AMBA Matters Summer 2012

Matters

f f n a B

2012 CONFERENCE PREVIEW

AMBA SHOWS THE

BEST

STOP OUTSOURCING YOUR SEARCH FOR INFORMATION ALSO INSIDE NEW ANTI-SPAM LAW: WHAT DOES IT MEAN TO YOU?

SUMMER 2012

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Matters

SUMMER 2012 CONTENTS

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A SPECIAL THANKS TO OUR ADVERTISERS...

Verico �������������������������������� 2 Optimum Mortgage ������ 5 Fisgard ����������������������������� 7 Romspen ������������������������� 8 Equitable Trust ������������� 10 The Personal ����������������� 12 Cedar Peaks ������������������ 12 Lanyard �������������������������� 19 Bridgewater Bank ��������� 25 Richard I. John �������������� 26 RMG ������������������������������� 31 Alta West Mortgage ����� 32 J.E. Fletcher ������������������ 33 Caplink �������������������������� 33 Capital Direct ��������������� 35 First National ���������������� 36 Two Grey Suits �������������� 37 VWR Capital Corp. �������� 39 LMS ProLink ������������������ 39 Dominion Lending ��������40

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 200, 1940 9 Ave. SE Calgary, AB T2G 0V2

SUSAN KLEIN MEMORIAL

GROWING YOU BUSINESS WITH PRIVATE LENDING

PRIVATE LENDING IN ALBERTA BEYOND THE RECESSION

STOP OUTSOURCING YOUR SEARCH FOR INFORMATION

ASK THE EXPERTS: PRIVACY IS DEAD

EDUCATION: MENTORING A CONCEPT FOR THE TIMES

E&O LIABILITY INSURANCE IS DIFFERENT

OSFI LETTER AND UPDATE

GATHER IN THE ROCKIES WITH AMBA

GOLF PREVIEW BANFF SPRINGS

PIPA FEATURE: NEW ANTI-SPAM LAW

ELECTION UPDATE: YOUR NEW BOARD MEMBERS

AMBA 2012

BOARD OF DIRECTORS President-Elect Ron McClenaghan Invis

Past President Paul Bojakli Quantus Financial

Gord Appel TMG

Erica Fikkert Equitable Trust

Todd Fralic Quantus Financial

Nadeem Jiwa MCAP Service Corporation

Len Lane Verico Brokers for Life Inc.

Adil Mawji Invis

Phil McDowell Mortgages Are Marvellous

Cathy Sehn Verico Your Mortgage Professionals Inc.

Ryan Spence D+H

Kevin Weeks Weeks Law

UNDERSTANDING MORTGAGES

MLAA: THANK YOU TO OUR SPONSORS

OTHER FEATURES...

President’s Message 5 Executive Director’s Report 6 Industry News 26 AMBA Social Centre 30 AMBA Community Member Briefs 32 Member Profile of Asif Nazarali 34 Use An AMBA Mortgage Professional 37 AMBA Calendar 38

AMBA/RECA REP Gary Siegle Invis Inc.

Publication Manager and Editor - Amanda Roy-Macfarlane

Return undeliverable Canadian addresses to: Alberta Mortgage Brokers Association Suite 200, 1940 9 Ave. SE Calgary, AB T2G 0V2

SUMMER 2012

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Susan Beth Klein 1959 - 2012

Summited by Jay Golumbia I was pleasantly surprised and honoured when Amanda emailed me and requested a tribute piece for Susan for AMBA Matters.

Although Susan hadn’t been directly involved for a number of years, her contributions to the industry and to the AMBA board were considerable (as illustrated by the turnout at her funeral service ... thank-you all!). It is a privilege for me to share some thoughts and to express my ongoing appreciation for the support and friendship shown by our colleagues and friends from the Alberta mortgage industry.

Susan came into this world in Edmonton on March 17, 1959, and was the youngest child of Hy and Viola Klein and sister to her brothers Michael and Joel. (Susan is predeceased by her dad and both of her brothers.) Susan began her working career at her family’s hotel business from a very early age and went on to college to study in the area of hospitality administration as well as marketing and graphic arts. She had a flair for gourmet cooking as well as a love of fine wines and put her education to good use developing her own catering business as well as working in a number of marketing positions in Edmonton and Calgary.

She also had a passion for real estate investment and an interest in developing her skills in this area, so she pursued a business development position with CMHC in the mid ‘90‘s, establishing lasting business relationships in the mortgage and real estate industry.

She also served as a committee member and director with AMBA. In December 1999, while attending an AMBA/MLAA event, she met yours truly (Jay Golumbia) and after reconnecting at the AMBA bonspiel in Calgary, it was clear that we had both found our ‘soul mate’ and were married in March 2001.

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SUMMER 2012

In 2003, Susan left CMHC to join me in the business and I could see the work ethic and value she brought to everything she did as she continued to thrive and developed a number of marketing and education initiatives that are still in use today. She tolerated working with me for more than three years when we decided it was time for her to pursue her real passion and turn her pottery hobby into another enterprise called Flying Fish Pottery. We created a home studio where she crafted wonderfully functional pottery and created a dynamic website, while developing relationships with a number of galleries, markets and exhibitions. She was selected to display her work at the Alberta Craft Council … and she was living her passion and loving it!

In summer of 2011, we received sad news that Susan’s oldest brother Joel had a rare and inoperable brain tumor and he eventually passed away in November. This was a great loss for Susan and her mom.

More sad news came when Susan was diagnosed with stage IV pancreatic cancer in late 2011. After a brief bout with an acute stroke, she left us far too soon on March 28, 2012 ... just 11 days after her 53rd birthday and two days after our 11th anniversary. It’s been said that Susan Klein had a ‘specialness’ and that she didn’t just enter a room ... she glided. In her last days, Susan showed immense courage and grace making sure we all knew she was at peace and taught me more about life than I have learned from anyone ... EVER ... and continues to inspire and guide me as I continue to work on the vision we both had for the future. She gave much love to everyone that entered her world and her spirit and soul live on. Plans for a memorial fund are in motion and a memorial tribute for Susan is being planned for October. Please feel free to contact me for more information at jpg.homeinsight@gmail.com.

PRESIDENT’S MESSAGE Paul Bojakli AMBA President

My year is almost up and I feel like I have not accomplished anything in my term. I must say, at points, I was feeling like time stood still and I was counting the seconds. I recently had the opportunity to personally call members and I enjoyed talking one on one with everyone.

It might be difficult to believe, but quite a bit was accomplished this past year. We established a formal relationship with the other associations regarding four key points: 1. Education: It is agreed that the need for the associations to present a unified education position to industry and all regulators is tabled as high priority. The associations agree to pool our education assets into a single delivery channel that will better serve the entire mortgage industry.

2. Self-Regulation: There is a need to develop a strategy to accommodate becoming a self-regulated organization. Incorporate this strategy into the education program and energize our members on the opportunities available with this new focus. To ensure success, we would build a dialog between consumers, the associations and regulators.

3. Errors & Omission (E&O): We agree to leverage our agreement as the associations to collectively benefit our members. E&O is now mandatory in most provinces and we can agree that it will become mandatory nationally.

Ensuring we are communicating and establishing relationships with current E&O providers requires the involvement of each association.

4. Regulatory Bodies & Government Affairs (Harmonization/Reciprocity): It is agreed that the associations will begin to support a national government initiative while at the same time maintaining relationships

within their current political landscape. All associations agree to provide information and resources to each other. New associations from Manitoba and Saskatchewan are emerging and the general feeling is if the associations were unified, there could be assistance available to have new associations develop faster and as a stronger entity to the collective benefit of all associations.

All associations should move to become professional associations rather than exist as trade associations. Mutual Political Councils should be established to address ongoing issues or concerns both nationally and provincially in order to assist each other with a strong unified voice. With regulators beginning talks or restructuring into one entity, it is important that this issue is recognized as a high priority.

Most recently, we started a new AMBA Chapter in Saskatchewan. I appointed Lionel Lewko as the Saskatchewan board representative, since he was instrumental in organizing this.

Currently, we are working with a formal proposal from CAAMP to see if we can benefit each other’s memberships. While the association is working hard to accommodate everyone, you must remember there is a bigger picture here, and it requires your patience and input.

I now have a sincere appreciation for my predecessors. I would like to say that I am fortunate to have a strong board that supported all my initiatives.

I will miss the directors leaving and I want to personally thank them for working so hard the past two years. I want to thank the AMBA staff, and most importantly, thank all the members who support AMBA and myself.

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SUMMER 2012

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EXECUTIVE DIRECTOR’S

REPORT SUMMER 2012 Judy Martin AMBA Executive Director

AMBA SHOWS THE BEST …

The best what? You might be saying to yourself, “the best conference, the best trade show, the best keynote speakers and seminars, the best awards platform, the best networking/socials, the best WHAT?”

The best location, Banff Springs Resort, a.k.a., the Castle My answer to you is … yes!

In addition to all the things you may have been saying to yourself above, the AMBA staff want to honour our long-term members – those of you who laid the foundation for this association, pioneered your way through to create the BEST industry that you have an opportunity to work in.

If and when you have an opportunity, thank one of the founders or long-term members of your Association and ask them why AMBA is of value, or why they have stayed a member for so long. Hear from the BEST why membership is a good business decision.

I know you will hear things like credibility, integrity, loyalty, professionalism. You’ll also hear things like 'strength in numbers', 'one voice', 'like-minded people' who believe in growing professionally together. You will also hear many stories of what it was like back then and all the changes that have occurred

AMBA SHOWS THE

BEST

over the years. I know, because I have listened to many stories and I have to tell you, they are the BEST. Change is an understatement when we look at how the mortgage brokerage landscape has transformed since 1975, from Baby Boomers to Generation X, from running the documents to the bank to electronically transferring the documents. There is a world of differences today from when this Association launched in 1975. The Baby Boomers felt a loyalty to their association. Today, the younger generations ask the question, “what’s in it for me?” Like my son tends to say to me, “mom, you just don’t get it. I’m from a new generation!” Well, he is right, I don’t get it. But to compensate for my age and misunderstanding, I can at least hire people to work at AMBA who do get it … I have both Gen Y and Gen X staff, not to mention me, a boomer. In our round-table discussions, we have the perspectives from all the generations and make the BEST decisions accordingly.

When I hear the comment, “what’s in it for me,” I want to respond quickly with President Kennedy’s famous quote “Ask not what your country can do for you. Ask what you can do for your country.”

Change country to association and then rattle off AMBA’s slogan

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SUMMER 2012

BEST of the BEST

AMBA'S FOUNDERS AND LONG-TERM MEMBERS Everett Koeller Calvert Home Mortgage Investment Corp. (36 Years)

Bob Cameron Cameron Financial (35 years) of, “success isn’t a matter of chance, it’s a choice” and explain that everything we do from this office is about you, the member, and helping you succeed in your business as a mortgage broker.

Keith Gilmour

Instead, I have made a decision. I am going to gather a group of AMBA members from the different generations, with long-term and short-term years of experience, try for an equal split of males and females, from small brokerages to large brokerages. We will have a brainstorming group to answer the question, “What’s in it for me?” and provide evidence that the return on your membership investment will exceed your membership fee, and then some. If you are interested in participating in this fall group, please call the office and let me know.

Investments (22 Years)

In addition, I plan to start up a “Future Generation X Leaders” of this association committee in the fall; it is time for you to start paving the way with your BEST ideas for the future. If you are interested in this fall committee, please call the office and let me know.

Calvert Home Mortgage Investment Corp. (14 Years)

But for now, let’s give gratitude to the BEST of the BEST – our founders and long-term members!

Axiom Mortgage Makers (28 Years)

Mark V. Larry Frondall CMS Real Estate Ltd. (19 Years)

Carol Williams Summit Mortgage Corp. (19 Years)

Eric Stewart Versatile Mortgage Corp. (17 Years)

Dean Koeller Doug Cooper DLC Key Financial (9 Years) Have we heard from you? Tell us how long you’ve been a member. Send your responses to info@amba.ca.

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SUMMER 2012

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THE MORE YOUR DEAL LOOKS LIKE A LONG SHOT, THE MORE WE LOOK LIKE A SURE THING.

GROWING YOUR BUSINESS WITH PRIVATE LENDING Jared Morrison, Alta West Mortgage It’s reported that back in 470 BC, the Greek philosopher Heraclitus said “the only constant is change” (or at least words to that effect). It should be no surprise that there are changes both underway and still to come in the mortgage industry.

We are all aware of recent product changes, rate wars, ever tightening insurance requirements, not to mention the touted upcoming OSFI changes. We all recognize selling on price is a limited strategy.

THE PRIVATE LENDER SEES THE WORLD DIFFERENTLY TO ‘A’ LENDERS In general, private lenders do consider the five C’s of credit.

However, they typically consider them in a different order than ‘A’ lenders, giving more weight to collateral and capital, with less weight on capacity, character and credit.

So when dealing with a private lender, always be able to articulate clearly what the collateral is, where is the property located, what it is (single family property, condo etc) and to what LTV the client requires. Once you meet the lenders requirements on these criteria, you can move on to the other Cs.

UNDERSTAND THE OPPORTUNITY PRIVATE LENDING OFFERS TO YOUR CLIENT Private lenders are not looking to provide lifetime lending solutions to your client. Just like the client wants to move on from the private lender, the lender is typically happy to be repaid. Generally speaking, the products offered are short term, one or two year deals. The products are designed to patch a hole in the client’s financial life and allow the client to move on. Always consider the exit strategy when placing a Private deal. What comes next for the client? How am I going to help my client move from where they are now to where they want to be?

UNDERSTAND THE OPPORTUNITY PRIVATE LENDING OFFERS YOU Placing a client with a Private Lender can create the following business for you.

With every change we have challenges, but change also brings opportunity. For you, the mortgage professional, that opportunity may lie with private lending.

Are you open to the possibilities offered by private lending?

Would you like to know more?

Lets start by looking at the major difference between ‘A’ lenders and private lenders.

LOYAL CLIENTS Are you sick of being rate shopped? Private clients are typically some of your happiest clients; more often than not, they appreciate the solution and, despite rates being higher, are less rate focused.

LOYAL REFERRERS Often we find that our clients refer similar clients to us.

Whether it’s a self employed plumber, a property developer, or simply someone who needs a bit of credit help, they love to tell friends how we could help.

GENERATES MORE BUSINESS FROM THE SAME CLIENT Of course, by considering what comes next for your client and mapping out the way forward, you are likely to be in a position to help them a second time by refinancing them when the time is right. It is entirely possible you will refinance them two or three times as you move them from where they are to where they want to be.

BUILD RELATIONSHIPS WITH REFERRAL SOURCES Nothing says thanks to your referral sources like sending a referral back the other way. When appropriate, include your referral sources in your plan for your client. If they need to get taxes done to qualify for ‘A’ rates, send them to your accountant. If they need a realtor, refer them to one you trust. Use the opportunity to build your referral relationship.

Learn the place of Private Lending and let it help you grow your business.

SUMMER 2012

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PRIVATED LENDING IN ALBERTA BEYOND THE RECESSION HAVING TROUBLE FINDING A PRIVATE LENDER? Not surprising considering the changes that have gone on in the last few years. There seem to be a few less (private lender) players on the block these days and there are some very good reasons for it.

NEW REGULATIONS.

With the recent adoption of new securities rules in Canada, private lenders were forced into additional compliance, which encouraged some lenders to exit stage right. Others that continue to operate but are not compliant are getting noticed by provincial security regulators.

SLOW RECOVERY.

Alberta took its time to recover from the real estate correction that occurred three years ago. This left some private lenders anchored with impaired mortgages and foreclosed real estate, which forced some to close shop.

SO WHAT DOES THE FUTURE LOOK LIKE FOR PRIVATE LENDING? One opinion is that with new securities regulations, we will see consolidation in the private lending business. The increased cost of regulation and compliance makes it difficult for small lenders to continue and leave larger, more sophisticated operators.

The profession will be forced to become more professional and accountable for conduct with both borrowers and investors.

The goal of AMBA’S Private Lenders Forum is to ensure an equal and level playing field for the industry, to encourage compliance and raise standards, and to ensure mortgage brokers and borrowers are confident they are working with reputable lenders that are dependable, trustworthy and committed to the longterm health and interest of the industry.

In the coming issues of AMBA Matters the Private Lenders Forum will provide an Alberta Private Lenders Directory listing the operators that are committed to the Forum’s goals.

For more information about private lending, the Private Lenders Forum or related issues, please contact Dean Koeller at dean@chmic.ca or Dave McKitrick at dave@altawestmortgage.com.

INCREASED COMPETITION. Due to the random returns (and losses) that investors experienced in the stock market during the recession, many investors redirected their investment dollars to private lending with the hopes of more stable returns. Unfortunately, the timing is poor – a depressed real estate market with less private lending deals and increased competition causes lower and more unstable returns. While this may be good news for borrowers since an increase in competition lowers interest rates, it has created additional challenges for private lenders.

Tighter mortgage rules and higher underwriting standards for financial institutions in Canada will continue to drive the demand for alternative lending sources. Private lenders can go outside the box and find opportunity instead of barriers. They look at the power of equity instead of the limitations of credit.

SUMMER 2012

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12 SUMMER 2012

The right fit.

STOP OUTSOURCING YOUR SEARCH FOR INFORMATION Ryan Spence, Davis + Henderson.

I’ve pretty much forgotten all of the knowledge I spent years and thousands of dollars cramming into my brain while I was at university.

Fortunately, I have the chance to do it all again – my eight-year-old brings home school work on a semi-regular basis and anything she doesn’t understand she asks me (being in her eyes the fountain of all knowledge).

The biggest problem is that I have no idea what she is asking. How to add with a Cartesian grid? Which spell does Harry Potter use to make a goblin levitate? So I’m faced with a predicament. I am looked at as the expert in a field for which I may have little or no actual knowledge or experience. I can’t admit I have no idea or my street cred with the Grade 3 posse is shot, but I have to make sure I produce the right answer.

I would bet that you have had the same experience and at some point you needed the correct answer to a problem you only vaguely understood.

Quite often that question starts with you telling me: ‘The thing on my computer isn’t working,’ followed by some swearing. Please don’t tell my eight-year-old but I likely have no idea what the answer to her question is right now. But I have reasonable ability at a skill that is becoming increasingly relevant – how to find the answer right now. The speed at which you can find an answer often hinges on the question you ask and where you ask that question.

back and resume the application. This takes 5-10 minutes and amounts to little more than outsourcing your search for information at the cost of (potentially) not getting that client back on the phone.

Instead, take control of your own search for information. Open another browser window, go to a search engine like Google/Bing/Yahoo and type ‘Equifax error codes’ in the search bar. I use Google and looked at the information in the first four results. There was a paid result from Equifax, two lists of the error codes and what they mean, and a PDF from D+H Expert explaining how to read the Equifax report if an error is received.

Total elapsed time from start to finish is about 60 seconds and you then know enough to determine if it is something you can fix (a typo in the application) or something you can’t fix (your Equifax account info is incorrect) and truly need help from another.

Here is a common scenario which I think is a good example of the benefits of being in charge of getting your own information. An associate is taking a mortgage application with a client on the phone and pulling a credit bureau doesn’t work. Instead of getting a credit report, you get an error message and a couple lines of what looks like gobbledygook. At this point, there are two paths you can take.

The more searching you do, the better you will be at asking the questions, thinking of keywords that will help and refining your questions if the initial results don’t provide an immediate answer. You can look in other places. We have lots of complex technology at our fingertips so the natural inclination is to think you need to ask someone else. But companies that supply complex technology realize that it costs a lot to hire people to answer those questions. As a result, they spend more money on providing resources to their clients so their clients can solve their own problems.

They also are pretty good at knowing what questions clients have most often and will tailor the delivery of those questions through an FAQ, Help or Tutorial within their software. Additionally, it is almost certain there will be a host of information to be found by clicking on the answers posted in Web discussions where others have asked the same question.

The typical path is you halt the application, call the helpdesk, start with a variation on the statement ‘the thing on my computer isn’t working’ and complete a short troubleshooting exercise to determine what the error message really means. Once a solution is found, you call the client

So your mission, should you choose to accept it, is to stop outsourcing your search for information and develop your own searching for information skills. The next time you get an error message or something doesn’t work the way you expect, challenge yourself to find a solution.

DON'T GET FUSTRATED WAITING FOR A HELP DESK TO GIVE YOU AN ANSWER

JUST TAKE A COUPLE OF SECONDS AND SEE IF YOU CAN FIX THE PROBLEM YOURSELF.

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ASK THE EXPERT:

PRIVACY IS DEAD ...

AND DEATH RATTLES CAN BE VERY SHAKEY! This Issue’s Expert

KEVIN WEEKS Weeks Law

Kevin Weeks practices at Weeks Law in Calgary, Alberta, with more than 30 years of extensive business and legal practice and experience in a number of fields and industries, including corporate commercial, real estate, mortgages, financing and intellectual property. He is a registered Canadian and U.S. trademark agent and member of the national awareness committee for IPIC, the Intellectual Property Institute of Canada, and member of CCAT, the Calgary Council for Advanced Technology. Mr. Weeks conveys practical legal business acumen in assisting and advising clients with future direction and organizing their legal affairs in a common sense and strategic manner.

The echoing anthem first struck in the 1980s by The Police continues to reverberate, “Every breath you take/And every move you make/ Every bond you break, every step you take/I’ll be watching you”... And Somebody Will Be!

it all out there expecting someone else to shepherd and protect.

That may not be the best plan but it is the plan being implemented and promoted. And now we are going to put it all "in the cloud" for better or for worse. Laws are generally penalistic in nature and that is rearview enforcement rather than prevention and just does not stop bad people. In my opinion, it won't work long-term being artificial in nature, but in the meantime, ‘it is what it is.’

Can you keep a secret? Correct answer is that depends on the secret and circumstances and, most importantly, the person who has the secret. And avoids the real question, which is what is a secret and why?

So when I was asked to write this month's Ask the Expert column respecting privacy matters (issues), I initially thought, “Well, this should be easy; just quote some of the laws in effect and away we go.” Unfortunately, like so many things, first blush is rosier than actual inspection and requires much deeper review.

AND YOU GO, ‘HUH? BUT YOU CALLED ME!’

JOB INTERVIEWS REQUIRING FACEBOOK ACCOUNT PASSWORD. WHO EVER HEARD OF SUCH A THING?

CAN WHO KEEP A SECRET ABOUT WHAT?

Your phone rings at home and supposedly it's your utility company on the other end. They want to talk to you about your account but require your birth date and postal code on the account because of privacy concerns. You go, huh, but you called me. And who is this, really? Sound at least vaguely familiar?

Unfortunately, as we move at ever increasing velocity into our data collection, mining, cross referencing and digital retention future, very little is going to remain secret or private. We are telling people and required to tell people we don't know matters that were not considered secret before, like name and address, but are now state protected under privacy legislation because there are new uses for that information, some benevolent and some not so much. It is growing exponentially, this new version of ‘cops and robbers’ and it is still very early days. It is there to protect us but does that really help?

In some ways this is all a bit like, ‘the jury will kindly disregard that last remark,’ or defamation, where quite often "clearing your name" keeps the titillation at the forefront and at the end of day even if successful everything including you seems smeared. To a certain extent, we put

14 SUMMER 2012

Some of the AMBA membership does have to concern itself with enforcement of privacy legislation within their own organization as AMBA does of itself. Julia Lee, AMBA Privacy Officer, wrote in the Winter 2011 edition about social media background checks and how prospective employers are doing their due diligence through social media searches. Well, here is an update from Associated Press March 21 2012 If You Want A Job, You May Have To Turn Over Your Facebook Password article, which states that both public and private employers are increasingly requesting prospective employees access to their Facebook accounts as part of the interview process. Whoever heard of such a thing? As stated in the article, "It's akin to requiring someone's house keys," said Orin Kerr, a George Washington University law professor and former federal prosecutor who calls it "an egregious privacy violation."

And, yes, several states have introduced or are about to introduce laws restricting such behavior, but in Maryland and Illinois it appears restricted to public agencies. And so it goes.

POLITICIANS MAKE THE LAWS, BUT THAT'S NOT NEAR THE END OF IT

IF YOU NEED HELP, GET HELP

Back to the legislation. Yes, we have here in Alberta the Personal Information Protection Act ("PIPA") and each province has its own version. Yes, they are similar, but not the same remembering that chimpanzees are 98.63% human and the devil is always in the details.

By way of recent example on April 30, 2012, our Alberta Court of Appeal threw into question the constitutionality of PIPA as being overly borad and vague and contravening the Canadian Charter of Rights in United Food and Commercial Workers, Local 401 v Alberta (Attorney General), 2012 ABCA 130 (CanLII). In part, the Court said:

There is no way in an article of this length to cover what is out there, let alone how it might really affect you specifically, because it is so varied and changing depending on what your company does or might do. If you have a website, and it is global – that is a whole other subject. On May 26th 2011 a new EU originated law came into effect that may in time change the World Wide Web as we now know it. This Cookie Law is amended privacy legislation that requires websites to obtain informed consent from visitors before they can store or retrieve any information on a computer or any other web-connected device like mobile phones.

• It covers all personal information of any kind, and provides no functional definition of that term; • The definition of “personal information” as “information about an identifiable individual” is essentially circular; • The Act contains no general exception for information that is personal, but not at all private; • There is no general exemption for information collected and used for free expression; • There is no exemption allowing organizations to reasonably use personal information that is reasonably required in the legitimate operation of their businesses.

And then of course there is the federal Personal Information Protection and Electronic Documents Act (‘PIPEDA’). All of these require that an organization shall designate someone to be accountable for the management of personal information and know what they are doing.

This includes the collection, usage, disclosure, retention, and transfer of personal information to third parties for processing and that person is to be designated the ‘Privacy Officer’ or if at an executive level sometimes ‘Chief Privacy Officer.’ Does your organization have one?

Do you have any idea what their responsibilities are and if it's your company the consequences of failing to provide adherence to the law?

Of course, in some ways all of this is akin to a fire extinguisher which you don't need until you have a fire, but by then it's too late.

So if you have issues and need resolution try what I do when my car breaks down or I get sick.

Retain an expert rather than trying to learn and fix it yourself.

At least they can educate you properly before you try your first intricate maneuvers without supervision or safety net. Anyone who has started any sport knows what I mean; snowboarding and windsurfing definitely being in the top 10 of my sport book of ‘don't try this without lessons.’ Ouch!

What everyone has to be aware of and is critically important in this rapidly changing mosaic is ...”Oh, Oh, word count violation”… To Be Continued …

In The Meantime, Have a Great Day But It's Messy So Let's Be Careful Out There!

Then there is the new federal Canadian Anti-Spam Act (‘CASA’) which is much broader than this unofficial short name suggests which is not really quite yet in full force but coming soon. In March of this year, the CRTC issued the final version of the Electronic Commerce Protection Regulations and implementation will be forthcoming. Anyone who makes use of commercial electronic messages including emails, SMS, newsletters, etc., or is involved with the alteration of transmission data, or produces or installs computer programs needs to be aware of this law. For emails, SMS and newsletters it is an opt-in rather than an opt-out process, so you need consent to send. But if you can't send, how do you get consent? There are exceptions and there will be some transition relaxations but do you even know about it, let alone the intricacies and nuances of how to comply or avoid contravention? It will affect everyone in one way or another.

SUMMER 2012

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MENTORING

A CONCEPT FOR THE TIMES Wayne Stewart, Special to AMBA Matters In earlier generations (my own included), a person often ‘worked to live.’ Compensation from the job made it possible to pursue ends from which we gained our enjoyment. We sought meaning and purpose at the end of the work day and were content with the separation of work and life. Alas, many of us lived entire lifetimes without ever discovering purpose beyond the job, thereby missing much of what makes life meaningful and reducing our contribution to the broader community along the way.

We are told by those who track generational changes that people entering today’s workforce, including those in the midst of career changes, are no longer satisfied with work devoid of meaning and will not remain in jobs in which they feel no sense of purpose. And that, I believe, is a good thing.

Mentoring has emerged, in part, as a response to this recognition that work and life must be thought of as parts of the same whole. It is crucial to success in the current business climate that people new to our organization be ‘mentored’ into their own success, in their work and in their life. As we serve others as their mentor, we also gain a greater sense of our own life’s purpose. And that, too, is a very good thing.

As we introduce mentoring to an organization, it is important that we first clarify the concept. What is mentoring and what are my obligations as mentor?

Some definitions of mentoring focus on the contribution to a person’s career. The University of Victoria offers an example in “a deliberate pairing of a more experienced person with a lesser experienced one with the agreed upon goal of having the latter grow and develop specific competencies.” Another definition that broadens the concept somewhat: “A natural way of passing on knowledge, skills and experience to others by someone who is usually older and wiser with broad life experiences and specific expertise.” The role of mentor under these definitions is most particularly aimed at building competence on the job and both are a bit limiting, in my view, missing the important contribution that mentoring can make to a person’s success beyond the job.

I believe that a mentor is simply “a wise old friend,” someone who “is always available to provide counsel, comfort, wisdom and whatever else they have that the protégé needs.” A mentor makes a contribution to success on the job, to be sure, but the role extends beyond the work to include whatever is required by the protégé to find the purpose and meaning that is so very critical today.

Thinking of mentoring in this way, we can all recall times when we have been mentored, when someone was available just when we needed them. Often that person was a parent or close friend and often our mentor knew very little of our work. Recalling the contribution they made to our situation and the manner in which the help was offered is very helpful as we engage in a mentoring relationship from either the mentor or the protégé side.

As mentors, we serve best when we balance support and challenge.

Our role as mentor is to contribute to the growth of the protégé. This requires that while we provide the required support, we are constantly challenging our protégé to grow. We fulfil our obligation to the protégé best by applying the characteristics of a servant leader, one whose success is measured by the growth of the person being served.

By exploring the concept of servant leader and applying its tenets, our ability as mentor is greatly enhanced.

As we engage in a mentoring relationship, both parties learn and grow together. Being asked to serve as mentor is one of the highest honours that I have received and I never turn down an opportunity to do so.

And I have received significant reward from every such relationship.

Mentoring is truly a concept for the times when people are seeking purpose and meaning in all parts of their lives. Organizations that adopt mentoring as an operating principle and that make such relationships available to people entering the profession, either as their first job or during career change, will achieve competitive advantage in attracting and retaining the best people.

Congratulations to AMBA on the launch of the program and best wishes for success as you broaden the understanding and application of mentoring across the association and its members.

The people you serve and the communities they live in will be the ultimate beneficiaries.

Wayne holds degrees in Chemical Engineering, Political Science, Religious Studies, Philosophy, as well as an MBA. He has spent 27 years in the private sector at senior management levels in marketing, product research, human resources and public affairs, and the past 21 years in the non-profit sector, working with organizations as CEO and volunteer at times of significant organizational change.

Wayne is a passionate advocate for, and practitioner of, servant leadership. He has a solid record and reputation for leadership of difficult and complex issues and for his ability to get people of widely varying opinions working together toward a common goal.

Wayne has been mentoring individuals and helping others understand and apply the concept for many years. He has developed mentoring programs for Leadership Victoria, graduate students at the University of Calgary, and many others

16 SUMMER 2012

E&O LIABILITY INSURANCE IS DIFFERENT Derrick Leue, President, LMS PROLINK Ltd. E&O insurance is not like your group health and dental benefits insurance. You don’t simply submit a claim after you have incurred legal costs defending a statement of claim against your brokerage.

E&O Insurance is not like your personal auto insurance where you might be inclined to avoid making a claim for small fender benders with minimal damage.

To many mortgage brokers and associates, these two examples might be very obvious. However, every month we talk to mortgage brokers and associates who are insured through the AMBA E&O program and they don’t understand how E&O works. It’s understandable because most AMBA members would have much more experience dealing with their group health benefits insurance or auto insurance compared with their E&O insurance. Many AMBA members purchased E&O insurance for the first time in the summer of 2011 when RECA made E&O Liability compulsory in Alberta.

HOW DOES E&O INSURANCE HELP YOU? It is very important to remember that E&O insurance is providing two items:

1. Free legal defence for the brokerage and associates; and 2. Damages awarded to the claimant;

OBLIGATIONS OF THE BROKER/ASSOCIATE UNDER THE E&O POLICY There are obligations and requirements that come with free legal defence. Every E&O policy approved by RECA has the following requirements:

1. Do not admit liability or fault; 2. Report claims or circumstances that may give rise to a claim as soon as practicable (i.e., not after six months passed); and 3. Do not start defending a claim without the consent of your insurer.

Failure to adhere to any of these policy requirements can be grounds for having the insurer decline your claim. In our experience, most principal brokers understand how their E&O policy will respond to a claim; however, some principals and most associates do not know how E&O insurance works.

E&O INSURANCE AS PART OF YOUR POLICIES & PROCEDURES We highly recommend including information on your E&O insurance policy as part of your standard brokerage operating procedures.

Every employee and associate should understand the following policy requirements:

1. Report any claims or circumstances that may give rise to a future claim to their principal broker immediately; 2. Do not admit liability or fault if faced with a lawsuit; and 3. Do not hire a lawyer to defend a lawsuit. The principal broker must work with their insurer when defending a lawsuit.

WHAT HAPPENS WHEN THE BROKERAGE CEASES OPERATIONS? E&O insurance is different from other insurance policies because the coverage stops when you stop buying the policy. Every E&O policy approved by RECA is on a “Claims Made” policy form. This means that the policy must be in effect when the “claim is made” with the E&O insurer. When the principal broker sells the brokerage or winds down operations then the brokerage should purchase Extended Reporting Period (ERP) coverage for at least 5 years. The ERP policy will ensure that coverage is still available for claims brought against the brokerage and brokers/associates after the brokerage has ceased operations. Associates will want to ensure that the brokerage(s) under which they were previously licensed purchased the ERP coverage.

This will avoid cases where the associate is left to defend without coverage because the brokerage did not maintain E&O coverage once their operations ceased.

LEARN MORE ABOUT THE AMBA E&O PROGRAM AMBA and the PROLINK Insurance Group are very happy to have Liberty International Underwriters as the insurance company underwriting the member E&O Liability program.

Please be sure to attend our breakout session at the 2012 AMBA Conference in beautiful Banff on Sept. 7, 2012. Derrick Leue will expand on the contents of this article.

Please contact a representative from PROLINK’s AMBA Service Team in order to learn more about how your E&O policy protects you.

Website: www.lms.ca/amba Contact the PROLINK Insurance Group: Phone: 800-663-6828; Andrew Spencer: AMBA Program Business Development Manager; ANDREWS@LMS.CA Kristin Mavroudi: AMBA Program Account Manager: KRISTINM@LMS.CA

SUMMER 2012

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dures ential Mortgage Underwriting Practices and Proce AMBA Response to Draft Guidelines B-20 Resid To whom it may concern,

ial regarding The Office of the Superintendent of Financ ) would like to offer the following recommendations ures: The Alberta Mortgage Brokers Association (AMBA Proced writing Practices and the draft Guidelines B-20 Residential Mortgage Under Institutions (OSFI) proposed changes highlighted in by believe we have a sound financial system supported customers in our province and across Canada. We understand the need and AMBA shares these concerns on behalf of mortgage play to role sible respon a have all We ns. e from current world financial situatio government but are aware we will not be entirely immun ment. the event of entering into a higher interest rate environ in public ian Canad the assist best to s for certain change sionals to receive the produc ts and services we profes ge the effects they will have on our abilities as mortga and s change ted manda all nd surrou ns concer Our require from lenders to assist our customers: g mortgages that will ultimately hurt our business ce to new qualifying standards for people with existin 1. Loan Documentation The guidelines make referen to re-qualify using income verification and credit d require ines, people with existing mortgages would be and the Canadian public. Under the proposed guidel over the course of their mortgage term, we believe As people who have demonstrated to be reliable payers report criteria. We do not agree with this measure. a substantial administration burden on lenders, which renewed as is. The proposed change would place they’ve proven their creditworthiness and should be on to the consumer. would result in added costs eventually being passed

this measure.

AMBA recommends against moving forward with

a customer’s income as guideline suggests lenders take into consideration

t Criteria The proposed 2. Debt Service Charge – Additional Assessmen good judgment and are sensitive retirement. We believe lenders are currently using

mortgage debt into they approach retirement and whether they will carry being addressed adequately within the consulting sionals, we believe these concerns and measures are profes ge mortga As of all levels of debt retirees carry. process and services provided by the industr y.

helpful measures.

AMBA recommends further discussion in developing

nforming to establish when lenders are considering any non-co

a valuable underwriting position 3. Loan to Value (LTV) Ratios Equity has always been ty at stake. All lenders need to they have a minimum 20% of the value of the proper

on their proper ties if , loans. Mortgage customers are less likely to aband your customer. If the borrower is new to the lender potential non-conforming clients. The key is to know Fiscal ers. custom the by apply prudent underwriting criteria when considering community should be proven ted. Established credit track records within the credit y further underwriting information should be reques a mandatory level of 65% LTV to lenders as a remed enting implem see not do We . display of form in some red measu be should er custom the by ement manag to control non-conforming income borrowers.

wers. AMBA further recommends le income and credit criteria for these types of borro AMBA recommends further discussion on possib established loan amount on title. the d excee to ered loan instrument not be allowed the LTV remain at the current 80% and all regist d be stopped. This would reduce nts equal to the value of the property or higher shoul The current practice of registering for loan amou the relative easy access to credit by borrowers.

We believe this should be not be considered as part of the down payment.

ves or cash rebates 4. Down Payment The guidelines propose cash incenti t qualifying ratios. er, and any borrowed funds should be within the curren ed by the borrow measured in respec t to additional collateral being provid

being built into AMBA agrees with the removal of cash rebates

the pricing of the borrower’s interest rate and no

additional security.

for years been a trusted method to provide secured by the equity in one’s home or proper ty has s to customers. In many cases, borrowers use these t underwriting criteria in order to provide these HELOC borrowers access to their equity. Lenders use pruden of abuse using HELOCs to pay higher interest credit The concern from OSFI appears to be the possibility funds for investments, renovations, purchases and travel. interest debt to lower interest debt. The subjec t of high of ement however, this is done as a planned manag card debts and support one’s lifestyle. In many cases, ’s review process for their customers. ent reduction is occurring should be part of every lender amortizing HELOCs to ensure some form of repaym over a

Credit 5. Home Equity Lines of Credit (HELOC) Lines of

ment and reduce balances a form of reduction schedules for clients to imple AMBA recommends further discussion toward scheduled period of time. should additional talks invite further e input regarding the proposed guidelines and would We’d like to thank the OSFI for the oppor tunity to provid be held to advance these initiatives.

Sincerely,

Ron McClenaghan Ron McClenaghan AMBA President-Elec t AMBA Backgrounder

Read the OSFI letter at www.osfi-bsif.gc.ca/app/DocRepository/1/ eng/notices/osfi/b20_nlet_e.pdf

18 SUMMER 2012

involvement

Update: OSFI Hears AMBA’s Recommendations AMBA is encouraged the Office of the Superintendent of Financia l Institutions (OSFI) took our comments into consideration on certain sections of the Draft Guidelines B-20 for Residential Mortgage Underwriting Practices and Procedures with respect to qualified renewals.

The OSFI’s current and persistent position regarding revisions to a lower loan-to-value ratio (LTV) of 65% for a home equity line of credit (HELOCs), remains an area we as representatives of the Canadian mortgage industry strongly encourage not to change. AMBA will continue to recommend further discussions regarding this point.

Join us at our annual conference in Banff, September 6 & 7, 2012.

Registration is now open at www.ambaconference.com

Speaker Lineup Breakfast Keynote Speaker

Eliot Hoppe Eliot Hoppe is a leading authority in the field of body language communication, non-verbal influence and deception detection.

An accomplished speaker and facilitator, Eliot has trained thousands internationally and worked with leading organizations like 3M, Cartier and Rogers to help develop the skills of their employees in body language communication and nonverbal influence.

Eliot is the co-author of the Amazon best-selling book, Selling: Powerful New Strategies for Sales Success, and the author of Body Language Boardroom Basics: The Non Verbal Signals You Must Decode! and most recently, Everyone’s Guide To Body Language: How To Decode The Emotions Of Others!

He continually writes articles on Body Language Communication and is often consulted by the media to decode the emotions and body language of notable people in the news, politicians and celebrities.

The Science of Silence: Cracking the Code of the Unsaid This informative and lighthearted keynote presentation puts into perspective how accurate the expression "actions speak louder than words" truly is. Often overlooked by many and well known to only few, when we communicate with each other, what we don't say can often mean more than the actual words themselves. Reading the other person's body language is important; paying attention to what your own body language is saying, is equally important. This humorous presentation will have you laughing out loud as you learn how body language is deeply ingrained in our everyday life.

Lunch Keynote Speaker

Andrew Coyne

The Globe and Mail, and the Southam newspaper chain.

He also writes regularly for a number of Canadian and foreign publications, and is a frequent commentator on television and radio, including acting as a panelist on CBC TV’s The National for their popular “At Issue” segment.

Andrew Coyne is the former National Editor of Maclean’s magazine and a current weekly columnist with The National Post.

Raised in Winnipeg, Andrew received a B.A. in Economics and History from University of Toronto and a Master’s in Economics from the London School of Economics.

In addition to his writing for Maclean’s and The National Post, Andrew has also been an editorial writer and columnist for The Financial Post,

Andrew is the winner of two National Newspaper Awards and a fourtime finalist in the National Magazine Awards. A past recipient of the Hyman Solomon Award for Excellence in Public Policy Journalism, he’s also a fellow of the School of Public Policy and Governance at the University of Toronto.

Ride and Party with Us! RIDE THE AMBA PARTY BUS TO BANFF ON SEPTEMBER 7, 2012 There will be lots of drinks, music and fun to and from Banff.

PICK-UP IN CALGARY (West side of Calgary, off West Valley Road SW) 7:00 a.m.

DEPARTS BANFF (Fairmont Banff Springs) 7:30 p.m.

REGISTER AT WWW.AMBACONFERENCE.COM

20 SUMMER 2012

AMBA Breakout Session For Associates

Claire Drage Claire is the CEO and owner of The Lion’s Share Group.

She founded the company in 2010 in order to share her methodology with others in her industry, with the main goal of assisting mortgage agents in capturing the “Lion’s Share” of the mortgage market in Canada.

Claire has many years of experience in our industry from both perspectives – as an agent and a lender. Claire is a very successful mortgage agent in Ontario, having increased her originations by more than 100% per year since she put her agent hat back on four years ago and is ranked in the top 1% nationally with her brokerage, for both number of mortgages and total volume as an individual. Claire has used this experience to grow a successful team of agents herself, and create

unique programs for mortgage professionals that are both proven and easily duplicated.

Turn-Key Strategies to Keep Your Business Pipeline Full, Funding and Consistent This seminar will show participants how to build a loyal customer base and generate endless referrals. Participants will learn how to increase revenue, grow their business and reduce the number of hours worked to maintain a balanced lifestyle.

• Explore various lead generation and retention strategies and techniques.

• Explore tracking and analyzing processes.

Utilize tracking and analyzing systems to maximize return on marketing and lead generation activities.

Breakout Session For Brokers

Charles Stevenson Following a successful 15-year career in the residential real estate sector in Lethbridge and Calgary, Charles joined The Real Estate Council of Alberta (RECA) in February 2010, responsible for directing the Licensing, Information Services and Communications units. In December, 2011, as part of a corporate reorganization, Charles took on the role of Director, Professional Standards and is now responsible for directing the Trust Assurance & Practice Review, Professional Conduct Review and Professional Conduct Proceedings units.

Derrick Leue Derrick Leue, President of LMS PROLINK Ltd., is a registered insurance broker. LMS is the Affinity Partner for Errors & Omissions Liability Insurance (E&O)for the Alberta Mortgage Brokers Association.

Lender Panel: Are We Going Back to the Future?

Our industry’s mortgage lending experts will field questions and discuss the future of doing business in the Alberta mortgage market, as well as discuss what they foresee as changes in the future; how they, as lenders, will be coping with those changes; and how we, as associate/brokers will be affected.

• Identify possible changes to lending practices in the near future.

• Identify lender expectations of mortgage professionals in the near future as a result of market, economic and/or legislative changes.

Describe possible strategies to adapt to changes in market and lending practices.

Panel: Les Shore (Optimum Mortgage), Tim Watcher (Equitable Trust), Ron Swift (Radius) and Dale Koeller (Calvert Home Mortgage Investment Corp.)

Charles Stevenson

Mortgage Broker Accountability in Alberta Delegates will review their obligations under the Real Estate Act in Alberta. Specific topics covered will include;

• Self-Regulation in Alberta – the role of the mortgage broker • Mortgage broker qualifications and brokerage requirements in Alberta • RECA’s Trust Assurance & Practice Review program – preparing for a practice review (RECA audit) • RECA’s Professional Conduct Review program – how brokers should deal with complaints • The Voluntary Broker Resolution Program – dealing proactively with complaints Derrick Leue

E&O Insurance Explained RECA requires that all licensed mortgage brokerages purchase Errors & Omissions Liability (E&O). But, how many brokerage principals really understand how E&O insurance works?

Attending this session will help brokers and associates:

• Understand the benefits and limitations of E&O insurance; • Learn about the claims against brokers and associates and how it is affecting the cost and availability of E&O insurance in Alberta and across Canada.

AMBA SHOWS THE

BEST

REGISTER ONLINE TODAY!

SCAN THIS QR CODE OR VISIT www.ambaconference.com SUMMER 2012

21

Wes Gilbertson, Special to AMBA Matters

Stanley Thompson had a picturesque piece of property and a plan to build a world-class golf course.

All he needed was a railcar full of cash.

Before the water hazard at the signature fourth hole — affectionately known as Devil's Cauldron — at Fairmont Banff Springs became a resting place for golf balls, it was a wishing well of sorts for the legendary course designer as he mapped out an 18-hole setup in the shadow of the Rocky Mountains for Canadian Pacific Railway.

“Stanley Thompson basically ran out of money three times building this course,” marvelled Steven Young, the executive professional and director of golf at Fairmont Banff Springs. “On two occasions, CP came out to here to say, basically, 'We're done.' And he walked them out to the Devil's Cauldron to show them his vision and they wrote him a cheque right there on the tee to keep going.”

Golfers should be thankful they did.

The historic Thompson layout at Fairmont Banff Springs, the site of the 2012 Alberta Mortgage Brokers Association tournament on Sept. 6, remains among the most photographed golf courses on the globe.

Devil's Cauldron, which stretches to 192 yards over a glacial pond, isn't the only eye-candy. Starting with the eighth assignment, there's a sevenhole stretch that traces the banks of the Bow River. Perhaps the most memorable of all is No. 14, a 440-yard brute with an up-close view of the Fairmont Banff Springs Hotel, also known as the Castle in the Rockies.

Pre-Conference Workshop Fun September 6, 2012 1:30 p.m. at Fairmount Banff Springs (Ivar Petrak Room)

Eliot Hoppe

Body Language: How to Decode What Your Borrower is Really Thinking and Feeling!

2 AMP CEU Credits (Professional Development)

This interactive, engaging and fun workshop will help you hone your “Know Your Client” skills by teaching you how to read verbal and non-verbal cues. Understanding subtle changes in body language, tone and inflection will help guide you toward the best approach to build trusting rapport with your borrower.

AMBA SHOWS THE

BEST

22 SUMMER 2012

Thanks to an extensive restoration project in the 1990s, the golf course — ranked fifth in SCOREGolf Magazine's most recent listing of Canada's Top 100 tracks and featured on EA Sports' Tiger Woods PGA Tour video game series — is looking as good as ever.

“In 1939, this course was ranked No. 8 in the world and Augusta National was No. 11. I mean, just think of that — we were ranked better than Augusta,” Young said. “It's like the Mona Lisa. You'd never go now and touch it up and re-paint it and put some sexy curves on her to make her look more like a sexy lady. Your responsibility is to make sure that masterpiece lives on for what it is.”

When Thompson was finished tinkering with his masterpiece in 1928, Banff Springs was the first golf course in the world with a construction pricetag of more than $1 million.

The unofficial record now belongs to cliff-hugging Trump National Golf Club Los Angeles in Rancho Palos Verde, Calif., which was bankrolled by business mogul Donald Trump and reportedly cost US $264 million to complete.

Without a doubt, the guys from Canadian Pacific Railway got a bargain.

“I would dare say, if it wasn't for Stanley Thompson, this place wouldn't have been built,” Young said. “He convinced them to put all that money into Devil's Cauldron to make that happen. He didn't take no for an answer. He had this vision and dream, and he made it happen.”

In this highly practical course delegates will learn:

· What body language is all about. · Understanding the universal gestures and what they mean. · How to read body language accurately. · How to avoid misinterpretation and deliberate deception. · What the difference is between positive versus negative body language. · Which are confidence and frustration signals and how to diffuse them. · Why eye contact and eye access cues reveal the “window to the soul”. · How lies, dishonesty, doubts and thinking gestures slightly differ. · Why first impressions matter – especially the first four seconds.

REGISTER ONLINE TODAY!

SCAN THIS QR CODE OR VISIT www.ambaconference.com

CANADA’S NEW ANTI-SPAM LAW WHAT DOES IT MEAN TO YOU? Julia Lee, AMBA Privacy Officer

In 2011, an estimated seven trillion spam messages invaded our email inboxes (Ref: Wikipedia, “Spam-Electronic”). We receive ‘spam’, which is defined as any type of electronic communication that is sent unsolicited and indiscriminately, to the tune of 260 billion spam-mails every day!

Consumers are fed up and the Canadian government has taken up the fight against spam. One of the last G8 countries to implement anti-spam legislation, Canada is about to put into action one of the most stringent anti-spam regimes in the world. Bill C-28, also known as CASL (Canadian Anti-Spam Law), is slated to come into effect in 2013, and imposes significant restrictions on how companies can use electronic messages, including email, text messages, instant messages and some forms of social media messages, for commercial purposes.

HOW DOES CASL AFFECT MORTGAGE BROKERS?

As consumers and Internet users, we applaud the government’s efforts and can’t wait to take back control of our email inboxes; we sit on the edge of our computer chairs in anticipation of the long-awaited clamp-down on spam, spammers, spam bots and the like.

— marketing text messages, instant messages, emails or other marketing e-messages, then CASL will have a direct and significant impact on your business’s e-marketing and e-communication practices.

On the other hand, as business owners, we rely on electronic communication as a crucial component of our marketing plans. The effects of CASL are far-reaching. The penalties are stiff. It is imperative that we, as mortgage professionals and business owners, understand the restrictions, the exceptions and the penalties of this new anti-spam legislation.

The purpose of CASL is not to stifle the marketing practices of legitimate business owners. CASL allows for email marketing, provided the recipient has given consent prior to receiving the email. This ‘opt-in’ approach is more restrictive than the ‘opt-out’ system seen in the U.S. where the recipient first receives the message and then can decide to withdraw consent.

CASL QUICK FACTS

Opting-in would appear to be a logistical nightmare for businesses that utilize any type of e-marketing strategy. How would it even be possible to obtain consent from each client PRIOR to sending the message, when the electronic message asking for consent itself is prohibited (since consent has not yet been obtained)? CASL’s answer: Verbal consent is permitted.

CASL prohibits: — sending any electronic message for commercial purposes to email address, social media accounts and/or cell phones (via text or instant message) without the recipient’s consent.

— installation of programs without consent from the owner of the computer system (i.e., malware, spyware). ­ collecting and/or using personal information from the web without — consent (i.e.,spyware, data mining, address harvesting). ­ re-routing the destination of messages without consent of the — sender — using false or misleading online advertising CASL defines ‘commercial electronic messages’ as those which “encourage participation in conduct of a commercial nature, whether or not there is an expectation of profit” (Ref: www.fightspam.gc.ca).

CASL outlines specific format and content requirements for all electronic messages, such as obtaining consent via ‘opt-in’ systems; clearly displaying an ‘unsubscribe’ option; and including sender identification and contact information CASL violations could cost companies up to $10 million in fines and up to $1 million for individual violators.

CASL will be enforced by three organizations: The Competition Bureau, the Office of the Privacy Commission of Canada (OPC) and the Canadian Radio-television and Telecommunications Commission (CRTC).

What this means is, if you send your clients or contacts: — e-newsletters, — bulk emails (i.e., more than 20 emails at the same time), — offers to purchase products or services, contest offers, offers of business or investment opportunities and/or,

The other main concession built into CASL to address the consent issue is that express consent is not required if there is an existing business/commercial relationship between the sender and the recipient; or if the consumer has disclosed or conspicuously published email/contact information without a statement of consent withdrawal for unsolicited e-communication.

For mortgage professionals, it will be important to be aware of CASL’s definition of ‘existing business/commercial relationship’. An existing business relationship includes: — a commercial transaction with the recipient within the last two years, — a commercial or investment opportunity with the recipient within the last two years, — an inquiry from the recipient in the last six months with regards to a commercial or investment opportunity or transaction, — a written contract established between the sender and recipient within the last two years. The contract may still be in effect or may be expired.

More information regarding CASL and its effects on the industry can be found at: www.blakes.com/english/antispam.asp www.fightspam.gc.ca www.itbusiness.ca

DID YOU KNOW….?

The time employees spend deleting junk e-mail costs companies $22 billion a year (Ref: Information Management Journal, May/Jun, 2005).

The delivery of spam generates a level of greenhouse gases equivalent to that of 3.1 million passenger cars on the road (Ref: www.itbusiness.ca/it/client/en/home/news.asp?id=66995).

The amount of electricity required to send and delete spam email could provide enough electricity for 2.4 million U.S. homes (Ref: www.itbusiness.ca/it/client/en/home/news.asp?id=66995).

In the next issue of AMBA Matters, we will take a look at some ways to deal with Canada’s new anti-spam law, including a checklist of to do’s in preparation.

CANADA’S ANTI-SPAM LAW Keeping Yourself Out Of The SPAM Freezer SUMMER 2012

23

MEET YOUR NEW BOARD MEMBERS 2012/2013 President

Ron McClenaghan

Erica Fikkert

I have been involved with real estate financing for more than 30 years. My career began as a mortgage officer with Victoria & Grey Trust. I moved to Regina to open the first Victoria & Grey Trust branch in Saskatchewan, serving as the mortgage manager. In 1982, I moved to the Toronto Dominion Bank as the divisional underwriter for all of Saskatchewan residential mortgage business. In 1984, I moved to Saskatoon with TD Bank as the mortgage manager and was responsible for operating the first mortgage only office for the bank as a pilot project.

I have more than 13 years of experience to the mortgage and finance industry, having started my career in 1999. Since that time, I’ve held a number of different positions within the industry and am currently employed with Equitable Trust as a team lead in residential mortgages.

In 1987, I joined North Ridge Development Corporation as a partner and served on the Saskatoon Home Builders Association board for five years, two years as president and past president.

I’m currently a volunteer on the events committee for AMBA and thoroughly enjoy working with the association. My hope is not only to maintain the high standards of education, ethics and integrity for the vorganization, but to further improve on these solid foundations.

In 2000, I joined Invis Inc., a national mortgage brokerage company, and have been a mortgage professional in Calgary for 12 years.

It is my strong belief that I can work effectively and progressively with AMBA and its many mortgage professionals to help make a real difference within our industry.

My propensity for learning and passion working with people has helped me truly understand the many sides of our industry and meet some incredible people in the process. My focus moving forward will be to continue to expand my personal development and professional skill set. It is this experience I hope to contribute to AMBA and the brokerage community as a whole.

In 2010, I was elected to the AMBA board of directors and have served as the public relations and communications director during these two years. During my tenure with AMBA, I have witnessed all the good the association performs for our industry, and can see firsthand the areas for improvement for our membership.

As incoming president, I look forward to representing our membership’s interests both provincially and nationally.

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Adil Mawji

My time in the industry has afforded me the opportunity to work with some amazing people. We have some of the most skilled and dedicated people in any industry between the brokers, lenders and insurers, and I am proud to be a part of this community. With my years of management and customer service experience, I have learned that integrity is at the core of all good business. I intend to bring that and my passion for this industry to my portfolio at AMBA and help to create a better industry for all of us.

A graduate from the University of Calgary with a B.A. in Economics, I joined Invis in 2008 and have been a top producer at a national level since then.

I hope to serve AMBA's youth well during my term as a board member.

Cathy Sehn I am the broker/owner of Verico Your Mortgage Professionals Inc., in Medicine Hat.

Kevin Weeks

I started with a large national brokerage in August, 2001, and worked with them until Dec. 15, 2010. I decided to start my own brokerage. The reason I decided to run for this position of director is that I noticed there is not a lot of representation for communities outside of Calgary and Edmonton. I believe that as a broker in a smaller community, I can offer some additional insight into issues that may not arise or be as prominent in the larger communities.

On a personal note, I am divorced and have two teenagers: A daughter, Becca, who is 16, and a son, Luke, who is 14. I am the past president of the Medicine Hat Realtors Foundation, a member of the Medicine Hat Real Estate board, volunteer with Junior Achievement, and also teach some of the Career and Life Management classes at the local high school.

I practice at Weeks Law in Calgary. I have more than 30 years of extensive business, operational and legal knowledge, practice and experience in a number of fields and industries, including real estate, leasing and property development and financing and intellectual property. I have been involved, both professionally and as principal in negotiating and closing large complex commercial and corporate transactions, both domestic and international.

An entrepreneur by nature and deed, I convey a practical legal business acumen in assisting and advising clients with future direction and organizing their legal affairs in a common sense and strategic manner.

Broker owner of Verico Brokers For Life Inc. Started my business in Fort McMurray five years ago, after having spent 15 years in the Alberta home building industry. For many of those years, I was involved with The Canadian Home Builders Association Edmonton Chapter board of directors and chair of many different committees.

Len Lane

Presently, licensed in B.C., Alberta, Saskatchewan and Ontario, with Manitoba pending. I look forward to the coming years as a member of your board of directors.

Broker focused? Absolutely.

Unlike the big banks, our focus is serving brokers. In fact, we treat them like partners, not competitors. That’s why we go out of our way to find solutions for brokers and their clients — no matter how challenging or unique the situation. To us, deals are more than just numbers on a page. They’re about turning a house into a home.

1-888-837-2326 • bwballstarportal.ca

SUMMER 2012

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INDUSTRY NEWS WOMEN MORE LIKELY TO BE FIRST-TIME HOMEBUYERS, CANADIAN POLL FINDS

Women are more likely than men to be first-time homebuyers among Canadians who plan to buy a home within the next two years, according to the 19th Annual RBC Homeownership Poll.

49% WOMEN 35% MEN The poll said 49% of women and 35% of men plan to be first-time homebuyers.

Of the Canadians who have recently become first-time homebuyers, men and women were tied (47%) in saying affordability was the biggest concern that prevented them from purchasing a home earlier.

Other reasons that caused people to delay their first home purchase were: not interested/ready for home ownership, 25% women, 14% men; unsure of job security, 23% women, 15% men; and saving for a large down payment, 22% women, 14% men.

The survey also showed Canadian women (16%), regardless of whether it was their first home or not, were less likely to take on a variable mortgage compared with men (25%). Both sexes were similarly comfortable with the prospect of taking on a fixed-rate mortgage (women, 40%; men, 44%), which largely reflects the current trend where Canadians are now looking to lock in at historically low interest rates.

CALGARY LEADS COUNTRY IN YEAR-OVER-YEAR MLS SALES Calgary led the country in the first quarter of 2012 with the highest year-over-year growth in MLS sales, according to the Canadian Real Estate Association (CREA).

In a first quarter Canadian housing activity report, CREA said MLS sales of 2,720 in Calgary were up 30.3% from a year ago.

In Canada, sales of 49,480 for the month increased by 11.5 per cent from April 2011.

The average MLS sale price in Calgary rose by 0.7% to $414,932 while it was up 0.9% in Canada to $375, 810.

New listings in Calgary of 4,370 increased by 4.4 per cent from last year. Throughout Canada, new listings rose by 4.9% to 89, 739.

In Alberta, sales rose by 23.5% to 6,191, new listings increased by 2.4% to 10,718 units and the average sale price was up 1.9% to $365,830.

Ri ch ar d I . Joh n L a wyer, No ta ry Pu bl ic 205 - 7A Street NE Calg ary, Alberta, T2E 4E7 Phone: 403-205-3949 F ax : 403 -205- 3950 email: r ich ar d .john @telus .n et

Richard I. John Professional Corporation

26 SUMMER 2012

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RISING MORTGAGE DEBT RENDERING ‘CANADIAN HOUSEHOLDS STRETCHED THIN’: DBRS DBRS, the Canadian headquartered credit rating agency, has joined a long list of organizations that have weighed in on the matter of the Canadian residential housing market.

Like many of those previous studies and against the background of concerns being raised by the federal government and the Bank of Canada, DBRS found some positive – and negative – aspects about the sector that seems to consume Canadians.

Despite record high levels of household debt, DBRS believes that Canadian households have net worth that could withstand a property value decline of 40%.

Along with rising mortgage and consumer debt, average house prices are now 4.9 times average gross family income – a level that would require Canadian household to allocate 37% of its pre-tax income to housing-related-costs – the so-called “housing affordability ratio.”

DBRS noted that the 37% ratio “is aided by the low interest rate environment and is only slightly worse than the long-term average.”

But if interest rates jump by 2% the ratio could rise to 43% or more of pre-tax income.” Adding in other household expenses and payments, the average household is left with little residual cash flow or savings.

CONSUMER CONFIDENCE IN CANADA GETS BIG BOOST IN MAY: CONFERENCE BOARD Consumer confidence is surging across the country, according to the latest survey by the Conference Board of Canada.

In May, the consumer confidence index shot up 5.8 points to 80.8, completely reversing a relatively poor performance in the first quarter, according to the board.

It saw sentiment improved in virtually all regions of the country, although the gain was statistically insignificant in B.C. Despite the better May numbers, the index remains below where it was a year ago.

The Conference Board survey showed Quebec’s regional index registering the strongest performance with a 7.3 point gain and a current level of 75.3. Ontario’s index is the lowest in the country at 69.7, despite a gain of 7.2 points. Atlantic Canada’s index rose 5.4 points to 74.6.

The survey also indicated consumer confidence was the highest in the Prairies where the index stood at 109.1, up 3.8 points month over month.

The survey involved 2,000 telephone interviews conducted between May 3 and May 14, with a claimed margin of error of plus or minus 2.2 percentage points.

Respondents were asked for responses to four questions, including their views about their households’ current and expected financial positions and the short-term employment outlook. They were also asked to assess whether now is a good or a bad time to make a major purchase such as a house, a car, or other big-ticket item.

CALGARY REMAINS LARGEST MAGNET FOR WORKING-AGE PEOPLE: 2012 CENSUS

HOME OWNERSHIP GETTING LESS AFFORDABLE IN CANADA

As the rest of Canada’s population continues to grey, the Calgary metro area remains the youngest. According to the 2012 census, only 9.8% of its residents, over 65 years old – almost half the rate Peterborough, Ont., which boasts the nation’s biggest proportion of seniors, and below the 14.5% national average, Statistics Canada reported.

RBC says home ownership was less affordable in most major Canadian cities during first quarter, although Calgary and Edmonton bucked the trend.

The city also boasts the highest working-age population of any major urban region. Nearly 72% of Calgarians are between 15 and 64 yearsold, ahead of Halifax, St. John’s, Vancouver and Edmonton.

But the bank’s affordability index was unchanged in Calgary and improved compared with the fourth quarter of 2011.

The median age of a Canadian is 36.4 years, the census reports. That’s four years younger than the typical Canadian.

The city is getting older – the median age in the last census count was 35.7. But the rate is slower than that of Canada as a whole.

Alberta also got older overall, with 11.1% of the population now qualifying for senior’s discounts.

Saskatchewan was the only province to show a decline in its population of seniors, but has one much larger than Alberta’s.

The province also has the country’s biggest continuing baby boom, with a 20.9% increase in the population under four between the two census periods.

75 PER CENT OF ALBERTANS IN DEBT A new poll on debt says 75% of Albertans hold some form of debt but 52% made at least one lump sum payment to bring down their balances in the last 12 months.

A CIBC Debt Poll, said 72% of Canadians have debt and 49% made at least one lump sum payment.

The poll found that Albertans making extra payments are directing these payments to reducing credit card balances (64%), followed by line of credit balances (42 %), and mortgages (22%).

Nationally, the age group most likely to hold debt were 25-34 yearolds (84%) and 35-44 year-olds (83%). After age 45, the likelihood of holding debt begins to decline, said the poll.

Among the 75% of Albertans holding some form of debt, some are managing only one debt product, while others are making up to five monthly payments to various debt products which could impact their ability to manage their overall finances, said the CIBC. The poll also found that: 19% of Alberta residents reported being debt free, with no balances on any debt products; 13% held just one debt product balance; 19% have two debt products with a balance; 31% have either three or four debt products with a balance; and 12% of Alberta residents have five or more debt products with a balance.

The latest RBC Economics report on home affordability says its index deteriorated sharply in Vancouver and to a lesser degree in Toronto, Montreal and Ottawa – primarily due to higher real-estate prices.

In Vancouver, RBC estimates the combined cost of mortgage payments, utilities and property taxes rose 3.1 percentage points to 88.9%.

In Calgary, by contrast, only about 36.7% of pre-tax income would be required to pay for a standard bungalow – unchanged from the previous study – and in Edmonton the index improved by 0.4 percentage points to 32.4%.

KEY FINDINGS FROM CMHC’S 2012 MORTGAGE CONSUMER SURVEY Consumers are looking more to the internet for mortgage information and use of social media is also growing.

Recent buyers continue to rely heavily on mortgage professionals and others for advice and information on a range of mortgage related topics.

Recent buyers are exploring their mortgage options and are actively engaged in the mortgage process.

Mortgage brokers and lenders both continue to do well in terms of share and loyalty.

Post transaction follow-up continues to be an important factor driving client satisfaction and potential future business.

Recent buyers report taking actions to pay down their mortgage sooner.

While there are positive indicators regarding the financial literacy of recent buyers, there is room for improvement.

First-time buyers differ from other mortgage consumers and have some unique needs.

SUMMER 2012

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SHARE THIS HELPFUL ARTICLE WITH YOUR CLIENTS

UNDERSTANDING MORTGAGES Jody Robbins, Special to AMBA Matters

Your home is likely the biggest purchase you’ll ever make. When making such a sizable investment, it’s wise to consider all the options.

Unless you’re able to pony up with cash in hand, you’ll be looking at getting a mortgage, like the majority of Canadians.

Mortgages involve shelling out hundreds, perhaps even thousands of dollars each month in interest, so you’ll want to get the most competitive deal you can. Unfortunately, if you have history with one institution, complacency can set in. Going to the bank, you’re likely to only be presented with one deal – the same deal everyone else gets.

Yet each mortgage is not the same. Your needs are unique to your situation. To maximize your housing dollar, you’ll want to look at alternative solutions that provide more choice when making the biggest investment of your life. It’s called using a mortgage broker.

What They Do Mortgage brokers are self-employed, licensed professionals who understand the need for good service. Considered a one-stop shop for financing, they liaise with all possible lenders to find a mortgage most suitable for their client based on individual needs.

Unlike your bank, mortgage brokers have more than one product to sell. They look at your unique circumstances and, based on what you want to accomplish, match you with the best available product – as sourced from all banks and lenders.

First Time Around Most first-time homebuyers haven’t a clue what they’re getting into.

Nadia Jannif, an evening producer at City TV Calgary, was more than just a little intimidated by the process, until she was put in contact with a mortgage broker, as recommended by a colleague.

“I needed somebody to hold my hand,” she admits. Jannif appreciated the individual attention she received and how stress-free the process became. “My mortgage broker was always there, answering every question I repeated and never pressuring me to buy once I was preapproved. It was exactly what I was looking for.”

Because they understand mortgages so well, brokers can answer all your questions about all aspects of financing. Their role is to educate clients, as well as guide you through the entire process. “Once we understand your goals, we’re walking in your shoes and are making

28 SUMMER 2012

recommendations based on that,” says Phil McDowell, mortgage associate with Mortgage Alliance-Mortgages Are Marvellous. That includes, providing advice on realtors and lawyers should you not know where to turn. In Jannif’s case, she didn’t realize it was common practice to have a professional review condo documentation prior to purchasing, until she was advised of this service by her mortgage broker.

Advantages Time: For those with busy schedules, using a mortgage broker can save precious time. “I didn’t want to have to make an appointment and sit down with someone,”confessed Christine Gillies, a director with Mitacs Inc. “Using a broker saved so much time. I never even had to meet them!”

For the Gillies family, the process was as easy as completing a form, faxing it back and reviewing the options provided.

They appreciated how straightforward the process was, so much so, that the family opted to use a mortgage broker again when purchasing their second home.

For some, a more personal touch makes the financing process easier and less intimidating. If you prefer a face to face interaction, mortgage brokers are easily accessible at your convenience, meeting at a location of your choosing, including your home.

Money Brokers are well known for securing the lowest interest rates for their clients. Their access to different lending institutions gives them more flexibility to find the best deal out there. But remember, interest rates are only one part of the equation.

By getting to know you and examining your lifestyle, mortgage brokers make recommendations best suited to your needs. Often clients don’t read the fine print, but brokers do, so they’ll be able to advise you as to which option is most suitable. For example, if you happen to be in a job with the possibility of a transfer, you may be guided toward a lender with branches across Canada. If you suddenly needed to move to another province and your mortgage wasn’t portable, you’d be on the hook for hefty fees. Mortgage brokers help clients avoid these costly scenarios.

UNDERSTANDING MORTGAGES Article Sponsored by

Using a broker ensured the Gillies family received the rates they were after, plus the terms they wanted. “We wanted to be able to make lump sum payments at any time, without penalty,” Gillies says. And that’s just what they got.

Your Best Interests Just like at a car dealership, it’s advantageous to compare one product to the next and brokers will often provide clients with more than one option to consider.

They can tell you which pitfalls to avoid and what to be wary of. For example, cash back mortgages seem attractive, but often come with higher rates and bigger payout penalties (such as paying all that cash back if the property is sold before your term is up), says Rena St.Clair AMP, mortgage associate with TMG The Mortgage Group Alberta Ltd. “Clients don’t always see the full picture – just the cash. Brokers will explain the risks and benefits of each option clearly.”

Bottom line? Mortgage brokers give you the peace of mind that your best interests are taken to heart.

The Risk Factor Rest assured, using a mortgage broker won’t cost you a thing. It’s the financial institutions lending the money that pay brokers, so you don’t have to worry about any extra cost.

Should a consumer have any issue with the job performed by their broker, complaint mechanisms are in place. All brokers report to Real Estate Council of Alberta (RECA) and are obligated to carry errors and omissions insurance. The Alberta Mortgage Broker’s Association (AMBA) also has a complaint process. “We take responsibility for all that happens,” says McDowell.

Who’s a Candidate?

Anyone who wants to receive the most competitive mortgage rates can use a mortgage broker, but brokers are particularly helpful for individuals with weak or bruised credit. If you’re self-employed or have been at your current job for less than six months, you may not be a candidate for most banks. Mortgage brokers look closely at each client and are almost always able to provide custom solutions, including for those in need of bridge or short-term financing.

Where to From Here?

Getting a referral from a friend or someone you trust is the best way to start. But don’t ignore the power of social media when looking for advice on buying a home. Besides Google, ask the grapevine on Facebook for recommendations or follow the trends the on Twitter to get an idea of the marketplace.

Terminology Once you’ve crossed the hurdle of knowing who to go to for your mortgage, the next step is learning the lingo. Below are some industry terms you might want to familiarize yourself with.

Amortization: The time over which regular payments would pay off the mortgage. Usually, this is done over a 25 year period but could be greater or lesser.

Assumability: When the purchaser, subject to a credit approval, assumes the seller’s mortgage and interest rate.

Balloon Payments: Also known as partial amortization, this refers to holding back most of a debt and paying it towards the end of the agreement. In this case, those last payments and the total amount repaid are much larger.

Fixed Rate: A mortgage in which the interest rate is fixed for a specific period of time, typically five years.

Open Mortgage: A mortgage that can be prepaid in part or in full, at any time, without additional fees. These interest rates are typically higher than fixed rates.

Principal: The amount of money borrowed for a new mortgage.

Portability: The ability to take your mortgage with you if you move. If your financial institution doesn’t have branches in other provinces, and you need to move, it’s likely you’ll have to pay significant fees to break the terms of that mortgage.

Variable Rate: Also known as a floating rate mortgage, the interest rate may change depending on market conditions.

DOWNLOAD THE PDF IN THE MEMBER ZONE, UNDER MEMBER RESOURCES SUMMER 2012

29

AMBA

SOCIAL CENTRE VIDEO BLOGGING YOUR WAY TO MORE BUSINESS Video blogging is rapidly one of the most exciting uses of web video on the Internet.

Everyone from amateur presenters to professional bloggers are creating video blogs for their websites and enjoying an enormous amount of traffic as a result.

SO WHY NOT JOIN THEM?

Video blogging also known as a VLOG or vlogging, has many benefits, including: Helping you connect better with your clients and new viewers; Giving viewers a sense of knowing you and your business better; Demonstrating a company product more easily; Promoting your company with client testimonials.

These are just a few of the benefits of vlogging.

HERE ARE A FEW TIPS ON HOW TO START YOUR OWN COMPANY VIDEO BLOG: GET THE RIGHT EQUIPMENT You don’t need high-priced professional equipment to produce a quality video for your business blog. You will need a reasonable camcorder, microphone and video editing software.

Most computers have free editing software that is easy to use on them. Macs offer iMovie and PCs have Window’s Media Centre.

Always be sure to check the lighting situation before you shoot your video.

Remember, good video, light, and sound are the three most important things you can have to improve your vlogging quality.

CREATE GOOD CONTENT BEFORE YOU SHOOT Before you start shooting, think of what you want to say in vlog. Good vlogging content might include how-to videos, and introduction to new products, an interview with a client, etc. Prepare a script, or at least an outline, you can follow.

30 SUMMER 2012

STAGE A SET The set and background you use are important to keep your business blog video looking professional and nondistracting. Keep your background neutral and simple.

Also, dress professional. Choose a shirt that doesn’t have a busy pattern and don’t wear jeans if your pants will be showing. Always remember you’re a business owner when in front of the camera.

KEEP IT SHORT Don’t go on about nothing. Keep your vlogs between two and five minutes long. Eliminate extraneous material. Cut bad takes, and keep the flow and pace of you video blog interesting.

USE YOUTUBE TO HOST YOUR VLOGS YouTube is naturally the best choice to begin video blogging. It offers: Ease and simplicity of use; World’s most popular video channel; Easy embedding of YouTube videos anywhere you want (on your site, Facebook, Twitter, etc.).

THANK-YOU TO ALL OUR SPONSORS OF THE 2012 AMBA/MLAA EDMONTON SPRING CLASSIC! Kristen Linde-Ferrier

After a few years, Industry Night was back at the Century Grill with a full house! A big thank-you to the Industry Night sponsors Scotia Bank – h'orderves, CapLink – CapLink Island Tea and Street Capital –“Mo Street-O." Thank-you to Canada Guaranty for supplying the Industry Night door prize.

And to Combined Mortgage Ltd. for donating a golf driver that was raffled, with all proceeds going to Habitat for Humanity, raising more than $300.

We were back to the Colonial Golf Club, where we all enjoyed a sunny fun filled day of golf, dinner and prizes.

Genworth sponsored Bailey's and Coffee, first thing in the morning, which really helped everyone get going.

Capital Direct Lending Corp. sponsored the driving range and First National Financial was the morning breakfast sponsor. Equitable Trust provided us with golf carts.

Supplying the golf balls this year was McCuaig Desrochers LLP, and sponsoring the putting green was Frost & Associates, while Invis/MI supplied water bottles. Blanket Home Warranty sponsored the hole-inone.

HOLE SPONSORS • • • • • • • • • • • •

Hole #1 – Dominion Lending Centres provided us with a drink hole.

Hole #15 – Optimum Mortgage provided food and drinks.

Hole #5 – Cedar Peaks handed out the traditional cigars and beer.

The ladies from Flying Colours Design raised more than $220 selling tickets on hole 18.

Stephanie Blake is now enjoying her very large bottle of Grey Goose.

Home Trust handed out treats.

Brownlee & Associates sponsored a hole.

First Canadian Title sponsored a hole.

ATB gave out treats on Hole #12.

Hole #10 – TD Broker services had a chipping contest & snacks.

Hole #7 – Habitat for Humanity had a chipping contest raising more than $600.

MCAP bought us dinner.

A big thank-you to all our sponsors and everyone on the volunteer golf committee from both Edmonton Mortgage Loans Association and The Alberta Mortgage Brokers Association. This year’s golf committee, in no particular order, was Dan Cameron-Ironwood Financial, Nadeem Jiwa-MCAP, Kristen Linde-Ferrier-Combined Mortgage, Melanie Cantin-CMHC, Stacey Jodoin. TD broker services, Shawn Jewers – First National, Jen Bean-Scotia Mortgage Authority and Imran Thaver-Genworth. Thank-you everyone for your time, hard work, and of course the end goal of bringing everyone in the Edmonton industry together to have fun, golf , and raise thousands of dollars for Habitat for Humanity!

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RMG mortgages Shawn Thompson

Northern Alberta, Saskatchewan & Manitoba

780.446.4440 shawn.thompson@RMGmortgages.ca

Ann-Marie Cunningham

South Alberta

403.880.3447 ann-marie.cunningham@RMGmortgages.ca

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South Alberta February 2012 RMG Mortgages is a division of MCAP Financial Corporation Ontario Mortgage Broker licence no 10600 & 10515 / Ontario Mortgage Administrator licence no 11692 & 11790

403.650.7965 corbett.connors@RMGmortgages.ca

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AMBA BRIEFS AMBA SASKATCHEWAN CHAPTER In early June, AMBA announced the launch of a Saskatchewan AMBA Chapter. We're excited to join forces with fellow industry members in Saskatchewan and look forward to helping them grow.

You can watch President Paul Bojakli’s video announcement in the AMBA President’s Blog at www.amba.ca.

MEET OUR NEW STAFFER Kayla Raposo joined our team in February as our administrative coordinator. Kayla is a full-time psychology student at Mount Royal University. When not in school she spends her days off studying and helping us at the office. We are excited that Kayla has joined our team and look forward to all of you meeting her.

REFER A MEMBER OR ‘LIKE’ US ON FACEBOOK FOR A CHANCE TO WIN A CONFERENCE PACKAGE iFor every new member you successfully refer to AMBA, you will receive 10 ballots in the contest.

Referrals must be for new members who have not been a member in the past 12 months. Referrer must be a member of AMBA. Only one referrer per new member. New members can indicate who they were referred by during the application process or by emailing info@amba.ca.

You can also 'like' us on Facebook for an additional ballot.

Learn more about the contest in the Member Zone, under member resources.

DOWNLOAD YOUR CURLING PICS

MEETING SPACE AVAILABLE IN THE AMBA OFFICE

You can browse and download the 2012 curling bonspiel pictures in the Member Zone. All you have to do is log in, click the ‘photo gallery’ button in the Member Zone and select the gallery you’d like to browse.

If you’re tight for space, we’ve got lots of it. We have one large board room with room for up to 30 people, a meeting room with space for 15-18 people and an office available for rental. We’ll offer you a great deal and flexibility on rental times and price.

Be sure to check out all the fun!

If you’re are interested , call Kayla at 403.685.9652.

AMBA MEMBER BRIEFS INDUSTRY VETERAN BOB ORD TAKES THE HELM AT INVIS– MORTGAGE INTELLIGENCE Invis-Mortgage Intelligence announced today that industry veteran Bob Ord has been appointed CEO for the company.

“Bob Ord was a founder of Mortgage Intelligence; he is also an exceptional leader, and is arguably one of the most influential business builders in the industry,” says Cameron Strong, CFO and Chairman of the Board. “Bob is visionary and has helped shape the mortgage brokerage industry here in Canada.”

In selecting Ord to lead Invis-Mortgage Intelligence, the company cited a series of current and imminent challenges facing the industry, including impending changes from OSFI, the loss or repositioning of FirstLine and other lenders, the increase in branch mortgage sales forces, and lingering recessionary effects.

“Bob’s industry experience is virtually unparalleled,” says Strong.

“We believe that the current shift in the industry is opening up new opportunities for Invis-Mortgage Intelligence. Bob Ord is the ideal individual to position the company for this exciting new future. His track record speaks for itself.”

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INDUSTRY TALK WITH

ASIF NAZARALI Meet Asif Nazarali of Belmor Mortgage Corp and Mortgage Advisors Ltd. Asif's an Edmonton member who started his career in 1998.

TELL US A BIT ABOUT YOURSELF …

WHERE ARE YOU FROM? I was born and raised in East Africa, and lived and went to school in Nairobi, Kenya. My hard working parents immigrated to Canada in the 70’s looking for a better future, starting out in Toronto and eventually setting in Edmonton in the early 80’s. This has been home ever since.

WHAT ARE A FEW OF YOUR HOBBIES? Cooking- all cuisines ranging from African to Greek; Reading- mostly business, personal development, health and food. Working out and trying to get and stay healthier. In addition I enjoy volunteering and participate with senior’s transportation and community radio. These hobbies and my personal commitments complete an already busy schedule.

HOW DID YOU GET STARTED IN THE BUSINESS? With an educational background in Psychology and Business my passion has always been about working with people, in developing new relationships while delivering a strong entrepreneurial spirit in a professional capacity. My professional experience started in real estate and small business until I had an epiphany in 1998 and that’s when I ventured into the mortgage industry.

PLEASE TELL US A LITTLE ABOUT YOUR COMPANY ...

HOW LONG HAVE YOU BEEN WORKING IN THE BUSINESS? I started out in 1998 as a new agent with an Edmonton brokerage and this eventually evolved into a successful career progression ranging from working as a BDM with a sub-prime lender to becoming a seasoned mortgage specialist with a major lender until I finally ventured back into the broker world and started Mortgage Advisors Ltd in September 2009.

Today, I proudly embrace dual roles: first, as the V.P. Edmonton & Area for Belmor Mortgage Corp., and second, as a senior mortgage advisor and team lead with Mortgage Advisors Ltd. We currently have offices in Calgary and Edmonton with a total of 12 mortgage agents plus administrative staff. What a great team!

Unlike many other companies who operate as a decentralized network of individuals and brokers, our boutique company is a cohesive group of elite mortgage professionals in the industry.

We are all about adding value to our company and not just adding numbers.

WHAT IS YOUR EXPERIENCE WITH AMBA? I have always believed that the role AMBA plays in our industry is vital to our success collectively. They foster partnerships and establish a stage for both lender and broker to join hands and share a common vision, mission, value and goal.

I have had the opportunity to work closely with Judy Martin during the recent Edmonton Home and Garden Show. Co-hosting the booth with Judy was very refreshing …. Her knowledge of the mortgage business is vast and her passion for the broker industry was very impressive. She is truly an ambassador for the industry!

34 SUMMER 2012

SUMMER 2012 MEMBER PROFILE

WHAT ADVICE WOULD YOU GIVE TO PEOPLE WANTING TO ENTER THE MORTGAGE BUSINESS? Like any serious business venture the mortgage industry requires a plan, a well thought out business plan. Be prepared for disciplined and honest hard work, a strong commitment, focus on the relationships and you will be amply rewarded with an exciting career offering numerous opportunities.

Try and avoid being short sighted by focusing on transactions- if this is your approach then you will only be as good as your next funding.

Be aware of the fact that each transaction is inherently a critical component of a broader strategy for long term growth, steady gain and for building strong business partnerships.

And most importantly, team up with a brokerage that truly embraces the ‘team’ approach; provides coaching, mentorship, support, is committed to your success, and will stand by you to help you become successful.

I TRULY BELIEVE THAT STRENGTH AND GROWTH OF MARKET SHARE COMES FROM COLLECTIVELY ELEVATING OUR BRAND, OUR VALUES, OUR COMMITMENTS AND OUR DELIVERY OF THE OVERALL EXPERIENCE

WHAT IS YOUR VISION FOR THE MORTGAGE INDUSTRY? My vision for the industry is to become the preferred mortgage source for the educated and informed consumer. I truly believe that strength and growth of market share comes from collectively elevating our brand, our values, our commitments and our delivery of the overall experience. Educating our customer every day results in higher awareness of the value and this in turn results in increased market share.

CONTINUED NEXT PAGE ...

Equity Lending!

Over 600 Million lent Since 1997 BR I T I SH COLUMBI A • ALBERTA • ONTA R IO • ATLANTIC PROVINCES

UP TO

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Business Development Manager Ontario

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Phone: 604 | 329.6067 Fax: 604 | 430.3287 Toll Free: 800 | 625.7747 glay@capitaldirect.ca

Phone: 403 | 278.6200 Fax: 403 | 278.6296 Toll Free: 800 | 959.9290 phutton@capitaldirect.ca

Phone: 905 | 299.6951 Fax: 905 | 824.7095 Toll Free: 80 0 | 814.2578 hdoggett@capitaldirect.ca

582904_Capital.indd 1

Phone: 902 | 894.7700 Fax: 902 | 894.7736 Toll Free: 866 | 830.7734 tbowie@capitaldirect.ca

4/16/12 4:17:22 PM SUMMER 2012

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SUMMER 2012 MEMBER PROFILE IN SUCH A COMPETITIVE MARKET, HOW DO YOU STAY AHEAD OF YOUR COMPETITORS AND REMAIN SUCCESSFUL? I am convinced that if you focus on the relationships rather than transactions, whether key business partnerships or customers, in the long run this will help you appreciate some sustained success in your business. We have been doing this for many years collectively, and are proud of our success. We measure this success by the number of loyal customers we work with and the personal referrals they repeatedly send us.

WHAT ASPECTS OF THE MORTGAGE INDUSTRY DO YOU FIND MOST CHALLENGING? I think the biggest challenge is agents that are focused solely on rate, selling only rate, and being perceived as rate shoppers- we are mortgage advisors, experts in the industry and specialists at what we do. Either we work toward getting the customer to call us for ‘mortgage advice’ or we position ourselves so they only call us for ‘today’s rate’.

With AMBA, CAAMP and other industry advocates we are moving in the right direction however market share is much lower than it should be; consumer perception still views our industry as the alternative option or Plan B; and we are relied upon to either rate shop or when the bank says no.

In order to become much more successful we need to significantly raise our brand, present ourselves and viewed upon as trusted, credible, professional mortgage experts.

Mortgages at the speed of life With First National you can rely on the strength and innovation of our technology and the flexibility of our mortgage solutions – introducing Option 60, our newest solution designed to keep you responsive to the always changing needs of clients.

Mortgage solutions are our business – making clients’ home ownership dreams come true is yours. Let’s make this happen together, call your Account Manager today.

800.567.8711 | FirstNational.ca

Delivering Ser vice. Creating Solutions. Building Success. *2010 Broker on Lenders study, conducted by CMP Magazine and published September 2010.

36 SUMMER 2012

USE AN AMBA MORTGAGE PROFESSIONAL Ron McClenaghan As mortgage professionals, we work on behalf of a mortgage brokerage which has one broker in charge. We are not all mortgage brokers, so I believe it to be important that we define ourselves and our professional services for our customers.

The promotion of ourselves as Mortgage Professionals rests with each licensed individual within the mortgage industry. AMBA, as the representing provincial association, embraces true values for developing well educated people operating within a defined code of ethics.

We need to send a message to the Canadian mortgage consumer. We need to say our message loud and proud.

Our new marketing program will create the true image of an AMBA mortgage professional. Our program will promote the tagline: Use an AMBA Mortgage Professional. The program will be promoted throughout Alberta using media vehicles such as magazines, radio, home shows and television at prime time scheduling.

Details for the program are being developed as you are reading this page and will be ready for a full introductory launch at our Banff Conference and Trade Show.

AVAILABLE ON-L INE!

Matters SCAN THIS QR CODE TO READ THIS ISSUE AND PAST ISSUES OF AMBA MATTERS ON YOUR MOBILE DEVICES!

SUMMER 2012

37

AMBA CALENDAR JULY 2012 STAMPEDE PARTY JULY 10, 2012 Ironwood Pub (1229 9 Ave SE ), Calgary, AB 11:00 a.m. – 2:00 p.m.

AMBA SHOWS THE

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HEADLINES

SEPTEMBER 2012 FALL GOLF TOURNAMENT SEPTEMBER 6, 2012 Fairmont Banff Springs Golf Course, Banff, AB PRE-CONFERENCE WORKSHOP SEPTEMBER 6, 2012 Fairmont Banff Springs, Banff, AB ANNUAL CONFERENCE & TRADE SHOW SEPTEMBER 7, 2012 Fairmont Banff Springs, Banff, AB

Your solution to get information out...QUICK! AMBA offers its members this service to help get announcements and job postings to a mass audience, quickly and cost-effectively.

Headlines, job postings and other classified advertisements are posted on the Industry Members Main Page and the AMBA Members Main Page for a cost of $25 (+GST) / week. Respondents can notify the posting brokerage directly Graphic Design for this issues of AMBA Matters

403.890.9782 erin@5ofSix.com

Photo credit for some photos used with in this issue of AMBA Matters are ©Shutterstock.com

38 SUMMER 2012

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