AMBA Matters Fall / Winter 2016

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Matters is a quarterly magazine which provides fundamental information to members of the provincial association, offering an opportunity for the industry members to be educated, updated and entertained.

Toll Free: 1.888.452.2652 Phone: 403.685.9652 Fax: 403.685.9682 Email: info@amba.ca Web: www.amba.ca Suite 150, 1209 59 Ave SE Calgary, AB T2H 2P6

Amba 2016

this issue's articles

8 11

Board of Directors

Foreclosure Foresight

What to Do if you are Facing Financial Challenges

Top 5 Reasons:

Why Errors & Omissions Insurance is Important

16 20 25 27

Thank you campers: amba camp jasper highlights Stella's story An Unexpected Journey AMBA and Community Key: Working Together to Help Families in Need

28 30 33 34 36

good times on the links meet our 2016 amba awards under the stars winners

growing your business

member profile: Dean Koeller

You don’t have to like me; you just have trust me

President Dave Trithart DLC 1st Financial Link

Past President Adil Mawji Invis

Vice President Ron McClenaghan Invis

Treasurer Katie McDowell Mortgages Are Marvellous

Education Ryan Spence D+H

Events Erica Fikkert Equitable Bank

Consumer Relations Jan Gosse Jencor Mortgage Corp.

Consumer Relations Pam Pikkert Dominion Lending Centres Regional Mortgage

Government Relations Kevin Weeks Weeks Law

Communications Stephanie Blake DLC 1st Financial Link

Membership (South) Tracey Robinson Mortgage Protection Plan

Membership (North) Shawn Jewers First National Financial

Director-at-Large Michael Cameron Axiom Mortgage Solutions

Magazine Publisher: Amanda Roy-Macfarlane

OTHER FEATURES...

Return undeliverable Canadian addresses to:

President's Report 5

Alberta Mortgage Brokers Association Suite 150, 1209 59 Ave SE Calgary, AB T2H 2P6

Manager's Report 7 New to the AMBA Team 17 2017 AMBA Event Calendar 37

Art & Design: Erin Lehtisaari Some photos within this issue ©shutterstock.com.

Fall/Winter 2016

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Fall/Winter 2016

2016-08-31 10:48 AM

President’s Report

Fall/Winter 2016 I hope everyone had the opportunity over the summer to enjoy some quality personal time despite what was probably one of the wettest summers Alberta has seen for a number of years. It seemed like it rained almost every day, usually late in the afternoon right around when I would have been golfing.

Dave Trithart AMBA President

Despite summer showers and squeezing in vacations when we could, your association remained very busy over the summer months, continuing its efforts to provide value and support to all members.

First, we held our annual conference in early June, this year a joint initiative with Mortgage Professionals Canada. For those who were able to attend, I am sure you shared our impression that Camp Jasper was a first-class event, from the location and weather to the education. The high-ranking survey results we received from the conference reflected this. If you were unable to attend, you missed the event of the year. But I am sure that next year’s conference will be equally as sensational.

The buzz word for this year has been “collaboration.” The annual conference in June marked the first joint venture with our national association, Mortgage Professionals Canada and we look forward to finding more ways to collaborate for the benefit of our members here in Alberta. Toward the end of the summer, you might have seen a survey sent out by AMBA and Mortgage Professionals Canada about the potential merits and feasibility of a joint fee structure: one fee paid by members annually to belong to both associations. We believe our industry should have a strong provincial and national representation with aligned goals, and this would be a considerable step toward solidifying the strength of our partnership.

I must assure you that this discussion is not about a merger or takeover. Both associations would retain their independence. If joint membership becomes a reality, you will no longer have to choose between two associations as you may have in the past.

One annual fee would indicate that you support the industry that works tirelessly for you at both a national and a provincial level.

I am also pleased to report that as a result of our collaborative efforts with other industry associations — such as the Alberta Real Estate Association (AREA) — we were successful in arranging a meeting in early August with Service Alberta Minister Stephanie McLean, her chief of staff and her executive director. This meeting provided us the opportunity to introduce our association as well as the value of our representation with the government. It is important that we are involved in all of the areas that affect our industry, such as a rumoured review of the Real Estate Act. We also discussed raising the level of professionalism in our industry through

education and perhaps some form of apprenticeship or candidacy program for new entrants. We were impressed with the engagement of all of the Service Alberta representatives we met. We look forward to continuing to develop this relationship.

Perhaps most importantly is the issue that has been on everyone’s mind as a result of the actions of the Financial Institutions Commission (FICOM) with our neighbours in British Columbia on the issue of fee disclosure. While we recognize this does not directly impact us in Alberta, we strongly believe other governments and regulators across Canada are watching the situation closely. Because of our relationship with Mortgage Professionals Canada, we were the only provincial association in Canada to be included on a conference call addressing this issue that involved mostly senior staff, owners of brokerages and lenders. The reason for our inclusion was to ensure we have the information and strategies in place to continue to work closely with our regulator in the event that our government reviews our processes. The Mortgage Broker Advisory Committee — of which AMBA holds four of the seven broker seats — has decided to be proactive and schedule more meetings this fall to review our disclosure requirements and determine if any minor amendments might be prudent.

So as you can see, we have been busy. While some of the things we undertake may be behind the scenes, they remain critically important to all of us. We will continue to work hard to bring you the value that you need, even if it is not always visible.

We still have some great events coming up before the year is over. Join us for our AMBA Holiday Party & AGM in Calgary on December 1 where we look forward to presenting our 2016 charity Community Key with a cheque from all the fundraising efforts members have contributed to this year. Or, take part in our annual AMBA Family Frozen Festival as we embark on a magical train ride aboard the Polar Express™ in Mossleigh, AB on December 4. If those events are a bit too far south, come to our Edmonton Holiday Party on December 8. To see what industry events are going on in your area, check out the new Interactive Calendar on our AMBA website under the Events tab. I hope to see you at an event in the near future!

Fall/Winter 2016

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General Manager’s Report

Fall/Winter 2016 Amanda Roy AMBA General Manager

When I think back on 2016, I recall a year of incredible events made more enjoyable by our amazing, enthusiastic and dedicated AMBA members.

From our Winter Games and Curling Bonspiel to our trailblazing Camp Jasper conference, many memories were made.

But one event stands out as a special one for me, and that was this year’s version of the AMBA Family Frozen Festival aboard the Polar Express.

The magic of seeing the popular holiday book and movie come to life is something kids and their parents will remember forever— or at least as long as the ceramic souvenir mugs remain in our kitchen cupboards.

Tickets sold out almost as quickly as they were made available and the overwhelming response meant a great deal to us, to be able to celebrate the season with so many of you and your families. And for those who didn’t get a chance to board in 2016, we promise to make the 2017 version bigger and better.

We at the AMBA office wish all of you the best in business and your personal lives in 2017. All aboard for another action packed year of entertainment and education.

For those who didn’t get a chance to board in 2016, we promise to make the 2017 version bigger and better!

Fall/Winter 2016

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Foreclosure Foresight Dale Koeller, Calvert Home Mortgage Investment Corporation

While we’re certainly seeing more foreclosures on the marketplace than we were a year ago, the reality isn’t as bleak as the media makes it appear. Last year was one of the lowest default ratios in two decades. With low interest rates and the ability to obtain secondary financing that wasn’t available decades ago, people are doing more to protect their homes. Still, foreclosures are on the rise and its process is perplexing to many mortgage brokers. If your clients are facing financial challenges, you’ll want to be up to speed on how you can help them avoid a foreclosure and protect their credit, or at least better manage through the foreclosure process.

How Did We Get Here?

Foreclosures happen with life altering events. The loss of a job, divorce or sickness are all reasons why someone may fall behind on their mortgage payments.

Even those still working, but who are self employed can get hit if the Canada Revenue Agency registers on the title of their house if the home owner hasn’t paid their GST or taxes.

Unfortunately, many clients are too embarrassed to do anything about their precarious situation until they’re in dire straights. “Clients often come to us very late. Usually we hear about their troubles when there is an application set for an Order Absolute (taking title) or when the property is being listed or when a six month redemption period is nearing,” says Laura Sawatzky, Mortgage Broker with TMG/ The Mortgage & Financial Avenue.

Unsurprisingly, many home owners aren’t thinking straight when threatened by foreclosure. They’re receiving an unprecedented amount of paper work filled with legalese that’s difficult to understand without a law degree. If someone can’t pay their mortgage, it’s unlikely they’ll hire a lawyer to explain the process to them. This is where mortgage brokers play an important role. There are many options for a home owner if they miss a mortgage payment. The key is educating current and former clients to dispel the myths and misinformation surrounding foreclosures.

Best Practices A recent CBC article on jingle mail - when home owners walk away from their mortgage by mailing their keys back to the bank, didn’t help matters. Not only is this practice extremely rare, the worst advice you could give a borrower is to turn in their house keys. Doing nothing and not showing up to court are also not advisable. In fact, even when the situation looks hopeless, it’s still possible for home owners to negotiate says Denise Hendrix, Owner of Hendrix Law.

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Fall/Winter 2016

“The best thing a home owner can do is cooperate. Be polite and ask questions. Lawyers aren’t the enemy. Many are afraid to have the conversation, they won’t come to court or even pick up the phone,” she says.

Legal Aid will not assist with foreclosures cases, but home owners could call Lawyer Referral. This services provides the names of three lawyers clients can talk to. After the complimentary 30-minute session, home owners can decide if they want to continue the discussion at the lawyer’s full fee rate.

Even if the home owner can’t afford a lawyer, it’s worth calling the lawyer handling foreclosure. While the lawyer representing the lender won’t give the borrower advice on what to do, they can explain the process to them. Yet before it gets to that point, clients should be coached on what to do when they receive the default letter from the bank. At this point it’s in the home owner’s best interest to give a proposal to their lender.

As Lenders, we want the mortgage contract to perform the way it was set up to. The goal of the borrower should be to outline a specific plan of payment dates and amounts that will catch up all the arrears as quickly as possible. Borrowers who make this proposal as early as possible in the process help to gain back the confidence of the lender before it is unrepairable. It also keeps their total legal costs minimized, which means less arrears the borrower needs to pay.

Home owners need to be very realistic at this point and not make promises they can’t keep. This is where mortgage brokers have a role to play by assisting their client in putting together a concrete plan that reduces expenses, increases income and sells assets if necessary. The lender after all, needs to be reassured that the borrower has a plan to attack their debt and that the plan is realistic enough to be followed. “Most lenders will work with you, but if you break your word and don’t make a payment, it’s likely going to end up with the lawyers,” warns Hendrix.

Even if the matter is referred to a lawyer, it’s still possible for home owners to get out of it. This is why it’s worth it for the borrower come to court. Imagine a home owner has lost their job and is $5000 in arrears. Let’s say they made a

proposal to the lender to pay an extra $1000 a month to cover the debt, but the lawyer representing the lender didn’t accept that offer. It is possible (and it has happened) that the court could side with the borrower. Just because the lender didn’t accept the offer, doesn’t mean the court can’t direct otherwise.

Should I Stay or Should I Go? Another common conundrum among home owners is when they ought to vacate the property. The truth of the matter is, nobody can estimate a timeline until the appraiser comes in to evaluate the property. The foreclosure process could take anywhere from two months to up to one year. Hendrix advises clients to stay in their home until the court tells them to leave. Thanks to the influx of American TV shows and media, many think we have the same process as in the United States, where as soon as the foreclosure process starts, clients need to be out of their home.

In Alberta, the timeline is based on reasonable expectations to market the property. It’s mandated for homes to be sold at market value. There are no fire sales here. It’s in the best interest of the home owner to cooperate with the lender, the appraiser and to let the property be shown to prospective buyers. This helps to get the most value for the home, and so long as there’s enough to pay the mortgage at the end, results in money put in the pocket of the homeowner.

Money on the Table In some foreclosure cases, there is a considerable amount of equity in house, but the home owner for whatever reason wasn’t able to keep up with the payments. If there is a court ordered sale, the house is sold at market value. The court then pays out all that is owing. This can include condo fees, property

Real Life Foreclosure Situations

taxes, a first and second mortgage and normal charges on the property. If there is nothing else behind the front title - meaning everything has been paid out (and nothing is owing to the Canadian Revenue Agency), there could be equity leftover. The home owner can get this money back, but many don’t know this or don’t know how to access it.

To do so, the former home owner must apply to court to get their money paid out. Maneuvering through the court system is tricky business, yet every municipality that has a courthouse has a court services department. It is this department that can assist people step by step on how to apply to get their equity back.

They’ll help with the paper work, making a lawyer unnecessary.

Another option is the Court Assistance Program (Queen's Bench Amicus Program), where volunteer lawyers help people with any application on the civil chambers list at the courthouse.

Mortgage Brokers to the Rescue Some brokers only like “A” business, but there is an increasing demand to arrange for secondary financing when there’s equity still in the client’s house. “Good word spreads,” says Sawatzky.

“I get so much business from referrals and it’s nice to get paid for helping people.”

A year into a client’s mortgage, she becomes separated from her spouse and then is hospitalized in a comma.

Because of hospitalization, the home owner is unable to make mortgage payments. The lender wouldn’t let the home owner catch up on the arrears of two months. The solution? Mortgage Broker Laura Sawatzky put her into private financing for a year and helped to prepare an exit strategy. “There are ways to restructure things, so clients can move on and re-qualify,” says Sawatzky. By 2017 the client will be able to go back to an A-lender.

But that doesn’t mean you should pick up every potential client.

“Usually you can tell right away if you want to help them or it's just a bandaid. There are some people who shouldn’t be home owners - those who are behind on everything, they don’t have a stable job, etc… For those, it’s best to give them foreclosure and credit advice on ways to do their best to start over,” says Sawatzky.

If helping a client go through the foreclosure process isn’t something you feel comfortable doing, consider aligning

Fall/Winter 2016

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Foreclosure Foresight

yourself with another professional who can. Many forget that Realtors can negotiate with lenders and help home owners through the process. “I’m self taught, and I’ve assisted many home owners get out of sticky situations. I’m always happy to help,” says Denis Hrstic, Realtor with CIR. There’s often a disconnect between lawyers, mortgage brokers and accountants. Considering how complex the foreclosure process is, it’s worth meeting with a foreclosure lawyer or Realtor or other mortgage brokers well versed in this line of work. “Without a doubt, we’re in hard times, but foreclosures are not as scary as the media leads you to believe.

There are many options available. Clients ought to talk to a professional whether it’s a lawyer, Realtor, or mortgage broker who knows what they’re doing,” says Hendrix.

Alberta’s Private Mortgage Lender

Real Life Foreclosure Situations

A couple becomes behind on their mortgage payments when the main income earner became ill. They were coming into an inheritance, but they used that money to retrofit the house as the main earner’s health quickly deteriorated and wasn’t able to work. Fortunately they came to their mortgage broker (also Sawatzky) in time.

They received new financing from a private lender and cleared out all their debt. The couple went with a six month open mortgage with capped payments. This gave them time to sell the house and protected their credit.

The couple has decided to move cities and will rent in a community with lower rent payments.

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Fall/Winter 2016

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What to Do If You Are Facing Financial Challenges Dale Koeller, Calvert Home Mortgage Investment Corporation

1 Don’t Avoid The Problem 2 Seek Help Contact Mortgage Broker and other financial advisors

Seek the assistance of an experienced person who will listen carefully to your story, and ask you good, and sometimes even difficult questions, before they recommend options.

3 Get Clear

List out your Assets and Liabilities (what you own and what you owe) Create your Monthly and Annual Budget

4 Contact Creditors Keep open communication with those who you owe, and only promise what you can and will do. If your credibility with payments is already in question it is important to only make promises that you can deliver on.

Ask to skip a payment

5 Make Changes

Increase Income – increase working hrs., find other work such as part-time work or casual labour

Sell assets – the non-essentials, and the items you carry payments on

6 Take Action To SELL The Property

Sell the property and receive back the equity in your home to settle debts and put savings in your hands

If you are committed to a sale, ensure you use an experienced Realtor

7 Other Options Rent, basement, room, other Learn about Consumer Proposal or Bankruptcy options

Add missed payments to your mortgage principal

Inquire if you can refinance at a lower and more affordable rate with them or other lenders Refinance – consolidate your debts into one payment Secondary financing Avoid more debt – get control of your debt

For unbiased advice on taking charge of your debt visit this Government of Canada website for ideas and solutions: www.ic.gc.ca/eic/site/oca-bc.nsf/eng/h_ca02144.html

Reduce Expenses – consider your wants vs. needs

Extend Amortizations to lower your monthly payments

Switch to Interest Only payments to lower

your payments

Do you still need more help? Visit this Canada Mortgage and Housing Corporation website for unbiased advise on how to deal with mortgage payment difficulties: www.cmhc-schl.gc.ca/en/co/co_005.cfm

Bankruptcy Or Consumer Proposal Options

If debts are greater than your assets consider a consumer proposal or bankruptcy

A Bankruptcy trustee may be able to negotiate for you terms with your unsecured creditors to reduce your debt, debt payment obligations and allow you to keep your home

Each owner in a bankruptcy receives a personal exemption of $40,000 per owner in the equity of their principal residence. Any amount in excess of that, will need to be removed and paid to the creditors Continued on next page

Fall/Winter 2016

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What to Do If You Are Facing Financial Challenges Foreclosure Process

Tip It doesn’t pay to be adversarial with any of the professionals who are working for the lender, such as the lawyer, process server, realtor and others; in fact, the more they appreciate working with you, the more they will be likely to help you out and answer your questions.

1 Default The contract is in default when the borrower isn’t making payments on the mortgage, or is in default on other terms and promises in the mortgage such as payment of a prior mortgage on your home, property taxes, condo fees, or fire insurance.

NOTE: Foreclosure is a legal process that the courts control. Lenders can apply to foreclose when the borrower isn’t complying with all the terms of the mortgage. The court will be as fair to both the Lender and Borrower as possible, within the rules and process the law has set out.

2 Demand Letter

The Demand Letter is a lawyer or lender’s notification to the Borrower that they consider the mortgage to be in default, and give the Borrower time to get the mortgage into good standing.

This letter can be sent to the borrower after one or more missed payments

This letter may not always be sent to you because there is no legal requirement for you to be notified that payments are in arrears

Lenders may conduct an inspection to ensure the property is occupied and being maintained, and property utilities are being paid and still on Tip Let the inspector into the property to alleviate any concerns that the property is abandoned or in poor repair.

3 Statement Of Claim

When a Statement of Claim document is sent to the borrower, this is the official start of a legal action. It sets out all the particulars of the allegations of the defaults of the mortgage

The Statement of Claim is filed with the Court. The document is normally served upon the borrower in person by a process server.

A special notice that the mortgage is subject to pending litigation (“Lis Pendens” meaning that there is a law suit that is launched) can be put on your title.

This Statement of Claim gives the owner 20 days to file a Statement of Defence, to deny a default. There are lots of options to consider as well: Tip Action Make the best use of the time you have available:

Evaluate how much equity is in the home because the more you have, the more time the court will give you to try to resolve the problem.

Consider other options: Find a way to get the mortgage up to date. Refinance to pay out the first mortgage, or get a second mortgage to bring the first up to date

Another option is to propose a payment plan to bring all payments up to date: If you propose a plan to the lender, lawyer or the court/judge, make sure it is realistic, that you have the ability to be successful in, and that it gets the payments up to date as quickly as possible.

You have the right to file a Statement of Defence with the court. This is not meant for an explanation of your circumstances of why you are in arrears; it is meant to object to what is in the Statement of Claim if you believe any of it is untrue or in error.

Tip When you signed your mortgage, you agreed that any costs that the lender spends to collect on their loan, including all the legal and inspection fees, are added to the homeowner’s debt. It is therefore in your interest to help keep the costs low by reducing the need for inspections and respecting the time the lawyer spends on your foreclosure file. Be clear in your communication with the lawyer, and save them time by communicating in writing where possible.

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Fall/Winter 2016

4 Appraisal Ordered As soon as 10 days prior to the deadline of a Statement

of Defence, an appraisal is ordered on the home and the

appraiser will attempt to contact you.

You will get a copy of the appraisal in the next 10 to 20 days. The appraiser can’t give it to you directly, or tell you what your home is worth when they visit the property. The appraisal will first be filed with the court.

Tip Return the appraiser’s call and let the appraiser into the property. Show it in its absolute best light: this will help the value to be the highest, which means the court can consider your equity to be higher, which in turn gives you the most time to resolve the problem (before it is listed for sale). The appraisal amount is also the number that would be used to list the home for sale if the foreclosure goes that far.

Tip Each time there is a court date, the homeowner will always be notified in advance from six days, up to two weeks before the court date. The homeowner always has the right to appear in court and speak to the Master (Judge). The Master will take the time to ensure you understand your position and their ruling. However, court moves fast and will not accept unnecessary delays. If you plan to speak, have your comments prepared. If you are presenting a plan or supporting evidence (in affidavit form – ask a lawyer), plan to have three paper copies to provide the court and the lawyer for the lender. You also have the right to have a lawyer be present with you on your behalf. Provide your lawyer sufficient advance notice and all the paperwork you have received so they are up to date.

Tip Each time the Master orders something in court, it will be sent to the lawyer and the homeowner in writing.

These decisions must be respected and complied with.

If they are not, the other party can complain to the Court, which can find that party in contempt of court.

The Master takes these accusations very seriously.

Contempt orders can result in fines, having a person removed from the property in foreclosure, and can result in jail time.

5 Motion For Foreclosure Relief

At this stage, the Lender will be asking for the court to decide how to proceed in the foreclosure to settle the problem. The court sets the rules for what a lender is allowed to ask for. If there is a lot of equity, the court will first offer the homeowner time to resolve the problem and then allow the property to be listed for sale; if there is little or no equity, then the lender may request the court give the title to the Lender. If you have an insured mortgage (CMHC or Genworth insured mortgages), and there is no equity, the insurer will seek to get the deficiency from you through a deficiency judgment, which is also filed on your credit report.

Affidavit of Default

The lawyer files this document with the court in one of the following applications (see below), and provides a copy to the homeowner. This document outlines the value of the property, the balance of the mortgage debt and asks the court to decide how much additional time the owner has to resolve this problem before the next phase of the foreclosure proceeds, which is usually a property listing.

This time period is known as the Redemption Period, which refers to the period of time you have to work to redeem, pay out, or up to date the Lender.

Lender files Affidavit of Default, Affidavit of Value, Valuators Report and a copy of title

Sent to each registered property owner, and each party who has a mortgage or other claim to your title (such as a writ holder or builders lien)

5(a) Notice Of Motion For Redemption Order

In this application to the court, the Lender agrees there is equity in the property, the judge is being asked to rule on how much equity that is, and if there are any circumstances they should consider in setting how much time the owner should have to resolve the problem before the house is listed for sale (the “redemption period”)

The redemption period can be as short as one day, and as long as six months (up to a year on farm land), and it is up to the judge alone

Once the redemption period expires the property will be advertised for sale, and without going back to court the judge will also set the list price for the property

All owners have a right to go to court and speak to the judge, including presenting why you should be given more time, or even to present your solution to the problem Continued on next page

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What to Do If You Are Facing Financial Challenges The homeowner will get a copy of this motion that is filed prior to the court date (six days to two weeks before the court date), as well as the copy of the filed order within two to three weeks of the court date, which is the decision the judge made and the requirements that the borrower and lender must abide by Action

Until the end of the redemption period, the homeowner is still in control of their property and can list it for sale, refinance/re-mortgage it or otherwise pay out the loan and possibly even bring the mortgage into good standing. Get legal advice if you have the right to bring the mortgage into good standing, which you do not have if the mortgage has matured (come to the end of the term), or if the mortgage is also a line of credit.

Use this time, as best you can, as many of these opportunities can take a lot of time to complete.

Refinancing: Contact an experienced mortgage

broker to explore your ability to refinance your

mortgages on title. Help the mortgage broker

shop your deal to lenders by clearly outlining your

plan to ensure the problem is completely resolved,

with a plan on keeping future mortgage payments

up to date. There may be a lender willing to

provide you another opportunity if you can show

how the problem occurred, and that it won’t occur again.

Once the redemption period expires, the lender’s realtor will list the property for sale on behalf of the court, and if it is already listed, then the homeowner’s listing will be cancelled.

Methods for listing the property for sale 1.

Posted On Kijiji Or Transferred To Lender Used in situations with little to no equity

Listing is posted for 7 days on Kijji. Tenders

(offers) close two to three days after expiry

of posting 2. Advertised Sale

Used in situations with a little equity

A listing is made in newspapers or other

sources with tenders closing in 10 days 3. MLS Listing

Used in situations with lots of equity

Listing through a realtor (up to 90 days)

All offers are taken to the court for approval

Realtor Commissions The court will decide on the commissions offered to the realtors Tip If there is no equity in the property, and it is an insured mortgage, the Lenders may apply for an Order for Foreclosure, or Order for Sale to the Plaintiff with deficiency judgment, to get the property in their name with possession within 30 days.

Deficiency Judgement If there is no equity in the home and the mortgage is insured, or granted by a corporation, the property is transferred to the Lender at fair market value and the lender can file a Deficiency Judgement against the homeowner for the difference between the mortgage and fair value. This will appear on the homeowner’s credit reports.

Offers When one or more offers are received by the realtor, they will forward them to the lawyer for the lender, which will then be presented to the court. In some cases, these bids are open and shared with the homeowner. In other cases they are sealed (undisclosed) bids and only opened by the judge. You will get notice when offers are made, and can attend in court to hear the offers. Only offers that are reasonable will be accepted by the court, and the judge may hear your opinion. If an offer

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is accepted, the homeowner will be given 30 days to give up possession of the home, and that is when the sale will close. In two to three months from the closing date, funds will be paid into court that you can apply to the court to have paid to you.

Judicial Listing Expiry If the listing expires without a sale, or if at any time the Lender has reason to believe the list price is not low enough to attract offers, then they may make another application to the court to reduce the list price. In these cases, the judge reviews evidence the Lender provides to show that the list price should be lowered, and the homeowner has an opportunity to present their own evidence to the judge.

5(b) Notice of Motion for Title, Possession and Deficiency Judgement (Order for Sale to the Plaintiff)

Lawyers only use this type of application when there is no equity, or if the debt on the property exceeds the value of the property (this shortfall is known as a ‘deficiency’). This asks the court to put the property title into the Lender’s name, and to have the homeowners vacate the property within thirty days

All homeowners and personal guarantors (if there are any), will be given advance notice with this document sent to them six days to two weeks in advance of the court date, that the Master will review it. The homeowner may appear in court

If approved in court, the deficiency is approved in the court, meaning that any shortfall is owed by those who may have provided their personal guarantee to the mortgage lender. Not all mortgages have personal guarantees, and this is most common in cases where the homeowner on title is a corporation. These types of judgments against personal guarantors will be reported to the credit bureaus

Rice Order – refers to the first case that this type of

motion was approved in court (Trusts & Guarantee Co. vs.

Rice, in 1924)

5(c) Notice Of Motion For An Order For Foreclosure

No Legal Advice Provided The material in this article is intended to provide only general information and comment to our clients and the public. Although we make our best efforts to ensure that this information is accurate and timely, we do not guarantee the information is either. Do not rely on this information as legal advice. For assistance with your specific legal problem or enquiry, please contact a lawyer of your choosing.

AMBA Ad March 2015_Final.pdf

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01/04/2015

10:53:40 AM

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This motion is presented to the court when all efforts to sell the property for a reasonable price have been exhausted, or if the property is vacant. This will grant the title and property to the lender, and require the homeowner to vacate with 30 days

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Tip If you have a situation that isn’t covered in this explanation, you should consult a lawyer. You might qualify for free legal advice through Legal Aid Alberta (http://www.legalaid.ab.ca), or at Calgary Legal Guidance (http://clg.ab.ca/)

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New to the AMBA Team The AMBA family has grown by two members! Marise and Naomi came on board in March and May respectively, jumping right into conference preparation and helping ensure that Camp Jasper went smoothly — what an introduction to the industry!

Marise Thevenot

Naomi Koit

Marise has been working in events since she left the University of Sheffield with the totally relevant degree of Archaeology in 1999. She’s excited to work at AMBA as she has worked with other fantastic membership-based organizations including CREB, The Investor Relations Society, and the Institute of Chartered Accountants in England & Wales. In her spare time, she loves to read and write, play golf, travel, and along with her husband and cat, watch more television than is healthy.

Naomi is a communications specialist with an undergraduate degree from Queen’s University and a Master’s degree from UVIC. In her spare time, Naomi plays competitive rugby for the Calgary Canadian Irish Athletic Club 1st Division Sr. Women’s team, volunteers with Women Investing in Knowledge (WINK), and is the Director of the Sponsorships & Community Partnerships for the International Association of Business Communicators (IABC)/Calgary chapter.

Discover The Personal Insurance that’s all about you

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thepersonal.com/amba-discover The Personal refers to The Personal Insurance Company. Certain conditions, limitations and exclusions may apply. Savings and discounts are subject to eligibility conditions, may vary by jurisdiction and may not apply to all optional coverages. The terms and conditions of the coverages described are set out in the insurance policy, which always prevails. Auto Insurance is not available in Manitoba, Saskatchewan and British Columbia due to government-run plans. Client comments were obtained from and approved by our clients and may have been translated from their original language. * The descriptions represent the most frequent positive words based on client experience survey results from Feb 01, 2015 to Jan 20, 2016.

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17

Top 5 Reasons Why Errors & Omissions Insurance is Important.

Derrick Leue, President, PROLINK Insurance

AMBA and PROLINK Insurance work together to offer members a robust Errors & Omissions Liability (“E&O”) Insurance Program that protects your assets, your business, your reputation and your future. Although, RECA requires a minimum amount of E&O coverage for all brokerages to be licensed in Alberta; E&O is more than a necessary evil. E&O insurance has far-reaching benefits many members don't fully understand or may have never experienced. The truth is, most brokerage owners do far too little to protect themselves, failing to fully appreciate the implications of potential risks, or the effectiveness of the strategies they believe they have in place.

So how does E&O Insurance really help you? Well, with apologies to Mr. Letterman, here are The Top Five Reasons E&O Insurance Is Critically Important to mortgage brokers and associates.

1. Lenders And Borrowers Can Be Unpredictable There is no way to control the actions of your lenders or borrowers once they contact a plaintiff lawyer. Canada is becoming much more litigious and lenders or borrowers who incur any type of financial loss are often looking for someone to take responsibility. The professional requirements placed upon mortgage brokers and associates are significant. For private lenders, if their investment isn't delivering everything they had in their head, they can start making all sorts of demands.

For borrowers, if the lender changes the terms or pulls their commitment letter then you can be brought into the allegations.

And maybe it's the new Trump Effect, but these days, when things go wrong, people will take you to court! Lawyers simply sue everyone and see what sticks.

2. E&O Can Protect More Than Your Errors Competition amongst E&O insurers is great for mortgage brokers. The best E&O policies now cover much more than the errors and omissions committed by mortgage brokers and associates. Coverage for privacy breaches, data security, regulatory investigations and legal expenses are now being added into E&O policies as insurers are fighting for your business. Distributed Denial of Service attacks, Ransomware and Phising are all forms of Cyber Crime that can now be covered with certain E&O policies. If you have not reviewed your E&O coverage in the past 3 years then you are likely missing out on the enhanced coverage now available through some of the E&O insurers.

3. Innocent Victim Mortgage professionals can be part of the collateral damage in a falling real estate market. Plaintiff lawyers representing lenders or mortgage insurers will often name everyone involved in a mortgage transaction if their client has suffered a mortgage loss. Real estate agents, appraisers, lawyers and mortgage brokers will all be caught in the net. Something

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as simple as filing a statement of defence, a requirement even for a frivolous lawsuit, can quickly rack up legal fees in the neighbourhood of $10,000 to $15,000. E&O insurance covers the defence costs.

4. The Mortgage Brokering Business Is Complicated.

Not to suck up to our readers or anything, but what you folks do has a lot of moving parts. Marketing your services, managing documents, “pre-underwriting” borrowers for lenders, advising clients on mortgage affordability, understanding the real estate market, ensuring mortgages are funded on time, regulatory requirements ... the chances of something going wrong in such a complex environment are fairly high.

5. Incorporating Is Not The "Force Field" You Think It Is. Incorporating should always be the first step when setting up a brokerage because it is a way of protecting your personal assets in the case of something disastrous. But incorporation isn't a silver bullet ... or silver shield ... or silver anything, really.

If you are held liable in a professional negligence claim where the amount of the damages exceeds the minimum requirement of $500,000 per claim, you can't just declare bankruptcy, start over, and expect there to be no impact on your personal life or assets. Adequate E&O Insurance enables you to cover the expense, not run from the consequences. We strongly encourage broker principals to consider purchasing more than the RECA required minimum of $500,000 per claim.

Your business and reputation is everything. It has taken tremendous effort to build. It needs to be protected against misfortunes that could undo everything you and your team have accomplished, and result in punishing financial losses. E&O Insurance is the cornerstone of that protection.

Derrick Leue is the President of PROLINK Insurance. Please contact PROLINK Insurance to learn more.

800-663-6828 or DERRICKL@LMS.CA.

E&O Insurance Changes On June 1, 2016 PROLINK Insurance launched a new Errors & Omissions (“E&O”) Liability program for AMBA members. PROLINK and AMBA have selected Encon as the new insurer for the AMBA E&O program because they have been a leading insurer in the mortgage industry for over 25 years.

Encon understands all areas of mortgage brokering, administration and private lending. Encon is a highly flexible insurer with the capability to insure brokerages with a greater percentage of their total volume funded by private lenders.

Encon has included three significant enhancements to our E&O program: 1. Cyber Liability: Covers your expenses and liability related to a privacy or data security breach.

2. Legal Expense Insurance: Coverage for the Principal of the Brokerage, including: Employment Disputes; Tax audits from Canada Revenue Agency; Canadian Anti-Spam Legislation Defence; Business Contract Disputes; and

Click here to learn more about the E&O+ program, or contact PROLINK Insurance directly to learn more.

TF: 1 800 663 6828 | E: AMBA@LMS.ca www.LMS.ca/AMBA

Driving Infractions under the Highway Traffic Act. 3. Legal Expenses: Coverage for Regulatory Investigations and Hearings.

Introducing an Enhanced E&O Plus+ for AMBA Members AMBA’s endorsed insurance partner now offers members better protection

Why connect with PROLINK, AMBA’s broker of choice?

Our connection: • To AMBA means that you receive coverage that is truly customized for mortgage brokers. Privacy and data breach protection is now automatically included.

• To members means that we pool together premiums to provide lower rates.

• To Canada’s most experienced E&O underwriter for mortgage brokering means that you get claims service from a company that actually understands your business.

Contact PROLINK to learn more. Ask for the AMBA team.

It will be well worth your time!

TF: 1 800 663 6828 E: AMBA@PROLINK.insure www.PROLINK.insure/AMBA

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Thank You Campers!

You Made the Annual Conference a Success

It was a fun-filled few days at Camp Jasper with mortgage brokers and industry partners coming together at the Fairmont Jasper Park Lodge June 5-7, 2016. The conference was a great first step in the partnership between AMBA and Mortgage Professionals Canada and we look forward to hosting many more successful events together in the future. Brought to you by AMBA, Mortgage Professionals Canada, and our photography sponsor Verico Canada.

happy ! s r e p m ca

#CAMPJASPER 20 Fall/Winter 2016

Our Prize Winners

Delegates who successfully collected all merit badges from exhibitors at the tradeshow and participated in Camper Activities on the lawn were entered into a draw to win some luxury prizes.

Rocky Mountaineer Grand Prize Winner!

Stella Tsang of Belmor Mortgage Corp., won the Rocky Mountaineer prize package valued at $6,000.00, presented by Equitable Bank, AMBA, and Mortgage Professionals Canada. This month, Stella and her husband will embark on a four-day journey through the Canadian Rockies, departing from Edmonton to Vancouver.

Diamond Earrings Grand Prize Winner!

Sandra Fisher of VERICO iMortgage solutions won the Canadian diamond earrings valued at $1,400.00, presented by Street Capital.

photography sponsor ®

Fall/Winter 2016

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Highlights On June 6, AMBA hosted our annual Awards Under the Stars gala at Camp Jasper. Gala attendees dressed in their finest enjoyed a fantastic three-course meal, entertainment by SteelRiver and Red Piano, as well as a Bon Bon Barage candy bar and La Poutinerie station as the evening went on. Congratulations to our 2016 Award Winners, learn more about them on Page 30.

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presented by Next year, don't miss out! Nominate someone to win an AMBA award. Fall/Winter 2016

23

Presentations and Breakout Sessions We had a great line-up of speakers and breakout sessions this year. Economist Mark Parsons gave us an update on Alberta’s economy, Jesse Brown, digital media expert, spoke about the opportunities that come with technological and cultural change, and Graham Sherman, founder of Toolshed Beer, ended the conference on a high note with his colourful keynote presentation on how to enjoy the wild ride that is starting a small business and chasing your dreams, to name a few.

Graham Sherman

Jesse Brown

thank you to our sponsors

Dave Teixeira

Title Sponsor

Mark Parsons

diamond Sponsor

Gold Sponsors ®

Silver Sponsors

Bronze Sponsors Title Insurance Asset Protection Process Solutions

ASSOCIATE LEVEL

24 Fall/Winter 2016

®

Stella’s Story

An Une xpected Journe y Stella Tsang was shocked when she won the Rocky Mountaineer prize package at Camp Jasper. Here is her story: "We arrived late to the conference due to a detour of going to Vancouver before going to Jasper, so we missed the trade show on Sunday.

We only had one hour to gather the stickers from all the booths in order to qualify to win. My husband Fred, who was at the conference with me, insisted that I collect all the stickers. I was literally getting my last sticker while the lenders were packing up their booths on Monday morning.

Work was extremely busy those few days. I ended up working that Monday night until 2:00 am. I really wanted to leave early Tuesday morning so I could get back into the office.

Fred refused to let me leave as he told me that he had this feeling we were going to win the prize. I brushed him off and settled with staying until the end of the conference. However, I was ready to complain all the way home that he made me stay as I would be extremely behind with my work.

While the keynote speaker ran late, I was getting restless. I was busy responding to emails/texts on my phone. When the speaker finished, before they announced the winner, Fred asked me, 'So who's going to go up and collect the prize?'

I looked at him with a look of disbelief and said, "Really? You are.

Since you are the only one that still thinks we are going to win ...'

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Fall/Winter 2016

When my name was called, I was shocked ... I'VE NEVER WON anything before so I was still not really hopeful. I was in disbelief when I was standing on the stage with the winning envelope! I was disappointed that I could not complain all the way home ... he was right!"

Partnerships between people At First National, our business is about people – the brokers that we partner with and their clients that trust us with their real estate dreams.

That’s why, for us, partnership is paramount.

Working together as a team. Delivering on expectations. Taking ownership. Being accountable. Celebrating mutual success. Focusing on mutual growth.

Every team member, in every branch office, commits to those values.

When you work with First National, it’s people working with people.

It’s partners contributing to each other’s success.

firstnational.ca

Ontario Mortgage Brokerage License No. 10514

Lisa Bartlett Regional Sales Manager, Alberta & Prairies

Doug Farmer Director, Residential Underwriting,Prairie Region

Fall/Winter 2016

26

AMBA and Community Key: Working Together to Help Families in Need MISSION

AMBA & COMMUNITY KEY

Community Key helps families that are caring for a seriously ill or critically injured child in paying their mortgage or rent payments, allowing them some relief from one of their largest financial burdens. Our aim is to “key” as many families in need as we can, so they can focus on what’s truly key – family.

Conference Silent Auction

$18,345.00 Golf Tournament

$3,255.00 Tree Ornament Sales

$2,000.00+ Curling Bonspiel

$1,027.00 Winter Games Raffle

$950.00 Conference Pianist Tip

$644.25

$26,000 PLUS! RAISED! THANK YOU!

AMBA has raised money for Community Key at a number of events over the course of this year, thanks to our generous members. This past winter, proceeds from our curling bonspiel and winter games were donated to the charity. At Camp Jasper in June, song request tips and funds raised in the silent auction were set aside for Community Key. This fall, proceeds from our annual golf tournament were donated to the charity, which brought AMBA’s total contribution of funds raised to over $26,000.

HOW YOU CAN HELP Community Key has partnered with North American Jewellery designer Kate Hewko to create Community Keys one-of-a-kind hand engraved pendants made of salvaged keys. All proceeds from the sale of these key pendants will go directly to Community Key. Purchase one for yourself or a loved one online by visiting http://keyed.ca/how/ and clicking on “Purchase a key”.

update On Dec. 1, AMBA presented Community Key with a cheque for $24,000. Throughout December, we sold tree ornaments in support of the charity and raised another $2,000. Our story appeared on CTV News on Dec. 16.

Co-founder of Community Key, Paul Bojakli (below), created the Canadian charity after spending five horrible days in the ICU with his daughter, Jamee (below), who had been rushed to the hospital after a swimming related accident. During those five long days in the hospital, Paul watched countless other families camped out in ICU pacing up and down the hallways praying for their children’s’ recoveries. He wondered at what point do less fortunate families make the decision to leave their sick child and head back to work in order to maintain their financial responsibilities. This inspired the formation of Community Key.

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Good Times on the Links It was a fantastic fall day in Innisfail, with our golfers braving the cold to join us out on the course in support of our 2016 charity Community Key. A big congratulations to:

Tournament Champs 1. Paul Gajdos (CMLS Financial) 2. Jason Gress (First National Financial LP) 3. Richard de Guzman (Mortgage Architects Inc.) 4. Michael Thompson (TMG The Mortgage Group)

Contest Winners: Invis/Mortgage Intelligence - Men’s Longest Drive: Jason Gress, First National Financial LP Merix - Women’s Longest Drive: Stephanie Blake, Dominion Lending Centres 1st Financial Link TMG The Mortgage Group - Men’s Closest to the Target: Paul Gajdos, CMLS Financial TMG The Mortgage Group - Women’s Closest to the Target: Treena Bray, Dominion Lending Centres Brayco Financial Canadiana Financial - Men’s Closest to the Pin: Lorne Rackel, Jayman Financial Corp.

Home Trust - Women’s Closest to the Pin: Kim Lindsay, Quantus Mortgage Solutions

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Tourney Pics Available #AMBAgolf and #AMBA2016

THANK YOU TO ALL OUR SPONSORS! Title Sponsor:

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Funds Raised for Community Key Together we raised more than $3,000 for Community Key at this event. AMBA has been raising funds for Community Key at events throughout the year, a charity that helps families that are caring for a seriously ill or critically injured child in paying their mortgage or rent payments, allowing them some relief from one of their largest financial burdens. Special thanks to Jared Morrison for donating his share of the 50/50 ticket winnings that totalled $680!

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Meet Our 2016 AMBA Award Winners On June 6, AMBA hosted our Awards Under the Stars gala at Camp Jasper. This special evening honoured the standout mortgage professionals in our province and highlighted the achievements of our members for their longevity, leadership, ambassadorship, partnership, volunteering efforts and overall excellence. Next year, don't miss out! Nominate someone to win an AMBA award.

Volunteer Award - Erica Fikkert, Equitable Bank Were you surprised to win the Volunteer Award?

"Yes very much so! As I am the events director not much gets past me and I just figured we did not have a candidate for the award this year and I never thought to check. I was quite surprised and speechless."

What does winning this award mean to you?

"It was an honour to be recognized and I am so thankful to our industry for being able to work so well as a team to accomplish our events."

What was one memorable experience you had working with AMBA this year?

"As the events director I have the privilege of working with AMBA staff. Every event is special and comes with challenges. At the end of the day seeing how everyone’s hard work pays off and to see the members enjoying themselves is quite rewarding."

What would you tell potential future award winners about volunteering with AMBA? "AMBA is evolving and needs new fresh ideas. I would like everyone to be part of the change and create a future that empowers us all to be better in our industry."

Partner Award - Nadeem Jiwa, MCAP Were you surprised to win the award?

"Absolutely surprised, considering who was nominated in the category. For one being nominated is awesome, being included with Lisa Burtlette and Mike Wolfe who have done so much for the industry is an honour itself."

What does winning this award mean to you?

"You never really think about participating/partnering with AMBA to win any type of award, it's just something you do because it's the right thing to do. It was extra special being that my wife Marcie was in attendance and was able to share it with me."

What was one memorable experience you had working with AMBA this year?

"I would have to say the broker Olympics held in Calgary earlier this year. It was my first time at the event (being based out of Edmonton) what an awesome event! It was great to see the comradarie in the industry."

What would you tell potential future award winners about volunteering with AMBA? "I think if you can, all members should volunteer one way or another. I think it gets missed as to how much work AMBA does behind the scenes with the regulatory bodies as well as the other associations. It was installed in me when I first started in the industry by Bonny Clarke that this is an amazing industry and if you can, you should try and give something back to our association."

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Leadership Award - Gord Appel, TMG The Mortgage Group Were you surprised to win the award?

"I was honoured to win the award and surprised to have been nominated twice.

It’s humbling to have been in the circle with such high calibre people."

What does winning this award mean to you?

"It always feels great to be recognized for the things that matter most to you, be it in business or your personal life. I have always held a spot for helping others where I can, my role at TMG The Mortgage Group (AB) allows me to not only be a leader but give back to the industry and assist those who may need it."

What would you tell potential future award winners about volunteering with AMBA? "If you are in an industry and care about that industry, it is important that you immerse yourself in the culture of the company you choose and support your association(s); volunteering is the best way to ensure the viability and strength of our association moving in to the future. Without support for it, we all lose the provincial (and national) voice we need to keep our autonomy and our strength."

Ambassador Award - Bob Hutton Were you surprised to win the Ambassador Award?

“Yeah, I was surprised. The committee did an excellent job keeping it a secret."

What does winning this award mean to you?

“Being recognized by your peers is an honour that never gets old and I really thought I wasn’t on anyone’s radar anymore. As a past Director for three terms and having spent many hours on special committees, I feel that we as directors helped steer AMBA in the right direction to becoming the great association it is today.”

What was one memorable experience you had working with AMBA this year?

“The most memorable experience I have had working with AMBA was the honour of organizing the first tradeshow we ever did. Wow, we only had 16 booths and utilized the Lodge at Kananaskis — what a hoot!”

What would you tell potential future award winners about volunteering with AMBA? "Working together as a team solves problems in our industry, promotes friendships as well as upholds education and regulatory standards. We should all work together to further these causes."

Bill Patton Memorial Award Brian Gentles, TMG The Mortgage Group Were you surprised to win the Bill Patton Memorial Award?

"Surprised yes, and honoured. Of course we know we’ve been nominated. But many deserving people are also be nominated. Being nominated is an honour in and of itself. I thank the team behind the nomination for their faith and confidence in me."

What does winning this award mean to you?

"Bill Patton was a wonderful role model for our entire profession and one of my very early industry contacts. I watched and listened carefully to Bill; to learn all I could from him. I am humbled to be associated with such a fine man through this award, and with the deserving prior award winners. I will strive to continue to earn this distinction."

What would you tell potential future award winners about volunteering with AMBA? "We live in a great environment and we’re engaged in an important profession. We have much to be grateful for. Every one of us should find ways to give back to our community. There are endless ways to do this and volunteering internally within our profession is just one. It is a great way to get to know our colleagues on a different level and build strong relationships which will last for many years."

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Introducing the WIMI Award for Innovation What is the WIMI Award for Innovation?

It’s difficult to be original in a rapidly evolving world. So when someone, or a group of people, is able to inspire others to excel in their roles and make a difference in their industry, they’ve achieved something special. This year, AMBA introduced the WIMI (Women in the Mortgage Industry) Innovation Award – for those who inspire others to do something great.

And The Award Goes To…

The first WIMI Award for Innovation recognized a group of individuals who through innovation have changed how women in the industry communicate. Their social media platform has grown exponentially since its debut only 18 months ago.

The winners were Hali Noble, Suzanne Bebbington and Suzanne Aujla, the three co-founders of the WIMI Facebook group – an online forum where women can discuss industry issues, lender policies, mortgage industry education and more from coast to coast.

WIMI ladies mentor, collaborate, share ideas, experiences and opportunities. The forum is a place where they encourage each other to get more involved as industry professionals and as women leaders to help transform the landscape of mortgage brokering and lending in Canada.

Having dedicated and professional women joining as members, their approach is to foster a friendly group of like-minded successful women who want to grow their businesses but still appreciate the value of having a life, socially and philosophically, and having fun!

WIMI also holds face to face social networking events, online contests and educational seminars.

Hali Noble, Suzanne Bebbington and Suzanne Aujla Were you surprised to win the WIMI Innovation Award?

“We were blown away; it was certainly shocking. We had no idea at all.

We were really pleased when they called it the WIMI Innovation Award.

It’s going to carry on, as innovation is certainly something we always look for in our industry.”

What does winning this award mean to you?

“Innovation can be a lot more than technology – it certainly involved social media in our case but not any specific technology. The WIMI Facebook group is innovative because it was different and new. The success of it shows that obviously there was a need.”

What was one memorable experience you had working with AMBA this year?

“I love AMBA and for the first time in many years I feel like they are really being progressive. They’re talking to other mortgage groups like Mortgage Professionals Canada and representing the industry as a whole, not just certain groups. Mortgage brokers, stakeholders, lenders, providers, it all feels really positive. The staff there are inviting, you don’t call and just get voicemails. AMBA’s value proposition is clearer, in my mind, than it ever has been.”

What would you tell potential future award winners about volunteering with AMBA? “Be creative. Take chances. We didn’t know whether there would be 20 or 30 people in this group and now there is 2600. We just felt that there was a need to take action. Don’t be afraid to fail. Step outside your comfort zone, do something different, be innovative. That’s the key. As an industry professional we have to do things on our own to be better but if we provide services that are for the greater good of the industry as a whole we can all be better. If my innovation can benefit the greater good, that’s where we make the biggest difference.”

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80% WHY CHOOSE US?

LOAN-TO-VALUE Tim Hurlbut

BUSINESS DEVELOPMENT BC/AB/ON

tim@awcapital.ca T 403.254.9075 x 224 C 1.403.928.5436

awcapital.ca

Growing Your Business Mark Pullin, Cedar Peaks Mortgage Services Ltd.

Growing your business is a thought that I’m sure has crossed your mind often, however getting started and knowing what to do is not always easy. The first step is to have a clear plan and objective. As a mortgage broker, to grow your business you require more customers who are in need of a new mortgage or a refinance, if you are the Owner of a Brokerage you need more Associates who produce results, and in my case as the Owner of a Private Lending firm we need to fund more mortgages. That’s the simple part.

The same principals apply to all of us to be successful in growing our business. Here are some of them to get us started:

Commitment – taking your business to the next level will not happen without commitment. You will need to commit to continual change in the way you have done things in the past.

Be Prepared for the following: • To devote more time to the business • Additional financial investment • Additional resources such as technology/system upgrades, hiring staff, and new marketing techniques so your level of service does not suffer due to growth

Develop a Plan – Now that you have decided to grow your business, and are committed and prepared to do so, a plan must be developed and implemented to achieve your objective.

To do this consider the following: • Set a goal for the size of business you want to create based upon your time commitment, family situation and financial needs then prepare your business plan to reflect the same • Recognize and embrace your strengths and weaknesses.

Concentrate on doing what you do best, then delegate the rest. The results of this practise will amaze you • Determine your niche market and how best to get your product and message to them. It could be a print marketing/ advertising program, a phone campaign to all your past clients and database contacts, seminars or open houses, or my personal favorite – face-to-face. In any case, do not be afraid to “ask for the business” • This One Is a Must – Develop an internet and social media presence. An effective website is an integral part of business today, and one of the first steps your potential customers will take in determining whether they want to do business with you. Remember you only have one chance at making a first impression • Create, use, and keep current a Twitter and Facebook account. These are effective and inexpensive marketing tools that keep your name in front of your customers. I have learned the hard way “out of sight, out of mind”. There are many

resources to guide you through these processes – remember to do what you do best and delegate the rest if this is not your area of expertise

NOW WHAT? At this point let’s assume you are well on the way with your growth plan and are starting to see the results, and the age old question pops up – “Now what?” Or, “How do I keep the momentum going?” Here are a few ideas to help if that should happen: Be realistic – Your desired results may not happen overnight; however, remember that every large business started small Be adaptable and flexible – No plan is perfect from day one.

Things change so you may have to alter some aspect of your plan at some point in time Network, Network, Network – Join your local Chamber of Commerce, join a business networking club, join industry associations, join your community association, and attend industry events The phone is your friend Ensure you have a Client/Customer retention program. Ask for immediate feedback, but also follow up at least quarterly with a newsletter, a phone call, a postcard, an e-mail, something. Show your customers you care Keep Learning Offer a free seminar or webinar Pay attention to what your competition is doing. The best way to compete is simply to be better Hire the right people and resources And lastly, work smart and work hard, serve your customers well, and stay focused!

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Member Profile

Dean Koeller Dean Koeller graduated from The University of Calgary in 1997, and joined is father and later his brother in Calvert Home Mortgage Investment Corporation. Dean is responsible for operations, compliance and investor relations for the business. He has served two terms with the AMBA board, one year as treasurer and one as president, 6 years as the chair of the Private Mortgage Lenders Forum, a current board member of cSPACE and actively assisting the management of the Charitable Foundation of the Family.

Where are you from?

I am an Alberta bread.

How did you get started in the business?

After I received my BCOM from the University of Calgary in 1997 I sat down with my father Everett Koeller to review two offers of employment that I received upon graduation. My father asked me what I really wanted to do, I said I wanted to be an entrepreneur, but had no idea what kind of business I wanted to be in. He made an offer to work with him in his business for a year, but the deal was that I could not quit until the year was up.

I accepted his offer and needless to say he did not make it easy, but by the end of the year the mortgage business was in my blood and I have not looked back. I have really enjoyed my time in the industry (19 years), and loved working with borrowers and mortgage brokers to make a difference in the people we serve. The industry truly has the ability to change lives through the work that we do.

Please tell us a little bit about your company.

Calvert Home Mortgage Investment Corporation has been operating for more than 40 years, providing first, second and short term finance for the real estate market. We perform our own in-house valuations and legal which allows us to provide quick and flexible financing options.

Our purpose is to be a trusted advisor offering an effortless experience in providing short term lending solutions for the financial success of others.

34 Fall/Winter 2016

Please share three facts about your company.

1.

We truly care about the clients, partners and shareholders we have.

2. We have an exceptional team who are committed to helping others.

3. We have financed over 5,280 properties and over $450 million in mortgages.

In such a competitive market, how do you stay ahead of your competitors and remain successful?

First thing is to be very clear on how you define success.

We believe that if we remain trusted advisors and offer an effortless experience and remain committed to others’ financial success that our success will grow out of that.

Being a trusted advisor means being accountable, honest, authentic and continuously learning and developing to identify ways that you can provide exceptional value to others.

Effortless experience means being relentless in selfimprovement and enhancing systems, processes and operations to better serve the client. There are always things that you can do to improve which requires looking inward and outward as to how best you can exceed the expectations of others.

What’s your favourite AMBA event?

Committed to the financial success of others. You have to look out for the best interest of others before your own.

The Jasper conference was definitely a highlight, but my favourite would have to be the Edmonton conference where my father received an award for his contributions to the mortgage industry.

What aspects of the mortgage industry do you find most challenging?

Regulatory changes for the private lending industry over the last seven years.

What other professional associations do you belong to?

What is your vision for the mortgage industry?

I believe that technology is going to continue to play an essential role in how we generate and operate our business to greater efficiency and effectiveness. We are going to need to be experts in providing education to better empower borrowers. I also believe that our industry is going to become less transactional and more relationship focused. Those that can make it easy for others to do business with them will have more success.

What do you love about mortgages?

Mortgages are an instrument to assisting individuals, families, homeowners, real estate investors and business owners to achieve their personal and financial success.

What is your experience with the Alberta Mortgage Brokers Association (AMBA)?

I took the Mortgage Brokers Course in 1997 and had the pleasure of learning from industry icons such as Bill Boon and Harrold Vickers. AMBA also introduced me to many other amazing people who openly shared their knowledge and experiences. I have had the pleasure of serving two terms on the Board, which gave me an appreciation for having an industry association which is committed to professionalism, education, collaboration, advocating and association. AMBA was instrumental in supporting my efforts to start the Private Mortgage Lenders Forum and assist in building a stronger better industry.

• Canadian Association of Family Enterprise (CAFÉ)

• Private Mortgage Lenders Forum

• TEC Canada

Please share three fun facts about yourself.

1.

Awards: Top 40 under 40 (Avenue Magazine – 2006), AMBA President’s Award (2012), Queen Elizabeth II Diamond Jubilee Medal (2013)

2. Training for a half marathon, love to hike and camp, have my Diver Rescue certification and love underwater photography and getting involved in community activities.

3. Have a strong affinity to all things Superman and Star Wars.

4. Married and have two amazing boys who challenge me to be better.

How long have you been an AMBA member?

19 years

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You Don’t Have To Like Me; You Just Have Trust Me Tim Hurlbut, Alta West Capital

A good friend of mine, and one of the best sales people I know, taught me a life changing theory about sales. He often says “You don’t have to like me; you have to trust me.”

Yes, I know I am going to catch grief, as I always do, for referring to mortgage brokering as “sales” (please send your hate mail to AMBA). The truth is, we are all sales people and once we are comfortable with that, life gets easier and you tend to fund more mortgages.

I have been in the sales industry my whole adult life, I worked at clothing stores in college, owned a business and even tried my hand at selling cars. I was never successful at those ventures, as I wouldn’t admit to myself that I was “in sales”. Sales has a connotation about it that I wasn’t comfortable with, but once I came to terms that I was indeed a sales person, I realized that I would be successful.

So what changed, what made me become comfortable with being “in sales”?

I realised, that if I listened to my customers and truly understood why the were looking to buy, I could provide a solution, I could scratch their itch. To someone looking in from the outside, my solution might look awfully like a sale, and it probably was, but more importantly, to the customer, they had purchased a solution. They trusted me with their problem and I provided the solution.

So why I am telling you this?

Well, if you have read my last few articles, they are all about how to “sell” your mortgages to underwriters in order to get more approvals. Now, I want to dig deeper in to how you gain the trust of your client and in turn use that trust to help them scratch that itch.

As a specialist in the private lending space, I’m going to focus on the ever growing niche of private lending clients, but these tips will work with all clients. When we look at the typical reasons why clients require the services of a private lender, it’s because they generally need help with one or more of the following; improving bruised credit, proving income , or my personal favorite, managing the fallout of life events.

No matter what the reason, here is how I go about building trust and solving problems

1 - Find the problem - Yes, we all know the

problem, the client needs a mortgage and you can’t qualify them at a bank. That is a problem, but what is the real problem? What got the client into their current circumstance? What do they want to achieve? How do they want to achieve this? What’s stopping them from achieving their goal? Do they have any suggested solutions? These can be tough questions, and it’s not always easy to ask – but as I’ll show you in step three the more you know about the real problem the easier it is to fix.

2 - Care about your problem - Great, you

have found the problem, you now understand a little about their motivation, now what do you do? You care about the problem; you empathize with the client, you assure them they are being heard and you start to build trust. Because the last mortgage broker didn’t even ask, they simply tried to win the business on price, this is where you start to stand out. You start to show you care and you start to show you can be trusted. Now is the time to show you care, don’t wait till the going gets tough.

3 - Fix the problem - Now it’s time to boil the problem down to the underlying mortgage qualification issue. But here’s the secret sauce. Don’t fix the problem with shop talk, clients typically don’t really care about ratios and stress tests, they care about achieving their goals.

Remember you are the mortgage professional, they are the client, qualification ratios are your problem not theirs. This is why step one is so important. If you’ve asked the tough questions you really know what itch they need to scratch, so now’s the time to go ahead and scratch it. Instead of explaining how clearing their credit cards will bring their ratios in line, explain how clearing their credit cards allows the purchase of the dream house.

You asked the tough questions, you got to understand their situation a little, you showed you cared, built their trust with then you provided their solution.

This brings us back to the wise old man “You don’t have to like me; you just have to trust me”. As cliché’d as it is, spend the time early on really getting to know your client, understand their motivation, find that itch and then use that trust they built in you to scratch that itch. Do that and you’ll get shopped less often and you’ll close more deals.

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Fall/Winter 2016

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March 3, 2017

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