to the temporary effects of a lower Canadian dollar and some sector-specific factors, notably telecommunications and meat prices. Underlying inflation has edged up but remains below 2%.”

Economists have suggested the Bank sees attainment of that inflation target as a prerequisite for any rise in the overnight, which, of course, dictates variable rates at both Big Six and non-bank lenders.

Brokers are pointing to other variables likely to tie Poloz’s hands, and in the process, protect the robust real estate market that supported about $6 billion in mortgage originations for the second quarter of last year.

“My prediction would be probably that the BoC will not raise rates [in the short term],” says Jarrett Slaney of Invis. “Our economy lacks the numbers, especially

[employment growth], that support our ability to deal with the negative impact of rate increases. When we see consumer confidence rise, then I feel we would have confidence to manage a rate increase.”

Regardless of when rates do inch up, brokers say consumers are well-armed with the knowledge they’ve built up waiting on interest rate hikes that have yet materialize.

“Some of our more savvy clients who have chosen variable rate are the ones who follow the market, so they’re prepared to lock in if need be,” says Slaney. “I find that they tend to understand market changes and swings, so they would most likely follow this news and get in contact with an agent to lock into a fixed rate.

Those people with two or three years remaining on low fixed rates will not be immediately affected and will have some time to strategize.”

Another reason for optimism in the face of a possible rate hike, say brokers, is the slow phase-in most analysts expect.

That pace should afford clients time to lock into fixed rates before ARM rates tick upward into dangerous territory.

Real estate experts are saying much the same.

“When interest rates start to go up, everybody says, ‘The world is going to end,’ but the market is really going to pick up when that happens because of what I call FOMO: ‘Fear of Missing Out,’” says real estate investor and author Don R. Campbell. “It happens every time a change occurs.”

September 8, 2010 Rate: 1% “The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected.”

September 3, 2014 Rate: 1% “The Bank remains neutral with respect to the next change to the policy rate: its timing and direction will depend on how new information influences the outlook and assessment of risks”

WILL THE BOC PUT RATES UP ANY TIME SOON? “Who knows? I used to go to Royal Bank – they used to do a business seminar, and the chief economist would come and start with why the predictions from the year before didn’t happen.”

–Colleen Saunders, The Mortgage Department Corporation “There’s a whole bunch of factors that are happening, including falling oil prices – and we don’t know how long that’s going to last or how low they’re going to fall. Then the other part of the equation is the Canadian dollar. The GDP growth is going to be trimmed. There are other offsetting things that are happening that will offset the negative effect of oil prices. The forecast is that with BoC, we won’t see an increase in the first quarter of 2015.”

–Jackie Woodward, TMG The Mortgage Group “I feel that the Bank of Canada has to eventually raise the overnight rate; they have had rates historically low for so long. They have to increase them, but I don’t expect rates to increase anytime soon.”

–Jarret Slany, Invis

December 3, 2014 Rate: 1% “While inflation is at a higher starting point relative to the October MPR, weaker oil prices pose an important downside risk to the inflation profile. This is tempered by a stronger US economy, Canadian dollar depreciation and recent federal fiscal measures.”

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HEAD TO HEAD

Q:

Dual-licensed brokering: efficiency or folly?

A Brampton mortgage/real estate agent will spend the next 12 months behind bars after pleading guilty to fraud – a case that has mortgage brokers calling for single licensing

DALE BILTON

OMER QUENNEVILLE BROKER REAL ESTATE HOMEWARD

PRESIDENT HOMELAND MORTGAGE CORP.

Being in the mortgage brokering industry for nearly 20 years, I have always been concerned when brokers/agents try to do both mortgages as well as real estate. Very few, if any, of them have excelled at either, and I strongly suggest they pick one side or the other.

Give it a real, 100% focus, and expect the results will be better.

Also, I’m not sure how one can properly represent both industries and not expose themselves on one side.

I recently had a Realtor selling his own property, and once I realized this, I found a number of issues that he was trying to evade. I expect the same can happen when the mortgage agent tries to sell the same client’s property.

I remember a time when all Realtors were automatically mortgage brokers. Clients were better served as a result, as agents were able and knowledgeable enough to get involved with the client’s financing. Fraud wasn’t a problem then, and it isn’t now.

I see Realtors advising clients, and they’ve never had a mortgage, don’t know what one is, and are turning them over to mortgage lenders and not advising them on the terms, conditions or type of mortgage. When I sell a house, I don’t place the mortgage for conflict reasons, but I use my knowledge to make sure they understand the terms, conditions and risks associated with the various types of mortgages being offered. I do get involved when it is time to renew the mortgage.

Multiple business licences must be stopped when there is a conflict of interest. When business licences are issued, disclosure must be obtained if the person is doing any other business. If someone has a mortgage broker licence and is also doing the business of tax filing, this is a clear conflict of interest. Mr. Mathur was doing the job of a broker, a Realtor and also filing tax returns.

It was very easy for him to use the sensitive information on mortgage applications and manipulate it to file income tax refunds for his personal gain.

Licensing authorities must check what type of other businesses a person is doing.

We should take the example of other professionals like lawyers and CGAs: they follow the one line of their field and practice.

PRESIDENT DOMINION LENDING CENTRES COMMERCIAL

KULDIP PANESAR

THE CASE IN QUESTION Harinarain Mathur, whose LinkedIn profile lists him as a ‘finance manager’ at Century 21, was sentenced to 12 months in jail after pleading guilty to fraud. His Century 21 profile page, meanwhile, has been taken down.

A Canadian Revenue Agency [CRA] investigation found that Mathur, a licensed real estate and mortgage agent who also operated the company HR Accounting and Tax Services, prepared false T4s and filed 292 fraudulent personal income tax returns for the 2010 and 2011 tax periods.

There are many mortgage brokers who successfully – and simultaneously – run thriving and ethical real estate practices, but this case is another in a long line of dually licensed players found guilty of fraud. The cases, argue many brokers, offer a compelling reason for single licensing, but others disagree.

Got an opinion that counts? Email mortgagebrokernews@kmimedia.com, or join the discussion at www.mortgagebrokernews.ca/forum

10 | JANUARY 2015

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STATISTICS / RESIDENTIAL SALES ACTIVITY

LESSONS FROM THE HOUSING MARKET THAT WAS Sponsored by TM

It was a tale with several plots, as each of Canada’s housing markets reported different storylines to close out 2014

+3%

BRITISH COLUMBIA British Columbia saw 5,972 residential unit sales in November, an 8.8% year-over-year hike. According to the British Columbia Real Estate Association, continuing solid sales are due to consumer confidence and record-low interest rates.

+2.6%

+4.6% -8.2%

ALBERTA Recently oil prices have plunged, due in part to stalled plans for a continental pipeline, and home sales in Alberta are now expected to take a hit.

Early winter has seen early signs of a slowing market, with year-over-year sales activity increasing a mere 3% in November, when 4,699 units traded hands. That’s compared to an overall annual increase of 9.2%.

SASKATCHEWAN Saskatchewan recorded a significant hit to its sales activity in November, seeing a -9.1% year-over-year change. The drop was due to an excess of inventory in many of its major markets throughout the year, but that’s expected to be absorbed in 2015.

MANITOBA Similar to Saskatchewan, Manitoba saw a dip in year-over-year sales, with a mere 860 homes sold in November, a -8.2% change. Manitoba’s chief market, Winnipeg, began the year as a seller’s market, but things changed toward the end of 2014, when the city experienced an abundance of buyers, which accounts for the dip.

C

ONTARIO Ontario showed modest growth of 2.7% in November, but could be in for a surge. Toronto, the province’s hottest housing market, closed out 2014 with 92,867 residential sales, the second-highest figure to date – and that’s despite the fact that housing stock is currently strained.

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WHO’S HOT AND WHO’S NOT? Home sales year-over-year percentage change

TOP PROVINCES

Average Home Price

BC + 8.8%

Quebec +3.6%

(year-over-year percentage change) Alberta +3%

+0.6%

Ontario +2.7%

Manitoba -8.2%

+5.3% QUEBEC Quebec held steady in November, with 5,097 homes changing hands – a 3.6% increase yearover-year. Sales were affected throughout 2014 due to high unemployment; however, this year is expected to close out within historical norms.

D+H CMT Mortgage ad final.pdf

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Saskatchewan -9.1%

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INDUSTRY INTELLIGENCE

NEWS BRIEFS >> HARMONIZED BROKER EDUCATION COMING Still in the early stages, the Mortgage Broker Regulators Council of Canada [MBRCC] plans to launch harmonized mortgage broker licensing standards across Canada this fall.

Currently, each province has the authority to establish licensing requirements, according to MBRCC, which means there can be differences in educational requirements from province to province. The organization hopes to rectify that.

“We’d like greater consistency in the licensing system itself,” says Martin Boyle, policy manager for MBRCC. “Greater consistency in the quality of the licensee at the end of the day will also affect consumer protection as well.” >> MAJOR BANK FORECASTS SLOWDOWN FOR TRADITIONALLY

HOT MARKET THIS YEAR

The slowdown in the energy sector is beginning to affect the real estate market in Alberta.

Sal Guatieri, a senior economist at the Bank of Montreal, says that cracks are starting to appear in Calgary, where listings increased to 42% during 2014 while sales slowed to 7.5%.

Prices were up almost 9%, according to recent CREB data, but Guatieri expects a slowdown, possibly leading to falling prices this year. BMO’s chief economist said this week that he expects growth throughout Alberta to be half that of last year. >> MCAP TO LAUNCH FIRST AUTOMATICALLY READVANCEABLE

MORTGAGE

MCAP will soon launch a new mortgage option for its clients, making it the first monoline lender offering a mortgage deal that could spare investors and homebuyers a blow to their credit scores. MCAP’s pilot program is similar to the launch of Firstline’s popular Matrix mortgage.

With a readvanceable mortgage, the borrower’s line of credit is increased as the borrower makes payments to the mortgage and reduces the principal, says Surendra Wankhede, a mortgage broker at MonsterMortgage.ca.

“The beauty of readvanceable mortgage specifically takes place if you want to leverage or borrow the equity in your home at any point during the term of your mortgage.” >> MAJOR BANK OUTSOURCING TO MONOLINE First National announced last summer that it struck a deal with TD Bank to provide underwriting and fulfilment processing for mortgages originated by the big bank through the mortgage broker channel, and the first stage of the rollout is just around the corner.

“This is an important agreement that leverages the distinct capabilities and strengths of both parties,” Stephen Smith, chairman and CEO of First National, said in an official release. “For First National, it provides a new source of income that we hope will grow over time.”

The transition will be a tiered, region-specific rollout that will be Canada-wide by mid-2015. The Ontario rollout will begin in February.

DLC BRINGS CHILDREN TO THE TABLE

Dominion Lending Centres collected donations for Breakfast for Learning during CAAMP this year and brought in more than $9,500.

The national network held its annual CAAMP party at Time Supper Club in Montreal and raised more than $3,500 alone at that one event. Both Gen­ worth and Canada Guaranty, the country’s leading private mortgage default insurers, also kicked in a cool $3,000 each at the event.

INVIS CONTINUES ITS CHARITABLE WORK For the 12th straight year, Invis Mortgage Intelligence helped provide warmth and supplies to needy Canadians during the holidays. In December, volunteers from the network visited nine shelters across Canada and distributed more than 10,000 winter clothing items and other essential supplies as part of its Angels in the Night Homeless Shelter Project.

“As mortgage brokers in the business of helping people find their homes, it seems right to extend some support and help to those who might not have a warm home to go to every night,” says Cameron Strong, CEO of Invis-Mortgage Intelligence.

14 | JANUARY 2015

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CMP

S ’ A D A LE N C I A H E C V H INE T L I N O W D R T AN E N I N R P T D E D R A PAR !

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Over 15,000 Print Subscribers: Reach the mortgage industry with thought leadership 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

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Trevor Biggs, Associate Publisher KMI 416 644 8740 x 236 trevor.biggs@kmimedia.ca 29/01/2015 10:24:54 AM

COMMERCIAL UPDATE

News and analysis of Canada’s commercial

NEWS BRIEFS >> CALGARY COMMERCIAL MARKET ON THE RISE Calgary’s real estate market continues to get attention in the news – a report from CBRE Limited cites a growing level of optimism in Calgary real estate. With the drop in oil prices and fluctuations in the financial market, there has been a steady supply of new construction projects in sectors such as office space, hotels, industrial and retail properties – a boon to real estate agents and investors looking to cash in on new projects. >> OTTAWA GROWING WITH LIVE-WORK

NEIGHBOURHOODS

Live, work and play neighbourhoods are changing Ottawa’s city landscape, along with its commercial real estate market, according to a CBRE report. More people are relocating to the suburbs, as opposed to the downtown core, as the real estate strategy impacts the way people live. More people living and working in the same neighbourhood creates new opportunities and advantages for realtors. >> DRONE TECHNOLOGY BECOMING A TOOL FOR AGENTS The use of drones is becoming more and more popular in the Canadian real estate industry. Details of an agent from Windsor making gains with the controversial tool made headlines in the CBC, and another agent thinks drones will be helpful for both commercial and residential agents. “To be able to fly downtown Windsor and look for vacant sites, potential buildings that could be repositioned or redeveloped, and to do it from the air gives you a whole different perspective.” The drones have drawn the ire of some consumers, who feel they put privacy at risk. >> COMMERCIAL SALES REMAINED STEADY DURING

NOVEMBER

Commercial sales held steady in November, with 67 properties ex­­changing hands. This represents no change year-over-year.

Office space saw the most significant spike; 16 sales represented a 45.5% year-over-year increase. Meanwhile, industrial (23 sales, -14.58% y/y) and commercial (16 sales, -3.4% y/y) properties did not fare as well. Read the full story for details on the commercial outlook in November. >> RETAIL INDUSTRY TO AFFECT COMMERCIAL

REAL ESTATE?

The Huffington Post is painting a grim picture of where the retail industry might be headed. If stores continue to close and retail tenants can’t be replaced fast enough, the public companies that own many of our malls (commercial real estate investment trusts or REITs) will have to compete more aggressively for a shrinking pool of major tenants. This usually means lower rents, resulting in lower revenues for mall owners, which would put downward pressure on the share prices of normally stable REITs. >> REGINA LOOKING TO EXPAND DOWNTOWN The City of Regina is looking to sell a parcel of its prime downtown real estate for $2.3 million to begin a major housing and commercial development project. The move would offer work and home options for new residents of the Prairie city.

WHAT’S MY SPLIT? As commercial broker Steve Fabian sees it, collecting a co-brokering fee on a successful commercial deal is much better than chasing a full commission on one that never gets approved. But what’s the going comp for co-brokering deal? It depends:

of the commercial broker’s fee on the deal is the industry average.

25%

However, the originating resi­ dential broker can earn as much as

30% to 35%, say veterans.

“The split can be higher if the originating broker is more actively involved in the deal for a practical reason such as language or distance due to geography,” Fabian says.

SHOULD RESIDENTIAL BROKERS TAKE COMMERCIAL DEALS? Residential brokers have been dipping their toes in commercial deals to stay afloat during the slow winter months – but are they ready to jump in?

It’s a growing phenomenon that worries both commercial brokers and residential players focused on protecting the channel’s service levels: the increasing numbers of residential brokers inclined to keep the commercial deals presented to them instead of passing the complex transactions to commercial colleagues and settling for a co-brokering fee.

This decision could bring harm to clients, says Stuart Matheson, broker/owner at Dominion Lending Centres Arctic Home Mortgages.

“My view has always been, if you look after your clients, they will look after you,” says the residential specialist, pointing to his own preference for co-brokering over going it alone on a commercial deal. “This

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mortgage market

BROKER Q & A

Commercial mortgages are set to see a resurgence in 2015. CMP spoke with a leading player in the space to find out what brokers can expect in the year ahead CMP: What does inventory in the commercial segment look like for 2015?

Harry Tyson: A lot of has meant there were some hard months with little to no income … [but] my integrity is worth more than money.”

Mike Chiu, director and mortgage broker at Capital West Mortgage in Vancouver, agrees that there are a lot of residential brokers who dabble on the commercial side to negotiate deals with lenders, but they don’t always have the cache and experience to pull it off.

“There are things you have to know, such as how to read a lease, lease abstracts – most brokers don’t have the relationships with premium lenders on that level,” Chiu points out.

“Commercial brokers can make hundreds of millions in mortgage deals, whereas a residential broker might make tens of millions. The more you can earn, the better relationship you’ll have with lenders.”

It’s easy to see why residential brokers might want a piece of the pie: Canadian commercial real estate purchases are expected to total $25.5 billion in 2015, just slightly off the $26.5 billion anticipated for year-end 2014 and $26.8 billion recorded in 2013, according reports from CBRE Limited.

“We have never seen the capital markets so deep, with domestic and global capital pursuing commercial property across Canada,” said Peter Senst, CBRE’s president of Canadian capital markets, in a recent statement. “Real estate has a larger role than ever before in many investment portfolios. The challenge is finding a home for all this capital.”

people are holding on to their investments because they can’t HARRY TYSON replace them at what DOMINION LENDING CENTRES INNOVATIVE they purchased them MORTGAGE SOLUTIONS for before. They sell something now; they can’t replace it for what they bought. Prices are going up, so they’d have to replace it with something more expensive, so it’s not economical.

Inventory levels are going to remain stable or cut back a bit because people aren’t selling.

CMP: Which cities and building types will be the most lucrative for brokers this year?

HT: Apartment buildings are very lucrative because of CMHC affordability. You can provide great rates to the client. That’d be the main one that has the most upside right now. As far as cities go, Toronto cap rates are still reasonable, so financing for 70% is available, which makes it more attractive to potential buyers. In BC, where the cap rates are low, it requires a larger down payment. Toronto might see more transactions because of this, because there’s less equity needed for transactions.

CMP: Are there any regulatory issues you see becoming a hindrance to commercial brokers in 2015?

HT: I don’t believe so, and it’s relatively regulated as it is. For the seasoned guys, we abide by the rules. I can’t see much more regulatory involvement. The Money Laundering Act and other regulations occurred a couple years ago, so most bor-

rowers are aware of it. There’s not too much more that needs to be done.

CMP: Is there anything lenders can do to help commercial brokers fund these deals?

HT: The main thing is that once the loan is approved and going to the legal work, lenders could do a better job of keeping the broker informed of any issues that arise during that phase. Often the mortgage brokers are on the outside of it, and if something comes up, it might cause an issue for funding. If we were made aware of it, we could deal with the issue and provide solutions for both the lender and the borrowers to overcome that potential problem.

Apartment buildings are very lucrative because of CMHC affordability. You can provide great rates to the client ...

That has the most upside right now” CMP: What will be the major trends in commercial mortgage brokering?

HT: I think that what’s happened is that commercial mortgage brokers are a lot more diligent in reviewing the information so that when a lender takes over, there are no surprises. You have to read everything.

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PRIVATE LENDING UPDATE

NEWS BRIEFS >> PRIVATE LENDING ASSOCIATION ESTABLISHED A leading mortgage broker course provider announced it is launching the nonprofit Association of Mortgage Investment Professionals [AMIPROS] with the goal of providing higher standards and education to the private lending industry.

“The explosion in growth of retail investing in private and syndicated mortgages over the past few years has created a need for higher standards and increased education, and AMIPROS was created to address that need,” says Joe White, president of the Real Estate Mortgage Institute of Canada [REMIC]. “AMIPROS will set high-quality industry standards designed to protect investors and ensure the continued integrity and viability of this portion of the mortgage industry.” >> PRIVATE AND ALTERNATIVE LENDING BECOMING MORE POPULAR Alternative lending has become increasingly popular among brokers – a recent MortgageBrokerNews.ca poll revealed that 44% of brokers rely on alternative deals to make up at least 40% of their business. It’s a number that is growing year-over-year: This year’s CMP Brokers on Lenders survey revealed that, on average, 20.5% of deals are non-prime, compared to 18.6% a year prior. >> FSCO SOUNDS ALARM ABOUT UNLICENSED SYNDICATED MORTGAGE

PROVIDERS

FSCO has issued a warning to Canadians about unlicensed syndicated mortgages.

“The Financial Services Commission of Ontario [FSCO] is warning consumers that it has received complaints about some websites promoting syndicated mortgage investments,” an official release from FSCO states. “The businesses operating these specific websites are not licensed or registered to conduct this activity in Ontario.” Syndicated mortgages are becoming increasingly popular among mortgage brokers, many of whom have added the lucrative products to expand their business offerings. >> BROKER: BUNDLE ALTERNATIVE AND PRIVATE MORTGAGES Attaining alternative financing in small­­er housing markets can be difficult, according to one leading player in the space, but there are workarounds that can ensure clients get the financing they need.

“Some lenders suggest topping up [the mortgage] with private funds,” says Adam Hale of The Mortgage Centre.

“Some of these lenders have brought back bundled products, where they do a first and second mortgage for you – it’s a way to get clients to 80% loan-to-value.”

Hale revealed some tricks of the trade for funding difficult deals in difficult markets.

The Hamilton-based broker has faced issues with lenders who refuse to lend to the maximum loan-to-value thresholds.

“This is where you get hit even harder: When you look for a property just outside city limits, that’s really where you differentiate yourself as a broker,” Hale says. “With these deals, you’ll be offered 65% to 70% loan-to-value, which can be difficult. You either have to shore it up with a private second mortgage or hope they can squeeze into that grey area that local credit unions will lend on.”

MORE EDUCATION NEEDED? Brokers sound off on the necessity for more regulation and education for private and syndicated deals With the surge in private lending – and the somewhat ambiguous rules surrounding the practice – brokers are calling for more education and regulation for the sector.

“The fact is that any broker or agent can broker a private or syndicated mortgage,” said Joseph White, president of the Association of Mortgage Investment Professionals [AMIPROS], during a seminar on private lending. “That has resulted in the regulators, both FSCO and the Ministry of Finance, talking about additional education, and the industry is ready for additional education.”

The call for increased regulation has been made by brokers across the country, following a number of legal cases in which unregulated brokers were warned by FSCO that they are not legally permitted to deal with these products.

“There are too many people privately lending funds and acting on homes without actually being licensed brokers,” says James Loewen of the Loewen Group. “They are lending to people who are only getting a one-page document saying, ‘Here is your mortgage payment; just sign here and you’re done.’ Without the proper disclosure form, clients don’t know the total amount of interest they will be paying.”

More clarity is also required when it comes to how to properly solicit this kind of business. In an official statement, FSCO warned consumers about unlicensed individuals who discuss syndicated and private mortgages on their websites.

This appears to be a breach of MBLAA guidelines; however, these websites sometimes link to companies that are licensed and do provide financing for syndicated and private mortgages.

Is this also a breach?

“That’s a bit of a tough question,” White says.

“What should be the responsibility of the brokerage accepting the lead? From what I can see, it doesn’t look like there is any prohibition on a

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brokerage doing that; there is a prohibition on the brokerage paying a referral fee to a company that should be licensed as a brokerage. That would be a contravention of the legislation. In that sense, it would defeat the whole purpose of the company offering a referral. I wouldn’t call it a grey area – I would call it an area that needs more interpretation.”

The legislation White refers to is 188 44. (1) in the Mortgage Brokerages, Lenders and Administrators Act, which states: “A brokerage shall not pay a fee or other remuneration for dealing or trading in mortgages on its behalf to another person or entity that carries on the business of dealing or trading in mortgages unless the other person or entity either has a brokerage licence or is exempted from the requirement to have such a licence.”

Along with education, brokers also have called for more regulatory oversight for private mortgage providers – especially when it comes to clarity regarding guidelines. “If there is one thing I would say private lenders can improve on, it would be clarity – providing borrowers and brokers a clear and concise idea of guidelines, lending parameters, appraisers, timing and loan criteria,” says Marcel Greaux of Mortgage Alliance. “For example, disclosing fees and penalties upfront would help clarify to a borrower what’s on the table, in order to make a rational business decision.

“Fees and penalties are an area that can create sticker shock when a borrower is reviewing the standard charge terms or ‘fine print’ of the commitment,” Greaux adds. “The private money industry can sometimes be thought of as one governed by sharks; thus, it’s important for the overall reputation of the industry that borrowers feel information is being delivered transparently.”

PRIVATE LENDING COURSES OFFERED BY AMIPROS CMIP: Certified Mortgage Investment Professional Investor/Lender Protection Syndicated Mortgages Private Mortgages CSM: Certified in Syndicated Mortgages Investor/Lender Protection Syndicated Mortgages CPM: Certified in Private Mortgages Investor/Lender Protection Private Mortgages

Q&A: MAKING SENSE OF PRIVATE MORTGAGES CMP: What are some of the common challenges faced by brokers who specialize in private lending?

Marcel Greaux: The most common challenge is educating

MARCEL GREAUX MORTGAGE ALLIANCE

novice borrowers on how to utilize this type of money to their benefit. Often, a client has a deal that is perfect for private money, but may be new to this world of capital. Therefore, an education process involving rate/fee ranges, timing, deal structure and takeout plan has to be expedited while under the conditional period. This can be stressful and a risk to deals not moving forward. More experienced borrowers who understand how to leverage this type of money can react to

good deals quickly.

CMP: With the resurgence of the subprime segment, how important is a broker’s plan for moving borrowers out of private into A or Alt A? MG: I would definitely say this is important, but it also depends on the type of deal. For example, in the case of a buy, renovate, refinance and hold, a takeout plan from inception is critical to map out for the client because speed to completion is a primary driver of ROI. In this case, failure to have a takeout plan in place for your client may result in a deal going sideways or into foreclosure. That being said, sophisticated private lenders, when underwriting/reviewing a loan, will determine the ability for the borrower to repay the funds borrowed at the end of the term, otherwise known as the ‘exit strategy.’ For example, what type of conventional funds lender (a bank, credit union, B lender or bridge financing lender) will refinance the private funds at the loan’s maturity?

CMP: We often think of poor-credit clients when we think private money, but what other types of clients are ideal for that lending?

MG: Borrowers who understand leverage and have deals with more aggressive profit margins as a result of time. In other words, what is the least amount of their own capital a borrower can put into a deal (leverage), and how fast can they get it out or complete the project (time)? More specifically, borrowers involved in projects such as restructuring credit/debt, who require capital to close quickly in order to take advantage of a discount in price or beat a competing offer, or who require mortgage funds for unconventional uses or derelict buildings that institutions will not lend on – for example, single-family construction, contaminated land, high vacancy ‘turnaround’ income-producing properties, land development, land loans, student rentals, etc.

CMP: Are there any regulatory oversight issues in the private lending sector?

MG: This is a big topic. The primary regulator of mortgages in Ontario is FSCO. I can’t think of any issues offhand, as I would say from a broker’s standpoint, the system runs smoothly. There are rules and regulations for disclosure and understanding your client, which must be followed by agents and brokers.

Furthermore, it is important for mortgage professionals to educate novice mortgage investors who may be chasing yields. Independent legal advice is essential to all levels of investors in order to gain a firm understanding of the deal parameters and potentials risks involved.

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CAREER PATH

THE ROAD TO INDEPENDENCE

From RBC to ownership of thriving independent brokerage, Sabeena Bubber’s career path has been marked by dogged determination. Just try getting in her way With the collective skills and wisdom of experiences tucked under her arm, Bubber found herself launching and steering her own ship at Integre.

“I ran my own company until 2013, and that worked well for me, but with the changes in trends, my lender access was squeezed, and I felt spending time with my family was more important.”

To create a better work/life balance, Bubber chose to merge with larger brokerage Xeva.

“To put it simply, I am always looking to cross things off my bucket list and ensure that I am achieving the things I want to achieve.”

2014

Bubber’s most memorable client was a friend who was going through a divorce and needed her expertise to hang onto the family home.

“She basically told her children ... that it was thanks to me that they have a place to stay.”

Her career was so intense by the time she gave birth to her second child that her maternity leave was limited to 10 days.

“That was a defining moment for me. I found I lost some trust and faith in the false promises you can get out there, which led to a major decision in my career.”

MERGES WITH XEVA

2013

MAKES AN IMPACT

2007

SETS UP INDEPENDENT SHOP

2006

REACHES A TURNING POINT Bubber’s first client as a mortgage broker was her husband’s boss.

Despite the added pressure, she was able to deliver on her first deal.

“Thankfully he was extremely patient, despite the deal being botched a few times, and he remained a client.”

2001

CLOSES FIRST DEAL

2001

MOVES TO RBC

2001

The doors to a major bank – RBC – opened almost instantly after Bubber acquired her brokering credentials.

“My plan was to stay for five years, but ... they were very hands off. I realized I was not going to learn much.”

Bubber acquired her mortgage licence while graduating from UBC with a real estate financing and business degree.

“I had the sales ability, the financial knowledge and a few years of experience.

It felt like the logical next step.”

ACQUIRES MORTGAGE LICENCE

1994-2000

STARTS AT AVCO

Early exposure to the financial world at Avco allowed Bubber to quickly distinguish herself through effective sales abilities; she also gained expertise in underwriting, among other areas.

“I took every opportunity to enrol in every management program and sales training session I could get into.”

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SPECIAL REPORT / HOT LIST 2015

The 50 movers and shakers who’ve made waves in the mortgage industry this year

INDEX BY NAME Name

Company

Name

Company

Appel, Gord

26

TMG The Mortgage Group

Eisner, Dan

24

True North Mortgage

Babber, Raj

26

IMBA

Francis, Tina

34

Radius

Baratz, Mickey

34

Vector Financial

Gale, Samantha

32

Mortgage Brokers Association of British Columbia

Bozic, Boris

34

Merix/Lendwise

Goode, Mark

29

Dominion Lending Centres Mortgage Man

Bruce, Collin

24

Collin Bruce Mortgage

Harrington, Sandy

29

IC Funding

Butler, Ron

35

Verico Butler Mortgage

Hilson, Mark

35

Romspen

Cameron, Michael

28

Axiom Mortgage

Iriotakis, Elisseos

24

Safebridge Financial

Collu, Albert

30

Mortgage Architects

James, Dustin

25

Dominion Lending Centres

Conroy, Kevin

33

Canadiana Financial

Johnstone, Don

34

Real Mortgage Associates

Contento, Anthony

27

Sherwood Mortgage

Laird, James

30

CanWise Financial

Cruz, Ana and Pellerin, Lisa

30

Mortgage Intelligence LA Mortgage

Lombard, Michael

36

Peoples Trust

Desjardins, Francois

38

B2B Bank

Lydon, Steve

37

MCAP

Dreyer, Colin

26

Verico Financial

Matheson, Stuart

24

Dominion Lending Centres

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Welcome to CMP’s annual Hot List. We asked you, the mortgage community, to pass on your suggestions for who we should include on this list of the industry’s most successful, most engaging and most innovative people. From CEOs and presidents of major lenders to local heroes, the names came flooding in.

While this isn’t an exhaustive list of Canada’s influential players, we’ve narrowed it down to 50 people we think merit a mention this year for their stellar achievements.

Name

Our picks ran the gamut, from brokers boasting hundreds of millions of dollars in loans settled to CEOs whose innovations are helping revitalize the industry. In the following pages, you’ll meet everyone from marketing superstars to an exec who’s been nationally recognized for his contributions to the advancement of human rights. Everyone on our Hot List has one thing in common – they’re all changing the face of the Canadian mortgage industry.

Company

Name

Company

Mauris, Gary

33

Dominion Lending Centres

Schaefer, Viktor

34

Verico One Link

Mawji, Adil

26

Invis Simple Mortgages

Schiess, Sarah

33

TMG The Mortgage Group

McKeough, Janet

36

Mortgage Brokers Association of Atlantic Canada

Slen, Philip

36

RevoDoc

Middleton, Jackson

25

Impact Mortgage Architects & Kilted Media

Soni, Ajay

36

Mortgage Brokers Association of British Columbia

Peckford, Scott

26

Impact Mortgages

Spence, Rich

30

Manulife/Benesure

Poloz, Stephen

34

Bank of Canada

Suttie, Jason

34

Mortgage Brokers Association of British Columbia

Reed, Kerri

31

Verico Premiere Mortgage Cenre

Therien, Paul

38

Centum Financial

Rizzo, Sam

29

CMLS Financial

Tuzi, Agostino

30

Home Trust

Ross, Calum

25

Calum Ross Mortgage

White, Joe

24

REMIC

Roy, Adam

36

MCAP

Whitehead, Steve

30

TMG The Mortgage Group

Rudin, Jeremy

35

Office of the Superintendent of Financial Institutions

Woodhouse, Dustan

25

Dustan Woodhouse Consulting

Sartor, Lori

36

FCT

Xu, Christine

26

Mortgage Architects

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SPECIAL REPORT / HOT LIST 2015

Elisseos Iriotakis Co-chief executive officer Safebridge Financial A pioneer in diversified business models for brokerages and a top Verico broker by volume, Elisseos Iriotakis co-founded Safebridge in 2006. Under Iriotakis’s guidance, the company has enjoyed an increase in mortgage volume of more than 40% this year. He’s also implemented procedures that helped raise lender funding ratios to 75% corporately, and rolled out a client concierge program that enhanced Safebridge clients’ experience.

Joe White Founder, REMIC A top industry educator, Joe White led the Real Estate and Mortgage Institute of Canada to 44% market ownership, surpassing all other education providers; in 2014, REMIC passed the 12,000student mark. White also founded the Association of Mortgage Investment Professionals and took a leadership role in the mortgage investment industry’s government relations.

Stuart Matheson Franchise owner and broker Dominion Lending Centres

Collin Bruce Owner Collin Bruce Mortgage CMP’s number-one broker in 2013, Collin Bruce is still going strong.

His personal team closed more than 1,000 mortgages in 2014, and his brokerage closed more than 2,200 – both new records.

An ambitious young broker in the Arctic who is relocating to Nova Scotia, Stuart Matheson established a new Dominion Lending Centres brokerage in the Northwest Territory. Matheson is the first CAAMP-accredited mortgage professional in the NWT, and was named one of CMP’s top mortgage brokers under 35. In addition to his duties as a broker, Matheson has provided financial counselling to many people, helping them get out of debt and improve their credit so they can purchase homes in the future.An ambitious young broker in the Arctic who is relocating to Nova Scotia, Stuart Matheson established a new Dominion Lending Centres brokerage in the Northwest Territory. Matheson is the first CAAMP-accredited mortgage professional in the NWT, and was named one of CMP’s top mortgage brokers under 35. In addition to his duties as a broker, Matheson has provided financial counselling to many people, helping them get out of debt and improve their credit so they can purchase homes in the future.

Dan Eisner Founder and CEO True North Mortgage Dan Eisner founded what has arguably become Canada’s most successful brokerage in the online and storefront spaces. True North originated more than $950 million in 2014, a 15% increase over the previous year. The company also launched a new real estate brokerage that exclusively serves True North Mortgage clients in Calgary and Toronto. In addition to his duties as CEO, Eisner led a protest this year against an online rate site that has effectively gone into competition with its broker clients.

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Jackson Middleton Mortgage broker Impact Mortgage Architects & Kilted Media An internet marketing superstar, Jackson Middleton is raising the bar for brokers using social media to build client relationships. His team won CMP’s award for Best Branding, and he’s been recognized as having one of the best internet presences in the industry.

Middleton also founded Kilted Media, which provides services exclusively to mortgage brokers in Canada.

Dustan Woodhouse Owner Dustan Woodhouse Consulting One of Dominion Lending’s top originators, Dustan Woodhouse is a leader in the key Vancouver market.

Dustan Woodhouse Consulting is on track to increase its number of files closed by 25% this year, and its overall volume by 35%.

Dustin James Mortgage broker Dominion Lending Centres A sterling example of professionals who actively using technology to build relationships with Generation Y, Dustin James is one of the top young brokers in Canada. One of CMP’s top 20 small market brokers as well as a Young Guns honouree, James also was voted the favourite mortgage broker in the 2013 and 2014 Reader Select Awards for Kawartha Lakes.

Calum Ross Owner Calum Ross Mortgage Named the top broker at the 2014 Canadian Mortgage Awards, Calum Ross hasn’t rested on his laurels. Instead, Ross has actively sought new ways to improve his company’s customer service. He’s implemented an advanced CRM solution to streamline the mortgage process for his customers and invested more than $100,000 in employee education and customer service training.

®

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SPECIAL REPORT / HOT LIST 2015

Raj Babber President, IMBA Raj Babber’s career in the mortgage industry began in 1999 when he became a member of Canada Trust’s mortgage sales force. Today, Babber is the president and owner of Canadian Lending Network. He’s also the president of the Independent Mortgage Brokers Association of Ontario, the largest provincial mortgage broker association in the country. In that capacity, Babber is a leader in the effort to advance the mortgage brokerage industry.

Christine Xu Mortgage broker Mortgage Architects

Gord Appel Vice-President, TMG Alberta As immediate past president of the Alberta Mortgage Brokers Association, Gord Appel built coalitions with other provincial associations. As TMG’s vice president for the Alberta region, he led his team to become the top region in the company. Under his guidance, TMG expanded its reach into Fort McMurray, an important Alberta marketplace.

Heading into her 15th year in the mortgage industry, Christine Xu is a force to be reckoned with.

Ever since starting in the business as a rookie agent, Xu has increased her business by more than 20% per year.

Last year, she was ranked at number 4 of CMP’s Top 75 Brokers, with more than $120 million in personal production.

She’s also been named one of CMP’s Top 10 Commercial Brokers, as well as one of CMP’s Women of Influence in the mortgage industry. Xu is a recipient of the Queen Elizabeth II Diamond Jubilee Medal for community service, and this year won the Chinese Business Chamber of Canada’s Social and Community Contribution Award. She currently sits on the board of the Canada-China Realty Processional Association and has spent 19 years on the board of directors for the Chinese Professional Association of Canada.

Scott Peckford Owner, Impact Mortgages Scott Peckford led Impact Mortgages to a successful year in 2014. He decreased staffing expenses by 30% year over year, while also increasing volume by 25%. In addition, Peckford launched the “I Love Mortgage Brokering” podcast, recording 50 interviews with Canada’s top brokers.

Colin Dreyer President and CEO, Verico Financial As Colin Dreyer guides Verico into its 10th year of business, the company is going strong. Thanks to significant investments in new tools and support to help its mortgage broker members, Verico saw huge momentum and continued growth in the third and fourth quarters of 2014.

“I’m proud of Verico and of our brokers, so it’s a very rewarding time for me right now,” Dreyer says. “Our commitment to our members remains as strong as it was 10 years ago; we believe that Verico only succeeds when our members succeed.”

Adil Mawji Mortgage advisor Invis Simple Mortgages Adil Mawji had an eventful 2014. He was sworn in as the president of the Alberta Mortgage Brokers Association and achieved his highest funded volume. In addition, Mawji was named a CMP Young Gun and was recognized as a CMP top mortgage professional for the third straight year.

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[Success comes from] a firm handshake and partners you call family

Anthony Contento President and CEO Sherwood Mortgage Group – Mortgage Architects Under Anthony Contento’s leadership, Sherwood Mortgage Group increased its business by 25% in 2014, hitting its goals for funded volume sooner than expected. Although still a new kid on the block – Sherwood opened its doors just five years ago – the company has been recognized as the Brokerage of the Year

by CMP in two out of the last three years. In 2014, Contento was recognized as Broker of the Year.

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SPECIAL REPORT / HOT LIST 2015

Success comes when you stop trying to prove to the world how good you are, and start trying to prove to yourself how much better you can be

Michael Cameron CEO, Axiom Mortgage As CEO of Axiom Mortgage, Michael Cameron is spearheading the broker network’s drive to expand its membership base this year as brokerages move to embrace more independent branding strategies. Cameron is also entering his third year as a director of CAAMP. In that capacity, he’s helping move the Alberta broker channel into the national spotlight.

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Mark Goode Owner, Dominion Lending Centres Mortgage Man Mark Goode has had a stellar few years.

In 2013, Mortgage Man was one of Dominion Lending Centres’ top brokerages for mortgages funded. Goode was also recognized by CMP for mortgage brokering in the top small market in Canada and was one of CMP’s Top 75 Brokers. He was a speaker at Mortgage Summit 2014, and on the Dominion Lending Centres President’s Call.

Goode is currently expanding his business to open a new office in Huntsville. He’s also active in charitable work, partnering with the Where Angels Play Foundation to help build 26 playgrounds to honour the victims of the Sandy Hook school shootings.

Sandy Harrington Broker/principal, IC Funding In 2014, IC Funding was named the best commercial mortgage broker in Canada for the third consecutive year. Under Sandy Harrington’s guidance, the firm managed a $140 million portfolio of six retail properties and completed a $120 million midtown Toronto apartment building refinance with a CMHC-insured 20-year term solution.

Harrington was an advisor on more than $500 million in acquisitions, as well as project financing for 19 student rental properties across Canada.

Sam Rizzo Regional sales manager CMLS Financial Sam Rizzo was recognized as BDM of the year at the 2014 CMAs, and helped CMLS receive more 2014 CMP Gold Awards for overall service, BDM support, transparency of commission structure and credit policy satisfaction than any other mortgage company.Sam Rizzo was recognized as BDM of the year at the 2014 CMAs, and helped CMLS receive more 2014 CMP Gold Awards for overall service, BDM support, transparency of commission structure and credit policy satisfaction than any other mortgage company.

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SPECIAL REPORT / HOT LIST 2015

Steve Whitehead VP, Atlantic Canada TMG The Mortgage Group Steve Whitehead has helped to significantly grow the broker industry in Atlantic Canada – sometimes a challenge, given the economic conditions of the region. Atlantic Canada isn’t as large a market as the Greater Toronto Area or Vancouver – yet each year, brokers on Whitehead’s team break national records.

Albert Collu President, Mortgage Architects

Rich Spence VP of Canadian sales Manulife/Benesure Rich Spence heads up the channel’s leading creditor insurance provider, now under the Manulife banner.

Industry eyes are on Spence as he attempts to grow penetration in the broker channel and encourage a majority of brokers currently not selling creditor insurance to do so.

Lisa Pellerin and Ana Cruz Partners Mortgage Intelligence LA Mortgage Lisa Pellerin and Ana Cruz had an impressive year. In addition to increasing LA Mortgage’s revenue by more than 30%, they led the firm to win CMP’s Canadian Mortgage Award for Best Newcomer Brokerage Firm.

Under Anthony Contento’s leadership, Sherwood Mortgage increased its business by 25% in 2014, hitting its goals for funded volume sooner than expected. Although still a new kid on the block – Sherwood opened its doors just five years ago – the company has been recognized as the Brokerage of the Year by CMP in two out of the last three years. In 2014 years. In 2014, Contento was recognized as Broker of the Year.

Albert Collu grew his own brokerage – Argentum Mortgage and Finance Corp. – to a network of more than 500 brokers. As president of Mortgage Architects, Collu is integrating MA and Argentum, and so far customer retention has been all but complete. A staunch industry advocate, Collu served two consecutive terms as president of the IMBA.

Agostino Tuzi SVP of mortgage lending, Home Trust As Home Trust’s senior vice president of mortgage lending, Agostino Tuzi has been at the forefront of developing the company’s B-lending products and making them available to brokers, making Home Trust one of the country’s major monoline lenders for one of the fastest-growing segments in the industry.

James Laird President, CanWise Financial Before taking the reins as president of CanWise Financial earlier this year, James Laird helped grow True North Mortgage to become one of the largest brokers in Canada. Under Laird’s guidance as COO, True North also became the country’s most successful storefront-focused broker.

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MORTGAGEBROKERNEWS.CA

Focus, determination and a well-executed plan [are the keys to success]. Patience, and most of all, working with others who also want to be a part of and support that success

Kerri Reed Vice president Verico Premiere Mortgage Centre As vice president, Kerri Reed has led the way for Premiere Mortgage Centre’s Ontario location to achieve more than $400 million in annual funding. Reed also believes in giving back to the community; a supporter of many local charities, she has participated in Habitat for Humanity for the last two years with a team of mortgage brokers.

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SPECIAL REPORT / HOT LIST 2015

Be committed! Acquire market knowledge, get to know lenders, BDMs and other brokers so that you know the industry and market better than anyone. Also, don’t forget to listen to the clients, evaluate their needs and find them suitable solutions

Samantha Gale CEO, Mortgage Brokers Association of British Columbia The head of the Mortgage Brokers Association of British Columbia, Gale has taken on a record number of regulatory issues, from anti-spam legislation to bank brokers. She’s also tackling private lender issues like CRA super priorities, and broker issues such as the collection of fees by unregistered brokers. Gale is credited with advancing the broker agenda on MIC regulation and other key fronts.

Photo by Wildman Photography, The Scrivener Magazine

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News

InternatIonaL

&

u.s.

MORTGAGEBROKERNEWS.CA

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 officially ended, many people can’t qualify for occupied homes rose in October. But the National loans or meet higher down payment Association of Realtors says it overstated more than Kevin Conroy requirements. Even those with excellent credit three million sales during and after the Great Recession, and stable jobs are holding off because they fear showing the housing market was weaker than President, Canadiana Financial Percentage of that home prices will keep falling. Sales are also previously thought. homeownership the reins as presidentbeing of hurt by a decline in first-time buyers, who The private trade group says sales rose four Kevin per Conroy took costs,last including are critical to reviving the housing market. cent in October to a seasonally adjusted annual rate of Canadiana Financial year, bringing with mortgage payments, 4.42 million. That’s below the roughly six millionhim homes more than 25 years of experience in the Sales have fallen in four of the five years utilities and property since the housing boom went bust in 2006. a year that economists say are consistent with afinancial healthy services sector.

As president, taxes that take up a Declining prices and record-low mortgage rates housing market. But it’s ahead of 2008’s revised sales, Conroy is leading the charge to bring typical household’s haven’t been enough to boost sales. now considered the worst in 13 years.

Canadiana customers more nimble monthly pre-tax At the same time, home construction has The trade group revised its sales from 2007 to 2010 Vancouver pricing in flexibility.

A big begun a gradual comeback and should add to the down 14 per cent, from more than 20.6 million toproducts nearly and income and Toronto, believer in technology solutions, Conroy economy’s is growth in 2011 for the first year since 17.7 million. Among the reasons for the lower figures, respectively (RBC making video, social media and other the Great Recession began in 2007. Last month, the Realtors group says: changes in the way the Census Economics Housing builders broke ground on an annual rate of Bureau collects data, population shifts and someemerging sales platforms core components of the Trends and being counted twice. company’s communications strategy. “We685,000 homes, the government said recently.

Affordability Report) That was a 9.3 per cent jump from October and The Realtors consulted with government andwant to become a broker’s lender of choice,” the fastest pace since April 2010. private housing experts, including the Federal Reserve, Conroy says. “We want to become the Most economists say home prices will keep the Department of Housing and Urban Development, destination for top people in the industryfalling, to by at least five per cent, through 2012. the Mortgage Bankers Association, the National work. Canadiana is just getting started.” Many forecasts don’t foresee a rebound in prices Association of Home Builders, mortgage giants Fannie until at least 2013.

Mae and Freddie Mac and CoreLogic, a California-based Mauris TheGary high rate of foreclosures has made data firm that first raised doubts about the annual resold homes cheaper than new ones. The numbers earlier this year.

President Dominion Lending Centres median price of a new home is roughly 30 per CoreLogic has estimated that the Realtors group Sarah Scheiss cent above price of one that’sabeen occupied overstated 2010 by at least 15 per cent.

Broker, sales TMG in The Mortgage Group Garythe Mauris has played central role in before – twice the normal markup. Investors are The changing numbers could affect how economists creating three national companies from taking advantage of the discounts. view the trade group’s data. It could also affect companies ground up. Currently theeven president of Sarah Scheiss has customer Thethe housing market is struggling that use the figures forrevolutionized hiring and expansion plans.

Dominion Lending Centres, Mauris has service at TMG. She spearheaded as the broader economy has improved in Sales are measured when buyers close on homes. helped build the company into one of improvements to “Perkland,” the company’s recent months.

But many deals are collapsing before that point.

TheCanada’s economytop grew at an annual of two One-third of Realtors said they had least onesocial contract brokerages.

A pace finalist for customer reward program, andat launched per centErnst in the&July-September quarter. Many scuttled October, up cent in September.

Young’s Entrepreneur of the Year mediaingiveaways tofrom bring18inper clients.

Scheiss economists expect slightly growth in the Contracts beingacancelled for several Award, Mauris alsobetter has been recognized also helpedare launch custom intranet sitereasons: to October-December quarter. CMP Banks have declined mortgage applications; home

improve team communication within TMG.

with CMP’s top brokerage award.

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28

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JANUARY 2015 | 33

12-01-18 10:51 PM 28/01/2015 10:34:32 AM

SPECIAL REPORT / HOT LIST 2015

Tina Francis Regional vice president, Radius With extensive experience in the banking industry, Tina Francis has spent more than 13 years administering financial products to Canadian consumers. Currently Radius’ regional vice president for Eastern Ontario, Francis worked her way through the underwriting ranks to take on the role.

Stephen Poloz Governor, Bank of Canada All eyes have been on Stephen Poloz of late, as Canada is poised to see interest rates rise this year. Many industry watchers have commended Poloz’s work as governor of the Bank of Canada, praising his approach as pragmatic and careful.

Boris Bozic President and CEO, Merix/Lendwise

Viktor Schaefer Broker/owner, Verico One Link

Boris Bozic helped steer Merix’s Lendwise operation to the top spot in CMP’s 2014 Brokers on Lenders survey.

Under Bozic’s leadership, Merix also maintained its high ranking on the list.

Boris Bozic helped steer Merix’s Lendwise operation to the top spot in CMP’s 2014 Brokers on Lenders survey.

Under Bozic’s leadership, Merix also maintained its high ranking on the list.

Viktor Schaefer is the top mortgage broker by volume in Manitoba. Despite the low home prices in the province, Schaefer’s sales volume still surpasses high flyers in pricey markets like Toronto and Vancouver. Fluent in both German and Russian, Schaefer has vast experience helping new immigrants to Canada find their first home.

Don Johnstone Broker, Real Mortgage Associates Don Johnstone is one of the few mortgage brokers to focus a great deal of his business on second mortgages – an increasingly profitable segment for brokers in Canada.

Johnstone is a trailblazer as one of the first to turn the segment into a major contributor to his overall business.

Jason Suttie Vice president, Mortgage Brokers Association of British Columbia A broker and long-serving vice president of the Mortgage Brokers Association of British Columbia, Jason Suttie is at the forefront of the fight to advance industry interests. “As an advocate and voice for the BC broker, I will fight hard on issues of self-regulation,” he says.

Mickey Baratz Director of finance Principal broker Vector Financial Mickey Baratz is one of Canada’s most respected private lenders. Baratz is venerated in the industry for his integrity and his contributions to building the reputation of private lenders.

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MORTGAGEBROKERNEWS.CA

Mark Hilson Managing partner, Romspen Mark Hilson is the managing partner for Romspen, one of Canada’s mortgage investment corporations. MICs are becoming increasingly important to brokers as tighter lending guidelines squeeze many buyers out of the conventional market. Prior to joining Romspen, Hilson worked for 22 years at Onex Corporation, where he was a managing director.

Hilson holds an MBA from the Harvard Graduate School of Business Administration.

Jeremy Rudin Superintendent, Office of the Superintendent of Financial Institutions Jeremy Rudin was appointed last year to head the OSFI for a seven-year term. In November, Rudin released the B-21 guidelines, which were greeted by brokers as less intrusive than the previous B-20 guidelines.

Ron Butler President, Verico Butler Mortgage One of Canada’s leading brokers, Ron Butler heads up Verico Butler Mortgage.

The company’s salaried-agent model has been heralded as the way of the future and a sea change in brokerage-agent relations.

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It’s time for a new perspective.™

JANUARY 2015 | 35

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SPECIAL REPORT / HOT LIST 2015

Lori Sartor VP of residential solutions, FCT As FCT’s vice president of residential solutions, Lori Sartor is tasked with growing the company’s title insurance business – a market segment that’s becoming increasingly important in the broker space. Sartor also drives strategic direction and product innovation for the company’s lawyer segment. For her leadership in delivering best-in-class products and services, Sartor was recognized with FCT’s Leadership Award of Excellence.

Michael Lombard SVP, Eastern Canada Peoples Trust

Janet McKeough President, Mortgage Brokers Association of Atlantic Canada An award-winning producer in her own right, Janet McKeough heads up the Mortgage Brokers Association of Atlantic Canada, which represents the industry in the Atlantic region. A dedicated industry advocate, McKeough participates in numerous focus groups and facilitates education and training for members of the Nova Scotia Real Estate Association.

Philip Slen Co-founder, RevoDoc Philip Slen co-founded and designed RevoDoc, a dashboard collaboration tool used throughout the mortgage industry.

This year, Revo expanded its operations by integrating with the MorWEB origination system. Revo also forged a partnership with Centum and is now used throughout the company’s network.

Michael Lombard has spent his entire career focused on the Ontario market. He’s held senior management positions at various financial institutions and is currently the senior vice president and regional manager for Eastern Canada at Peoples Trust.

Ajay Soni President, Mortgage Brokers Association of British Columbia Ajay Soni has used his position as president of the Mortgage Brokers Association of British Columbia to bring the organization to new heights, launching marketing initiatives that have raised the organization’s profile. “He is a marketing genius,” says MBABC CEO Samantha Gale. “He has launched our new MB logo, which is a mark of membership; bold new advertisements, which quantify for the public how much business mortgage brokers do; and a new television advertising campaign, which educates the public about what mortgage brokers do and why they should use one.”

Soni has also created a consumer guide that will provide hard-hitting articles for the general public on mortgage issues.

More than 100,000 copies of the guide will be distributed through local newspapers, major magazine publishers, home shows and industry professionals.

Adam Roy Business development manager, MCAP Adam Roy is MCAP’s business develop­ ment manager for Atlantic Canada – arguably the country’s toughest market for brokers. Roy’s efforts have made a major contribution to MCAP’s growing market share there.

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MORTGAGEBROKERNEWS.CA

You need to offer the best service before, during and after the deal funds, as out of sight, out of mind. I also think it is good to find a niche for yourself, as I did with Alt A mortgages, and make that niche your passion Steve Lydon National sales manager, MCAP Steve Lydon heads the alt-lending arm of MCAP, one of Canada’s largest monoline lenders. Lydon gained wide experience over more than 25 years in Canadian and UK mortgage markets, primarily in subprime financing. Lydon is currently leading the charge to ramp up MCAP’s market share in the alternative lending space.

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SPECIAL REPORT / HOT LIST 2015

Paul Therien VP of operations, Centum Financial

Francois Desjardins President and CEO, B2B Bank Francois Desjardins heads up B2B Bank, which expanded its product offering this year to include two alternative programs designed for clients who don’t fit into traditional income profiles. Brokers are welcoming the move as a regeneration of some of the big lenders who’ve left the space over the years. “Our extended range of mortgage loan programs builds on our commitment to mortgage brokers,” says Desjardins, “and will support them in building their business by giving them access to solutions that provide an even better fit with the diverse mortgage needs of their clients.”

Paul Therien literally grew up in the financial services industry, working on both the broker and lender sides. Now a veteran with more than 20 years of experience, Therien is currently VP of operations at Centum Financial, Canada’s premier franchised mortgage brokerage company. Therien is also active in charity and social justice causes. He’s the founder and chairman of Q Hall of Fame Canada, the country’s national human rights recognition program and the only national program of its kind in the world. Therien is a recipient of the Royal Order of the Maple Leaf for outstanding contribution to human rights. He’s also a founding member of CAAMP, a CMP Hot List 2013 alum and the recipient of numerous additional awards for both his professional and charitable efforts.

INDEX BY COMPANY Company

Name

Company

Name

Axiom Mortgage

28

Michael Cameron

Mortgage Architects

30

Albert Collu

B2B Bank

38

Francois Desjardins

Mortgage Architects

26

Christine Xu

Bank of Canada

34

Stephen Poloz

Mortgage Brokers Association of Atlantic Canada

36

Janet McKeough

Calum Ross Mortgage (Verico)

25

Calum Ross

Mortgage Brokers Association of British Columbia

32

Samantha Gale

Canadiana Financial

33

Kevin Conroy

Mortgage Brokers Association of British Columbia

36

Ajay Soni

CanWise Financial

30

James Laird

Mortgage Brokers Association of British Columbia

34

Jason Suttie

Centum Financial

38

Paul Therien

Mortgage Intelligence LA Mortgage

30

Lisa Pellerin and Ana Cruz

CMLS Financial

29

Sam Rizzo

Office of the Superintendent of Financial Institutions

35

Jeremy Rudin

Collin Bruce Mortgage Team (DLC)

24

Collin Bruce

Peoples Trust

36

Michael Lombard

Dominion Lending Centres

25

Dustin James

Radius

34

Tina Francis

Dominion Lending Centres

24

Stuart Matheson

Real Mortgage Associates

34

Don Johnstone

Dominion Lending Centres

33

Gary Mauris

REMIC

24

Joe White

Dominion Lending Centres Mortgage Man

29

Mark Goode

RevoDoc

36

Philip Slen

Dustan Woodhouse Consulting (DLC)

25

Dustan Woodhouse

Romspen

35

Mark Hilson

FCT

36

Lori Sartor

Safebridge Financial (Verico)

24

Elisseos Iriotakis

Home Trust

30

Agostino Tuzi

Sherwood Mortgage (MA)

27

Anthony Contento

IC Funding

29

Sandy Harrington

Alberta Mortgage Brokers Association

26

Gord Appel

IMBA

26

Raj Babber

TMG The Mortgage Group

33

Sarah Scheiss

Impact Mortgage Architects & Kilted Media

25

Jackson Middleton

TMG The Mortgage Group

30

Steve Whitehead

Impact Mortgages

26

Scott Peckford

True North Mortgage

24

Dan Eisner

Invis Simple Mortgages

26

Adil Mawji

Verico Butler Mortgage

34

Ron Butler

Manulife/Benesure

30

Rich Spence

Vector Financial

35

Mickey Baratz

MCAP

37

Steve Lydon

Verico Financial

26

Colin Dreyer

MCAP

36

Adam Roy

Verico One Link

34

Viktor Schaefer

Merix/Lendwise

34

Boris Bozic

Verico Premiere Mortgage Centre

31

Kerri Reed

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28/01/2015 10:35:09 AM

MARKET INSIGHT / FCT

CHARTING MARKET INSIGHTS

COMPASSpoint, FCT’s 2015 debut annual market review, is set to become an industry staple, igniting the conversation about the challenges and successes of the mortgage industry Given the complexities of the financial industry and the high cost of mistakes, it is never a bad idea to seek and listen to the sage voice of experience. That’s especially true when you consider the economic uncertainty predicted for 2015.

Brokers are now accessing that voice courtesy of COMPASSpoint, an annual mortgage market report introduced by FCT. Addressing recent trends and forecasting, the document examines how these trends impact the mortgage sector and its broker professionals.

FCT’s main objective by publishing and releasing the annual assessment is a holistic one: to assist the industry in distilling the key economic events and market data from the previous year. Or, as FCT puts it, “Our objective is to start a conversation about sharing best practices and business intelligence in the mortgage brokerage business.” That’s welcome news, no doubt, for those assessing how to proceed in today’s increasingly complex financial marketplace.

The report states that “we live in a time when media can turn on a dime,” and cites Uber’s recent PR crisis – predicated by allegations it was tracking client data – as a case study for this industry’s players to learn from. The ensuring social media backlash tarnished the reputation of the startup transportation network, which had been celebrated for its innovative business model.

Such is the digital and economic backdrop against which COMPASSpoint explores the influence of social media on the industry – specifically, the potential of social networking channels to produce a directto-consumer mortgage play. While digital opportunities such as these continue to be researched, the

potential could lead to a paradigm shift, considering the massive reductions in cost per acquisition.

More potential, the report states, can be found in the millennial market. With a growing number of young workers opting for self-employment over a climb up the corporate ladder, the denizens of the corporate age represent an online market pool for future mortgages. Altogether, 15% of Canadians are now self-employed, and by all accounts, that number will continue to grow. The report expounds on how to reach and engage this “web-savvy” generation often characterized as self-interested. The ideal engagement messaging for this demographic, suggests the report, is to appeal to their business savvy and present an extremely high customer-service-centric approach.

A great website doesn’t hurt, either.

Indeed, one primary advantage of today’s hyper-connectivity is the potential access to clients – namely, future referral networks. As FCT’s report puts it, “Each and every new homeowner is at the head of a network of referrals waiting to be activated.” However, many mortgage brokers – quite possibly a majority of the profession as a whole – could benefit from upping their communications.

The independent broker channel needs to ramp up its own efforts to communicate and educate those home buyers and sellers, but also to lobby on behalf of the industry.

Just as pivotal, suggests the FCT report, is ensuring continued growth in value-enhancing services for the customer experience, utilizing apps and other digital tools. The report in its entirety can be found on www.fct.ca/customers/lender/advantage/ resource-library.

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2015-01-19 3:13 26/01/2015 5:40:23 PMPM

FEATURE / TITLE INSURANCE

PREVENTING A NIGHTMARE Brokers can’t sell it, but a spike in identity theft and the threat of cybercrime have placed title insurance at the top of the agenda. CMP finds out why

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SafeA

MORTGAGEBROKERNEWS.CA

It’s yesterday’s tamer nightmare scenario: Your clients have just closed on the purchase of their dream home, and before they’ve settled in, there’s a knock on the door from a neighbour. “Welcome to the ‘hood” he says. “Did you know half of your backyard is actually mine?”

That’s just one of the what-if situations brokers have routinely trod out for clients to help explain the potential liabilities covered by title insurance.

Today’s worst-case scenario is considerably darker and increasingly involves identity theft used to surreptitiously borrow funds, potentially leaving the uninsured homeowner – no matter how long they’ve been in the home – on the hook for hundreds of thousands of dollars. That drama can play out in a matter of days, and often by the kind of sophisticated cybercrime that makes it difficult to track down fraudsters.

Unlike creditor insurance, title insurance falls outside the purview of brokers to arrange for clients, but growing cybercrime targeting owners – even those with free and clear title to their homes – has created a sense of urgency among mortgage professionals looking to protect clients well beyond the origination process.

“We should make clients aware of the need for title insurance,” says Enza Venuto, principal broker at Centum Streetwise Mortgages. “Right now, many think they’re just using it for refinancing or at the time of purchase. They don’t1:16 realize can SafeAd_oneThirdPgV8_Layout 1 1/22/15 PM the Pageneed 1 be ongoing.”

NEW THREATS Title insurers such as FCT and Stewart Title continue to pay losses arising from loans entered into by fraudsters impersonating real property owners.

It’s something lenders across Canada know well, with most now insisting on title coverage as part of their underwriting process.

Certainly, obtaining a title insurance policy remains the best option for lenders to reduce expo-

Today’s worstcase scenario increasingly involves identity theft used to surreptitiously borrow funds sure to losses from this type of fraud. In fact, both residential and commercial policies provide coverage from losses arising where the insured owner or lender does not obtain a “valid interest in title” because either a vendor or borrower is an imposter.

Residential policies also provide additional post-policy date coverage, which takes care of losses in the

James Robinson, broker, The Mortgage Centre

Karen Decker, VP of legal underwriting, Stewart Title

Residential and Commercial title insurance solutions.

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FEATURE / TITLE INSURANCE

Fraudsters are increasingly sophisticated and are identifying the safeguards put in place by the title insurance and lending industry, and are developing solutions to avoid them”

EnzaVenuto, principal broker, Centum Streetwise Mortgages

event someone fraudulently registers a mortgage on their property or transfers the property. For lenders, this takes care of any losses if a mortgage is fraudulently discharged from title.

Regrettably, need for that protection is growing and will likely continue on that trajectory, cautions one industry player.

“The risk of identity theft, resulting in a fraudulent mortgage, continues to exist despite the mitigation efforts by title insurers and lenders,” says Karen Decker, senior counsel and VP of legal and underwriting for Stewart Title. “Fraudsters are increasingly sophisticated and are identifying the safeguards put in place by the title insurance and lending industry, and are developing solutions to avoid them. Accordingly, a continued industry-wide effort to thwart these fraudsters is necessary.”

Analysts are largely united in agreement with Decker’s assessment. They point to the evolution of online transactions; face-to-face exchanges have increasingly been eclipsed by the use of email and other electronic communication methods that effectively allow for so-called cybercrime.

For example, as e-signatures become more of an option, says Decker, “there is a real risk that they will be used to facilitate fraud.”

CLIENT PROTECTION

John Panagakos, broker, Dominion Lending Centres Home Financial

Stewart Title and others in the space, such as FCT, are issuing brokers a call-to-action, asking them to focus on the KYC principles that better protect the channel from fraudsters seeking to use brokers to win mortgages. But they’re also asking brokers to continue spreading the word about title threats well outside the origination process.

Mortgage professionals are already taking up the mantle, double-checking even where there is no immediate problem in verifying clients, but where material errors or misinformation on app documents hint at the possibility of fraud.

Good brokers also are looking at title insurance from the other perspective – namely, that of past clients targeted by criminals. The inevitability of future problems is dictating the advice brokers now offer clients before closing.

“I find that clients are very receptive to the message,” says broker John Panagakos of Dominion Lending Centres Home Financial. “It’s a double protection: It protects with respect to anything that hasn’t been disclosed in the past – an illegal garage, a fence on the wrong side, etc. – but it also protects [the client] from all these things around title fraud.”

The mortgage industry is also doing its part, say Panagakos and other industry veterans, taking an increasingly proactive approach to ferreting out fraud.

“There has been more of a crackdown on [title fraud],” Panagakos says. “Certainly, it’s not as easy for fraudsters to dupe lenders or brokers. I wouldn’t even call it ‘cyber,’ because you have to have participating parties – a duped lawyer, fraudulent power of attorney, etc.”

Title insurance provider FCT is actively working with brokers in an effort to mitigate incidents of fraud before, during and after the mortgage originations process. Its messaging already has brokers standing on guard to warn not only existing clients, but also past ones.

James Robinson of The Mortgage Centre is one seasoned agent pointing specifically to the increased hazards faced by clients who’ve managed to retire their mortgage debt.

“What that means is it is easier for criminals to re-mortgage the house without [the owner’s] knowledge,” says the Toronto-based mortgage professional. “They don’t have to discharge an existing mortgage.”

The benefits of taking an active role in identifying fraud and helping to stomp it out are generally more extensive than many mortgage professionals realize.

While the cost to a client depends on the property value and type, it averages roughly $350,

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MORTGAGEBROKERNEWS.CA

TITLE INSURANCE IN A NUTSHELL Who offers title insurance?

There are a number of title insurance providers offering policies in Canada, including FCT, Stewart, TitlePlus and Chicago Is there a direct commission/ referal fee available to brokers?

No Who arranges it?

All policies are ordered on behalf of the owner or lender through the lawyer/notary acting on the transaction. Mortgage brokers inform clients about availability of title insurance and direct them to discuss it with their lawyer/notary.

What are the benefits to brokers who encourage their clients to use it?

Speeds up closing of transactions by avoiding the need for a survey and the ability to insure over many known defects Cements broker role as lead financial expert/partner/advisor Safeguards future mortgage originations from past clients by protecting their home equity against fraud

according to FCT. But that cost is largely offset by the benefits of a streamlined transactions process.

FCT points to the ways title insurance coverage is routinely leveraged to effectively reduce closing costs for clients by allowing them to avoid the expense of paying for a new survey and the ability to insure over many known defects.

To the extent those benefits facilitate a closing, brokers discussing title insurance with their clients likely bolster their perceived value. “When they understand the cost – it’s very inexpensive – and what it protects you against, I’ve never had a client disagree,” Robinson says. “It’s just become one of those things that you have to have, like car insurance.”

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ALTERNATIVE LENDING / BUSINESS-FOR-SELF DEALS

THE BATTLE FOR BFS

Self-employment is on the rise in Canada – but new regulations are making it more difficult for self-employed individuals to secure mortgages. Here’s what you need to know to market to this rapidly expanding segment

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The steady growth of Canadians seeking – and indeed, succeeding at – self-employment is a genuine phenomenon. But lingering broker perceptions around the challenges of securing mortgages for self-employed individuals continue to dampen originator enthusiasm, say industry veterans.

That reluctance flies in the face an expanding number of broker channel lenders actively embracing those files, despite the stricter underwriting guidelines set out in B20 and, now, B21. The numbers don’t lie, and they may make the case for why mortgage professionals – even those mostly devoted to triple-A business – can’t afford to let BFS deals slip through their fingers.

According to a recent Scotiabank report tracking the ebbs and flows of Canadian employment, 25% of new jobs created in 2013 were self-employed positions. That growth reflects an increase of nearly 2% year over year, even as the federal government boasted of the net creation of more than a million new positions across Canada. The success places the economy in the lead over other G7 nations, all racing to put the tumult of the global financial crisis behind them.

But Canada’s relatively strong job market hasn’t been enough to quell entrepreneurial ambition – the country’s 2.7 million self-employed individuals account for 15% of the national workforce, and their numbers are only expected to climb.

“There are more Canadians going down the path of opening their own business,” says Gino Tieri, vice president of sales and marketing for Equity Financial Trust, an increasingly important lender in the alternative space. “You’ll see people choosing that path more in 2015, so there is the opportunity for brokers.”

REGULATION FALLOUT A key driver of that boon in business continues to be the much-talked-about – and much-fretted-over – B-20 and B-21 guidelines on underwriting. In 2012, the Office of the Superintendent of Financial Institutions [OSFI] ushered the first of the two in,

with full implementation of B-20 set for November.

As onerous as many brokers feared the regulations would be for their lenders, those new rules are, in fact, helping reassert the traditional broker role as ‘Mr. Fix-It.’ “The implementation of B-20 and B-21 underwriting guidelines, imposed as result of the United States mortgage crisis of 2007, are two reasons for the growing alternative lending market,” says Lester Shore, VP at Optimum Mortgage. “Lending standards have tightened, and we’ve seen that many

We’ve seen that many traditional ‘A’ lenders are no longer approving marginal applicants” traditional ‘A’ lenders are no longer approving marginal applicants.

“Another reason for the growth in alternative files is the challenge to confirm income levels for business-for-self clients who do not have traditional income confirmation documents,” continues Shore.

“According to recent Statistics Canada Labour Force Survey results, self-employment continues to rise steadily, [and] this has led to a large increase in the number of business-for-self workers who have become alternative borrowers.”

That worker demographic is now grappling with tighter underwriting standards that effectively force them out of the Schedule I banks and into the broker channel. Moving to service their needs can allow originators access to files that may now fall outside the lending briefs of the Big Five. That’s not the JANUARY 2015 | 47

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ALTERNATIVE LENDING / BUSINESS-FOR-SELF DEALS

4 WAYS TO FIND BFS CLIENTS

Steve Lydon

Gino Tieri

Lester Shore

Marcel Greaux

1. Partner for referrals Steve Lydon of MCAP Eclipse points to the benefits of forging stronger referral partnerships with “real estate agents and other professionals such as lawyers and accountants for BFS clients, [and] divorce attorneys and consumer-debt companies that support alternative customer profiles.

2. Look to small businesses “I think anybody who is in a trade is an opportunity – trades are a great place to start,” says Equity Financial Trust’s Gino Tieri. “Think small business owners, be they retail establishments, restauranteurs, etc.”

3. Go beyond Boomers “Broaden your demographic of borrowers,” suggests Lester Shore of Optimum Mortgage.

Consider the ‘Echo Boomers’ (those ages 20 to 38), whose number has now surpassed the number of Canadian Baby Boomers. “Their emergence is expected to significantly boost the housing market for the next five years, and many will require alternative financing due to high student loans, low monthly income and lack of credit. Try contacting your network of Boomers, who may have children who are looking to purchase homes, or consider targeting Echo Boomers directly through social media channels.”

4. Join the club Sign up for a real estate investment club, advises Mortgage Alliance agent Marcel Greaux. “I work with a lot of investors, so [BFS clients are] an area of focus.

Through the club, I have events and educate investors who might just be starting off in investing.

So I get new real estate agents or investors coming up, and I get a lot of exposure from that, which helps build my client database.”

case with A deals, where the aggression of big players such as TD, RBC and BMO makes for sharp-elbowed competition that deep-pocketed banks are especially well-placed to win.

But there is an alternative for brokers – one more of them need to seize, says another leading lender in the Alt space.

“This is a great time for brokers to gain market share in the overall mortgage space – in fact, there has never been a greater opportunity to gain new clients,” says Anthony Pistillo, manager of mortgage lending at Home Trust. “That is especially the case with those borrowers who have been accustomed to walking into their local bank branch for their mortgage needs, only to find out they can longer qualify because of the tightening guidelines. That’s where brokers can step in to explain to clients that just because they no longer qualify with an A lender, that doesn’t mean they are unable to obtain mortgage financing.”

WINNING BFS DEALS The game plan for scoring BFS deals is less straightforward, but is based in part on forging relationships with key stakeholders, including one of the channel’s biggest competitors.

“Having a relationship with branch managers of banks and credit unions is more important than ever because there is more turndown for those clients than there’s ever been,” says Dominion Lending Centres broker Dustan Woodhouse, based in Coquitlam, BC. “The real challenge in dealing with business-for-self clients comes in the documentation that is now required versus what used to be required.”

The Top 75 broker advocates having a candid conversation with borrowers.

“You have to re-educate the client on what’s required,” he says. “They’ll come to you and say, ‘Well, five years ago I only needed to provide three documents, and now you’re asking me for 20 documents.’ Well, that’s the way it’s changed – so it’s the skill with which a broker can communicate the increased requirement of documents that will make a huge difference.”

Lenders are on the same page in asking mortgage agents to focus on communicating the appropriate use of Alt borrowing to clients. The starting point for that process often involves brokers bringing themselves up to speed on alternative lending.

“In a nutshell, education, partnership and networking are the trifecta of the alternative lending business,” says Steve Lydon, national sales manager

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for alternative lender MCAP Eclipse. “This area is growing fast with huge future potential, but brokers need to know how to make it work for them and their customers. Attending seminars, researching the sector and reading industry journals and articles to learn about the business and Alternative A lending guidelines are key.”

It’s a familiar refrain, but Lydon and other lenders point to the need for those brokers new to the Alt space to do their homework before presenting client files. That means learning a lender’s rules on things like prepayment privileges, accelerated payment frequencies, portability options, and blendand-extend options, says Shore.

Brokers first need to acclimate themselves, and then their clients, to a very different landscape from that of the prime-lending world. “Perhaps most importantly,” Lydon says, “brokers need to do their homework on potential lender partners, because it’s not just about the rate.”

GAME PLAN FOR WINNING AT BFS Want to win BFS deals? Start by educating your referral sources on new and upcoming changes to lending guidelines, says Home Trust’s Anthony Pistillo: “They need to make their sources aware that the clients they used to be able to take to a major prime lender will now require the assistance of an alternative lender for their financing needs.”

You’ll also want to move the client away from thinking only about the rate, says DLC’s Dustan Woodhouse. “It always boils down to clients being focused on the best rate. So it’s perhaps not the best rate in the market, but it’s the best rate that a client’s circumstances allow us to get them.

“It always starts with income, so what is the actual documented income?” he continues. “But then the second question is: What is the composition of that income? And that’s what lenders are looking at as well. Is that income derived from dividends? Is it derived from disposal of assets? Is it investment income, or is it actual earnings from the practice of their trade? I’d say composition of income ranks extremely high in terms of where you’ll be able to place a client’s file.”

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USEFUL BUSINESSFOR-SELF TIPS FOR BROKER/AGENTS The business for self (BFS) segment includes a wide range of professionals, from brokers/agents such as yourselves to home contractors, accountants, hairdressers and landscapers, as well as lawyers and investors. When working with BFS borrowers, use these guiding tips to convert more applications into funded volume.

1 Establish whether the BFS borrower is a sole proprietor, partner or corporation.

Establishing the exact form of business ownership will determine the documentation required to prove the legitimacy of the business. The next step requires the broker/agent to request a Certificate of Sole Proprietorship, Partnership Agreement or Article of Incorporation, depending on the form of business ownership.

2 Understand the borrower’s business and the length of time it has been in operation. The broker/agent should ask about the industry and the number of employees on payroll, as well as how income is generated. Prime lenders/insurers often look for a two-year track record. Some insurers, and lenders that use such insurers, may include previous employment in the two-year track record if the borrower was in the same line of work. If the business is relatively new, alternative lenders may be able to assist the borrower; however, the loan-to-value would likely be lower, and the loan pricing may be higher.

Harry Singh is the director of national sales for Equitable Bank.

3 Acquire a detailed understanding of the self-employed borrower’s credit.

Most prime lenders and insurers hold BFS borrowers to a higher standard

with respect to credit. Previous delinquencies are closely scrutinized, and previous bankruptcies may not be allowed.

4 Understand that some insurers and lenders will allow stated income and will scrutinize the reasonability of income generated by the BFS borrower. Many BFS borrowers minimize their taxable income to minimize their income tax burden. These customers may not qualify with a prime lender. Some insurers will allow for addbacks, typically limited to a set percentage of income declared on NOA or T1 Generals, to give the borrower the benefit of including items that may have been removed from income generated to minimize taxation. The benefit of an addback is rather minimal, but helpful nevertheless.

Alternative lenders also will allow stated income programs with a broader view of reasonability of income. While alternative lenders are equally concerned with a customer’s ability to make mortgage payments, their focus tends to be on revenue generated by the business and a thorough review of bank statements to understand borrower’s cash flow.

In summary, an agent dealing with a BFS borrower must be familiar with the form of business registrations to obtain the documents required to the establish existence of a business. Specifically, the broker/agent must also have the ability to read/interpret financial statements, T1 Generals, GST/HST returns and Notice of Assessments.

But most important, a broker/agent’s role is to educate BFS borrowers on the various options and implications of their choices.

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2015-01-21 2:37 27/01/2015 2:32:49 PMPM

INDUSTRY ICON / PAUL THERIEN

Your franchisee is your customer, but they’re also your business partner ...

We’re not successful unless our franchisees are successful”

AWARDWINNING CAREER 1991, ’92, ’93, ’94, ’96 and ’97 Received the President’s Club Award at AVCO 2011 Inducted into to the Royal Order of the Maple Leaf for philanthropy 2013 Received an OUTstanding Lives Award for philanthropy 2013 Named to CMP’s Hot List

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INDUSTRY ICON

FEARLESS COMMITMENT Centum Financial VP Paul Therien looks back on an extensive career that started in firearms sales but since has covered almost every aspect of the mortgage business They say change is constant, and no one knows that more than Paul Therien. Twice in his career, he has dropped and sold everything, journeying into the unknown.

“I always joke that the only thing I haven’t done in this industry is sell homes or do appraisals,” he says.

“I’ve done everything else: foreclosures, collections, sales, mortgage brokering, all aspects of the lending side, and now I’m a franchisor.”

In his latest role, Therien is focused on growing the Centum, brand as well servicing its franchises across the country. Now 12 years old, the network is a part of the large international conglomerate Charlwood Pacific Group.

Being a 100% franchise organization, every Centum office is independently owned, with standard royalty fees set at 5% and agent splits determined by the franchise. With an aggressive marketing strategy, including a partnership designed to leverage Century 21 Canada’s 8,000-plus Realtors and 2.1 million website hits, Centum, under Therien, has been single-minded in developing initiatives to bring the power of its corporate family to bear on the operation of its franchisees.

“Your franchisee is your customer, but they’re also your business partner,” Therien says, “and there is a balance to how that relationship works – we’re not successful unless our franchisees are successful. So there’s strong focus to help them be successful. But at the same time, we’re managing brand and expectations and dealing with industry … ‘stuff.’ There’s always something going on, whether it’s regulatory or lenders, and of course the rumor mill, which is ever present.”

Therien is uniquely equipped to navigate those challenges, bringing a wealth of experiences from outside the mortgage industry to bear on the strategic work of the expanding network.

“When I was young and impulsive, I sold everything I owned and moved to Whitehorse and sold guns, if you can believe that,” he says. “I did that for six months while trying to figure out what it is I wanted to do with my life. I debated everything from being a teacher to even a psychologist.”

Ultimately, Therien accepted a job interview and then an offer with AVCO Financial Services. Before he knew it, he was in the finance industry.

“I only applied for the job and did the interview because my brother insisted,” he chuckles. “The next day I found out I got the job. I wasn’t one of those people who grew up wanting to be in finance – not exactly a goal as a child. But, as luck would have it, it worked out, and the career choice has served me well.

I’ve been with Centum now for nearly five years.”

YESTERDAY AND TODAY January will mark Therien’s 24th year in the industry.

When he began in the space, things were very different than they are today – not only in terms of how the business was practiced, but technologically as well.

“When I started in the industry in 1991, we didn’t have the Internet,” says Therien, who, as a regular commenter on MortgageBrokerNews.ca, has garnered a readership that transcends broker network affiliation. “Not a lot of companies had computers – or any technology systems, for that matter. The first mortgage I ever wrote was done on carbon paper, JANUARY 2015 | 53

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INDUSTRY ICON / PAUL THERIEN

If brokers are going to compete, they really need to go beyond rate by putting the customer first and competing on a different level. Twenty years ago, brokers could compete on rates, but that definitely is not the case today” CENTUM ON COURSE Ordinarily, a brand develops a positive reputation only after a very concentrated, expensive marketing effort. Rarely do organizations in any industry organically achieve the positive brand positioning Centum has managed to attain.

More than a network of mortgage professionals, Centum is billed as a collection of like-minded individuals striving to provide Canadians with ideal financial solutions to assist them in making the best-educated homeownership decisions.

In other words, Centum seems to understand that a brand is more than a logo; it’s a set of values – something upheld by the people who represent the brand. Principal amongst these values is a people-first philosophy that extends beyond the employees and clients into every aspect the its business, from choosing partners to servicing consumers.

A family focus is central the organization’s philosophy, something promoted by Executive Chairman U. Gary Charlwood. Charlwood is the mind behind the franchise system that provides each member of Centum with the necessary tools to thrive in a competitive marketplace. Members of the Centum family – franchisees and agents alike – are always encouraged to refine their communication abilities in order to effectively address and respond to client needs. Every organization compiles and provides training programs and tools to its employees, but more key is having the right people driving those programs.

Establishing the most effective systems on the back end and providing access to seasoned experts are the most potent elements in both planning and executing a revenue-generation model. CENTUM seems to understand this intuitively, and has scaled its franchise model to meet these demands.

Support, customized coaching and individual mentorship programs are all designed to unlock hidden potential.

One particularly interesting aspect of Centum’s strategic model is its credo that it does not “expect to be a fit for everyone, and not everyone is a fit” for the brand. Part of the company’s continued growth strategy has been to partner with real estate entrepreneurs who share their passion, ideas and organizational goals.

Centum’s message is, “We look for people who hunger for success, can look past industry norms, be a part of something unique, and are determined to maintain the high quality standards that Centum customers have come to expect.” If their track record thus far is any indication, they are doing just that.

since laser printers were new and not that common.

The world was really different back then; it was a lot more challenging to get a mortgage.”

In those days, a quick-close mortgage was 30 days, and you were lucky if you received approval in a week. With those challenges in place, it’s not hard to imagine the uphill battle Therien faced as an alternative lender – especially when you factor in the affordability of rates available to consumers.

“In those days, I was selling mortgages at 18%,” he says. “Banks were at 12% back then. If you got 9%, you had a really good rate. They were still introducing the 5% down plan, but most institutions required 10%.

Conventional mortgages were at 75%, with very few exceptions. So, if you look at the history of the last two decades in the industry, it’s like a pendulum.”

Back then, the majority of Canadians would save up for years before they bought a home. While this is still the case today, there certainly is more flexibility in lending criteria, despite industry perceptions compared to pre-2008 markets and the introduction of B20 and now B21 guidelines. Therien suggests the numbers are still moving in the right direction.

“If we’re looking at future challenges, I have to refer to some of the articles in CMP where brokers are losing deals to the some of the branches,” he says. “That really shouldn’t come as a surprise when you look at the relationships. Relationships are everything in business. I, for one, have had the same bank account since childhood – that relationship has lasted decades. If brokers are going to compete, they really need to go beyond rate by putting the customer first and competing on a different level. Twenty years ago, brokers could compete on rates, but that definitely is not the case today. As a community, we can best compete on service and professionalism.”

As an example, Therien points to a relationship that dates back to his first year on the job in Whitehorse.

In the course of organizing a raffle for a community event, he met a woman with some credit challenges.

“She has stuck with me my entire career, ever since I helped her find her first home in my first role at AVCO,” Therien says. “When I moved to Sutton Mortgage, I did deals for her there, and after moving to First Line Mortgages, we kept in touch, and I helped her out there, too. Today, it’s a 24-year relationship. Either directly or indirectly, I’ve helped her, all of her kids, most of her siblings, her parents and her friends with mortgage and credit issues.”

It’s the kind of relationship-building the Centum VP prides himself on – a skill that helps him continue to drive growth at the company.

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Magen

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26/01/2015 12:20:49 2:33:46 PM 20/01/2015

BUSINESS STRATEGY / CONVERTING CLIENTS

HOW TO CONVERT A RATE-FOCUSED CLIENT

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Several lenders offered sub-3% fixed-rate mortgages for ‘Black Friday,’ and as expected, the announcement was widely covered by national media. Five brokers share their techniques to sway frugal rate-focused clients News coverage – and bank advertising – tends to bring interest rates to the forefront of consumers’ minds.

Most mortgage brokers will agree that we need to demonstrate our value proposition to Canadian consumers, but how do you do that when your clients are simply focused on getting the lowest rate possible?

The question – “How would you convert a rate-focused client?” – was posed to a number of leading brokers. This is what they had to say.

THE HOUSE DOESN’T ALWAYS WIN Brian Matthey, Verico Kingston Mortgage Brokers “When I walk up to a blackjack table, I know how much I’m prepared to lose. I know exactly what the consequences will be if I lose. Choosing a mortgage on rate alone is like gambling. But what’s worse is many clients don’t even know what they’ve put on the table and how much they could potentially lose if they break one of the many conditions that are usually part of a no-frills, rock-bottom-rate product.

I ask my clients, ‘If I told you that by looking at rate only, it could potentially cost you thousands in the future, would you believe me?’ By focusing on one component of a mortgage, it could cost them

thousands, and they will have no idea why or when it happens.”

KNOW YOUR PRODUCT – AND YOUR CLIENT Morris Briglio, Verico The Mortgage Advantage “Mortgages these days are much more diverse and complicated than before. In today’s marketplace, each lender, although offering basically the same ‘price point,’ has different components to their mortgage products.

By focusing on one component of a mortgage, it could cost them thousands, and they will have no idea why or when it happens” JANUARY 2015 | 57

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BUSINESS STRATEGY / CONVERTING CLIENTS

We focus on a client’s strategy and ask a lot of questions about goals and future plans.

We find that by the end of the process, rates are not a challenge” Interest rate differentials, pre-payment options, portability and flexibility are just some of the components to carefully consider. Interest rate should be the last consideration. As a mortgage professional, it’s my job to outline these components to the client and help them make a sound decision based on their specific needs.”

EXPLAIN THE MATH Daryl French, Verico Lending Max “I have a table topper sitting on my desk that compares the BMO prepayment penalty to that of our monoline lenders, showing a $12,480 penalty for BMO and $2,472 from our lender. It also states ‘63% of mortgages are broken prior to renewal,’ so this helps clients understand that breaking mortgage terms is more common than they think. It’s a great talking point, because it’s visual and makes it easy to explain that there is more to a mortgage than rate.

We focus on a client’s strategy and ask a lot of questions about goals and future plans. We find that by the end of the process, rates are not a challenge.

Clients want to see value. So we need to ask questions until we understand their hot-button issues, and then we need to deliver the value in a way that the person in front of us understands.”

Another key factor should be the calculation of an early payout penalty. I show my clients how a penalty calculated by one of the Big Five banks can be thousands of dollars more than a mortgage offered by one of my monoline lenders that provided the same interest rate at time of offering.

Life insurance also can be a huge factor. The bank’s mortgage life insurance offerings are not portable to other properties a client may purchase in the future. I show my clients that by securing a mortgage with me and opting for the life insurance I offer, they could be protected in the future regardless of possible health issues down the road.”

EDUCATION IS KEY Calum Ross, Verico The Mortgage Management Group “It’s been my experience that most people think they want the lowest rate, when in fact what they actually want to do is save the greatest amount of money over time. Unfortunately, they get caught up in a lot of predatory lending games, and they don’t have the experience or expertise to know the questions to ask. I know because when I first started arranging mortgages, I didn’t know any better either.”

DRAW ATTENTION TO DIVERSIFIED PRODUCTS Diane Macpherson, Verico One Link Mortgage “I always tell my clients that rate is not the only factor to consider when looking for the best mortgage.

Of course, it’s usually the only factor they know. I discuss the differences between a collateral charge and a standard charge and the impact a collateral charge may have on their ability to shop for the best mortgage rate at time of renewal.

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BUSINESS STRATEGY / WEB REDESIGN

5

WAYS TO MAKE YOUR WEB (RE)DESIGN EASIER

The numbers don’t lie, and if they’re saying your website has failed to connect with buyers, it probably has, says Maggie Crowley

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Brokers often talk about being unhappy with their existing websites. While it’s not realistic to redesign your brokerage’s website annually, the gaining pace in the tech world makes every website a constant work in progress. Taking on a new website project may not sound like a walk in the park, but a site redesign can have a lasting positive impact on any brokerage.

How do you know when it’s time for a complete overhaul of your site? Here are three telltale signs:

LOW TRAFFIC AND CONVERSIONS Numbers don’t lie. The biggest reason to give your website a refresh is when no one is using it. Best practice is to track and

measure numbers on a monthly basis using Google Analytics. If you notice a drop in traffic or stagnant numbers over the course of at least one quarter, looks like it’s time to try something new.

IT’S NOT A PROPER (OR REALISTIC OR POSITIVE) REPRESENTATION OF YOUR BROKERAGE Prospects who have never met you can make an impression of the brokerage based on its website – in less than three seconds. Your website is the only member of your team working 24/7 to promote and advocate your brokerage … does it send a positive message to your target audience? If you don’t even like the way it looks, chances are neither do consumers.

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IT’S NOT RELEVANT IN 2014 While I’m not suggesting a complete website redesign is necessary every year, consider some of the major changes in technology in the past five years: more people access the internet from a mobile device than a desktop computer, Flash animations are no longer a “thing,” and Google is the new Yellow Pages.

The biggest obstacle brokers run into when tackling a website redesign is a general lack of focus and direction

Maggie Crowley (@crowleymaggie) is the marketing coordinator for Advisor Websites, where she manages the company’s online presence and educates financial services professionals on how to maximize the potential of a strong web presence.

Connect with her on Twitter @advisorwebsite, or visit her online at www.advisor websites.com

If it’s time for a website redesign, the best way to get ready is to do a little prep work. Many brokers find web design quite daunting and complicated, and with good reason. It can be challenging to assemble the necessities to get started, but with the right people on the job, it’s not nearly as difficult a challenge as it may seem.

The biggest obstacle brokers run into when tackling a website redesign is a general lack of focus and direction. As a result, they usually aren’t prepared to make decisions about the site, and generally that leads to a delay in the process.

Start by taking a step back and looking at the big picture. What are you trying to achieve? A strong plan now will make for a smooth process along the way. If you’re considering a new website in the near future, begin by planning now. Consider these ideas in order to streamline your upcoming web design project.

1

DO SOME RESEARCH

Take a critical look at websites you love (and loathe) to help you figure out what you want your website to be like. Are there certain colours you find appealing online? Start by doing a Google search of other financial websites to analyze the landscape. Having a good idea of what you want the site to look like will help your web design team produce a site that matches your expectations.

Find several different layouts you’re comfortable with. What types of navigation do you like best?

These are all questions that the team building your website will ask. Make the design process easier by answering these questions on your own first.

2

HIRE A PHOTOGRAPHER

High-quality photos of real people (as opposed to stock images) are one of the best touches you can add to your website. Web visitors are more inclined to trust companies that provide a personal touch by showing who is operating behind the company.

Highlighting pictures of your team (high networth individuals love working with teams) throughout the site is a powerful way to engage an audience of potential prospects. Doing this in advance ensures that the images will be ready to go when your web design process begins.

3

WRITE CONTENT

Ready-to-go content is often the number-one element that delays the website creation process. Whether you’re writing your site’s content inhouse or working with a copy writer or marketing, definitely start in advance. Have some content prepared before you commence the process. This will ensure that the design team will be able to deliver your website quickly and efficiently.

What are the essentials? An up-to-date biography (this should be updated every three to five years) and information about your company, team members, and your services are all useful to have readily available.

4

DETERMINE FUNCTIONALITY

What should your website achieve? Ideally, who will be visiting your website? What should they do when they get there? It is worth brainstorming and setting goals so you have a clear direction for your site.

If you want your website to act as an online business card to validate your brokerage and provide contact information, that requires different kinds of information than a website where clients will be engaged and regularly logging in.

Determining how you want to use your website should be part of the cornerstone of your brokerage’s marketing plan.

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MORTGAGEBROKERNEWS.CA

5

BE PREPARED TO SPEND A LITTLE TIME ON IT

A well-designed website is one of the most effective marketing tools you’ve got – make the most of it by keeping it fresh, up-to-date and easy to use

There’s no way around it: Your web design project will require time. In order to get a website that is reflective of your brokerage, assign someone from your team to lead the project, but expect everyone to get involved at some point. The goal of any great web design team is to make the production process as seamless and easy for you as possible. However, in the end, it is your website, and it needs your input.

A website redesign can be a daunting task, but partnering with a good web design firm can make the process a lot easier (and even fun!). Remember, a well-designed website is one of the most effective marketing tools you’ve got – make the most of it by keeping it fresh, up-to-date and easy to use.

CONTACT US

Toll Free: 1 - 866 - 907 - 5407 Email: info@vwrcapital.com

Your residential private lender since 1993 LENDING IN: British Columbia Alberta Saskatchewan Manitoba Ontario

1st, 2nd, and 3rd mortgages Lender fees from $500 No income qualification No minimum beacon scores Purchase, Refinance, ETO Up to 75% Loan to value

Edmonton

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Property types: houses, condos, townhouses, serviced land, raw land and multi-family properties

Email lender notes, application, and credit bureaus to: info@vwrcapital.com WWW.VWRCAPITAL.COM

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PROFILE / FAVOURITE THINGS

Favourite things Doren Aldana, The Mortgage Marketing Coach, MortgageMarketingCoach.com

Favourite place to be: Hanging with my wife and my three kidlets.

They make me smile from the inside out Favourite book: The Bible. It’s a book of history and spiritual revelation beyond com­ parison

Favourite sport: Ice hockey - I love the speed and the feeling of gliding on the ice

Favourite music: Anything funky – jazz, hip-hop, reggae. Whatever gets my head bobbing and booty shakin’

Favourite movie: Braveheart. It’s a total dude movie; it calls out the warrior in me

Favourite marketing product: Chet Holmes’ book, The Ultimate Sales Machine – the best sales and marketing book I’ve ever read!

Favourite celebrity: Jerry Seinfeld

Favourite thing about working in the mortgage Industry: I love working with the amazing people who really care about serving their clients and making a positive difference in the world

Favourite food: Sushi. Healthy and tasty – what a great combo

Favourite vacation spot: Halkidiki, Greece.

It’s like a paradise island without going to an island. I’ve had a lot of fun with family and friends there

Favourite drink: Homemade eggnog with rum – YUM!

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MORTGAGE ARCHITECTS LIKES TO GO BEYOND and this year we’ll be heading to sunny San Diego for our annual conference!

CONFERENCE SNEAK PEEK

RISE & SHINE CONTEST

HEADLINE SPEAKER “ONE STEP BEYOND” WARREN MACDONALD

FEBRUARY 26-28

ASSOCIATIONS PANEL

CHEF CHALLENGE

SEASIDE COCKTAILS

HORNBLOWER CRUISE

“THE FUTURE OF THE MORTGAGE BROKER INDUSTRY”

SAN DIEGO, CA Paradise Point Hotel & Spa

Our events are exclusive to MA Brokers, join MA today and enjoy great events like this!

JOINMA.CA /CONTACT

© Copyr ight 2015, Mor tgage Architects Inc ., All r ights reser ved.

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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

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BROKER BASE www.brokerbase.ca

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