AMBA Matter Winter 2011

Matters

AMBA: FOUNDATION VALUES ARE OUR

AMBA TO HIT HOME SHOWS ACROSS ALBERTA ALSO INSIDE HOW THE GOVERNMENT CHANGED OUR BUSINESS

WINTER 2011

Setting

THE STANDARD! 速

The ONLY NETWORK supporting

Scan the QR code to Learn More

Your Business. Your Brand. Your Way.

The Best Brokers.

The Best Network.

Join VERICO Today.

Please visit www.verico.ca/welcome or e-mail membership@verico.ca to find out more.

Matters

WINTER 2011 contents A SPECIAL THANKS TO OUR ADVERTISERS...

Verico �������������������������������� 2 Dominion Lending ����������� 4 LMS ProLink ���������������������� 7 Cedar Peaks ��������������������� 8 Lanyard �����������������������������10 Caplink �����������������������������11 National Bank ������������������12 D+H ����������������������������������15 Scotiabank ��������������� 20 - 21 MERIX Financial ������������� 24 Fisgard ���������������������������� 25 Richard I. John ���������������� 26 Optimum Mortgage ������ 27 Bridgewater Bank ���������� 28 Home Trust ��������������������� 30 Capital Direct ����������������� 31 First National ������������������ 33 Alta West Mortgage ����� 34 J.E. Fletcher �������������������� 35 VWR Capital Corp. ��������� 36 Equitable Trust ��������������� 39 Urban Mortgage ������������ 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

08 09 11 13 14 16 18 22 24 29 31 32 37

Membership renewal process Home inspections: service Alberta

AMBA to Hit Home Shows across alberta

2012 Strategic Direction highlights

ask the expert: Understanding Rates

Exploring the member zone

pipa: Social Media Background Checks

amba Open house Photo Gallery

AMBA And IMBA form Partnership For Success

How Government Changed our business: bill c-13

Card sending made easy SOCIAL CENTRE: Safety in social media & reputation

Zoocasa, the newest real estate search engine

Amba 2011

Board of Directors President Paul Bojakli Quantus Financial

Past President Dean Koeller Calvert Home Mortgage Investment Corp.

Treasurer Frank Hickey Concord Mortgage Group Ltd.

Vice President/ Public Relations Director Ron McClenaghan Invis

Events Director Kristen Linde-Ferrier Street Capital Financial Corp.

Arbitration Director (North) Gord McCallum First Foundation Residential Mortgages

Membership Director Jill Paish Merix Financial

Arbitration Director (South) Ken Kirkpatrick Axiom Wise Mortgage

Government Policy and RECA Relations Todd Fralic Quantus Financial

Interprovincial Liaison Director Phil McDowell Mortgages Are Marvellous

Education Director Ryan Spence Davis + Henderson

Consumer Awarness Director Nadeem Jiwa MCAP Service Corporation

AMBA/RECA REP Gary Siegle Invis Inc.

REGULAR FEATURES...

President’s Report 5 Executive Director’s Report 6 Industry News 26 AMBA Community Member Briefs 34 Member Profile of Cheryl Murtagh 35 AMBA Calendar 38

Return undeliverable Canadian addresses to: Alberta Mortgage Brokers Association Suite 200, 1940 9 Ave. SE Calgary, AB T2G 0V2 WINTER 2011

3

President’s Message Paul Bojakli AMBA President

Recently, you would have seen a press release boasting that AMBA established a formal relationship with the Independent Mortgage Brokers Association of Ontario (IMBA). One of my goals as President was to align relationships with the other Associations so we can eliminate duplication and begin to take advantage of each other’s assets.

We have begun working with the Mortgage Brokers Association of British Columbia (MBABC) and the Mortgage Brokers Association of Atlantic Canada (MBAAC). IMBA, MBABC, MBAAC and AMBA all share the same challenges (Reciprocity/ Harmonization, Education, Membership, E&O Insurance and becoming a Self-Regulating Organization). All these challenges influence each other.

Something I recently learned, which I thought was interesting, reciprocity does not necessarily mean equivalency ...

Reciprocity/Harmonization is now a reality; how will it affect our industry? The Associations are just beginning to understand what this means to us and how it will affect you? I believe this will be the trigger for events to come with other challenges.

With the initial diligence that has been completed so far, the biggest difference noticed between all the courses being offered is the timeline. The current providers of education are IMBA, MBABC, AMBA, CAAMP and some small distributors.

Currently, in one way or another, we are all competing with each other. Action is being taken by the provincial Associations to develop a national education program that will incorporate legislation as it relates provincially. By accomplishing this we can increase the eligibility requirements and then introduce proficiency requirements. Education is a key component in our existence, not only as an Association, but as a practitioner.

It is important that our Associations own it and deliver it and we all contribute towards developing. Blending our education resources into a single delivery channel would better serve the entire mortgage industry.

This year, the Real Estate Council of Alberta (RECA) introduced its “position on Self-Regulation” and their strategic direction.

RECA described its philosophy and approach to self-regulation to gain the support of industry members. RECA’s vision and approach to self-regulation is to initiate a dialogue with industry members and stakeholders regarding their roles in self-regulation and potential opportunities for collaboration.

Throughout December and January, RECA will be holding town hall meetings to gain your feedback regarding their strategic plan. I cannot emphasize enough how important it is that we all get involved in this. Read the literature being provided, establish a perspective and become a voice.

I want to know your thoughts on this, please email me at paul@quantusfinancial.com. I look forward to reading your perspectives.

On behalf of myself and the AMBA Board of Directors we’d like to wish a Merry Christmas and a Happy New Year to you and your family.

Sincerely,

Paul Bojakli

Paul Bojakli AMBA President

As a membership our goal should be to become a professional Association. There are many examples that we can use as an outline (e.g. Law Society). This takes tremendous effort on everyone’s part. This will eventually happen and you should want to be a part of it because it should be important to you.

We need everyone’s input, AMBA needs your voice and it starts by joining your Association.

E & O insurance is now mandatory in Alberta and the Associations are each independently working with insurance providers. The reality is this depends on each and every one of us. We are slowly working on better ways to bring down the costs. Eventually, this will be just one of the ways that members will be able to take advantage of the partnerships put in place by the Associations.

WINTER 2011

5

EXECUTIVE DIRECTOR’S

Report WINTER 2011 Judy Martin AMBA Executive Director

ac'count'a'bil'i'ty Believe it or not, this is the final issue of AMBA Matters for 2011. How can this be? I haven’t even finished my outdoor spring cleaning!

Amanda reminds me again, “Have you got your article ready for the December magazine?” I, of course, tell her, “I’m working on it.”

Since she always likes to have the last word … she shouts out to me, “Remember it’s on accountability.”

As I ponder over the topic of accountability, I begin to find as many little words as I can in the word accountability – account, tab, count, ability, bil (with one l) bili (with one l and an i instead of a y) – How about you, can you find any other words? Obviously, a distraction from getting started on my report!

What does ‘accountability’ mean to me? The Encarta Dictionary defines it as “responsible to somebody or for something”.

I’m now going to take ‘me’ out of this equation and exchange it with ‘we’ – who are we accountable to and what are we accountable for?

This is a lot easier than trying to break down the word accountability.

My staff, including Amanda, is accountable to me as the Executive Director (except when I owe Amanda an article, then I am accountable to her). I, as the Association Executive, am accountable to the Board of Directors.

And the board is accountable to the membership. As an industry, we are responsible to the regulators and the regulators are responsible to the consumers.

And what are we accountable for?

The industry is responsible to the consumers by providing best practices, ethical responsibilities, knowledgebased information and effective communication skills.

Are we congruent with these skills and behaviours in our province of Alberta? How about the other provinces, do they operate with these responsibilities that are

Accountability — responsible to somebody or for something 6

WINTER 2011

owed to the consumers? What about nationally, is this the standard of practice across the country? Do all associations come from this same place of accountability?

I would hope the answer to all these questions is ‘yes’ … But why are there conflicting messages being sent to the members? I have read the discussion forums and there are negative perceptions among our (all of our) stakeholders. I believe we are failing our members when we have grave competition for resources; we are duplicating efforts. As associations, we should be taking advantage of best practices, but we aren’t. Yet, we expect this from our members when we are unable ourselves to model this behavior?

As an industry, we can and we should work openly and deliberate. Why does this matter to me? Because we have a loss of opportunities as long as we have inadequate communication, competition and no collaboration in decision making.

Imagine for one moment, what it would be like if the Canadian mortgage brokerage industry all sang the same song … we could build a culture of joint inter-association planning processes and shared objectives. The interactions would be from a trusting relationship. There could be improved program quality through shared resources and knowledge. We could provide costsaving measures for all the industry members, and there would be one single message that supports the work of the National Association and the work of the Provincial Associations. We could have a collaborative model where the consumers understand the mortgage brokerage industry, feel comfortable in using a mortgage broker, and are confident in the professional and ethical practices of a mortgage broker no matter where they live in the country.

Is this possible? I believe it is. The first thing that needs to happen is to take the initiative and reach out….it’s not what you say, it’s what you do!

From me to you, I want to wish each and every one of you a Christmas filled with love, joy, happiness and a couple good martinis!

Till the New Year and the spring edition of AMBA Matters, this is Judy Martin signing off for 2011.

Accountability – ‘responsible to somebody or for something’ – Yes, Amanda, my article is done!

WINTER 2011

7

Membership renewal time!

Dear Members, It is time to renew your membership with the Alberta Mortgage Brokers Association (AMBA).

On behalf of the Board of Directors, thank you for your support and continuing participation.

Please note the 2012 fees: Brokerage and Corporate Fee $360 Individual and Corporate Active $115

Step 1

Step 2 Scroll down the homepage and

Enter your login information to sign into the ‘Members Zone.’

Once logged-in, you’ll see the ‘Members’ Zone’ homepage.

you’ll see the renew membership button.

Click the button to proceed to renew your membership. Please note: You will not have access to your 2012 Membership Certificate until your brokerage has paid their 2012 fees.

Step 3

Step 4

Select your membership type and follow the payment instructions to complete your renewal.

Once you’ve renewed you membership and your brokerage has also renewed, you can download your 2012 Membership Certificate in the ‘Members Zone.’

The board of directors have made a decision to increase the 2012 membership fee slightly for the first time in four years in order to continue to grow as an association and meet out mandates.

We are very proud that AMBA’s membership still remains the lowest association fee across the country!

This year’s work will continue to support our commitment to improve the industry through education, community and governance efforts and ensure a healthy and sustainable future.

Jill Paish Membership Director

follow this easy online step by step renewal process

Your Preferred Choice for Private Funding

Rapid Turn-Around Time | Broad Base of Investor Funds

DIANNE PULLIN

Flexible Brokerage Fees | First & Second Mortgages – All Types

Mortgage Associate

Open to Unique Properties in Alberta & Other Provinces

MARK PULLIN

Mortgage Broker

dianne@cedarpeaksmortgage.ca | mark@cedarpeaksmortgage.ca | 1-888-831-2009 | 403-249-2007 | cedarpeaksmortgage.ca |

| 8

Residential WINTER 2011

Feb 2009 AMBA - Half Page Color Ad

|

Commercial

|

Industrial

|

Multi-Family

|

New home inspection rules protect Alberta homebuyers A house is the biggest investment most Albertans will make in their lifetime and many homebuyers take the prudent step of hiring an inspector to get a better picture of the home’s condition. New rules introduced by the Alberta government will give homebuyers additional protection so they also know what they’re getting with a home inspector.

Home inspectors are required to present their licence when asked by consumers. The regulation also includes a detailed list of the parts of the home and property inspections must include unless they are excluded in writing and the consumer has given their signed acknowledgement.

Most home inspectors in Alberta are knowledgeable professionals who provide good service. However, in rare cases when an inspection is negligent, consumers could find themselves out thousands of dollars for repairs.

If a business or inspector does not follow the regulation, the government can investigate consumer complaints and take a number of actions, including suspending or cancelling the licence, or even prosecution in court.

Alberta’s Home Inspection Business Regulation, which came into effect September 1, 2011, requires all home inspectors to be licensed by the provincial government and meet certain qualifications.

Licenses are valid for two years at a time. To qualify, inspectors must have successfully completed training from an educational institution approved by the provincial government and pass a test inspection, or hold a Certified Master Inspector or Registered Home Inspector designation.

Alberta is only the second province to establish specific rules for the home inspection industry. In developing the regulation, the provincial government worked closely with consumers and stakeholders in the real estate, mortgage and inspection industry.

The regulation sets a level playing field by providing a set of standards that all home inspection businesses must follow. Consumers can be more confident knowing that all inspectors must meet these standards.

The regulation also provides additional protection for homebuyers:

• Requiring that home inspection businesses carry errors and omission insurance in case an inspector makes a mistake or is negligent (see sidebar for more information); • Requiring home inspection businesses to post a security to cover consumer losses if the regulation is not followed; • Establishing what parts of a home and property must be included in a home inspection; and • Prohibiting contracts that limit the ability of consumers to seek compensation in court for losses.

For more information about Alberta’s Home Inspection Business Regulation, visit www.servicealberta.ca.

What is Errors and Omissions Insurance?

Errors and omissions insurance protects the home inspector when a consumer claims damages due to a mistake or negligence. The insurance also protects consumers by ensuring adequate funds to pay damages for a faulty inspection.

Alberta’s new Home Inspection Business Regulation requires all home inspectors to carry enough insurance to cover at least $1,000,000 per claim, and a total of $2,000,000 for all claims within a one-year period.

WINTER 2011

9

Interest Rates Starting from an Incredible 5.75%

1st Mortgage Financing $1,500,000 - $15,000,000 Income Producing Properties: • L/V: Up to 75% • Interest Rates: from 5.75% • Fees: from 1.0%

Condo Inventory Loans: • • • •

FINANCIAL

CORPORATION

L/V: Up to 65% Interest Rates: from 7.0% Fees: from 1.5% Flexible Partial Discharge Provisions

866-698-5388 Toll free

Call Brian Chelin or Mike Saba today Visit our website at: www.lanyardgroup.com

Or contact us at: bchelin@lanyardgroup.com or msaba@lanyardgroup.com

AMBA to Hit Home Shows Across Alberta The Alberta Mortgage Brokers Association (AMBA) will be attending home shows across the province throughout 2012 as part of our consumer awareness campaign. We will be inviting brokerages to register to participate at the shows. It’s a great opportunity to advertise your company, the AMBA brand and the industry.

We will attend events in Calgary, Edmonton, Medicine Hat, Lethbridge, Red Deer and Fort McMurray. Watch the e-newsletter for updates and registration.

Show Dates

Registration now open at www.amba.ca

The Calgary Home Expo January 13-15, 2012 at the BMO Centre, Stampede Park Edmonton Home & Garden Show March 22 – 25, 2012 at the Edmonton Expo Centre Lethbridge Home & Garden Show March 14-17, 2012 at the Exhibition Park Red Deer Home Show March 16-18, 2012 at the Westerner Park Fort McMurray Home and Leisure Show April 27-29, 2012

See what CapLink’s unparalleled experience in mortgage lending can do for you.

We are able to finance a broad spectrum of property types and loan situations.    

We will respond within 24 hours Competitive rates and fees Expert advice and consistent reliable service We lend in Alberta and BC

Gay Andrews Vice President gay@caplink.ca

Helen Neufeld

Underwriter helen@caplink.ca

Phone: 1-888-429-0114 Fax: 1-888-226-8834 www.caplink.ca

Providing lending solutions since 1997

WINTER 2011

11

MORTGAGE SOLUTIONS THAT ARE AS SMART FOR YOUR CLIENT AS THEY ARE FOR YOU What’s in it for you? > A unique product portfolio including our award winning All-In-One Banking™. > Niche product lending allowing you to meet a variety of your client needs; including mortgage solutions for first time homebuyers, rental properties, new immigrants, non-residents and more.¹ > An incentive program built on your feedback, including reward options such as: $2,0002 towards marketing, $15,0003 travel voucher towards a trip of lifetime, rate discounts up to 18 BPS, free appraisals, great cashback offers, and more!

Contact your local BDM or email mortgagebroker@nbc.ca

National Bank All-In-One is a trademark of National Bank of Canada. 1Financing shall be subject to the credit approval by National Bank. 2$2,000 marketing fee is a one-time reward for the first 50 deals or $15M funded in the fiscal year. 3$15,000 trip paid for every 100 deals or 30M funded in the fiscal year. The fiscal year is from Nov 1, 2010 to Oct 31, 2011.

TM

strategizing for the future

2012 Strategic Direction highlights The following are key components to the association’s three year strategic plan that was established in 2011.

We will continue to work from the plan, which will drive the association initiatives through 2013.

Membership • • •

• • • • •

2012 Member Engagement Survey will be conducted in the first quarter.

Member focus groups Brokerage visits (Executive Director Judy Martin will continue to visit your offices to offer support and to hear your feedback.)

Spring Golf Tournament in Edmonton Conference & Fall Golf Tournament in Banff Host Christmas Networking Socials (Edmonton & Calgary) Spring Curling Bonspiel (Calgary) Establish a committee dedicated to membership initiatives.

Communications • • • •

•

Establish a committee dedicated to communication initiatives.

Conduct a detailed website survey in the first quarter.

Offer an online media kit with new advertising opportunities Consumer driven advertising campaign through Shaw TV (Ads will appear on HGTV etc.)

Host booths at home shows across the province. Broker/associate members will have an opportunity to help host the booth.

Education • •

•

•

•

Launch new MAP practice course in the first quarter.

Continue to enhance relationships with industry associations across the country.

Continue efforts to establish practice course as the national benchmark in pre-licensing education across the country.

Develop a professional development program, including policy and procedures manual course and mortgage brokers, insurance and the law.

Establish a committee dedicated to education initiatives.

WINTER 2011

13

ask the expert:

understanding demystifying rates This Issue’s Expert

Jill Paish MERIX Financial

How much money is currently in the CMB Program?

Jill Paish, of MERIX Financial, helps us take a look at how fixed and variable rates are derived at into today’s turbulent times.

Good question. We don’t know how much is in the CMB Program as this number is not shared. However, we do know that the overall mortgage equals about $1.1 Trillion. Of this, roughly $346 billion has been placed in NHA MBS. Remember, for the mortgage to go into the CMB program, it must first be placed in a NHA MBS, so up to $346 billion could be in CMBs.

What are some of the basic terminology used in the interest rate market?

CMB – The Canadian Mortgage Bond MBS – Mortgage Backed Security GOC – Government of Canada Bond Rate BA – Bankers Acceptance NHA MBS – Mortgage Backed Securities IFRS – International Financial Reporting Standards

Can you explain what the Canada Mortgage Bond Program does?

This program is completely unique to Canada. Canada Mortgage Bonds (CMBs) are issued through a special trust called the Canada Housing Trust (CHT). The Trust sells CMBs to investors and uses these proceeds to purchase mortgages packaged in Mortgage Backed Securities (MBS) from approved sellers. The investors are then paid interest and principal from the proceeds of the underlying mortgages collected by MBS Sellers on behalf of the Trust.

The CMB program is beneficial as it provides the market with a competitive and alternate source of mortgage funds which helps reduce the mortgage financing costs for Canadian consumers. It also helps lenders as it is used as a tool to manage liquidity, capital, and risk and increases the supply of low cost mortgage funds available to Canadians in the future.

You mention that the CMB buys mortgage packages? in Mortgage Backed Securities (MBS) from approved sellers. How do mortgages get packages in a MBS? Firstly, approved sellers are typically mortgage lenders such as banks, trust companies, and other types of lending institutions. They must be federally or provincially regulated and must have a minimum net worth and credit rating as specified by the Guarantor. The NHA MBS are created when these CMHC approved sellers bring together a pool of eligible mortgages for the purpose of transforming the mortgages into securities which can be sold to investors.

14 WINTER 2011

What is the difference between margin and profitability for a lender?

Gross margin is the ‘spread’ between the funding mechanism (i.e.

CMB) and the ‘posted’ rate. The net margin is the ‘spread’ between the funding costs (GOC or BAs) and the posted rate. And finally, the profit is the ‘spread’ between the all-in cost of funding and the actual client interest rate.

How are the costs for fixed and variable rate mortgages the same and different?

Both fixed and variable rate mortgages are funded using the same mechanisms (i.e CMB) and the operating and origination costs are the same. However, the difference between the net margin on the two is based on their funding costs. The ‘financial instruments that the base rates are usually pegged to are dramatically different. Fixed rate mortgages use the Government of Canada Bond rate and ARM’s use a Bankers Acceptance rate.

When I look at the Government of Canada Bond rate, it is 1.37%. The lender is offering a rate of 3.29% to the client. Does that mean the lender is making 192 bps spread in profit?

I wish! No, sadly that is not the case. There are three main factors of cost that eat up that 192 bps. The first is a funding treasury cost. This includes costs like the MBS setup cost, trade premiums, and hedging and swaps costs. This usually adds 85 bps in cost to the GOC rate. So if you start with a GOC rate of 1.37%, add another 85 bps to it for funding treasury costs and your rate is now up to 2.22%. The next factor of cost is an operational cost. This cost includes things like underwriting, appraisal costs, technology, and the overhead of physical locations.

Operation costs can generally add 23 bps to the rate, so that 2.22% is now up to 2.45%. The final main factor of cost is the cost of originations.

ask the expert: winter 2011 This includes the fee to the broker (your paycheque!), marketing and promotion costs, and the lender’s cost to pay their BDMs. The cost adds roughly another 42 bps, which brings the 2.45% rate up to 2.87%.

At the end of the day, the 192 bps spread in profit has been reduced to 42 bps in profit for the lender (3.29% customer interest rate - 2.87% in cost = 42 bps profit).

Let’s put that profit into perspective on a $300,000 mortgage:

• A real estate agent earning 2% will earn $6,000 in commission • A mortgage broker earning 85 bps will earn $2,550 • The lawyer will probably earn $1,000 • The lender will earn $960 Hopefully this sheds some light on why margins can seem ‘fat’ but lenders are not lowering their fixed interest rates.

Can you explain how this works for a variable rate mortgage and why the deep discounts on variables have disappeared?

On a variable rate mortgage, the operation cost and the cost of origination are the same as a fixed rate mortgage. The difference is the ‘financial instrument’ used. Variable rate mortgages use Banker Acceptance (BA) rates rather than GOC rates. Using a BA rate of 1.12% as the base, we add on another 150 bps in costs. This brings the rate to 2.62%. If a lender is giving a variable rate at prime, which is currently 3.00%, their profit is 38 bps in total (3.00% customer interest

rate - 2.62% in cost = 38 bps profit). Using this example, a variable rate mortgage is less profitable for a lender than a fixed rate mortgage. Plus there is a higher risk for early payouts and convertibility on variable rate mortgages, which can make them less attractive for lenders in today’s current environment.

The biggest reason that the deep discounts on variable rate mortgages have disappeared is due to the current BA rate. Not too long ago, I can remember the BA rates being only .25 as a base. This was the good ol’ days when a discount of prime minus .90% was common. Due to uncertainty in the global markets and new financial regulation, the BA rates have increased, reducing variable discounts.

Where will interest rates be next year at this time?

Please ask me this question next year at this time! Your guess is as good as mine. But we will be paying close attention to the markets (Europe in particular), the new IFRS and BASEL regulations, and government policies to name just a few when determining the future of interest rates.

What is the difference between margin and profitability?

Gross margin is the ‘spread’ between the funding mechanism (i.e.

CMB) and the ‘posted’ rate. The net margin is the ‘spread’ between the funding costs (GOC or BAs) and the posted rate. And finally, the profit is the ‘spread’ between the all-in-cost of funding and the actual client interest rate.

WINTER 2011

15

Exploring the Member Zone Take advantage of your AMBA insider information

We encourage you to use the web features in our member zone on a regular basis. It should be your go-to place for all important AMBA information and more. The site is jam-packed with knowledge-based information to engage consumers and industry people. There are lots of exciting things to explore including daily national news updates, industry partner updates, social media feeds and a chat zone, where you can ask questions and or share information with fellow members. You can also print off your member certificate at any time, register for events with ease, update your profile, browse AMBA Matters and photo archives and much more.

16 WINTER 2011

Log-in to your member zone today!

Events Calendar & UPCOMING EVENTS Browse our event listings and register through one easy click in the Member Zone.

President’s blog Read the President’s message regularly. It’s updated with important news and messages you won’t want to miss.

photo gallery Find your pictures with ease. The gallery is easy to navigate and kept up to date.

AMBA Matters Find any copy of your magazine with one click.

It’s your green option.

member certificate You can download your member certificate any time. Click the Member Zone certificate button and print.

WINTER 2011

17

Social Media Background Checks:

Privacy Violation or Good Due Diligence?

Julia Lee, AMBA Privacy Officer The New York Times reports that 45% of employers in the U.S. are using social media to conduct background checks on potential employees (http://bits.blogs.nytimes.com/2009/08/20/ more-employers-use-social-networks-to-check-out-applicants/).

In fact, this practice of social media background checking has become so integrated with the concept of recruitment due diligence that companies have sprung up specifically for the purpose of conducting social media background checks on behalf of inquiring employers.

These third-party ‘background checkers’ are gaining steady ground in the U.S., with the green light from the U.S. Federal Trade Commission, and the dismay of privacy advocates.

While most consumers cringe at the thought of a potential employer scouring the Internet and crawling right up into their Facebook space, social media background checkers note that your social media postings might in fact demonstrate that ‘little something special’ that would help employers make the decision to hire you. The background checkers do not forward identifiable photos to the employer; and only items which appear violent, discriminatory, aggressive, unlawful and/or sexually explicit are reported.

However, many employers are not as influenced by Twitter reports of you volunteering as a little league baseball coach as they are by the photos of you cross-eyed with a bottle of tequila in your hand in Mexico 15 years ago with what might or might not be a cigarette hanging out the corner of your mouth.

In fact, 35% of employers have decided NOT to offer employment based on the results of social media background checks (http:// bits.blogs.nytimes.com/2009/08/20/more-employers-use-socialnetworks-to-check-out-applicants/). (Perhaps that angry blog rant to that excruciatingly slow driver was not quite that ‘little something special’ the employer was looking for).

Here is an example of one company utilizing a third-party background checker to research a potential candidate: Here is one of the actual postings made by the potential candidate on his social media site:

18 WINTER 2011

Problem #1:

How accurate is the information if the context is absent?

Privacy laws require organizations to take measures to ensure that the information they collect and use is accurate. A number of variables in the social media world act counter productively to keeping information accurate, such as the ease of error in external linking, anonymity of account creators (i.e., an imposter could easily create a MySpace page and use it to discredit someone), out of date information, mislabelled photos, etc.

Moreover, it is difficult, if not impossible, to draw comprehensive, accurate meaning from an isolated photo, blog entry or other social media item. Everything has context. Remove the context, what information are we getting exactly?

Answer: inaccurate information. ‘Zach’s’ breast cancer posting above is a classic example of what communication can look like in the absence of context. In terms of employment, is it prudent to base decisions on potentially inaccurate information?

Is Social Media Background Checking Fair?

Well, that depends whose perspective you are considering.

Employers are entitled to know who they are letting into their organization. They are entitled to ensure the individuals with potential access to personal, sensitive and corporate information are who they claim to be with the traits, characteristics, morals and skills that they claim to have. They have the right to take measures to reduce any potential future problems and cost to the company that may stem from an ill-hired employee.

As Matt Honen, a reporter for the popular technology weblog, Gizmodo, and a firm believer in social media background checking of candidates, emphatically states, “Employers would have to be stupid not to Google job candidates.” (http://gizmodo.com/5818774/ this-is-a-social-media-background-check).

Privacy advocates, however, caution employers who want to conduct social media background checks to fully understand and balance out the potential risk of violating an individual’s privacy and the quality/usability of information gleaned from Facebook, blogs, Twitter or other social sites.

The Personal Information Protection Act (PIPA) does not prohibit social media background checking. It does, however, caution organizations who are considering or already conduct social media background checks to understand the privacy legislation. Social media has firmly established it roots in society, but it is still in its infancy in terms of legal and policy implications.

The following need to be well-considered:

To Tweet-check or Not to Tweet-check?

‘Public Information’ and ‘Available to the Public’

Social media background checking continues to drive changes in policy and legislation.

PIPA’s definition of ‘public information’ is limited. Section 7 of the PIPA regulation outlines six categories of ‘public information’ as information: • in a telephone directory • in a professional or business directory, listing or notice that is widely available to the general public (i.e., unrestricted access) • in a public registry • in a record of a quasi-judicial body • in a publication • that has been collected outside Alberta in a manner permitted for one of the above categories.

Facebook, Twitter and LinkedIn are glaringly absent from this list of ‘public information.’ If social media information is not considered (by PIPA) as public information, is that information accessible to employers? This question brings us to one of the fundamentals of privacy compliance: Consent.

Consent As with any non-business to business personal information, consent from the individual is required prior to collecting the information. That means employers cannot simply start Googling away without prior consent of the individual.

Even with consent to access a candidate’s social media sites, employers need to keep three important, potential ‘snags’ in mind: • Privacy laws permit consent to be withdrawn by the individual at anytime. If consent is withdrawn, any information resulting from a social media background check can NOT be used in the decision-making process on whether or not to hire.

Problem #2: How do you UN-know what you already know?

Note: PIPA outlines an exception to the consent rule whereby information can be used without consent, if, for example, an employer found corporate/proprietary information on an employee’s social media site about a new product.

• The collection of the information must be reasonable. If a candidate gave consent to an employer to access, for example, her online dating profile, this collection, which may include simply viewing, of information would likely NOT constitute a reasonable collection and would contravene private sector privacy laws. Problem #3: Is it reasonable for employers to collect and use information from an individual’s social setting?

• Personal information of a third party may be inadvertently collected.

Social media sites typically include photos, birthdays, postings/responses and other potentially identifying information of individuals other than the candidate.

For example, ‘John’ gives his employer consent to access his Facebook page to view photos of the company picnic where an altercation broke out between co-workers. John insists he was not the instigator. In reviewing John’s Facebook, his employer discovers that in fact ‘Bob,’ responding to a post on John’s Facebook wall, instigated the altercation. The employer has now collected information without proper legal authority.

Problem #4: How do you conduct social media background checks and NOT look at anyone else on the social media site?

Scan this QR Code with your smart phone to read more about the Guidelines for Social Media Background Checks.

For many employers today, it does not make sense to hire someone without spending a few minutes on the Internet to find out more about a potential candidate. As Matt Honen, a reporter for the popular technology weblog, Gizmodo, states, “Employers would have to be stupid not to Google job candidates.” (http://gizmodo.com/5818774/ this-is-a-social-media-background-check).

Privacy advocates and PIPA warn employers to tread through social media background checking with caution. Each new technological marvel seems to come at a cost — our right to keeping our personal information personal is paying dearly. So far, PIPA continues to allow us to have our social-media-background-check-cake and eat it, too. The key is to understand the privacy legislation, appreciate and respect what privacy means to an individual and reflect on how much value is truly in a social media background check for the purposes that it is intended.

The Office of the Privacy Commission, B.C. has created a useful document to guide organizations on how to conduct social media background checks while maintaining compliance with privacy legislation and respecting the privacy rights of the individual.

If you are deciding whether or not to conduct social media background checks, PIPA provides the following do’s and dont’s:

Do

… know the privacy legislation before you start digging into someone’s social media past (i.e., consent).

Do

… take responsibility for privacy compliance, even if you decide to contract a third-party background checker.

Do

… consider the risks of violating the privacy of third parties on the candidate’s social media site.

Do NOT … try to conduct background searches

from a private account in an attempt to skirt privacy laws.

Do NOT … make the assumption that individuals

will never know whether you accessed their social media sites or not. For example, web analytics can identify the IP addresses which have accessed an individual’s personal information.

Do NOT

… assume that ‘public information’ means that it is devoid of rights to privacy.

WINTER 2011

19

On November 3, 2011, The Alberta Mortgage Brokers Association hosted an Open House and Appreciation party for its members and supporters.

It was an excellent opportunity for everyone to tour the new office space and show our appreciation to our volunteers.

The AMBA office is now located at Suite 200, 1940 9 Ave S. E. Calgary, AB.

Our New Location!

22 WINTER 2011

mmmmmmmmm.... cake!

Congratulations to Doug Whelpton, James Kulus, and Cheryl Morrier winners of a 2012 AMBA Membership

The AMBA Staff

WINTER 2011

23

AMBA And IMBA Form Partnership For Success The Alberta Mortgage Brokers Association (AMBA) and The Independent Mortgage Brokers Association of Ontario (IMBA) have formed a collaborative partnership that will bring together two industry associations focused on supporting and educating the mortgage brokerage industry.

Both AMBA and IMBA develop their association partnerships with organizations that work to better the mortgage brokerage industry and support the mission and goals of their respective associations and their members.

“AMBA is committed to our mission and goals of the association and this partnership with IMBA brings together two associations whose continued success hinges on the ability to innovate and to respond to industry change. It’s our goal to better the industry and, through teamwork, I truly believe we will enhance industry professionalism,” said AMBA President Paul Bojakli.

Can you spot the MERIX originator?

“IMBA’s directors are very excited about the opportunities that this initiative will present to our associations’ members and we are proud to partner with AMBA, which has a strong legacy in educating and training brokers and agents,” said IMBA President Albert Collu.

The association partnership will focus on: • Sharing educational, training and professional development and resources with the intent to: Create uniformity in content.

To raise the knowledge and professional standards of mortgage brokers and mortgage associates in our respective provinces.

•

Joint consumer marketing to help raise the profile of mortgage brokers and mortgage associates/agents.

It will emphasize the advantages our members offer consumers, such as choice and convenience.

• A supportive, joint voice for regulators to:

Create consistency. Particularly, on the heels of reciprocity, to create standardization of education, transactional documentation (i.e. Disclosure forms, Policy creation, compliance, etc.).

Align on key issues as they may relate to Mortgage Investment Companies, RRSP Tax Rules, Mortgage Rule Changes, GST, Errors & Ommissions insurance, Fraud Awareness and Self-Regulation.

“Albert Collu and his board are listening to their members and to the mortgage community. IMBA and AMBA have recognized that working together can significantly benefit both memberships and the industry as a whole. Our objectives are to align on key issues, eliminate duplication, collaborate to raise the industry standard and promote national consistency with one voice,” said Bojakli.

“I strongly believe that this partnership is just the beginning to achieve our associations’ mutual goals,” said Collu.

24 WINTER 2011

As well as building long term value in your business, MERIX Financial has an exclusive status program for approved originators. The MERIX Centre of Xcellence offers a host of exclusive privileges and benefits, including a dedicated senior underwriter, DBD support and a Quarterly Bonus reflecting your status level.

Find out how rewarding partnering with MERIX is.

Call 1- 877- 637- 4911, email info@merixfinancial.com or follow us online.

Industry News Many Canadians will carry mortgages into their 70s: Survey

Canadians putting homes at risk with lines of credit

Survey results suggest Canadians might have unrealistic expectations of when they’ll be mortgage-free.

A recent Royal Bank of Canada poll showed 72% of respondents with a mortgage expect to have it fully paid off by the time they are 65.

However, it also found that 33% of those 55 or older still have at least 16 years left on their mortgages.

The survey also showed that younger respondents were even more optimistic in their plans. For those between the ages of 35 and 54, 39% thought they would be mortgage-free by the time they are 55, and another 39% expect it to take until 65.

Among those between 18 and 24, 12% thought they would be mortgagefree by the age of 35 and 26% by the time they are 45.

Debt-ridden Canadians may be enamoured with home equity lines of credit (HELOC) but many are using them as a quick, easy way to borrow without really understanding how they work.

A recent poll by Leger Market shows that 36% of Canadians have a HELOC. Although more than three-quarters (79%), said they were “quite confident of their level knowledge,” on average, they correctly responded to only (43%) of questions that tested their basic knowledge of how HELOCs work.

Those without a HELOC did even worse. On average, they correctly answered only three of eight true-or-false questions. The poll of 1,501 adult Canadians, commissioned by the TitlePLUS, the title insurance arm of Lawyers Professional Indemnity Co. (LawPRO), was conducted online in November.

So how are Canadians using their HELOC? Among those polled, 37% have used them to finance major purchases like a home renovation, 17% for a car, 11% for a vacation, 9% for a down payment on an investment property, and 5% for children’s education.

Among those polled who have a secured line of credit, 55% reviewed all the loan documents with a loan officer while 33% read all the fine print. A minority, only 12%, consulted with a lawyer before signing the agreement.

CMHC: Credit scores averages increase According to new CMHC numbers, the average borrower of a CMHCinsured mortgage held a credit-score of 731 in 2010, that number has risen to 735 for the first nine months of 2011.

The observations reflect those of two other high-volume veterans, now grappling with stricter credit score guidelines for clients, regardless of how solid their incomes.

It means CMHC recommendations are now being more closely adhered to, with most lenders declining deals that fail to meet those standards.

The few to submit them to CMHC insurance on a loan to value of 80% or higher. It jumps to 610 for LTV of 60% to 80%.

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 WINTER 2011

ð Denotes a Professional Corporation

ð

Most disturbingly, the poll found that 11% said they did not review any documents or seek any advice before signing.

Failing the HELOC knowledge test The poll found that the majority of Canadians were fuzzy on the details of how secured lines of credit work. Among those who said they did have a home equity line of credit:

• 57% did not know that when you take out a HELOC the financial institution lending the money puts a mortgage on the borrower’s home.

• 58% did not know that taking out a HELOC when they already have a mortgage on their home means that the lending institution places a second mortgage on the home, or modifies the original mortgage to capture all the equity in the home.

• 69% did not know that having a HELOC could negatively affect their credit rating or future loan applications.

• 83% of all survey respondents did not know that when you pay off and close your home equity line of credit, any credit card consolidated under this line of credit may be cancelled and not available for future use.

• 62% did not know that having a home equity line of credit could negatively impact your ability to take out a loan or mortgage with another financial institution.

• 58% did not know that when you take out a line of credit, your home becomes the bank’s security for any credit card debt, other loans you have with the bank, or any other loans you have co-signed.

Annuitizing wealth closes retiree income gap, study says Canadian retirees may have more sources of income at their disposal than first meets the eye, according to Statistics Canada. The report states that annual income for retirees could be almost as high as in their working years.

Calgary listed as third most attractive real estate market in Canada

It suggests that home-owners benefit from “imputed rent” and that a home can also generate income in old age via reverse mortgages.

Similarly, it suggests non-registered investments and business assets could be liquidated, with the proceeds used to purchase annuities that provide a lifetime income.

Volatile stock markets and minuscule returns from fixed income have investors looking at global real estate. But rather than single-family residential property, the hot ticket these days is multiple family dwellings.

The report entitled Income Adequacy in Retirement: Accounting for the Annuitized Value of Wealth in Canada says the picture improves even more when comparisons are made after-tax. It even comes up with one scenario in which income generated by such sources is 5% higher for households headed by 65 to 74-year olds than it is for those headed by 45-to-64 year olds.

Toronto and Vancouver are the most attractive real estate markets in Canada, being 24-hour destination points for business and other visitors. Calgary is rated third and Edmonton fourth.

Edmonton and Calgary are oilsands markets, but Edmonton quietly prospers from its stable engineering companies and is cushioned by the presence of the provincial government.

The report demonstrates that if Canadian seniors consume, in retirement, all of the capital they accumulate during their working lifetimes, their post retirement incomes, adjusted for family size taxes, will be good as their pre retirement incomes.

CFA Society research indicates that Edmonton has a tight industrial real estate market with low vacancy rates, that retail building is strong as people “earn big bucks in the oilsands country and spend in local malls and power centres, including West Edmonton.”

Tough deals wearing you down?

Seeing more customers with challenging income and credit situations?

Having difficulty with “out-of-the-box” applications? n Frustrated with restrictive lending criteria? n Ready to expand your client base beyond the traditional borrower? n n

We are the home of Sensible Lending® and have mortgage options suitable for most borrowers. (TSX:CWB)

Serving brokers in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan.

866.441.3775 www.OptimumMortgage.ca

Questions? Comments? Deals?

Contact your regional business development manager or our underwriting centre at 866.441.3775

WINTER 2011

27

Industry News continued new broker Association joins the mix

In towns outside the Calgary market, CREB said 298 were up 36.7% from November 2010 while the average sale price of $335,394 dropped by 1.35.

The Mortgage Brokers Association of Atlantic Canada (MBAAC) recently announced its formation to the industry. It’s a completely independent association and the first in the region.

In the country residential market which includes acreages, CREB reported sales of 54, up 3.85% from last year with the average sale price rising by 7.86% to $762,285.

It’s an idea that has been in the works for years and formally in the making over the past year, with an appointed board of directors now in place for the independent association.

A major goal of the association is to grow the number of regulated mortgage professionals across the Atlantic region and to provide a voice for them.

Currently, only Nova Scotia and Newfoundland license brokers. New Brunswick and PEI are being encouraged to move in the same direction.

Calgary MLS sales in November up from last year Residential MLS sales in Calgary jumped in November compared with a year ago, according to the Calgary Real Estate Board (CREB).

November statistic show single-family transactions reached 962, a hike of 8.09% from November 2010. The average sale price was $470,665, up by 3.31% from a year ago.

Condo sales of 393 jumped by 26.77% but the average sale price of $273,356 was down 3.97% from last year.

Canada job numbers down in November Canada’s positive economic news streak has ended with employment figures showing a 18,600 job loss statistic for November. In October, 54,000 jobs were lost.

A look at all the latest job reports: • Full-time jobs are up • The economy added 34,600 full-time positions in November • Unemployment rose by 10 basis points to 7.4%, as many services jobs, including finance, education, retail, wholesale trade, business, building and other support services sectors all posted losses.

• Canadian manufacturing declined again in November, down 7,300 jobs, pushing the total number of jobs lost in the sector to 627,000 jobs in the last nine years.

We’ll work harder for you

This season, look for Team Bridgewater to deliver an even better product offering and even greater service to provide the unique solutions for your customers’ unique needs.

1-888-837-2326

n

Personal. Efficient. Committed.

28 WINTER 2011

bwballstarportal.ca AMBA003 09/01/11

Dale Koeller appeared before the senate on December 6, 2011 to speak about the industry’s concerns over Bill C-13.

How the Government changed our business As typical Canadians who considered themselves educated and aware of what was going on in the political landscape of the country, both Dean Koeller and his brother Dale were surprised to find themselves catapulted into the middle of a political whirlwind over legislative changes to RRSP and RRIF accounts that were proposed in the March 22, 2011 Canadian Federal Budget.

“When we became aware of the proposed legislation, we were surprised at how little attention the issue seemed to receive.” said Dean Koeller, CFO of Calvert Home Mortgage Investment Corporation.

“It took a few late nights of reading the tax act to make sure we understood what the government was trying to do and the more we learned the more concerned we became,” added Dale Koeller, Vice President of Calvert Home Mortgage Investment Corporation.

The challenge the two brothers faced early on was raising awareness of the issue and educating others on the impact this legislation was going to have on Canadians. For months, they knocked on the doors of politicians, civil servants, industry members, lawyers and other industry associations to do everything they could to tell people what was happening.

“The mortgage industry needs to act and work with a strong voice. We are facing pressures from all sides and it is only through working together and working through our associations that we are going to be able to protect our businesses and continue to provide the great services we offer to Canadians.” ~ Dean Koeller “It was really frustrating at first. We would visit with our local MPs and communicate what the proposed legislation was going to do to our businesses and a number of Canadian RRSP holders, and while it was received with some concern and some sympathy, the issue seemed to be too technical for many of the MPs to take a leadership role on,” said Dale Koeller.

As Dale described in his presentation to the Finance Committee, the government was using a sledge hammer to solve a problem the size of a flea, causing unnecessary damage. He adds, “there was no need for the government to cast such a large net in order for a small number of Canadians that were perpetrating illegitimate tax avoidance schemes.

They could have achieved better results through more direct means, through solutions our industry was proposing.”

While Bill C-13 is set to pass, and without the desired result that the brothers had hoped for, there was enough attention to the issue that the penalties to these rules were significantly reduced.

“While we are disappointed in the result, we will continue to communicate with our industry, politicians and the Department of Finance to consider alternative solutions,” said Dean Koeller. “The experience has taught us a few things.”

Some of these lessons include:

• Industry needs to do a better job of being conscious of what government and regulators are doing.

• Industry needs to be better organized to deal with legislative and regulatory threats.

• Industry needs to react quickly to these issues and address them with appropriate government officials and political parties.

• We need to understand the process and how to get your message out to get the result you need.

“The mortgage industry needs to act and work with a strong voice.

We are facing pressures from all sides and it is only through working together and working through our associations that we are going to be able to protect our businesses and continue to provide the great services we offer to Canadians,” Dean Koeller concluded.

Dean and Dale were able to loosely consolidate a group of more than 70 mortgage investment corporations which objected to the proposed legislation and felt those efforts needed to be made to change the direction of government. The brothers took their fight right to Ottawa, where Dale Koeller sat in front of the Standing Committee on Finance to communicate their concerns over Bill C-13. Armed with good information and a good justification of how the proposed changes would hurt the industry, hurt tax payers and the Canadian real estate economy, they hoped that they could convince the government to make necessary changes.

WINTER 2011

29

classic

partner program

So, are you famous yet?

If you’re not, you will be soon! Simply fund ten or more deals year-to-date and experience the perks of prestige, with the new Home Trust Classic Partner Program.

Once you are Famous you will earn financial incentives over and above your standard ® Finder’s Fees for every Classic Mortgage and Equityline Visa* you fund, in the form of Home Trust Status Credits. Contact your Business Development Manager, or login to www.hometrust.ca/broker for full details.

Find out how to close more deals at www.hometrust.ca or call 1.877.903.2133

Your One-Stop Mortgage Lender ® Registered trademark of Home Trust Company * Visa Int./Home Trust Company, licensed user of mark

®

Never forget a birthday or thank you again!

Card sending made easy A great way to stay current and in touch with your database is to send out Christmas cards or birthday cards. They’re a powerful business tool to help make sure your customers know just how important they are to you! However, routinely sending cards to your clients can be a daunting task, especially as your business grows.

Other features include: • A reminder system in which you can store important dates like anniversaries and birthdays and Send Out Cards will remind you.

• Campaign options allow you to send the same card to as many people as you want.

What if there was an easy way to send cards?

Fun Facts • Ancient Egyptians were the first to create greetings by placing symbols on papyrus and sending them via messenger.

• 7 billion greeting cards are sold in the U.S. each year.

• Average consumer buys 10 cards per year.

Have you heard of Send Out Cards?

It’s a service that eliminates the hassle of pens, paper, stamps, envelopes and mailboxes. With just the click of a button, you can choose your custom card, add a personal photo, write your message and click send. Send Out Cards will stuff, stamp and mail the physical card for you.

Equity Lending!

We don’t rely on credit, income, or age. We do lend on appraised value.

Owner occupied, rental, condo, construction. Rooming houses to farms.

Bankruptcy to foreclosure. Corporate and international clients.

Fast commitments. Loan amounts from $15,000 to $750,000.

Lender fees as low as 2.50%.

BR I T I SH COLUMBI A • ALBERTA • ONTAR IO • ATLANTIC PROVINCES

UP TO

80%

1st Mortgages Rates start at

LTV Residential Private Money Lending

5.75% AND UP

2 nd Mortgages Rates start at

6.75% AND UP

R AT E SRATES & F E& E SFEES A R EARE S USUBJECT B J E C T TTO O CHANGE C H A N GWITHOUT E W I T H ONOTICE. UT NOTICE.

More than $500 million dollars in mortgage funding since 1997, Member IMBA, CAAMP, AMBA, MBABC, BBB, Offices in Vancouver, Calgary, Edmonton & Toronto.

George Lay

Moe Haymour

Paula Hutton

Hugh Doggett

Trevor Bowie

Business Development Manager British Columbia

Business Development Manager Alberta North

Business Development Manager Alberta South

Business Development Manager Ontario

Business Development Manager Atlantic Provinces

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

Phone: 780 | 919.9211 Fax: 780 | 665.6010 Toll Free: 800 | 959.9290 mhaymour@capitaldirect.ca

Phone: 403 | 278.6200 Fax: 403 | 278.6296 Toll Free: 80 0 | 959.9290 phutton@capitaldirect.ca

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

549314_Capital.indd 1

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

WINTER 2011

31

8/30/11 7:08:52 PM

amba

SOCIAL CENTRE Safety and Social Media Social media is great for connecting you with others and sharing information, but there are also a lot of risks to using social media. Hackers, spammers, virus writers, identity thieves and other criminals search for victims through social media.

The following tips will help you be safe when using social media: Use caution when you click links. Social website links that seem strange may not have been posted by your friends. Always use caution.

Know what you’ve posted about yourself.

A common way that hackters break into financial or other accounts is by clicking the ‘Forgot your password?’ link on the account login page. To break into your account, they search for the answers to your security questions, such as your birthday, home town, high school class, or mother’s maiden name. If the site allows, make up your own password questions, and don’t draw them from material anyone could find with a quick search.

Don’t trust that a message is really from who it says it’s from. Hackers can break into accounts and send messages that look like they’re from your friends, but aren’t. If you suspect that a message is fraudulent, use another method to contact your friend to find out.

To avoid giving away e-mail addresses of your friends, do not allow social networking services to scan your e-mail address book.

When you join a new social network, you might receive an offer to enter your e-mail address and password to find out if your contacts are on the network. The site might use this information to send e-mail messages to everyone in your contact list or even everyone you’ve ever sent an e-mail message to with that e-mail address. Social networking sites should explain that they’re going to do this, but some do not.

Type the address of social networking sites directly into your browser or use your personal bookmarks. If you click a link to your site through e-mail or another website, you might be entering your account name and password into a fake site where your personal information could be stolen.

Be selective about who you accept as a friend on a social network. Identity thieves might create fake profiles in order to get information from you.

Choose your social network carefully.

Evaluate the site that you plan to use and make sure you understand the privacy policy. Find out if the site monitors content that people post. You will be providing personal information to this website, so use the same criteria that you would to select a site where you enter your credit card.

Assume that everything you put on a social networking site is permanent. Even if you can delete your account, anyone on the Internet can easily print photos or text or save images and videos to a computer.

Be careful about installing extras on your site.

Many social networking sites allow you to download thirdparty applications that let you do more with your personal page. Criminals sometimes use these applications to steal your personal information.

Think twice before you use social networking sites at work.

32 WINTER 2011

Take charge of your online reputation

Find out what is on the Internet about you Use Search Engines Type your first and last name into several popular search engines.

Search for images as well as text.

Be specific to increase your search effectiveness. Put quotation marks around your name. Specify the city where you live, your employer, or other keywords that apply only to you.

Chances are you already have an online reputation, even if you do not know it.

Avoid searching for national identity numbers or Social Insurance numbers. If you see these (or other sensitive data such as credit card numbers, grades, or health information) in search results, ask the website owner to remove the data immediately.

On the Internet, you create an image of yourself through the information you share in blogs, comments, tweets, snapshots, videos, and links. Others add their own opinions (good or bad), which contribute to your reputation.

Search all variations of your name. If you have ever used a different name or nickname, if you use your middle name or initial, or if your name is frequently misspelled, check these as well. Include personal domain names (for example, yourname.com) in your search.

Anyone can find this information and use it to make judgements about you. For example, research commissioned by Microsoft found that of the U.S. hiring managers and job recruiters surveyed, 79% routinely review online reputational information when considering job applicants.

Check sites you frequent. Search online directories and sites that compile public records, genealogy sites, the websites of organizations to which you belong or donate time or money, and the like.

Most of those surveyed count online reputation as one of their top selection criteria. In fact, 70% of the U.S. hiring managers in the study say they have rejected candidates based on what they found.

Top disqualifiers included unsuitable photos and videos, concerns about the applicant’s lifestyle, and inappropriate comments.

Review what others have posted about you in comments, pictures, or videos. Explore their blogs, personal pages on social networking sites (Facebook, LinkedIn and Twitter), or photo-sharing sites such as Flickr and Snapfish. (Parts of these sites are inaccessible to many search

Search blogs and social networks

engines, so you must look separately.)

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.

WINTER 2011

33

AMBA BRIEFS Time to Renew your AMBA Membership It’s that time of year again, go online to www.amba.ca and log in. Click the ‘Renew My Membership’ button in the Members Zone.

This year’s fees are: Brokerage and Corporate $360 Individual Active and Corporate Active $115

Exam Centre & AMBA Office Holiday Hours The AMBA office will be closed between December 24, 2011 - January 1, 2012. It will re-open January 2, 2012, at 8:30 a.m.

During this time, the exam centre will also be closed.

Meeting Space Available in the AMBA Office 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.

If you’re interested, call Tara at 403.685.9652

Participate in our Poll Question We’d really appreciate your feedback! What do you prefer: Online learning or classroom?

Log in at www.amba.ca and enter the member zone.

RECA Self-Regulation Town Hall Meetings The Real Estate Council of Alberta (RECA) is hosting meetings across the province throughout December, January and early February. Look for a meeting near you at www.reca.ca.

Watch for the new e-newsletter In January, we will launch a new formatted e-newsletter. Watch for it!

34 WINTER 2011

2012 Online Media Kit This year, you can access all our advertising opportunities and pricing with just one click. Go to www.amba.ca and click the media kit. Explore our online advertising opportunities, magazine, e-newsletter and more.

AMBA to hit Home Shows across Alberta In 2012, AMBA will host booths at home shows in Calgary, Edmonton, Fort McMurray, Lethbridge, Medicine Hat and Red Deer.

Members will be given the opportunity to purchase a time slot to host the booths and advertise their company to the thousands of consumers attending the show. Watch for dates and times in the e-newsletter.

The first show of the year is: The Calgary Home Expo January 13-15, 2012 at the BMO Centre, Stampede Park Register at www.amba.ca.

Industry talk with

Cheryl Murtagh Meet Cheryl Murtagh of Street Capital.

Tell us a bit about yourself.

Where are you from?

I was born and raised in Calgary.

What are a few of your hobbies?

My hobbies are focused around sports. I’m an avid curler and curling fan. I’m also a huge Calgary Flames fan. I’ve been converted to a Saskatchewan Roughriders fan. I also enjoy travelling when I can.

Cheryl was instrumental in helping AMBA change venues for the annual curling bonspiel to The Calgary Curling Club.

This year’s event will take place March 2, 2012, at The Calgary Curling Club.

Do you have a family?

If a four legged fur-ball counts … I have a five-year-old dog that is like a son to me.

Please tell us a little about your company.

I’m a Business Development Manager for Street Capital in Calgary.

What is your experience with AMBA? AMBA provides an avenue for Alberta brokers and lenders to come together as a united front. It provides brokers access to multiple industry partners and allows existing relationships to expand.

CONTINUED ON NEXT PAGE ...

WINTER 2011

35

WINTER 2011 member profile

What advice would you give to people wanting to enter the mortgage business?

Brand yourself and be referable!

What is your vision for the mortgage industry?

For consumers to recognize mortgage brokers as highly half-pg-magazinead-CMYK-march2011.pdf 1 09/03/2011 educatedVWR individuals that provide a high quality service for their mortgage needs.

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

9:45:37 AM By providing

quality customer service and by being a trusted sales professional for my broker partners.

Phone: 604-530-7430 Toll Free: 1-866-907-5407 Email: info@vwrcapital.com

C

M

Y

1st, 2nd and 3rd Private Mortgage Funds Available • Competitive rates and nominal lender fees • Quick approvals • Lending Areas: British Columbia, Alberta and Manitoba • Purchases, refinances, equity takeouts or renovations • Bridge financing, serviced land or acreages • No income qualifications, no minimum beacon score

CM

MY

CY

CMY

K

“Your Private Mortgage Solution” DOUGAL SHEWAN

DON KILLEEN

LINDA WESTON

dougal@vwrcapital.com

don@vwrcapital.com

linda@vwrcapital.com

#111 - 20434 - 64th Avenue, Langley, BC V2Y 1N4 www.vwrcapital.com WINTER 2011

36

Navigating the zoo New real estate search engine opens access to property data vault Zoocasa allows consumers to search real estate information that was once only available through a realtor.

Once guarded data on home appraisal values — real-estate industry insider information — is now available through Zoocasa.com, a new listings website backed by Rogers Communications Inc. Rogers Communications Inc., says they care about consumers and the new site will better their home buying experience.

“Zoocasa understands that choosing a home is a personal and complex decision. In addition to evaluating the house itself, consumers care about the location — such as the neighbourhood’s attributes, local schools, the commute to work, or nearby amenities. Zoocasa enriches property listings available on the Internet by integrating customizable maps, the latest web 2.0 technologies, contextual information, and neighbourhood guides to support personal criteria considerations in the house hunter’s search and decision-making.”

Some key Zoocasa features: • Interactive map showing listings in their full context, including points of interest such as schools, local retail, hospitals and more.

• The ability to narrow, widen or change a search by easily navigating on the map.

A closer look at Zoopraisal Zoopraisal offers homeowners free appraisals of their houses.

Zoocasa has partnered with Centract Settlement Services, which has one of the largest national databases of residential real estate prices and information in Canada.

Here’s how it works: Simply enter your home’s details; address, style, lot size, living area in square feet, number of bedrooms and baths, and the year it was built. An appraisal is then calculated using a propriety formulas that calculates for size, neighbourhood and sales history.

Does it work?

According to realtors, it is fairly accurate. It sometimes has difficulty locating an exact address, but it does give fair numbers.

CTV News called the new service “a game changer,” because realtors traditionally hold this information. Realtors, however, are confident that it won’t replace them.

Zoopraisal’s site states that home values aren’t 100% accurate, since upgrades and renovations are not taken into consideration.

• Ability to filter searches with words such as “fixer uppers,” “finished basements,” “inground pools,” “state-of-the-art kitchen” and other terms that people use to describe their homes.

• Ability to search only new listings since a last visit to the site.

• Ability to track listing activity in a certain area by saving a search parameter and receiving alerts when new listings matching a user’s search criteria are added.

• Familiar neighbourhood names with detailed descriptions and aggregated links to more information on other sites.

• Ability to track listing activity for a particular property by saving a listing and monitoring changes to its details or status.

What it can’t do: • It cannot replace a human (ie. Realtor or appraiser).

• Calculate for upgrades and improvements • The paperwork process • Market your home

37 WINTER 2011

amba calendar MARCH 2012 Annual Bonspiel MARCH 2, 2012 Calgary Curling Club

June 2012 Spring Golf Tournament (Edmonton) june 1, 2012 Coloniale Golf Course, Beaumont, AB Annual General Meeting june 1, 2012 Edmonton

SEPTEMBER 2012 Annual Conference & Trade show/ Fall Golf Tournament SEPTEMBER 6 & 7, 2012 Banff Springs Hotel

to you and your family from all of us at the AMBA office!

HEADLINES 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.

ORWARD WE LOOK F OU IN Y TO SEEING

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 ŠShutterstock.com

38 WINTER 2011

Please Recycle This Magazine

It’s about more than just a great rate.

And you know it!

“Service” wins the deal!

Lending Excellence, by people who care.

Experience the Equitable approach.

Open conversation. Partnership success.

Equitable Teams take the time to see & hear what’s often missed . . .

......Client Circumstance.

Got a Client Circumstance that wants Lending Excellence?

Let’s talk today.

Call:

403.440.1200 1.866.940.1201

www.equitabletrust.com