AMBA Matters Spring 2015

Matters This Year's Keynote Speaker Jon Montgomery presented by

Adventures Badlands drumheller

in the

Strategies for surviving uncertain economic times ALSO Curling bonspiel, alt-a and winter games highlights INSIDE

Spring 2015

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Matters

Spring 2015 A SPECIAL THANKS TO OUR ADVERTISERS...

Antrim ���������������������������������� 2 Capital Direct �������������������� 4 First National ���������������������� 4 Romspen ����������������������������� 6 Cedar Peaks ������������������������7 Home Trust �������������������������12 Alta West ����������������������������14 LMS Prolink �����������������������14 Calvert ��������������������������������19 Lanyard ������������������������������25 Hendrix Law ��������������������� 27 SidePix ��������������������������������31 V.W.R. Capital Corp. �������35 Equitable Bank ����������������36 Premiere Mortgage ������� 37 Caplink �������������������������������38 MCAP ����������������������������������39 Street Capital ����������������� 40

9 10 13 15 16 18 20

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

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

Update from the real Estate Council of Alberta

A Look Back at Amba Where There's a Will, There's a Way Insurance has evolved along with the mortgage industry

2015 Curling Bonspiel Highlights

Strategies for Surviving Uncertain Economic Times

Annual Golf Tournament & 40th anniversary Conference

26 29 30

Matters

Amba 2015

2015 Alt-a Symposium highlights

amba.ca website tips The new amba not just a facelift

Board of Directors President Adil Mawji Invis

Past President Gord Appel TMG

Vice President Dave Trithart DLC 1st Financial Link

Treasurer Phil McDowell Mortgages Are Marvellous

Education Director Ryan Spence D+H

Government Relations Layne Walters TMG

Inter Provincial Ron McClenaghan Invis

Events Erica Fikkert Equitable Bank

Risk Management Kevin Weeks Weeks Law

Communications Dale Koeller Calvert Home Mortgage Investment Corp.

Membership Tracey Robinson Mortgage Protection Plan

Membership Jan Gosse Jencor

Magazine Publisher: Amanda Roy-Macfarlane

32

Magazine Editor: Holly Mazur

OTHER FEATURES...

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

2015 Winter Games event highlights

President's Remarks 5 Manager's Report 8

Return undeliverable Canadian addresses to:

Industry News 28 Member Profile: Katie McDowell 36 AMBA Calendar 38

Art & Design: Erin Lehtisaari Photo credit for some photos within this issue of AMBA Matters ©shutterstock.com.

Spring 2015

3

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Spring 2015

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President’s Report

Spring 2015 As my first formal communication as president for 2015, I’d like to start by thanking our past president Gord Appel for his hard work and dedication in 2013/2014. Gord’s devotion has set the path for our association to flourish this year.

Adil Mawji AMBA President

We’re off to a great start in 2015 with our membership renewal numbers growing daily. As AMBA’s membership rises, our voice is reaching more and more brokers throughout the province. Our membership supports our industry — the more members we have, the stronger we are to face challenges as an association.

On the education front, AMBA has seen an increase in course registration by 14 percent since last year. A rise in course registrations means that 2015 will bring in many new brokers. We hope to include these students in our conference this year to give them a taste of how great this industry is and ease them into their new careers.

Introducing our new vice-president

I am proud to announce that Dave Trithart is AMBA’s 2014/2015 vice-president. A board member from 2001-2006 and a recipient of the AMBA Ambassador Award in 2007, Dave has served as director of education and was instrumental in the streamlining and development of the mortgage broker course. He has been in the financial services industry since 1972 and will help lead our association into the next generation of mortgage brokering, including being our advocate in government relations and ongoing discussions with other provincial and national associations.

Event overview

Turn To Page 16 for Highlights

Turn To Page 26 for Highlights

AMBA has hosted three events this year, starting with the Curling Bonspiel. Kevin Suddaby, Cathy Duncanson, Gary Siegle and I took home the title of Bonspiel Champions. With a Calgary team winning over a team from Edmonton, AMBA’s vice-president David Trithart lost a bet to me, which resulted in him sporting a Flames jersey (his most hated team as a fan of the Edmonton Oilers) to the ALT-A Symposium. Although Edmonton lost this year’s bet, Edmonton brokers showed their pride and support.

The ALT-A Symposium, brought a great day of learning and networking as attendees discovered more about the 2015 Alberta economic outlook, how to present using stories, how to close deals with private lenders, how laws affect mortgage brokers, how to sell an idea, and what experts say about the private mortgage lending industry.

The event was well represented by brokers from all over the province and we hope to build on this for our 2016 ALT-A Symposium.

Turn To Page 32 for Highlights

The Winter Games, a new addition to the AMBA event lineup, saw 60 brokers (I mean Olympians) take on five team-building activities that tested knowledge, sportsmanship and athletics.

Representing 10 different countries, brokers showed their patriotism at this entertaining inaugural event by singing their adopted country’s national anthem and painting their faces in team colours. Team Italy’s Caterina Olivito-Veltri, Ed Arnone, Donna Hunter, Nancy Kamineski, Tara Beattie and Paula Hutton took home Olympic Gold.

I want to congratulate and thank all participants for making the first annual Winter Games a fun and engaging event. We are already planning next year’s Winter Games and suggest you start training to take on Team Italy next year.

Plan for 2015

This year, AMBA plans to focus on the following: To increase our membership and focus on province-wide representation for our industry. This means engaging more of our brokers in northern and southern Alberta.

Increase our social media presence.

This will allow us to connect more of our members to our events and sponsors, and inform them of the value AMBA has to offer.

Create a plan to promote mortgage brokers in Alberta through consumer awareness.

Continued on page 7

Spring 2015

5

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HOW PLANS BECOME SQUARE FEET. Blake Cassidy I 800 494 0389 I www.romspen.com

President’s Report

Spring 2015

Continued

AMBA is our voice

AMBA has always worked closely with our provincial associations in order to create synergies and efficiencies within the industry. AMBA will be taking part in interprovincial discussions in April to see how we can bring more value to our members.

The reality is that AMBA is needed when our industry is under fire or challenged. If we only choose to be members when there’s an immediate need, the association won’t exist. We need to choose to be a part of our industry.

When our industry is challenged, AMBA is our voice:

No company, no matter how large, professional or organized, can gain the ear of government and the regulator in this way. AMBA is the only provincial vehicle for mortgage brokers to have their voices heard with our regulators and with our provincial government.

When RECA asked us to disclose how much we get paid on a file, AMBA was the voice of reason.

When RECA wanted to change The Act to require anyone dealing in private mortgages to have an Alberta Securities license, AMBA met with the Minister of Service Alberta and had the position overturned.

We’ve had a great start to 2015 and I look forward to the rest of the year!

When new continuing education requirements come out every two years, AMBA offers input on what topics should be considered.

The Real Estate Act is open for re-write this year.

This happens every four to six years and AMBA has held government meetings to ensure any re-writes are in favour of our brokers. Remember that RECA’s membership is 80 percent Realtors — brokers are a minority and could be forgotten without our efforts.

REGISTER AT AMBA.CA

Spring 2015

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General Manager’s Report

Spring 2015

If you’re like me, the start of a new year means planning your next vacation. Whether it’s to visit family, an adventurous road trip, a simple weekend getaway or your dream vacation, all those long working hours pay off when you are finally able to book a little R&R.

Amanda Roy AMBA General Manager

I have travelled extensively and have never experienced a more beautiful place than Hawaii. From the people and culture to its incredible scenery, the islands allow for any type of vacationer to enjoy their days under the hot Hawaiian sun.

This year, I am proud to announce that AMBA and Equitable Bank have partnered to provide one lucky member at our 40th Anniversary Celebration and Conference a vacation package for two to Honolulu on the Hawaiian island of Oahu.

This seven-night vacation package includes round-trip flights from Calgary to Honolulu, accommodations at the Hilton Hawaiian Village® Waikiki Beach Resort, a Waikiki Starlight Luau and a Kualoa Experience Package (Jurassic Park excursion).

AMBA

Members Make

The Hilton Hawaiian Village® Waikiki Beach Resort offers 22 acres of oceanfront on Waikiki's widest stretch of beach, five pools, 20 restaurants and bars, a spa, daily activities, and exotic wildlife, gardens, ponds and waterfalls. I’ve been there, and it will not disappoint.

When you’re not spending time at the pool or oceanside, you will have access to three Kualoa Ranch tours — but watch out for the T-Rex as you visit the Jurassic Park film set.

CMP’s Hot List The Canadian Mortgage Professionals (CMP) recently released its 2015 Hot List and AMBA is pleased to announce a number of our members were recognized.

Congratulations to:

You will also get to experience an evening under the Hawaiian stars at the memorable Waikiki Starlight Luau. Waikiki’s only outdoor Luau features extravagant Lei greetings, amazing hula performers, acrobatic fire dancers and authentic Hawaiian dining.

Gord Appel – AMBA board director TMG The Mortgage Group Alberta

This will be the dream getaway of a lifetime, so don’t miss your chance to win this all-expenses paid trip to Honolulu, Hawaii. Be sure to register for our 40th Anniversary Celebration and Conference in Drumheller and visit our trade show on June 12th, for full details on how to become the lucky winner all other AMBA members will envy!

Colin Dreyer – Verico Financial

Registration Opens April 14, 2015 Register early to get in on the savings!

n i W

Michael Cameron – Axiom Mortgage Albert Collu – Mortgage Architects Adil Mawji – AMBA president Invis Simple Mortgages The Hot List is released annually and highlights Canada’s top 50 movers and shakers who are changing the face of the mortgage industry. From brokers to CEOs, the list is picked by the mortgage community through online submissions.

T r ip

Tradeshow Challenge Full qualification details available June 12.

8

Spring 2015

Don’t miss out!

It could be your ticket to paradise.

Presented by

Update from the Real Estate Council of Alberta We want to begin by thanking AMBA for giving us this opportunity to share a Real Estate Council of Alberta (RECA) update with our mortgage brokerage professionals. In the coming year, RECA will include these updates in each AMBA Matters publication.

RECA’s current fiscal year began on Nov. 1, 2014. At its October council meeting, council elected Chad Griffiths as chair and Krista Bolton as chair-elect for 2014–2015, effective Nov. 1, 2014. Griffiths is a commercial real estate broker in Edmonton, while Bolton is a chartered mediator who serves as a public member of council.

Mortgage brokerage professionals will have a Re-licensing Education Program (REP) course, Mortgage Broker Update 2015, to complete prior to renewing their authorization in September 2015. RECA will notify mortgage brokerage professionals as soon as the course becomes available. Watch for it this spring.

Disciplinary action update Derek Johnson, unlicensed activity RECA has issued multiple administrative penalties to a Derek Johnson for unlicensed real estate and mortgage broker activity. Johnson has not paid any of the Administrative Penalties ($65,000) and continues to carry on with unlicensed activity.

In mid-October, Council served Johnson with a letter pursuant to section 10 of the Real Estate Act directing him to immediately cease his unlicensed activity and providing him with seven days in which to comply and notify RECA of his compliance. This is the first time RECA has taken action under section 10 of the Act. Johnson did not comply with the request by the deadline and in December, RECA obtained a Court of Queen’s Bench injunction against Derek Johnson, also known as John Davis, ordering him to cease and desist trading in real estate and dealing in mortgages as defined by the Real Estate Act and to pay $2,500 in costs. The court also ordered Johnson to take down his websites, www.freelistcalgary.com and www.joerhealestate.com (Joe Rhealestate) and to remove his YouTube and Kijiji postings.

Condominium Size Issues In October 2014, RECA issued 16 Letters of Reprimand and 20 Administrative Penalties to real estate professionals in the Edmonton area who have misrepresented the registered size of a condominium property on MLS®.

Administrative Penalties To Members Of The Public In the past year, RECA has issued three $5,000 Administrative Penalties to members of the public for failing to respond to information requests from RECA’s professional conduct review officers (investigators). These penalties are issued pursuant to section 38(4)(a) of the Real Estate Act, which requires that any person co-operate with a RECA investigator and promptly respond to questions. This section of the legislation act applies to industry members and non-industry members. One of these Administrative Penalties is currently under appeal.

LOOK OUT FOR THIS NEW COURSE: Re-Licensing Education Program (REP) Course, Mortgage Broker Update 2015

Policy initiative update New Real Estate License Model Council is implementing a new licensing model for those in the real estate sector effective June 1, 2015. The new model will allow new industry professionals to enter the industry in the specialty area(s) they choose. Industry professionals will only trade in the specialty area for which they successfully complete the appropriate education.

This model currently exists for property managers. This new model will: • Reduce barriers, time and cost for entry to the industry; • Provide clear career path choice for potential industry professionals; • Match educational requirements to career path choices; • Facilitate new re-licensing education opportunities for specialty areas of practice; • Increase competency and professionalism of industry professionals; and • Not affect existing industry professionals.

RECA’s consultation with real estate professionals on this new model is currently underway.

Legislative developments Mortgage Investment Entities RECA is working with Service Alberta on amendments to the Real Estate Act Exemption Regulation. The exemption that affects mortgage brokers is that the Real Estate Act will not apply to Mortgage Investment Entities (MIE). The definition of a MIE will include syndicated mortgages, mortgage investment corporations and mortgage investment trusts. The activities of mortgage brokers who deal with an individual who loans money secured by a mortgage will remain under RECA’s jurisdiction.

Condominium Manager Licensing The Government of Alberta recently passed amendments to the Condominium Property Act and the Real Estate Act. These amendments require the licensing of condominium managers. This legislation delegates the authority to RECA to govern the activities of individuals who provide condominium management services to condominium corporations. The current intention is that RECA will govern condominium managers under the same model it uses to regulate the other four sectors. There is no date set to start the regulation of condominium managers. A key part of the project is to identify individuals that are currently offering condominium management services. There is a transition period for condominium managers prior to implementing the licensing, education and practice standards.

Spring 2015

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As the Alberta Mortgage Brokers Association (AMBA) celebrates being the oldest mortgage broker association in Canada, we take a look back at how AMBA became what it is today.

In The Beginning

In 1974, two groups of brokers, one from Calgary and another from Edmonton, began meeting informally with the objective of forming an association. This association would build professionalism, a strict code of ethics and business standards, while educating consumers and lending institutions about the purpose of mortgage brokers.

At this time, the Department of Consumer and Corporate Affairs governed mortgage brokers and was trying to regulate brokerage

1975

fee charges. The group took this as an opportunity to also make the association the voice of the industry, resulting in 110 industry professionals gathering for the first annual general meeting in Red Deer, Alta. in June 1975 to form AMBA. Representing 50 to 60 members initially, AMBA worked with volunteers and the board of directors to build credibility for the association, convince lenders that mortgage brokers were a valuable part of a deal, and build a training course for brokers entering the industry.

Then Now Pierre Elliott Trudeau was Canada’s 15th prime minister.

Peter Lougheed was Alberta’s 10th premier.

Present

Stephen Harper is Canada’s 22nd and current prime minister.

Jim Prentice is Alberta’s 16th and current premier.

Canada’s population was 23,143,2755

Canada’s population is 35,540,4195

Alberta’s population was 1,808,6895

Alberta’s population is 4,121,6925

Minimum wage was $2.506

Minimum wage is $10.207

Average gas price was $0.149 per litre8

Average gas prices across Canada rose in September 2005 to $1.00 per litre and remained above $1.00 per litre till 2014/2015 when oil and gas fell15

An average Canadian home size was 1,075 square feet9

An average Canadian home size is 1,499 square feet10

Average Canadian house price was $70,00011

Average Canadian house price is $405,23312

The average 5 year mortgage rate was between 10.5% and 12%13

The average 5 year mortgage rate is approximately 4.8%14

10 Spring 2015

The Nineties

A New Century

In the 1990s, AMBA joined the Real Estate Council of Alberta (RECA), with past AMBA presidents playing a role in the formation of the governing body. With a new regulator, brokers attained a higher level of education, proficiency and professionalism, and the industry became more attractive, increasing the number of licensed brokers from approximately 300 to 2,800 in Alberta. With an increase in licensed brokers, AMBA inaugurated its first female president, Carol Williams, into the association. As a result of her and past presidents’ leadership, the association grew to approximately 650 members.

As AMBA entered a new century, membership hit 850 and the first employee was hired. In 2008, AMBA took over the administration and educational component of the Mortgage Associates Program (MAP) from the Alberta Real Estate Association (AREA). AMBA made significant improvements with technology as a website, social networks, webinars and an online AMBA Matters magazine was introduced. This online presence increased the association’s following and versatility.

Do you have pictures or details about AMBA’s past, please help us fill in our timeline by sending information to hmazur@amba.ca

Today, AMBA is an independent, non-profit organization dedicated to highly ethical principles and to keeping the industry at a high level of integrity and professionalism. AMBA offers the second half of the MAP course for residents of Alberta to take online. We have grown to four employees, 12 board members and an army of volunteers to be the collective voice of the mortgage brokerage industry in the province.

Year Timeline

Year Timeline

1975

2004

First employee hired.

2008

AMBA begins taking over the administration and educational components of the MAP program from the Alberta Real Estate Association (AREA).

2009

AMBA offers the Practice of Mortgage Brokerage Course (MAP), the second half of the MAP program, for residents of Alberta to take online.

The Alberta Mortgage Brokers Association is formed in Red Deer.

AMBA’s first annual conference held.

1980

First training course for brokers is introduced.

AMBA has 50 to 60 members of the association.

1985

AMBA celebrates its 10th anniversary.

1990

Fax machines are introduced, which change industry communication.

AMBA plays a significant advisory role in the formation of the Real Estate Council of Alberta (RECA).

1995

AMBA starts a Facebook account.

2010

Private Mortgage Lenders Forum (PMLF) founded.

AMBA celebrates its 20th anniversary.

RECA is formed and becomes involved with regulations and licensing.

2013 2014

president of AMBA.

2000

AMBA reaches approximately 700 members.

AMBA celebrates its 25th conference anniversary.

AMBA’s first trade show is held.

2001

AMBA Matters publication launched.

2005

AMBA celebrates its 30th anniversary.

Only purpose of AMBA website was to download the FTA software.

AMBA begins conversations on a provincial and federal level.

AMBA moves office locations to 1209 59 Ave SE, Suite 150, Calgary, AB T2H 2P6.

1996-97 Carol Williams is the first female AMBA reaches approximately 300 members.

AMBA launches new MAP program with RECA. AMBA hosts first ALT-A Symposium.

AMBA joins RECA. New level of professionalism is brought to the industry through self-regulation of mortgage brokers.

AMBA starts a Twitter account.

AMBA holds its first Fraud Symposium.

2015

AMBA celebrates its 40th anniversary around Alberta.

AMBA launches a new website and Verified Information Program (VIP).

AMBA hosts its inaugural Winter Olympics.

AMBA has four employees, 12 board members and volunteers to be the collective voice of the mortgage brokerage industry.

Then vs Now Sources 5. Statistics Canada: Demography division. (26 September, 2014). Annual estimates of population for Canada, Provinces and Territories, from July 1, 1971 to July 1, 2014. Retrieved from http://www.stats.gov.nl.ca/ statistics/population/PDF/Annual_Pop_Prov.PDF; 6. Government of Canada. (10 March, 2014). Hourly minimum wages in Canada for adult workers (1975-1984). Retrieved from http://srv116.services.gc.ca/rpt2.aspx?lang=eng&dec=2; 7. Government of Canada. (10 March, 2014). Hourly minimum wages in Canada for adult workers (2005-2014). Retrieved from http://srv116.services.gc.ca/rpt2.aspx?lang=eng&dec=5; 8. Dunn, B. (8 June, 1985). Gasoline prices 421 percent higher than in 1965. The gazette. Retrieved from http://news.google.com/newspapers?nid=1946&dat=19850608&id=KyAyAAAAIBAJ&sjid=36UFAAAAIBAJ&pg=4911,4256194; 9. Hopper, T. (13 July 2012). The incredible shrinking home: Why Canada’s houses are getting smaller. National Post. Retrieved from http://news.nationalpost.com/2012/07/13/the-incredible-shrinking-home-why-canadas-houses-are-getting-smaller/; 10. Canada Mortgage and Housing Corporation. (2013). Canadian housing observer 2013 (p. 31). Retrieved from http://www.cmhc-schl.gc.ca/odpub/pdf/67989.pdf; 11. Centre for urban economics and real estate. (n.d.). Canadian real estate price appreciation. Retrieved from http://www.andrewcmacdonald.com/wp-content/uploads/2011/01/canadian-real-estate-price-appreciation.gif; 12. The Canadian Real Estate Association. (n.d.). National average price map. Retrieved from http://crea.ca/content/national-average-price-map; 13. Martin, J. (July, 2010). Comments from past presidents. 35 years in the making. AMBA Matters.(p. 20 – 23).; 14. Ratehub.com. (n.d.). 5-Year Fixed Mortgage Rates. Retrieved from http://www.ratehub.ca/best-mortgage-rates/5-year/fixed; 15. Statistics Canada. (23 January, 2008). Gas Consumption and the price of gas. Retrieved from http://www41.statcan.gc.ca/2007/4006/ceb4006_003-eng.htm

Spring 2015

11

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Where There’s a Will, There’s a Way Tim Hurlburt, Alta West Capital

There’s an old joke that I’ve heard a few times. Every time I hear it, I stop and think. To me it rings so true in the mortgage industry.

Clients entangled in life events are stressed. They are, however, motivated to solve the problem; they have the will. Your job is to help them find the way.

An old farmer wrote a letter to his son who is proclaiming his innocence while sitting in prison.

Remember, no one will know the client like they themselves!

“Son, this year has been tough. I’m unable to plant potatoes because I can’t dig the ground as I am too old and frail. I know that if you were around that you would have helped me.”

His Son Replied: “Father you idiot, do not dig in the potato field, I’ve hidden the guns there.”

Well of course, the authorities read the letter, and the next day the ground was dug over by the police searching for the guns, but they didn’t find anything!

In order to assist your client, we ask that you dig a little deeper and ask the tough questions: Why are you in this situation?

How do you plan to get out?

Do you have any other income?

Do you have any other property/security – what else do you own?

The farmer wrote again, “Son, I thought you said you were innocent, why did you write about guns in the field?”

Do you have other property/security in other names (corporate), in other locations?

The son replied: “Now plant your potatoes dad, it’s the best I could do from here”.

Is there anyone else who can help (friend or family)?

Where there’s a will, there’s a way.

How does this relate to the private mortgage industry?

If you have read my previous articles, you’ll have noticed a common thread running through them all. When presenting a deal to a private lender, tell the whole story, don’t leave anything out, warts ‘n’ all, lay it out there for the lender. More often than not, the private lender has seen it before. You may think it’s a unique situation, but the chances are it’s nothing new to the lender. As private lenders, we are structured to deal with the unusual. In fact, our business models are built around exactly that, if the deal is cookie cutter, it’s likely not a deal for us.

Whatever the reason your client requires a private mortgage, from the mundane to the unusual, the more detail we have the better. It could be job loss, divorce, CRA issues, or even as in the case of the above joke, sitting in prison waiting to clear their name, provide as much detail as possible.

There are three major reasons clients need the services of a private lender:

Who else have you talked to?

Once these questions have been answered, let us figure out what is relevant and what isn’t. Remember, private lenders are typically more focussed on the available equity and quality of the real estate and less on why the money is required.

You don’t need to know what to disclose and what not to disclose. Disclose it all.

When you build a business around unusual situations, as private lenders do, the details make the difference. Often we discover that clients are influenced by what they think lenders want to know and therefore, will only provide limited information to you the broker. In turn, that limited information is all we see. Bear in mind private lenders view the world differently to traditional lenders; a bad deal for them may be a great deal for us. The lack of information may actually harm the deal not enhance it.

If you give us all of the information we will work out how to get the field dug, it’s what we do. We want to see you and your clients succeed.

Entrepreneurial – self-employed, commission or tips based, living off rental income, or simply lacking income.

Life events – weddings, births, attending school, divorce, job loss, or medical emergency.

Rules and regulations – trapped by the rules of lenders, insurers or regulators.

Spring 2015

13

WHY

WHY CHOOSE US?

www.awcapital.ca 1.888.554.9075

Top 5 reasons to work with Alta West Capital 1. Get your deal done.

We understand private lending and private clients.

2. There is no “box”.

We are flexible and able to structure the best deal.

3. Get paid sooner.

Decisions are made quickly and efficiently.

4. Deal Direct.

We are “the lender” giving us control and flexibility.

5. Proven and trusted. With decades of experience we have earned our stripes.

ALTA WEST MORTGAGE CAPITAL CORPORATION 600, 11012 MACLEOD TRAIL SE, CALGARY, AB T2J 6A5

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14 Spring 2015

Insurance Has Evolved Along with the Mortgage Industry Derrick Leue, President, PROLINK Insurance Group Inc.

If I was writing an article on insurance and risk management for AMBA members in 1975 then the focus would have been on protecting physical assets in the office, cash, and cheques received from borrowers and brokerage owners from a lawsuit related to a slip-and-fall on office premises.

The mortgage brokerage industry has changed dramatically in the past 40 years and so has insurance.

Errors & Omissions Liability (E&O) has been the insurance product receiving the most attention from brokerage owners in the past 10 years. Interest levels peaked in 2011 when RECA made E&O a requirement for licensing. I would estimate that only one, maybe two mortgage brokerages in Alberta had E&O Liability in place in 1975. In fact, it would have been almost impossible to even find an insurer offering E&O Liability to protect mortgage brokerages 40 years ago. In 2015, I would estimate that 95 percent of licensed mortgage brokerages would purchase E&O Liability even if it was not mandated by RECA.

There have been more innovative changes to the insurance products available to protect mortgage brokerages and their associates in the past five years than in the past 35 years. These innovations have a lot to say about the newly expanding risk exposures facing brokers and associates that were essentially non-existent 10 years ago.

Directors & Officers Liability

Business owners in all professions and industries are now investigating the benefits of Directors & Officers Liability (D&O). Incorporation is the first line of defence when business owners are seeking to protect their own personal assets. However, there have been cases in Canada whereby the courts will ‘pierce the corporate veil,’ thus disregarding the personal protection provided by the corporate entity.

D&O Liability insurance protects the insured entity (i.e., brokerage or lender), its directors, officers and employees both past and present. The primary exposures for mortgage brokerages would be employment related lawsuits and misrepresentations to third parties. The primary exposure for

mortgage lenders (i.e., mortgage syndicators and MICs/Trusts) is misrepresentation allegations from investors who believe they suffered a financial loss as a result of the negligence of those managing the syndication or mortgage fund. There are significant coverage differences between the different D&O Liability policies available in the marketplace. It is important to understand what is excluded from the D&O policy to ensure your primary exposures are covered.

Cyber Liability

News of the latest privacy breaches have become a daily occurrence. The incidents that get public attention are just the tip of the iceberg. Most cases don’t become public knowledge because there is a) no legal requirement to notify affected parties in Alberta unless the Privacy Commissioner specifically requires a notification to be made; or b) because organizations fear reputational damage if they publicly disclose the event. Implementing proper policies and procedures around data protection is critical; however, even the most sophisticated organizations in the world cannot prevent a hacker or rogue employee from breaching their computer systems. The insurance industry has responded with unique cyber insurance, specifically designed to respond to direct costs incurred on a first-party basis (i.e., your own costs) following a data breach, as well as, to third-party liability claims arising from that data breach. As mortgage brokers and lenders continue to rely more heavily on digital data records, cyber risk is an exposure that mortgage brokerages would never have imagined 15 years ago, let alone when AMBA was in its infancy.

Learn More about the AMBA E&O PLUS+ Program The PROLINK Insurance Group Inc. is the proud manager of the AMBA E&O Liability insurance program.

Please contact a representative from the PROLINK Insurance Group’s AMBA Service Team in order to learn more about how E&O PLUS+ protects you.

Phone: 1-800-663-6828; Website: www.LMS.ca/AMBA Peter McCabe: AMBA Program Business Development Manager; PETERM@LMS.CA

Spring 2015

15

Bonspiel Champions

Winners: Kevin Suddaby, Cathy Duncanson, Gary Siegle and Adil Mawji. Award presenter: Erica Fikkert, Equitable Bank

Hurry Hard!

Turkey Shoot Winner

Paula Hutton

50/50 Draw Thank you for supporting Inn from the Cold through our 50/50 draw. This year’s draw raised $295.

16 Spring 2015

THANK YOU TO THIS YEAR'S SPONSORS!

B-Side champs

Winners: Connie Graham, Colin Topolnitsky, Julie Cooper and Melinda Mantello. Award presenter: Gary Siegle, Invis and Mortgage Intelligence

AMBA and the board of directors want to thank each and every sponsor and curler for supporting the 2015 Curling Bonspiel in Edmonton.

C-side champs

Winners: Ron Lefebvre, Mary Poburan, Gerri Vaughan, and Ron Manson. Award presenter: Dave Trithart, DCL 1st Financial Link

D-side winners

Winners: Imran Thaver, Dan Cameron and Tim Hurlburt Award presenter: Paula Hutton, VWR Capital Corp.

! e n o y r e v E s n io t a l Congratu Spring 2015

17

Jody Robbins, Special to AMBA Matters When you live in a boom-time province, you’ve got to expect a certain amount of fluctuation in the economy. While many consumers appreciate relief at the gas pump when oil dips below $50 a barrel, repercussions are felt not only in our province but around the world. And you don’t have to work in oil and gas to feel the effects. The majority of Albertans will be affected to some degree as this industry drives so many others.

Although markets ebb and flow in a similar fashion time and time again, it can be hard to remember their cyclical nature when faced with what’s predicted to be an imminent economic downtown. Yet, savvy investors leverage sluggish economies rather than lament them. With oil prices falling and companies culling, now is a good time to think about what we and our clients can do to protect ourselves and take advantage of new opportunities. Here’s a look at how to shield yourself during a volatile economy.

The B word: Budget

First things first, do you know where your money goes? Unsurprisingly, the vast majority of Canadians can’t accurately answer this.

Sure we have more additional expenses like cell phones and PVR bills than we did a decade ago, but this is why it’s important to take stock on a regular basis. Through budgeting, you can measure changes in your circumstances while taking additional expenses and inflation into consideration.

Not only is budgeting a superb tool for figuring out where your money is going it allows you to find ways to reduce expenses and save more, thus, eliminating debt faster.

Companies trim the fat when the economy contracts. Likewise, individuals can weed out excess spending once they know where their money is going. Budgeting helps to gauge your leakage.

18 Spring 2015

Whether it is $5 daily lattes, getting your house professionally cleaned or pricy concierge services, calculate the marginal utility or how much satisfaction you receive from consuming that commodity. If having a housekeeper prevents you from getting a divorce, by all means keep that service! But if you can readjust your expectations, you’re apt to find many ways in which you can reduce expenses.

Perhaps the most compelling reason to budget is becoming the type of person it creates. “I’ve found that those who take the time to budget are the same people who have the discipline to save.

Those who budget tend to have much stronger savings habits,” says Desmond Chow, senior financial advisor at ATB Securities Inc. Another benefit of doing a budget as a mortgage broker is to better equip yourself to assist your clients with budgeting. After all, you want future clients to be saving for the down payment to buy their first home and the quicker they do it, the sooner you can get them a mortgage.

Looking at Your Debt

After budgeting, see if you can’t come up with a plan to reduce your debt as much as possible. Many financial advisors recommend their clients service any debt prior to taking on any large investments or other strategies. Those who hold debt with a high interest rate do well finding ways to consolidate that debt, so they’re better able to pay it off at once. There are many advantages of debt consolidation. By using the equity in their home as security, clients can reduce their monthly payment obligations and save money on interest charges. Mortgage brokers are in an advantageous position to talk to their clients about getting new mortgages that consolidate their clients’ credit card debts, while lowering their interest costs and monthly payments.

Saving and Investing

Obviously, now is not the time to be overly ambitious in your spending, unless you have means to get through slowdown.

With head counts being calculated with increasing frequency, individuals in vulnerable positions do well squirreling away a nest egg until their position is more certain.

“Savings is a key factor to having an overall healthy financial plan,” says Diana Blake, investment advisor at Dundee Goodman Private Wealth. “Every individual should have between three to six months of savings for all their monthly costs in the event of tragedy, job loss or any other unforeseen situation. I use excess funds to maximize my returns by using a well-diversified approach to the market place holding fixed income, bonds and stocks,” Blake says.

When stocks and real estate investments are falling it’s easy to think that you need to get out. Yet many experts see this as an opportune time to invest for medium to long term gain.

Don’t have a lot of extra cash at the end of the month? Follow the advice of the Wealthy Barber and pay yourself first. Set up a monthly or bi-weekly savings plan, just like a bill payment and stash the designated amount in a savings or investment account.

Those with a higher tolerance for risk might want to consider an investment loan. If you confidently predict you’ll see a higher return than the interest on the loan, this might be an option for you.

Look to the pros

You’d be surprised how many folks don’t understand their finances. “People tend to be both emotional and irrational about money. They will always have over confidence and be fearful, in between is the equilibrium,” says Chow.

Entrusting somebody to help you steward your finances is easier said than done; however, referrals are your best bet for finding the right fit. Talk to friends and colleagues you respect asking who manages their money and if they’re happy with the service.

Start interviewing financial advisors and don’t be afraid to trust your gut. Investing is very dependent on your personal strategy and goals.

“Talk to a qualified financial advisor and be sure to talk to more than one. Anyone worth their salt will ask you a lot of questions to best understand your individual situation to guide you towards the best portfolio mix based on your objectives and comfort level,” says Chow.

Diversification

How do millionaires ride out rough economic times? Simply put, diversification. Now is the time to rebalance your portfolio, making little adjustments so you stay on the right path. There are many misconceptions when it comes to investing, from always buying real estate to not believing in RSPs, but when markets pull back it creates a long term buying opportunity for both stocks and real estate.

And despite the skewed view of the media, try not to worry so much about oil.

Continued on page 36

Alberta’s Private Mortgage Lender

WE PROVIDE NICHE LENDING FOR: » FLIPS/REHABS » 2ND MORTGAGES » QUICK CLOSINGS

» CONSTRUCTION » SHORT TERM NEEDS » DEBT CONSOLIDATION

Call us today for more infomation

888.752.4642

Dale Koeller, Sherwin Dziwenka & Dean Koeller

info@chmic.ca

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www.chmic.ca

Spring 2015

19

Adventures Badlands drumheller

in the

june 11

&

12

Schedule of Events - Day 1

Official Accommodations

Thursday, June 11, 2015

Conference Rates Available at AMBA.ca

Golf Tournament 8:15 am

Registration & Breakfast

Ramada Drumheller

9:15 am

Tourney Start (Best Ball)

3:45 pm

Trophy Presentation

Located within Drumheller and next door to the Super 8— Green and eco-friendly, food and attractions nearby. Walking distance to downtown.

Explore Drumheller Tours 11:00 am

Trolley from Hotels to Hoodoos

11:15 - 12:15 pm

Hoodoo Adventure

12:30 pm

Lunch at East Coulee

1:30 pm

Royal Tyrrell Museum Discovery

4:00 pm

Trolley Back to Hotels

Evening at the Rosebud 4:00 – 6:00 pm

Registration at Ramada Hotel

4:45 – 6:00 pm

Shuttles to Rosebud

5:00 – 6:45 pm

Kick Off Party

6:45 – 7:45 pm

Dinner

8:00 pm

Theatre Presentation: The Wizard of Oz

10:30 pm

Fondue Station Dessert Buffet

11:00 pm

Shuttle service back to hotel starts runs through 1:00 am

Follow the Adventures of AMBA #AMBAhasBITE #AMBA40 20 Spring 2015

Super 8 Located within Drumheller and next door to the Ramada— Green and eco-friendly, food and attractions nearby. Walking distance to downtown.

Hoodoo RV Resort & Campground HooDoo Resort is Drumheller’s largest campground, with tons of green space. The resort is central to most attractions and offers full service lots, water, power, or tenting spots.

High Speed Internet is available in most camping areas.

Brought to you by:

gold silver

®

bronze

An Evening at the Rosebud off to see the wizard!

This Year's Keynote Speaker

Jon Montgomery

While you won't find a gas station in Rosebud, you will find Alberta's only awardwinning professional rural theatre company. Beginning its life as a grain annex, the Rosebud Theatre has evolved into two stage houses, a gourmet café, a historic dining hall, and a post-secondary school for the performing arts. This unique facility will wine and dine you in the historic Mercantile Dining Room before entering the Rosebud Opera House for a performance that will make you wish there is no place like home, in Frank Baum’s The Wizard of Oz. In Joh Kane’s adaption of the play, Dorothy and her dog Toto find themselves in the Land of Oz and with the help of the Good Witch of the North and a few friends, Dorothy travels the Yellow Brick Road in hopes that the Great and Powerful Oz will get her home safely before the Wicked Witch of the West stops her.

Win

THIS YEAR'S CONFERENCE LOCATION

Badlands Community Facility The newest addition to the community, the Badlands Community Facility houses a two level fitness centre, a field house with three courts, a 150 metre running track, a municipal library, an art gallery, a meeting space and a large banquet hall. There is plenty to do in this facility, including celebrating being the oldest brokerage association in Canada.

T r ip

Don’t miss out!

It could be your ticket to paradise.

Presented by

Tradeshow Challenge Full qualification details available June 12.

Spring 2015

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Adventures Badlands drumheller

in the

Schedule of Events - Day 2 Friday, June 12, 2015 Conference schedule 8:00 – 9:30 am

Trolley Service from Hotel Parking Lots to Facility

8:15 am

Registration & Breakfast

9:00 am

Opening Ceremonies

9:10 am

Economist Mid-Year Outlook Katherine White Economics and Fiscal Policy Division of Alberta Treasury Board and Finance

9:45 am

Breakout Sessions — Round 1

10:30 am

Recharge Break

10:45 am

Breakout Sessions — Round 2

11:30 am

Street Capital Social

12:00 pm

Celebrating 40 Years AMBA Awards Gala

1:00 pm

How to Package a Deal for Success Underwriting Panel

2:00 pm

Recharge Break

2:25 pm

Breakout Sessions— Round 3

3:00 pm

Street Capital Keynote Jon Montgomery — Host of Amazing Race Canada and Olympic Gold Medalist

4:00 pm

Jurassic Adventure Tradeshow

5:30 pm

Equitable Bank Hawaii Trip Winner Announcement

5:30 – 6:30 pm

Trolley Service from Facility to Hotel Parking Lots

22 Spring 2015

Economist Mid-Year Outlook Katherine White

Katherine (Kate) White is the Assistant Deputy Minister for the Economics and Fiscal Policy division of Alberta Treasury Board and Finance. Kate’s role is to provide strategic direction to and coordinate the activities of the four branches in the division: Fiscal Policy and Analysis; Economics, Demography and Public Finance; the Office of Statistics and Information; as well as Tax Policy.

Kate obtained her Bachelor of Science in Economics from Dalhousie University in Halifax and a Master of Arts in Economics at the University of Calgary. She has held several positions at the Government of Alberta prior to her current post at Treasury Board and Finance including Chief Economist for the Government of Alberta and Senior Policy Advisor at the Oil Sands Secretariat.

Currently an honourary director on the Board of the Economics Society of Northern Alberta, Kate has a great passion for her chosen profession.

The T-Rex of Tradeshows Our world-class tradeshow will be bustling with activity, packed with more than 40 exhibitors, Jurassic themed activities and the chance to win a dream vacation.

If you’ve attended past conference, you’ll remember that our participants take the theme to heart. So you know

this tradeshow will have bite!

Follow the Adventures of AMBA #AMBAhasBITE #AMBA40

Drumheller Family Fun!

Voted as one of Canada’s Top 25 places to visit, Drumheller brings plenty of family fun.

Bring the whole family to this year’s conference and get discount passes to the Royal Tyrell Museum.

Keynote Speaker Jon Montgomery Olympic Gold Metalist, Vancouver 2010 and Host of The Amazing Race Canada

Presented by:

AMA THE

Jon Montgomery Proudly Canadian, Jon Montgomery says that being the host of The Amazing Race Canada has given him an even greater appreciation for the country. “I already had a profound sense I was a lucky man to be Canadian, but doing this show, you get to meet other Canadians, you get to see how they interact with the racers and a sense of commonality amongst the people.” The Amazing Race Canada recently finished airing its second season.

In February 2009, Montgomery won the Whistler World Cup, which served as the test event for the Vancouver Olympics. At that time, he called the victory the highlight of his career, adding that it was especially meaningful to win at home in front of family and friends. But what he really yearned for was Olympic gold. At the 2010 Olympics, he defended his home track once more, but this time, he did it in front of the world winning gold. The now infamous video of Montgomery chugging a pitcher of beer while walking through the streets of Whistler surrounded by screaming fans is sure to go down in Canadian lore.

It was Montgomery's natural curiosity that launched his Skeleton career. Wandering through Calgary Olympic Park years ago, he saw a Skeleton racer whip by at top speed. Fearing it was a Luge accident, he inquired as to what the sport was all about at the visitor's centre.

He immediately signed up for a "discover session" and began his long journey to Olympic gold. He won his first World Cup event in January 2008, and also won a silver medal at the World Championships that same year, finishing the season ranked second overall on the World Cup. Some called it quick success, but Montgomery sees things differently. He's been sliding since 2002, but didn't experience his first win until the 2007/2008 World Cup tour. As he says, "I had my butt handed to me on countless occasions when I first started."

ZING

E C A D A R A N C A

Dress to Impress at AMBA's 40th Anniversary Extravagant Black Tie Event As AMBA celebrates 40 years, we want to recognize the foundation that has allowed the association to thrive for four decades—our members.

The best of the best will be celebrated at a black-tie gala, showcasing the commitment and passion of our most dedicated members. It will be a an event to remember.

AMBA’s prestigious awards pay tribute to the standout mortgage professionals in our province, highlighting the achievements of our members for their longevity, leadership, ambassadorship, partnership, volunteering efforts and overall excellence.

In honour of our 40th Anniversary, we will also add a special onetime award of distinction, presented by Street Capital.

Nominate your deserving colleagues.

We want to hear from you!

Nominations Open April 20, 2015 - AMBA.ca

Spring 2015

23

Adventures Badlands drumheller

in the

FOR ADDITIONAL DETAILS & PRICING VISIT AMBA.CA

Explore Drumheller with AMBA

Golf The Trail Dinosaur Trail Golf and Country Club Said to be one of the top 10 golf courses in Alberta, Dinosaur Trail Golf & Country Club is known for its beautiful scenery, amazing playing conditions and its one-of-a-kind Back 9. Offering a fully stocked pro shop, driving range with practice green, friendly and knowledgeable staff, and carts equipped with GPS, ‘The Trail’ is equipped for all of your golfing needs.

Please note: This year’s golf tournament will be held in conjunction with the conference. Attending the conference does not mean you have to attend the golf tournament, as packages are bought separately.

This year's golf charity inn from the cold

Win

T r ip Jurassic Adventure Valued at $7,000

Package Includes: Seven Nights — September 2015 Airfare from Calgary – Honolulu Hilton Hawaiian Village Waikiki Beach Jurassic Excursions Kualoa Experience Package Waikiki Starlight Luau Don’t miss out! It could be your ticket to paradise.

Presented by

Tradeshow Challenge Full qualification details available June 12.

24 Spring 2015

Explore Drumheller with AMBA. Hop on the Dinosaur Valley Express and head over to the Hoodoos for an outdoor adventure. Dine in the heart of an old Alberta coal town at the East Coulee School Museum. And travel back in time, with one of the world’s most diverse group of animals— dinosaurs—at The Royal Tyrrell Museum.

Top Hot Spots in Drumheller to Visit include:

1 2 3 4 5

Royal Tyrrell Museum Exhibiting and housing the largest dinosaur collection in the world, the Royal Tyrrell Museum allows visitors to explore the earths prehistoric past through a wide range of creative, fun and educational programming.

Horsetheif Canyon Strap on your hiking boots or stand at the edge of Horsethief Canyon. It's known as the passage American horse thieves used in the old west en route to buyer markets in Alberta.

Hoodoos Seen throughout the badlands, hoodoos are natural sandstone formations that have taken millions of years to form.

Atlas Coal Mine National Historic Site Closed since 1979, the Atlas Coal Mine National Historic Site is famous for its breathtaking tours that explore the true tales of mines and men who worked within them.

World's Largest Dinosaur Standing 86 feet tall, this 145,000-pound female Tyrannosaurus Rex allows visitors to climb 106 steps and admire the badlands from inside her gaping jaw.

FIRST MORTGAGES

of $750,000+ REWARD: GREAT INTEREST RATES! RESIDENTIAL MORTGAGE LENDING CRITERIA Mortgage Type

Loan to Value (up to)

Loan Amount Range

Typical Interest Rate Range

High End Single Family

65%

$750K - $5 Million

5.35% - 7.50%

•

Resident or Non-Resident Borrowers

•

Non-Income Qualified Deals

•

Flexible Repayment Options

•

Interest Reserves Available

COMMERCIAL MORTGAGE LENDING CRITERIA Mortgage Type

Loan to Value (up to)

Loan Amount Range

Typical Interest Rate Range

Apartments

80%

$1 Million - $15 Million

5.75% - 7.75%

Residential Condo Inventory

65%

$1 Million - $15 Million

6.35% - 7.85%

Retail

70%

$1 Million - $15 Million

6.25% - 7.85%

Office

65%

$1 Million - $15 Million

6.25% - 7.85%

Industrial

70%

$1 Million - $15 Million

6.50% - 7.85%

Land (urban infill)

50%

$1 Million - $10 Million

6.85% - 8.75%

Toll Free 1.866.698.5388 Residential

Mike Gough

Commercial Andrea Gvozdanovich Sam Fogell

Phone 604.688.5388

mgough@lanyardgroup.com andrea@lanyardgroup.com sfogell@lanyardgroup.com

www.lanyardgroup.com

Todd Hirsch 2015 Economic Outlook

2015 Colleen Henderson Pitch Perfect

Event Highlights!

On February 25, AMBA partnered with the Private Mortgage Lenders Forum (PMLF), to host our third annual ALT-A Symposium.

A full room of industry professionals gathered to participate in an informative and thought provoking day of speakers, a syndicated panel of experts and a trade show. The day strengthened attendees overall understanding of the private lending market and elevated the private mortgage lending community profile in the province.

Francis Taman Bishop & McKenzie Law Firm

Dave Trithart

Moderator & Panel

Honoring a losing bet from the AMBA Curling Bonspiel (Go Flames Go!)

(From left) Moderator: James Robinson, Panel: Dale Koeller, Brian Menges, Jesse Bobrowskim, Curtis Power and Michel Durand – Commercial/Industrial/Construction and Syndicated Panel of Experts

26 Spring 2015

Michel Durand

Bill Bishop

Mortgage Alliance Commercial Canada

Keynote Speaker

Attendees enjoying the day's events

AMBA, the board of directors and the PMLF want to extend their gratitude to the attendees, sponsors, speakers and panelists who contributed to making this event a success. gold sponsors

SILVER sponsors

BRONZE sponsors

Thank you!

TO ALL OUR ALT-A SPONSORS! Spring 2015

27

Industry News January 2015 mortgageinsights Report

CMHC’s 2015 Housing Starts Report

The Canadian Association of Accredited Mortgage Professionals (CAAMP) published its January 2015 mortgageinsights report. The report findings were as follows:

According to the Canadian Mortgage and Housing Corporation (CMHC) first quarter 2015 Housing Market Outlook, Canada Edition1, housing starts in 2015 will remain similar to levels observed in 2014 and broadly in line with economic and demographic trends.

84%

of respondents said that real estate is a good long-term investment.

30%

of respondents viewed their home as an investment, were 70 percent viewed their home as a place to live.

5 YEAR

trend showed that Canadian homeowners feel comfortable with their mortgage and financial situation, even if this is not the case.

On an annual basis, housing starts are expected to range between 154,000 and 201,000 units in 2015, with a point forecast of 187,400 units.

76%

of Canadians feel well-positioned to weather a potential economic downturn.

73%

do not regret taking on the size of their mortgage.

MLS® sales are expected to range between 425,000 and 504,000 units in 2015, with a point forecast of 479,900 units.

5%

Over the next year, five percent of Canadians will likely purchase real estate.

30%

of outstanding mortgages were obtained through brokers.

56%

Broker customers had a 56 percent very satisfied experience, in comparison to the 46 percent of very satisfied bank customers.

5

the

TOP

Competitive customer satisfaction advantages for brokers over banks were:

Offering competitive rates, Providing information and advice to help with making decision, Frequency of contact during mortgage process,

Under CMHC’s base case scenario, housing starts are expected to decline by 1.0 percent in 2015, relative to 2014. Multiple Listing Service® (MLS®2) sales are expected to remain unchanged, and the MLS® average price is expected to increase modestly by 1.5 percent.

The average MLS® price is forecast to be between $384,000 and $428,000 in 2015, with a point forecast of $414,200.

Source: Canadian Mortgage and Housing Corporation (6 February, 2015). CMHC Forecasts Moderation in Housing Market Activity for Canada in 2015 and 2016. Retrieved from https://www.cmhc-schl.gc.ca/en/corp/nero/nere/2015/2015-02-06-0816.cfm

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said they would like to work with their mortgage professional again, but there was not enough postsale communication.

Contact Denise Hendrix at dhendrix@hendrixlaw.ca

The results of this report were primarily taken from CAAMP’s fall 2014 consumer survey. The research was conducted online among a population of 2,000 Canadians, which represented homeownership and mortgage status within each region of Canada.

Source: Davies, K. (January, 2015). Mortgageinsights. The Canadian Association of Accredited Mortgage Professionals. Retrieved from http://caamp.org/meloncms/media/ MortgageInsights14.pdf

28 Spring 2015

AMBA.CA helpful tips

RegisterING for an AMBA Event AMBA regularly holds events for its members, which you may wish to join. First you must go to the Upcoming Events page, then you must pick which event you would like to register for.

Renewing Your Membership You can renew your own Membership In order to renew your AMBA Membership, you must go to the Renewals page

Navigating to the Membership Renewal Page If on a computer, move your mouse to member zone on the top menu, then click on Renew Your Membership.

If on a phone, open the menu, press member zone, then press Renew Your Membership.

Renewals

Navigating to the Events Page If on a computer, click on Events on the top menu. If on a phone, open the menu, then press Events.

Choosing an Event to Register For Once you are on the Upcoming Events page, you can choose an event to register for. The Upcoming Events page will look something like this: You can renew your own membership or the Membership of anyone at your brokerage.

Renewing Your Membership Click the name of the event you wish to register for. For example you can click the Annual Conference page.

To renew your Membership, click the Add Renewal To Cart link next to your name.

Renewing Others at Your Brokerage

Registering for an Event And Event page will look something like this

Registering an AMBA member for an Event To register an AMBA member for an event, you must first their name Attendee/Ticket Holder field.

Any important notes about this person can be added in the Notes field. For example, if this person has a shellfish allergy, you could add this here.

When you start entering the name in the Attendee/Ticket Holder field, you will receive suggestions from our database of AMBA members.

Registering a non-AMBA member for an Event If the person you are looking to register is not a member of AMBA, you will need to enter their contact information.

Shopping Cart and Proceeding to Checkout You can look at a list of people you are registering by scrolling to the bottom of the page.

To move on to the next step, click Checkout.

To renew the Membership of someone at your brokerage, click the Add Renewal To Cart link next to the name of the person or people you wish to renew.

Searching For a Person to Renew If the person you’re looking to renew is not on the list because your brokerage has so many members, you can search for the person using the search field.

Enter the person’s name, in whole in part, into the text field, then click Find.

Then, click the Add Renewal To Cart link next to the name of the person you wish to renew.

Shopping Cart and Proceeding to Checkout You can look at a list of people you are renewing by scrolling to the bottom of the page.

To move on to the next step, click Checkout.

Spring 2015

29

The New AMBA Not Just a Facelift Daryl Maksymec, Alta West Capital

If you have visited AMBA.ca recently, you will have noticed some big differences. Working with our new web partner SidePix, we’ve redesigned our website from the ground up to be more functional, easier to navigate, and to provide more in-depth information about AMBA, its members and the industry.

An important part of the remodel was to keep AMBA current by creating a responsive web design that works with computers, mobile devices and tablets.

“The goal of the responsive design is to make the website beautiful and easy to use, no matter the size of screen you’re viewing it on,” said SidePix Designer Daryl Maksymec, “Every part of the website can be easily accessed by phone, tablet, computer and everything in between.”

Who Is SidePix?

CRM and Ecommerce

any area of business.

Along with the new website, we’ve implemented a sophisticated ecommerce-enabled Microsoft Dynamics CRM system. This system refines the process of keeping your membership current, keeping you up-to-date on the latest AMBA and industry news and streamlines the membership renewals and registration for events.

Member Online Profiles Improving members profile pages is a large focus of AMBA this year, and now establishing an AMBA Verified Information Program (VIP) brand is easy. We hope to bring a new level of credibility to members by offering free advertising opportunities directly on our website.

Members can simply customize their own VIP profile page by adding a personal or company biography, contact information, an address, a personal photo, a company logo, links to their website and social media accounts (such as Twitter, Facebook, LinkedIn, and Google+) and more.

Decreasing the hassle of registering for event, renewing your membership and navigating our website was our goal. We have worked hard to create a website that embodies the best of AMBA for our members on all electronic device formats.

If you haven’t had a chance, visit AMBA.ca today and check it out on your computer, mobile device or tablet.

30 Spring 2015

SidePix is an Alberta-based business integration and technology studio offering its clients services that range from marketing, branding and design to software, and web service solutions for

Before your branding and advertising campaign is conceptualized, SidePix will perform extensive market research and competitive analysis into your business and industry to ensure that your marketing and communications plans are built upon a firm foundation. No matter the medium, whether it’s in audio, video, graphics, text, or otherwise, all aspects are considered so that every facet of your message has been properly staged and is in key.

SidePix’s technology services encompass the full software lifecycle, from design and development to maintenance and support. With strong ties to the Canadian financial industry, in the last 15 years, SidePix has been the driving force behind the technology for numerous major industry players.

SidePix is happy to offer discounted services to members of AMBA. If you have any questions or comments about the AMBA website, feel free to contact AMBA staff or SidePix.

Tablet and Mobile Friendly Design

AMBA’s responsive web design responds to the needs of the users and the devices they’re using.

Did you know it’s free to sign up for AMBA’s VIP? AMBA VIP (Verified Information Program), is an online program to help promote your professional profile and keep it up-to-date. Other website may charge up to $1,500 per month for you to promote your business, but AMBA VIP will give clients in your area access to the latest information about you and your business for free. This program is offered with your $150 membership and allows you to be promoted on our website free of charge.

One AMBA VIP lead could pay for your AMBA membership for years to come!

The benefits of being an AMBA VIP: • Advertise your business through AMBA; • Gives you a personal profile page on our website; • Includes a VIP badge on your profile; •

Shows your photo, phone, logo, and a link to your website;

• Aids in search engine placement; •

Targets clients in your neighbourhood; and

• Adds credibility to your business.

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Spring 2015

31

Winter Games Highlights

LET THE IN! G E B S E M GA ST AMBA WINTER THE FIR NTS! GAMES EVE

Broken Bobsleigh

Olympians were born as AMBA hosted its first Winter Games at WinSport Canada (Canada Olympic Park).

Industry members enjoyed an evening of fun while competing for their country of choice for a chance to win gold. All fared well but only a few rose above the rest to become AMBA’s first Olympic Champions. Congratulations to: Gold Medallists Team Italy, Silver Medallists Team Finland and Bronze Medallists Team Spain.

Fencing

Mine Field

AMBA and the board of directors want thank all attendees and sponsors for making our first Winter Games a success.

32 Spring 2015

All Knotted Up

Olympic Trivia

gold Team Italy Caterina Olivito-Veltri,

Ed Arnone, Donna Hunter, Nancy Kamineski, Tara Beattie and Paula Hutton. Medal sponsor Invis and Mortgage Intelligence, presenter Gary Siegle.

Team Britain

Team Canada

MOST SPORTSMANSHIP AWARD

SILVER Team Finland Brett Roessel, Paul

Bojakli, Adam Dutton, Alfred Gabriel and Jacqui Mulikow. Medal sponsor VWR Capital, presenter Paula Hutton.

Team France

Jesse Bobrowski, Garrett LaBarre, Russ Mendonca, Heather Wytinck, Bob Hutton and Phil McDowell.

Trophy sponsor Alta West Capital, presenter Jared Morrison.

Team Germany

Team Jamaica

Bronze Team Spain

Heather Cermak, Erica Fikkert, Georgina Shorten, Sarah Boudreau, Susan Saunders and Jan Gosse. Medal sponsor D+H, presenter Erica Fikkert – AMBA Event Director.

Team New Zealand Team US

#AMBAGAMES Spring 2015

33

Member Profile

Katie McDowell I started life where a lot of Albertans want to retire, B.C. I was born in Vernon and lived in Kamloops, Lytton, Kelowna and Nanaimo before my dad transferred to Edmonton in 1991. His final bank move was in 1994 to Calgary and it has been home since.

Doesn’t that just scream banker’s daughter?

While still in high school, I started in the mortgage field working after school taking builder packages to Katie's Adorable Dog appraisers and filing documents. Do you remember paper files and no emails and reams of paper faxes coming in? This sure beat my first non-family business job of working in a daycare. Working at a daycare cured me of the thought of ever having children, favouring dogs instead. However, I do have two nieces I love to bits.

After studying business administration at SAIT, I took a job away from the mortgage industry at a computer retailer as finance manager. This is when I got hooked on video games, my secret geek coming out.

In 2002, I got licensed as a mortgage associate with the family company, Mortgages Are Marvellous Inc. To broaden my mortgage experience, I was accepted as a funder with Bridgewater Financial and within three months I was an underwriter. A year later with the coaxing of Tim Wachter, I joined Home Trust. Within two years I was promoted to manager, mortgages.

Katie's Nieces

In 2006, I rejoined the family business and took over management of the brokerage.

What is your vision for the mortgage industry?

My association with Mortgage Alliance introduced me to its sister Quebec company, Multi-Pret. It is said in Quebec that if you want a mortgage, you can go to your Bank or go to Multi-Pret. Seeing mortgage brokers across Canada as a recognized value-added service for mortgage consumers is what I see for all of Canada.

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

Mortgages Are Marvellous Inc. enjoys strong lender relationships through the volumes and high closing ratios maintained by its associates, having associates obtain consumer documents ‘up front’ and all our associates are willing to share their knowledge with others on the team. We strongly encourage a second set of eyes on tough files and we make ourselves available to do that for each other. Referrals are our number one source of business.

What do you love about mortgages?

This is the only industry that on a daily basis you can make dreams come true and nightmares disappear. I can’t imagine leaving this industry. To be paid for doing something you love rocks!

Please tell us a little about your company…

I have been part of Mortgages Are Marvellous Inc. since it was incorporated in 1997. We grew up together. Our volumes have steadily increased through the years, adding other associates along the way. We have a great group of people and I think of them as family. My dad, Phil McDowell, and I co-manage the company, often referring to ourselves as good-cop/bad-cop.

Somehow I got stuck with bad-cop, although not very convincingly. Along with our high-volume full-time associates, we also have referral only associates that pass leads to more experienced staff to deal with the client and lenders.

Annual Rewards trip group shot

What is your experience with AMBA?

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

I still remember my first AMBA Conference, called AMBA Fest in 2002. Not that I am a hoarder but I still have my GE Capital beer glass! For the past couple years, I have been a volunteer member on the AMBA Events Committee.

Back to the future, underwriting principles that B-20 and B-21 have imposed on federally regulated lenders, has made me return to the document gathering and review, that I saw being done when I first started in 1997. It is a case of returning to old habits.

34 Spring 2015

How long have you been an AMBA member?

I have been a continuous member since 2006, but attending events since 2002.

Winning 2013 Top Volume Franchise

What’s your favourite AMBA event?

The annual conference is always the highlight of the year because that is when our fellow brokers from across the province meet, and have the opportunity to share ideas and see key decision makers of the lenders in person.

Please share three fun facts about yourself.

As I child, I had a great uncle that made puzzles and used me as his tester. There wasn’t one I couldn’t solve (even though the adults were stumped). It seems that puzzle breaking attitude is what helps me with today’s mortgage files.

Perhaps the impulse to win, like solving a puzzle or doing a mortgage file is why I have so many silent auction items around my house.

I love to beat my guy friends at the video game, Diablo. Am I OCD because of that?

Winning 2014 Top Volume Franchise

Please share three facts about your company.

Have you ever been recognized for any industry accomplishments?

Incorporated in 1997;

For 2013 and 2014 year ends, Mortgages Are Marvellous Inc. has been the top volume and unit producer for Mortgage Alliance franchises across Canada, of which there are over 125 competing franchises. I was also awarded President’s Club and 100 Million Dollar Club through Mortgage Alliance the past couple of years.

Became a Mortgage Alliance Franchise in 2005; and We have 30 associates who collectively can serve applicants in over 10 languages. I, myself, speak English and Mortgage.

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Spring 2015

35

Strategies for Surviving Uncertain Economic Times

Continued from page 19

“Many other sectors will flourish if the price of oil is down and the same goes if oil is up. When a person is well diversified in many sectors and other wealth management techniques such as purchasing properties, owning a basket of stocks, life insurance and holding gold (the actual coin) are put in place, they’ve developed a great defense to be able to protect their wealth during all economic times,” says Blake.

On the house

Mortgage brokers wear many hats and during slower economies their role as educators has never been more valuable.

“Real estate is a great asset for building wealth if you chose the timing. People run into trouble when they absolutely have to sell or have to buy such as at the height of a market,” says Martin Breeze, a mortgage broker with TMG - The Mortgage Group Alberta. Just because a client qualifies for an $800,000 mortgage doesn’t mean it’s a wise financial move to take advantage of that if a $600,000 property can meet their needs.

Most people recall history based on recency. Many home buyers think snagging a mortgage rate under three percent is normal because that’s their expectation from this most recent environment. Likewise, these same people think their homes should appreciate much quicker than reality, when normal is somewhere between two and four percent a year, not 20 to 50 percent.

See this current economic climate as a time to educate clients and have those probing conversations about their financial health, housing needs and vision for the future. With that understanding, you can better gauge if now is the right time for them to move up or out.

“It’s about servicing your client properly and ultimately doing what’s right for them. A mortgage is one piece of the financial pie. If it’s the right time to buy, it’s the right to buy, markets be damned,” says Breeze.

A little perspective

We all know the world didn’t end in 2008.

Markets bounced back, consumer confidence rose again and housing prices didn’t flat line for years on end. Additionally, Alberta’s economy is not as tied to the fluctuations of oil and gas as it was over ten years ago. “We have become a more diversified province. Our green energy sector has now surpassed the oil sands for total number of employees,” says Blake.

So take a step back, shut out the noise from the media and look back to how we’ve overcome volatile economies in the past. Take stock of your situation and if you aren’t comfortable managing risk properly, find someone who can help.

“Seek out as much professional advice as possible from mortgage brokers to investment advisors to insurance agents, to ensure a healthy financial portfolio with balance in all sectors, regardless of the economy,” says Blake.

And remember, this too shall pass. Has the world ever demanded less energy? I don’t think so.

Disclaimer: Diana Blake, Investment Advisor with Dundee Goodman Private Wealth, a division of Dundee Securities Ltd., is not a Dundee research analyst.

The views and recommendations expressed are those of Ms. Blake alone, and they are not necessarily those of Dundee. Dundee is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund.

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36 Spring 2015

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Calendar “

October 2015

June 2015 Regional Events, Edmonton, Grand Prairie & Lethbridge Annual Golf Tournament, Drumheller June 11, 2015 Dinosaur Trail Golf and Country Club AMBA’s 40th Anniversary Celebration and Conference, Drumheller June 11 & 12, 2015 Badlands Community Facility

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38 Spring 2015

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