CMP 5.6 by Key Media

NO. 11

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June 2010, 5.6

women in the industry Finding the balance

SPECIAL FOCUS Working with financial planners

FEATURE Newsletter marketing to grow your business

PROFILED Mark Kerzner The consummate professional at TMG PUBLICATIONS MAIL AGREEMENT #41261516

36 referral series/ working with financial planners Working with a referral source is a dynamic process that each agent approaches differently. Jennifer Zalitack finds out more on how to work with referral partners

5. 06 issue

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28 Women in the industry: Finding the balance Women have been entering the mortgage industry in increasing numbers and are racking up the sales. CMP examines this growing trend and compares the way women contribute to the success of the industry

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contents

building blocks to success

NEWS 8

Mortgagebrokernews.ca: Some of the best stats and comments from CMP’s website

10 BMO mortgage fraud, growing interest in combination mortgages, update on mortgage designation, new brokerage office, HSBC dumps broker channel, variable versus fixed rates; and more…

NEWS ANALYSIS 24 Mortgage fraud impacts us all: Bank of Montreal has alleged a huge mortgage fraud has occurred in Alberta. As the story unfolds the impact is going to be felt throughout our industry, and not in a positive way

BUSINESS 44 Eight ways to use newsletters: Forget buildings, staff and computers: your most valuable asset is your database of clients, potential clients and referral sources. Simon Payn and Dan Beresford offer tips on how to stay connected.

INTERNATIONAL NEWS 49 Comparing Canada’s experience with other countries can offer interesting insights. CMP looks at competition and its effect on brokers in Australia, the U.S. and the U.K., during this most recent Global Financial Crisis (GFC)

PROFILES 57 Provider: CMP talks to Boris Bozic, president of Merix Financial about trailer fees, pooling volumes and helping mortgage originators build their name in the industry 58 Broker: CMP talks to Mark Kerzner about his vision for The Mortgage Group 60 Guest Column: With all the issues facing the industry today, it’s difficult to determine how to prioritize them. Lisette Amalfi from Mortgage Alliance discusses these issues and what can be done about them

PRODUCTS 62 What’s New: Here is a roundup of some of the latest products of interest for those working in the mortgage industry

regulars 22 International News 42 This time last year 63 CMP Service Directory

mortgagebrokernews.ca

guide page 6 INSIDE guide to elite brokering In CMP’s continuing series of guides, we look at how agents can excel at what they do and grow their business. Each year, hundreds of people across the country make the decision to join the industry and each year hundreds of people leave the industry. According to insiders, nine out of every 10 new agents drop out in a year. We’ll explore what the top performers are doing to ensure their continuing success

We put you front and centre

in your local market.

When you join most superbrokers, you give up your local personality in favour of a faceless national brand. But at The Mortgage Centre®, we understand that your success is based on your relationship with your local market. Even though we maintain Canada’s longest-established national franchise network, we make sure all our programs and marketing tools spotlight you. To learn more about the exceptional independence we offer, contact sales@mortgagecentre.com The Mortgage Centre is a division of CIBC Mortgages Inc., a member of the CIBC group of companies. ® The Mortgage Centre is a registered trademark of CIBC Mortgages Inc.

Editor’s Letter

Women have redefined the work world When I started out in journalism, it was a field dominated by men. Women were relegated to jobs in public relations. Those women who did manage to get a job at a newspaper and who wanted to cover news stories had to fight to get away from writing about traditional women’s issues like children and food. But, of course, that has all changed. It’s the same story in practically every industry including the mortgage industry. The number of women brokers/agents has been growing steadily as they discover a career that gives them flexibility and freedom to earn high incomes. However, women are still responsible for maintaining their households and taking care of children in addition to building their careers. On page 28 we’ll take a look at a few women in this industry and read how they manage to keep on top of everything. A big concern for both women and men in the industry is mortgage fraud, which has been under the spotlight recently after the Bank of Montreal (BMO) filed a civil lawsuit, alleging a massive fraud worth approximately $70 billion and which cost the bank $30 million. Our news analysis, on page 24, examines this particular case and some of its ramifications. Also in this issue we take a look at elite brokers and offer tips on how agents can get there in our special Guide for Elite Brokers along with marketing ideas to help you attract clients consistently. One month into my job as editor and I’ve had the pleasure of meeting and/or speaking to many of you and am impressed with the level of professionalism and sheer enthusiasm and passion you have for what you do. I feel positive about the future of the industry despite the many issues facing it – our guest columnist addresses some of those issues on page 60 -- and I am pleased to be a small part of it.

‘Til next time Gina Monaco Editor Gina.monaco@kmimedia.ca

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Quotables

“Most people don’t send newsletters often enough – and that’s sad. Like most relationships, your business relationships will die if you don’t nurture them.” - Simon Payne on the importance of staying in touch with clients – one way is through newsletters. Page 44

“I know what I want. I’ve been in this industry for three years; I’ve bought my own franchise; I have 15 agents working here; I have a personal assistant, so I would say I’m very ambitious.” - Sarah Makhomet, broker/owner, Dominion Lending Centres Mortgage Village in Mississauga, Ont. talks about the ways woman work in the industry. Page 28

“Our team works in an office, Monday to Friday, with very little overtime and no house calls. We don’t meet clients in coffee shops or do deals out of the trunks of our cars because we find it’s hard to replicate a consistent customer service experience that way.” - Gord McCallum, broker/owner of First Foundation Residential Mortgages in Edmonton on how he builds an exceptional sales team. Page 6 (GUIDE)

June 2010 Publications Mail Agreement #41261516 Postmaster: Return undeliverable addresses to KMI Publishing, 100 Adelaide Street West, Suite 300, Toronto, Ontario M5H 1S3

EDITOR

Gina Monaco

Senior WRITER

Jennifer Zalitack

NATIONAL SALES MANAGER

Marni Parker

SUB-EDITOR

Rachel Naud

Mike Shipley

Jacqui Alexander Vivid Design Solution

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OFFICE MANAGER

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Readers Write Web comments

BMO fraud Instead of fighting each other, we should join and fight the banks. They have no accountability and they are overseen by ombudsman that are on their payroll. This in essence is a conflict of interest on its own. As long as the money is rolling in and quotas are being met, the ombudsman is happy because the banks are happy. Banks should have more accountability and fall under FSCO’s or FICOM’s regulations. Right now, people offering mortgages at the banks can say or do whatever they like and get away with it. I had a banker tell a client that he would have to pay $8,000 in penalties and discharge fees even though the client’s mortgage was up for renewal. The discharge fee

was only $225, but the client fell for it and stayed with the bank and paid a higher interest rate. When I spoke to the ombudsman about the unethical behaviour of the banker, he brushed me off. Where is the accountability? -Paul Sidhu CREA’s revised forecast for B.C. It is very interesting to hear that the CREA, along with other notables are just now figuring out the impact of the conservative government’s ill thought out plan. Decisions altering the NHA’s policy to use offsets of 80 per cent in favour of a 50 per cent add to income policy for dealing with homes with suites is a monumental shift in the affordability of homes in British Columbia. This policy change (and believe me I have been trying desperately to rationalize why the government forced the change) has meant that homebuyers who previously could afford the average price of $630,000 in Victoria, Vancouver and Kelowna market places can only “qualify” for about $320,000 today. The CREA in 6 months time will be revising their estimates on resales even downwards both on price (at least a 10 per cent decrease and sales) in these markets. -Ted Jones Bank of Canada’s rate hike I’m no expert but I do watch the news and try to make sense of what the experts tell us. If there are profits being made when the BoC overnight lending rate was at 0.25 per cent, why was there an increase? I understand inflation is a factor, but with the global economy still unstable, do we all truly believe that Canada has recovered and that we should now try to temper the stimulus efforts of the past year? Maybe this is just for show and we are hoping the rest of the world invests in Canada as we are signalling a recovered, strong economy (similar to when Australia made a similar move). -LB The Merix Financial Award for Best Customer Service from an Individual Office went to Mike Averbach, TMG Averbach Mortgages. The people identified in the photo should have read: Justin Blacklock, Mike Averbach and Boris Bozic. We regret the error.

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News

community

In the community Above On the afternoon of Monday, April 12th, Amber Boucher, of Cambridge, Ont., became the 2009 winner of Mortgage Alliance’s Minimize Your Mortgage Sweepstakes. Amber and Jeff Boucher purchased their mortgage from Karen and Walter Monteiro of Mortgage Alliance, Maximum Results Cambridge. Amber and Jeff are actually repeat clients of the Monteiros. The couple was presented their cheque for $100,000 live on MAC TV on Monday, April 26th, 2010. Bottom CMHC held its ‘2010 Spring Update for Mortgage Professionals’, in Prince George, B.C. last month. Pictured here is Wayne Campbell of Invis – Capital North Mortgages, Melissa Thompson & Kristie Matick (area managers for CMHC) and Gregory Campbell, also of Invis.

mortgagebrokernews.ca

News

Industry

Criminal investigation in BMO fraud Both the RCMP and Calgary police will criminally investigate the alleged mortgage fraud following a $30 million dollar civil lawsuit launched by the Bank of Montreal. The lawsuit implicates hundreds of Albertans as well as Conservative MP Devinder Shory and says they perpetrated a sophisticated fraud against the bank that generated millions of dollars in falsely inflated mortgages. The Law Society of Alberta will investigate Shory, as well as John Casuga, a former Alberta Liberal official and 17 other lawyers who are being accused of negligence, according to CBC News report. None of the allegations contained in the lawsuit have been proven in court. As early as Monday, May 10, the RCMP and Calgary police told BMO they were not interested in pursuing a criminal investigation, but have clearly changed their minds after intense media coverage and public scrutiny. “As this investigation is in its very early stages, it is not possible to say exactly how long it will take to be completed,” said RCMP Sgt. Patrick Webb in a statement. “There is a very large amount of documentation to examine and many interviews to

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complete. Therefore, it should be recognized that this should be expected to be a lengthy investigation.” Webb said investigators would be speaking to people named in the civil lawsuit as well as to bank employees and other individuals. “Just because you’re named in the lawsuit doesn’t mean that you’re automatically a suspect in this,” Webb said. “That’s still to be developed. We’re talking the difference between criminal and civil processes here.” BMO alleges that leaders of a fraud network would buy properties at market value but convince the bank they were worth more to get a grossly inflated mortgage. They would then pocket the difference. The ringleaders are accused of recruiting people, mostly new immigrants, to be straw buyers -- individuals who allow their name to be used to obtain a mortgage on a property in exchange for a payment. Eventually, the fraudsters walk away, leaving the straw buyer on the hook. The bank is usually forced to foreclose on the mortgage. CMP

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CMHC/Conventional Financing Brian Kennedy 604-331-2211 Jonathan Wong 604-331-2218

CMHC/Conventional Financing Dennis Aitken 403-205-8203 Doug Eveneshen 403-205-8202

Toronto Suite 1801 130 Adelaide St. West Toronto ON M5H 3P5 Fax: 416-368-3328 Email: toronto@peoplestrust.com CMHC/Conventional Financing Michael Lombard 416-304-2078 Derek Read 416-304-2085

Single Family Financing Tom Wollner 604-331-2210 James Pell 877-855-9750

mortgagebrokernews.ca

News Industry

New brokerage in southern Ontario Three experienced mortgage professionals have banded together to form Verico House of Mortgage Expert (HOME), a new regional brokerage firm in Ontario. The group wanted to fill a gap between having all the benefits of working at a national full service company but with a no-nonsense approach to splits. Commission splits are based on an agent’s total generated revenue with equality among all agents - no side deals. The three principals, Kevin Rallings, Pat Raimondo and Fiona Campbell have, collectively, more that 60 years experience in the mortgage industry. Rallings, whose background is in sales management and training, wanted to use his expertise where it would have the greatest benefit. “Part of my passion has always been

training and developing mortgage agents. I believe that I can be most successful at HOME.” Managing partner Pat Raimondo wants to build the most dynamic, professional organization in the industry.”I am enthusiastic about this opportunity at Verico House of Mortgage Experts. We are selective in the professionals we choose and will work with them to provide knowledge, guidance, opportunity and the support to enable them to succeed.” Fiona Campbell was looking for a challenge, but one that reflected where she sees the industry going.”I feel that the days of large organizations and huge infrastructures are numbered and in my view it will focus back on the regionally owned and operated companies.” CMP

Seneca College upgrades requirement for mortgage designation IMBA has partnered with Seneca College to create a new and upgraded educational component to its current requirements for the CPMB and CPMA designations. Mortgage agents have the opportunity to apply for their CPMB or CPMA designation prior to the new requirements taking effect. Beginning May 17, 2010, IMBA will require that all applicants complete additional educational courses and/ or workshops through Seneca College. For more information on IMBA’s professional designation please visit www.imba.ca. CMP

High paying commission plans, just another TMP advantage.

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News Industry

No more outside agents for HSBC HSBC Bank of Canada is going to stop selling mortgages through outside brokers, following a move made by BMO in 2007, who are still dealing with the fallout. HSBC Bank Canada spokeswoman Sharon Wilks confirmed that the bank has chosen to stop accepting mortgage applications from external brokers. “We plan to concentrate on growing our business through our network of over 140 bank branches in Canada,” she said in an e-mailed statement. “Customers may also apply for a mortgage online or work with one of our telephone-based relationship managers.” BMO has been struggling for three years to revive its market share, down to 9.2 per cent in the last quarter from 9.9 per cent a year earlier, when they chose to stop using the broker channel. The preliminary new rules by the Basel Committee are scheduled to be released by the end of the year. CMP

5. 55 million The number of homeowners with mortgages.

It’s time to lock in With people banking on the main interest rate going up in June, it seems like a good time to for homeowners to lock in their fixed-rate mortgages. In the past year about 12 per cent of mortgage holders with fixed-rate mortgages “locked in,” or switched from variable-rate mortgages, according to a report by Will Dunning, chief economist at CAAMP, and another 10 per cent had already switched from a variable rate more than a year ago. The rate for conventional five-year mortgages was at 6.25 per cent at the end of April -- that’s nearing the 5.25 per cent rate at the end of May last year - the lowest since 1973 when the Bank of Canada data began. “As interest rates rise, expect homebuyers to increasingly opt for fixed-rate loans, in turn leaving banks with more fixed-rate assets to hedge in the swap market” said Mohammed Ahmed, a rates strategist at Canadian Imperial Bank of Commerce in Toronto. Housing starts rose to a seasonally adjusted annual pace of 201,700 units last month. CMP

RBC poll shows Canadians growing interest in combination mortgages Combination mortgages are rising in popularity among Canadians, with 40 per cent of those polled in RBC’s 17th Annual Homeowners Survey saying if they were to purchase a home within the next couple of years, they would plan on taking out a combination mortgage, higher than the 32 per cent in 2009 who opted for combination mortgages. The growing popularity of combination mortgages, which offer both fixed and floating rate segments, clearly shows that Canadians are trying to take advantage of low interest rates and retain security of a fixed mortgage at the same time. “Although interest rates are expected to rise, our study shows that not all Canadians intend to automatically opt for a fixed mortgage with a longer term,” said Marcia Moffat, head, Home

mortgagebrokernews.ca

Equity Financing, RBC Royal Bank. “As consumers begin to learn about the benefits of mortgage diversification, we’re seeing more homebuyers gain a better comfort level with adding floating rate mortgage options.” According to the poll, fixed-rate mortgages continue to be a common choice for Canadians and are favoured by 44 per cent of potential buyers likely to buy a home within the next two years. In Atlantic Canada, 54 per cent are likely to choose a fixed rate, while 41 per cent of Ontarians are least likely to do so. Current homeowners were asked about the impact of potential interest rate hikes and 66 per cent said they were concerned, with women being 70 per cent more concerned than then 60 per cent of men asked. CMP

News

Industry

Canada sees April housing starts rise It’s evident that recovery in the housing sector is a major factor for Canada’s economic recovery after seeing Canadian housing starts jump 1.3 per cent in April. New home construction rose to 201,700 units in April, up from 199,200 in March according to figures released by Canadian Housing and Mortgage Corporation (CHMC). “This was only the

second time that the pace of housing starts has breached the 200 K-units barrier since November 2008,” said Millan Mulraine, a senior strategist at TD Securities. In April, urban starts increased by 5.1 per cent to 182,500 while multiple-unit construction, which includes highrise condo construction, was up 27.2 per cent to 98,600 and saw single units fall 12.7 per cent to 83,900. April saw rural housing starts totaling 19,200 units which is down from 25,500 in March. CMP

$225 million to build social housing in B.C. The British Columbian provincial government, in conjunction with a private foundation, will provide $225 million to build eight social housing sites on city-owned land, Premier Gordon Campbell has announced. The eight sites are in addition to six announced previously by the B.C. government and are expected to be built within 18 months. The value of the land is $64 million. “These housing units are critically important as we break the cycle of homelessness because they create a sense of stability for the people who live in them,” Campbell said.

For the eight most recent developments, the province will provide $205 million and the Street to Home Foundation agreed to add another $20 million. Together, the 14 sites will provide 1,575 apartments managed by non-profit agencies. Tenants will have access to health care, mental health services, addiction counseling as well as education and job training. The first building to open will be an 80-unit complex slated for February. CMP

mortgagebrokernews.ca

INVIS AND MORTGAGE INTELLIGENCE

Celebrating 10 Years of Industry Leadership

Saying You’re #1 Is Easy… Being #1 Takes Effort. At Invis and Mortgage Intelligence we lead the Canadian mortgage brokerage industry in volume, volume per agent and income per agent, as noted by Filogix. While it’s great to be #1, we’re working hard to stay #1. Whether they’ve been with us 10 months or 10 years, our brokers receive unparalleled backing – efficient weekly payroll, the industry’s best compliance, expert deal support, free customized marketing, competitive compensation, a great corporate culture, the list goes on and on… In short, we’re all about real support from real people. We really enjoy what we do – helping our brokers achieve greater success. Now that’s something to celebrate!

Learn more about joining our broker teams at www.invis.ca & www.bettersupportcanbeyours.com Head Office: 5770 Hurontario Street, Mississauga, ON L5R 3G5. Invis FSCO 10801 | MI FSCO 10428.

ADVERTORIAL

A decade of Broker Excellence 2010 marks the 10th anniversary of both Invis and Mortgage Intelligence. The celebrations come as Invis and MI lead the Canadian mortgage brokerage industry in production volume, as noted by Filogix.

mong major brokerages, Invis and MI are not only number one in total mortgage volume, they also lead the pack when it comes to volume per broker. “These results confirm our status as the preferred home for Canada’s most professional, dedicated mortgage brokers,” says Gord Dahlen, President and CEO of Invis and MI. Invis and MI have distinguished themselves with a full value offering to brokers. “Whether they’ve been with us 10 months or 10 years, our brokers receive a line-up of support services that add up to solid value for today’s time-stressed mortgage professional wanting to take their business to the next level,” observes Bryan Devries, EVP of Sales and Operations. “Real support from real people” is how Dahlen sums it up, noting that brokers can literally pick up the phone and talk to the company’s in-house team to get assistance quickly. “The support we offer is more than a self-serve arrangement with a third party – we invest in our brokers to equip them to be the best, which benefits our brokers, our company and our industry,” asserts Dahlen.

Some of the faces of Invis and MI through the years (clockwise from top left): Gord Dahlen, Rich Oenema, Rob Hafer, Andrew Moor, Liz Hynes; Art Trojan; Ilona Bronson; Annie and Dieter Peschman; Patrick Mulhern; Paula Roberts and Kelvin Seepersad.

Real Support from Real People

A Proud Heritage

“While it’s great to be #1,” says Dahlen, “we’re working hard to stay #1.” Here’s a sampling of the benefits that Invis and MI deliver, to stay at the forefront of the industry: Efficient Weekly Payroll – Prompt and accurate payroll via weekly direct deposit, a real time saver for busy brokers. Experienced Regional Managers – Full time professionals who offer knowledgeable advice on tough deals, business planning, and reaching out to clients and referrals. Free Customized Marketing – Hundreds of templates, professional graphic designers and copywriters, and expert marketing advice. Effective CRM Programs – State-of-the-art CRM programs to keep in touch with clients: professionally, automatically, and with zero effort. Compliance Support – “We offer the industry’s best compliance support, to protect our brokers’ reputations in our communities and our industry,” notes Dahlen. Exclusive In-House Offerings – Great commissions, and ongoing trailers as an option, on private label mortgages, leasing and insurance products. Prompt I.T. Support – Knowledgeable and friendly I.T. experts to keep core systems up and running. Submission Desks – Easy, preferred access to a range of key lenders; enjoy top-tier compensation on every deal. Competitive Compensation – Earn top dollar on every file: highly competitive finders fees and volume bonuses our lenders offer, even on the first deal. A Clear-Cut Contract – No restrictive contracts, like ones that lock a broker in for a multi-year term, contain non-solicitation clauses, or even charge high monthly fees for advertising.

“In many ways, our continued success is the fulfilment of the vision of our early founding entrepreneurs including Art Trojan at Norlite and MI, and Dave Nichol at Invis,” comments Stan Falkowski, SVP, who has been with MI since the beginning. “Fast forward to ten years later, and many of our Whether they’ve been with brokers have remained with us 10 months or 10 years, our us from the start. It’s a loybrokers receive a line-up of alty that speaks volumes.”

Mortgage Brokering: It’s a Team Sport

support services that add up to solid value. . .

Invis and MI have lively company cultures that celebrate excellence. Brokers have a strong voice, and feel part of a cohesive group of professionals who share ideas and information. “We work for the broker,” asserts Dahlen. “We believe in them. We worry about them, we care about them. No one else in our industry holds the broker in such high regard. These are values that permeate the cultures at Invis and MI.” At a variety of team-building and social events for the rest of 2010, Invis and MI brokers will celebrate a job well done for the last 10 years. They’ll also look forward to another great decade as they work hard to grow their businesses with Invis and MI, and have a good time together while doing it.

10 01 NUMBER

Y E A RS

News Industry

New OECD report on the state of Canada released The Canadian economy is bouncing back forcefully thanks to a rebounding trade sector and policy measures, the Organization for Economic Co-Operation and Development (OECD) said in a recent report. The OECD predicts the pace of recovery will be moderate going forward as policy stimulus is withdrawn, inventory rebuilding runs dry and households deleverage. Unemployment is expected to decrease but the high rate of household debt may be a risk to the outlook, the organization warns. “The Bank of Canada should start normalizing its policy rate without delay and tighten gradually throughout the projection period. Governments should let remaining temporary stimulus measures expire to avoid over-stimulating the economy as it recovers on its own,” the report said. The organization recommends “fleshing out” fiscal consolidation plans and focusing on spending reductions. The Paris-based organization forecasts the unemployment rate will fall to just below eight per cent this year and 7.2 per cent next year. CMP

mortgagebrokernews.ca

Canadian home prices up Owning a home in Canada, except in Alberta, has become even more expensive, according to the latest housing report just release by RBC Economics Research. The report says the costs of owning a home rose for the third straight quarter across all housing segments in the first quarter of 2010. “Although home ownership became more costly in the first quarter of 2010, affordability measures are still moderately above the long-term average and below peak levels,” said Robert Hogue, RBC senior economist. “We expect affordability to deteriorate throughout 2010 and 2011, but this should be limited as more balanced supply and demand conditions will take much of the steam out of the housing market,” he said. The report projects the cost of owning a home will continue to rise and the main contributing factor is the expected interest rate hike. In Quebec, housing affordability declined moderately, as well as in Ontario and Atlantic Canada. Alberta is the only province to show a drop in home ownership costs. CMP

50%

number of new mortgages obtained from a bank, 30% from a mortgage broker and 20% were obtained from another source.

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Home Capital Group Inc., the mortgage lender whose stock outperformed Canada’s eight banks last year, will likely double its assets in the next four years, reported Bloomberg Businessweek. “We think we can be a C$20-billion ($18.9 billion)-plus company within three to four years because of the momentum we have,” CEO Gerald Soloway said. The Toronto-based company had about C$12 billion in assets at the end of the first quarter, and reported a record profit of C$41.7 million. Home Capital primarily offers uninsured mortgages to clients who can’t get loans from Canadian banks. Since the financial crisis began, Home Capital president Martin Reid said half of 25 “decent competitors,” including General Electric Co.’s GE Money and Accredited Home Lenders, have exited the C$200 billion market. Home Capital only does business within Canada, and deals mostly with lending, credit cards and deposit products. Home capital fell C$1.02 to close at C$41.60 on June 4 on the TSX. The shares have fallen less than 1 per cent this year after more than doubling in 2009. CMP

CMP writer honoured at magazine industry awards Erin Letson, who wrote Goodbye, Paper in the August, 2009 issue of Canadian Mortgage Professional won an Honourable Mention at the recent Kenneth R. Wilson Awards, held in Toronto, Ont. The article focused on the paperless office and how mortgage brokers are making the transition. “We’re very pleased to receive this accolade for Erin and for the magazine,” said Tim Duce, president of KMI Publishing & Events. “We have always been proud of the quality of our products and the quality of our content. Because we are a relatively new company, having published Canadian Mortgage Professional for five years now, this recognition reinforces our commitment to the industry. We will continue to ensure that we produce high quality magazines.” The 2010 Kenneth R. Wilson Awards are co-produced by the Canadian Business Press and Magazines Canada. Regarded as one of Canada’s top business writers, Kenneth R. Wilson wrote with clarity and authority. His opinions were widely sought and respected. In spite of his busy career, he was active in a number of editor and journalist associations. A tragic airplane crash ended his distinguished career in January, 1952. He was 47 years old. It is the memory of Kenneth R. Wilson, his example and his achievements in business press journalism that we honour each year with these awards. CMP

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$1 trillion

Home Capital likely to double assets in four years

The total volume the residential mortgage market is expected to pass by mid-2010 and $1.13 trillion to $1.14 trillion by the end of 2011

April home sales takes dip Although April was the busiest month on record for Canadian real estate agents, listing almost 100,000 homes, sale numbers continued to dip with buyers stepping away from an increasingly expensive market. A new monthly record was set with 99,901 homes being put up for sale according to The Canadian Real Estate Association. Many homeowners are hoping to sell in what is being deemed the market’s peak, with higher mortgage rates and growing prices discouraging buyers from entering the market. The number of homes being listed has cooled the market a little as buyers have more choices, allowing them more time before making a purchase. Seasonally adjusted national home sales slipped 2.6 per cent from March, now 6.8 per cent lower than in December. CMP

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TD releases new housing forecast report Bank rates lower at Canadian banks Canada’s two largest banks, RBC and TD Canada Trust, have lowered rates on their fixed-rate mortgages after weeks of gradual increases. Their fixed five-year closed mortgage has been lowered by 11 basis points to 5.99 per cent. They both also offer lower promotional rates. Rates across Canada’s major banks were on the rise earlier this year and just this month the rate stood as high as 6.25 per cent, after three hikes in four weeks. This new downward trend comes as economists suggest the Bank of Canada could put off its next rate hike for a month, worrying that the European debt crisis could weaken demand and slow economic. CMP

Fifteen-year mortgage gaining in popularity in the U.S. Homeowners are more concerned with paying off their mortgage faster rather than looking for a stable monthly payment, making adjustable rate mortgages less popular these days, according to a quarterly report from Freddie Mac. “While homeowners are choosing the comfort that comes with constant monthly principal and interest payments on fixed-rate mortgages, at the same time many borrowers are now looking at paying down their mortgage balances faster,” said Frank Nothaft, Freddie Mac chief economist. The report, based on refinancing activity in the U.S., showed that 95 per cent of homeowners looking to refinance on an existing mortgage chose a fixed-rate mortgage, even if their previous mortgage was fixed or adjustable. It also reported that one in four borrowers who were refinancing a 30-year fixed-rate mortgage either chose a 15- or 20-year fix to replace it, this being the highest percentage since 2004. Stability though was evident in the numbers of homeowners who were refinancing an existing one-year adjustable-rate mortgage; with results showing that 89 per cent of those moved to a 30-year fixed-rate setup. CMP

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Most of Canada will see solid housing activity but with a slight reduction in prices, a report released today from TD Economics forecasts. TD expects 475,000 resale units will be sold as 2010 progresses; sales in Q1 were higher than forecasted but the bank interprets the action as an effort by buyers and sellers to pre-empt the highly publicized regulatory and interest rate changes. “This is evidenced by the fact that much of the strength emanates from B.C. and Ontario, where the perception is that the upcoming implementation of the harmonized sales tax (HST) in July will raise transaction costs. Nationwide, however, the anticipation of higher interest rates has also played an important role in the currently observable strength in activity,” the report said. An average annual price just shy of $350,000 is also anticipated, a nine per cent increase from last year. Housing starts were slightly higher than TD expected at 200,000 in 2010’s first quarter. Because of stronger supply response, the market balance is expected to be somewhat softer next year favouring potential buyers and resulting in a mild depreciation in home values. TD previously expected the average home price to rise 1.6 per cent next year but now anticipate a pullback of 2.7 per cent nationally with more than half of the provinces seeing lower prices in 2011. The bank also predicts interest rates will rise within the context of a strengthening labour market rather than in a vacuum. It also expects the absolute level of borrowing rates will remain affordable, which will keep sales activity from dropping too much. CMP

Home ownership getting harder for some Canadians Home ownership is getting progressively more difficult for Canadians who have household incomes of less than $50,000, according to CIBC World Markets Inc.’s new Home Ownership Affordability Index. Canadians spend 15.6 per cent of their average gross personal income on mortgage payments today, about the same from 10 years ago. This number rises when adding in hydro bills and property/municipality taxes to about 22 per cent - give or take depending on age, income and location. “The vast majority of homeowners in Canada, regardless of their age, have not experienced any worsening in affordability despite the rapid increase in prices,” says Benjamin Tal, senior economist at CIBC, in his latest Consumer Watch report. “The only sub-group of households that have seen some deterioration in their affordability position is older Canadians with average income of less than $50,000. Zooming in on this group we find that on average they spend close to 60 per cent of their gross income on mortgage payments, property taxes and electricity costs. This is three times the average ratio seen among households at the same age groups but with income of over $50,000.” Over the last year, these Canadian mortgage holders have seen their affordability drop, but unlike conditions in the U.S., this vulnerable group is on the decline, accounting for only 13 per cent of all mortgages in Canada, down from 19 per cent five years ago. Those over 35 with incomes over $50,000 are categorized as least vulnerable mortgage holders in Canada and compromise of about 65 per cent of mortgages, compared to less than 50 per cent in 2003. CMP

News

International

australia A period of stagnant house prices is likely this year for the Australian market. Moody’s Analytics, a risk analysis company, notes declining foreign investors and tighter domestic policy as the factors that will lead to the softer prices. The Reserve Bank of Australia has hiked interest rates in its last seven meetings. According to Moody’s, the surging momentum in Australian home prices seen last year is over. Cracks are beginning to appear in the housing sector as a sentiment is growing that pricing has stalled. The company says the 20 per cent appreciation in Australian home prices in 2009 will not be repeated this year. Earlier this summer, Luci Ellis, the Reserve Bank of Australia’s head of financial stability, said the recent surges in Australian home prices are due to increased demand from stimulus measures. CMP

u.k Gross residential mortgage lending dropped 37 per cent to 12 billion pounds in the last fiscal year, Nationwide Building Society, the U.K.’s largest customer-owned lender, reports.

The company predicts house prices will be “flat” this year as housing transactions slump. Nationwide’s mortgage customers paid 3.6 billion pounds more than they borrowed over the past year. “The prospect of fiscal tightening and public sector redundancies may result in an increase in mortgage arrears and subsequent losses in future years,” said chief executive officer Graham Beale. “Likewise, the recovery of the commercial property sector remains exposed to weak tenant demand and this may continue for some time.” Nationwide reduced homeowner lending and recorded a 7.3 billion pound outflow of customer deposits citing that intense competition for funds reduced their margins. The company expects modest balance sheet growth this year, according to finance director Mark Rennison. To reduce costs, Nationwide will cut administrative centres and branches. CMP

u.s. Household prices in the United States will begin to rebound next year, housing analyst MacroMarkets predicts. An increase of 12.4 per cent is likely between 2010 and 2014 while home prices nationwide are expected to have risen almost five per cent in the last calendar year. “There were a number of panelists more or less sanguine than average, some significantly so, and this reflects continuing volatility and risk in the U.S. housing market,” Macromarkets chief economist Robert Shiller said. According to RealityTrac, a database of bank-owned homes, the number of foreclosed properties entering the market dropped for the first time in four years in April. Also, the number of distressed properties available decreased by almost 10 per cent. CMP

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News Analysis

Bank of Montreal has alleged a huge mortgage fraud has occurred in Alberta, purported to be the largest mortgage fraud in Canadian history. As the story unfolds and the police now have decided to mount a criminal investigation, the impact is going to be felt throughout our industry, and not in a positive way . David Armstrong from River City Financial in Edmonton, Alta. explores the issue.

mortgage fraud impacts us all B

ank of Montreal alleges a large network of interconnected groups perpetrated a huge straw buyer fraud that generated more than $140 million in mortgages, $70 million of which are “phoney.” It estimates its losses will exceed $30 million. It is suing some of its own employees, as well as lawyers, Realtors and mortgage brokers. The last thing our industry needs is more negative publicity. Following the U.S. subprime mortgage meltdown, investors have already been far more cautious when it comes to investing in mortgages. This contributed to the liquidity shortage that was experienced worldwide over the past few years. Mortgages used to be viewed as a low risk investment, and attracted large pools of institutional funds looking for such a safe haven. The collapse of the mortgage market in the U.S. shook this confidence. As the confidence rebuilds, frauds of this nature only serve as a reminder to investors that even Canada, with its stringent rules can be a risk. Fraud has a real cost to our industry. Every time another one of these fraud schemes is exposed and reported in the media, it impacts the mortgage broker industry in a number of ways. Not only could it reduce investor confidence, it has real costs in other ways as well. The losses that the banks incur are

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ultimately absorbed by the consumer. If such losses continue, we could see spreads widen, which could result in an increase in rates. We could also see the default mortgage insurance companies adjusting their premiums if it is deemed that this is an increased risk and warrants such a hike. The most substantial cost to our industry, however, is in a loss of confidence on the part of the mortgage lenders and the consumers. Confidence in our professionalism and confidence in our integrity is going to be questioned as this fraud unfolds, and likely exposes additional frauds with other lenders. A loss in confidence in our integrity and professionalism could lead to more stringent rules and regulations. We could see a “tightening” of the belt, leading to additional paper work and verifications that will have real costs for mortgage brokers. We could also see the remaining chartered banks “re-thinking” their mortgage broker distribution channel. Losing more chartered banks as funders will have a devastating impact on our industry. It has taken years for our industry to improve its image. We were once viewed as the “lenders of last resort” – you went to see a broker when you couldn’t be approved at your bank. Our industry has worked very hard over the past decade to change and alter that image. We want

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News Analysis

to be top of mind when someone is thinking about obtaining a mortgage, regardless of their situation. We want to be known as the best at what we do. We cannot achieve this status as long as fraudsters continue to populate our ranks. While no industry can tout a perfect record, we need to improve ours. We need to develop mechanisms where we can report suspected frauds, without there being implications for our business. Many brokers know that frauds occur, but we don’t report them because we do not want to get involved, or we are worried about a referral relationship, or we know that the fraud is unlikely to be investigated anyway. This has to change. Nobody wants to talk about the pink elephant in the room, but we need to. So, how many times have you had a deal cross your desk from a referral source that you simply knew you could

not get approved, only to have another broker somehow miraculously get it approved? The only way this file could have been approved is if the application was “tweaked.” This can be infuriating as it makes you look weak to your referral source, and you know darn well that something has been altered or withheld to strengthen the application. So what do we do about it.....nothing. We currently have no recourse, and we are afraid to do anything because it could tarnish our personal reputations in the eye of the referral source, and in the industry in general. So what’s the solution? Well, this is a debate we need to have. A serious debate, one with a goal of decreasing fraud in our industry substantially. While we can never eliminate fraud altogether, and sometimes we are victims as well, we can go a long way to improving our own self-regulation, before our lenders and insurers regulate us into extinction. CMP

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19/05/10 2:40 PM

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Women in the Industry

Women have been entering the mortgage industry in increasing numbers and are racking up the sales. CMP examines this growing trend and compares the way women contribute to the success of the industry

women in the industry Finding the balance

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Women in the Industry

Sarah Makhomet

Broker/ Owner Dominion Lending Centres Mortgage Village Mississauga, Ont. Age: 29 Canadian Mortgage Professional: Why did you pick the mortgage industry? Sarah Makhomet: I was working on Bay Street in Toronto in an investment firm’s compliance office and I thought that was what I wanted to do. I would take the GO train to work every day, like so many other downtown workers. One day I was sitting with a few male executives in their 60s, who were just about ready to retire and they talked about how they had been doing this commute for their entire working careers. It was then that I realized I didn’t want to be like them – I wanted to have time for myself and I didn’t want to arrive home tired every day. A co-worker suggested I look into mortgage brokering. I asked, ‘what is a mortgage broker?’ When I read about it, I realized that it was something I thought I could do. I interviewed with a brokerage, applied to FSCO and became licensed.

CMP: What strengths do you feel women bring to the industry? SM: I believe women are more patient. We encounter all types of clients and I find that we are better able than men to really listen to and empathize with our clients. CMP: Do women work differently than men? SM: Maybe. I know that some women work differently and others don’t. Some women, like me, are very ambitious, driven workaholics because we know what we want and we go after it. These are usually traits attributed to men. And there are other men who prefer a slower pace similar to some women. CMP: How do you balance work/home life? SM: Well, I am not married, but I am engaged fortunately to someone in the industry who understands my workload. But I balance work with a lot of physical exercise. I like to cycle, play tennis and golf and I enjoy walking and hiking. I recently went on vacation to Costa Rica where I was engaged in a lot of physical activity.

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Women in the Industry

CMP: What do you see as your strengths? SM: I’m persistent by nature. I always heard about the glass ceiling for women, but I believe where there is ability there is always a way - perhaps not in the investment industry where I worked – but maybe in another industry. I guess that’s another reason I quit the nine-to-five corporate job and started my own business. I wanted to be responsible for creating the income and lifestyle that I wanted. CMP: How ambitious are you? S.M: Well, as I said I am driven and I am persistent. I know what I want. I’ve been in this industry for three years; I’ve bought my own franchise; I have 15 agents working here; I have a personal assistant, so I would say I’m very ambitious. CMP: What are your priorities? SM: Since I am not yet married, I have no children. And right now my plans for having children are down the road a bit. Because I’m a perfectionist, I don’t think I would want to have children while I’m still growing my business. My children would deserve to have the same attention as I give to my business. Right now I love my work very much and I’m with clients into the late evening hours, so my priority is growing my brokerage. CMP: Any other insights into how women work differently? SM: I think we look at the client relationship in a different way. Many of my clients have become my friends. I go to their weddings; I visit the ones who have just had babies and I’ve been to retirement parties. I know that small acts like sending out birthday cards are common in this industry but I believe that women are more consistent in developing that personal relationship.

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Alyson Thiessen

Broker/ Owner / Get Er Done Girls Red Deer Alta. Age: 42 Canadian Mortgage Professional: Why did you pick the mortgage industry? Alyson Thiessen: It was a matter of economics. Either I could work eight hours a day at $15 an hour or work four hours at $50 an hour. Also at the time, I had two small children and with the cost of child care it was hard working eight to 10 hours a day, every day. So I started to trade my time for money because I’m worth it. CMP: What strengths do you feel women bring to the industry? AT: We have the ability to go after what we want without sacrificing ourselves. My brokerage is all women and the more women I brought in, the better the synergy. If you look into our eyes, they are soft eyes and we talk from our hearts, which clients can sense. We tend to nurture our relationships whether with clients or within our offices. I would say that we are committed. CMP: Do women work differently than men? AT: Although we may have different agendas, I think we are all the same; we all speak the same language. There are both women and men who are hugely successful – you attract who you are. CMP: How do you balance work/home life? AT: Finding balance makes no sense. For me it’s a journey. I don’t seek balance; I seek understanding, love and learning the next step. I have the best job ever. I’m working and at the same time I’m in my garden. I can fit things into my day that I was never able to when I had a job. It’s about learning to live moment by moment.

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Women in the Industry

CMP: What do you see as your strengths? AT: Trusting my gut instincts. I’ve been able to put together the best team of women based on those instincts. I also have a training program that I’ve developed and I expect the highest standards. For example, out of the last 250 deals we have had no arrears. And I have an effective marketing plan. My strength is really knowing how to build a business. CMP: How ambitious are you? S.M: Well, not as ambitious as I once was. I have been driven to succeed most of my life but I lost my marriage and I lost touch with my children. I would never show up at any school events. Now I’ve found a kinder, gentler way and am still successful. CMP: What are your priorities? AT: My priority is more of a mission for the industry. We should honour the old school because they got us here but we need to move forward with new energy. Today, it’s about love, loving this industry enough to fight for it. We need more collaboration and everyone needs to be treated with care. CMP: Any other insights into how women work differently?

Kristi Sharpe

Business Development Manager/ Home Trust Company Toronto, Ont. Age: 25 Canadian Mortgage Professional: Why did you pick the mortgage industry? Kristi Sharpe: I fell into it. I was 18 years old and working at McDonald’s and hating it. I was taking some business courses when I decided to submit my resume for a part-time teller at Home Trust. I got a bit more ambitious and eventually became a personal account manager. At 22, I bought my own home and had to get a mortgage. That was a big deal for me because there was this whole other side to the financial world I didn’t know about. I applied for a job as an internal account manager at First National then branched out into business development and reaching out to brokers. Eventually I ended up at Home Trust. CMP: What strengths do you feel women bring to the industry? KS: I can only speak for myself but I believe it’s my personality. I am approachable with a go-with-the-flow attitude. When I was starting out in personal account management, I had to deal with a lot of resistance because of my age so I had to be sure of myself and my products.

AT: This is an incredible industry to work in, CMP: Do women work differently than men? especially for women. Just by virtue of being women gives us a different spin on the work we do. KS: I don’t really know. Once upon a time it was difficult for women to work in this industry but today I don’t think there are serious issues or differences. As long as we (women) know our stuff, we’re treated with a lot more respect.

5 Ways to Balance Your Work/Personal Life

1. Decide what really matters to you in life Ask yourself these questions: • If my life could focus on one thing and one thing only, what would that be? • If I could add a second thing, what would that be? • A third? • A fourth? • A fifth?

CMP: How do you balance work/home life? KS: I do have a fiancé and he understands my job and when the BlackBerry goes off when I’m away from work, it’s not a problem for him. And I do take time for me. CMP: What do you see as your strengths? AT: Again, my personality and my approachability. CMP: How ambitious are you?

2. Learn to say no Drop any commitments and pursuits that don’t make your top five list.

AT: I would consider myself quite ambitious. I’m always looking for ways to improve myself. I’m so happy here at Home Trust right now and I’m only 25 years old so there’s nowhere I can’t go – I want it all.

3. Respect your private time That means turning off cellphones, too.

CMP: What are your priorities?

4. Accept help to balance your life Let family members help with babysitting, house chores, etc. 5. Schedule fun and relaxation And stick to it.

AT: My No. 1 priority is myself and my fiancé. Second is my work. Having balance between the two is important because I don’t want to resent my job for taking me away from my family. And also at work I want to answer brokers’ questions as quickly as possible

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Women in the Industry

Diana Zitko

CEO / Owner Meridian West Coast Mortgages, Coquitlam, B.C. Age: 35 Canadian Mortgage Professional: Why did you pick the mortgage industry?

female versus male mortgage agents Okay, this is the battle of the sexes question, but with the growing numbers of women entering the mortgage industry, I would say that women out there do some things, some of the time, better than men. Gina Monaco, editor of CMP offers her own, decidedly biased, observations. Women:

Diane Zitko: I started my career selling real estate 15 years ago and did that for five years. I was looking for a change but wanted to stay in the industry and an opportunity came up for me to be a licensed assistant and within a week I knew it was a perfect fit for me! After two years of being an assistant I branched out on my own and then franchised six years ago. I have been a mortgage professional now for 10 years.

1. Better listeners

CMP: What strengths do you feel women bring to the industry?

8. Can express feelings better than a man

DZ: I feel women bring compassion and patience to the industry. I also feel we are more caring and bring that to the table.

10. Aren’t afraid to ask questions and are very good at trying to put all the pieces of the puzzle together

CMP: Do women work differently than men? DZ: Yes, I believe women work more from their hearts than their heads. This is where the caring and compassion comes in, not that men are incapable. I think we just tend to do it naturally. CMP: How do you balance work/home life? DZ: I’m still working on that one! Although, I do now schedule ‘me’ time and time for my friends and family and I make sure I stick to it. A healthy balance between the two is important so I make sure I stick to my other priorities outside of work. CMP: What do you see as your strengths? DZ: I believe my strengths to be my ambition and perseverance, my high sales abilities and social skills and, of course, knowing and loving the industry I work in.

2. Are more patient 3. Understand families and children better 4. Have more customer service backgrounds 5. Can be more detail-oriented 6. Can be much better organized 7. Can have better verbal and writing skills 9. Can handle the emotional side of a transaction better than men

for my friends and family is a priority as well and one I intend to stick with. CMP: Any other insights into how women work differently? DZ: We are sincere, considerate of others and also great communicators. I think we instinctively nurture people and take them under our wing. We are highly equipped to multitask and do it inherently. This is not at all to discredit men in the workforce; however with experience in an allwomen team, I must say that the team spirit, the high morale and the need to bond and take care of each other and our clients is what sets us apart.

Yousra M.Jomha

Broker/Owner Western Mortgage Services Inc, High River, Alta. Age: 29

CMP: How ambitious are you? DS: I think I am very ambitious - on a scale from one to 10, I would say 100! Going from working in real estate and moving into the mortgage industry I was able to learn and grow; opening doors that eventually led me to branch out on my own is one example. CMP: What are your priorities? DZ: My priorities are my family, friends, career and doing charity work. Making sure I make time

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Canadian Mortgage Professional: Why did you pick the mortgage industry? Yousra M.Jomha: I came into the mortgage industry via the property management route for a company in Calgary. The owner wanted to sell all his units, back in 1997, and I had to perform basic pre-qualifications on all potential clients who were interested in purchasing. It was then when I became passionate about the industry and that’s why I am here today.

Joining a network shouldn’t mean losing your identity. CMP: What strengths do you feel women bring to the industry? YJ: I feel that women bring compassion, determination and understanding. It may be interpreted as women having the gift of maternal instincts combined with basic intelligence and that leads us to climbing the ladders of success. CMP: Do women work differently than men? YJ: Women mortgage broker entrepreneurs differ a bit from the male mortgage brokers -- sorry guy friends, but it’s true. Women do not forget their clients’ families or their values. Many of my referrals come on handwritten thank you cards. This creates a mutual respect on both sides and it also seals a binding referral friendship. Women also educate young adults about the importance of credit. I am sure anyone can find a high school in their community and use the power of giving back by education! CMP: How do you balance work/home life? YJ: Even though I am in a suit or in a meeting with my valued lenders, I never forget that I have a responsibility of being a mother. How I manage my home life will reflect on my four daughters. I leave work at work and come home to being a full-time mom. CMP: What do you see as your strengths?

Join our network and build your own brand!

YJ: I am a proud member of this beautiful industry and a part of the community. I stay in touch by attending industry functions and events and develop lifelong friendships across this beautiful country. I’ve being nominated four times for the CMP Best Customer Service Award, as well as the BBB Ethics Awards. Would I change a thing, Never! CMP: How ambitious are you? YJ: My ambition is to see others females succeed in every aspect of their lives. I am a true believer of giving people chances. Every November, I hold an open house night where other small business women can display and sell their products, such as gift baskets, flower engagements, cosmetics, cleaning supplies, jewelery, etc. I take personal pride in helping them to launch their businesses. CMP: What are your priorities? YJ: My priorities are my family. I plan weekly dinner menus, which my daughters prep for me and we all cook dinner together. Dinners are extremely special because we all talk, laugh and cry. I also make myself a priority. My personal time is spent rejuvenating at places like Banff, Alta., where I go almost every weekend to enjoy the mountains, spend time in spiritual reflection and enjoy the my spa. CMP: Any other insights into how women work differently? YJ: When I look back in my 13 years as a mortgage broker, my profession has given me, not only a sense of accomplishment and pride to help me complete my good deeds for the day, but has allowed me to meet real families and help them to purchase their home where they can start their own memories. I get to drive by that home and see those families and know that I was a part of it. CMP

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Referral Series

Financial planners as referral partners – making it work Most mortgage agents use a referral system, but that’s the only similarity. Working with a referral source is a dynamic process that each agent approaches differently. Jennifer Zalitack finds out more on how to work with referral partners, what it takes to grow that key relationship and make it work for both parties

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ach agent has his or her own unique style when working with referral sources -- some work with an outside referral source, now coined the ‘old’ way of doing things, while others say they have adapted and changed with the times, using more modern methods they believe are better for attracting more clients. How to find financial planner partners Kristian Harris, mortgage broker at Monster Mortgage in Toronto, Ont., and his referral partner, Jim Helkie, financial adviser, Helkie Financial & Insurance Services Inc., in Toronto, Ont., have had a long and prosperous professional relationship for 10 years and it’s still going strong. Harris first met Helkie in his past job, where one of his roles was to go out and talk to financial planners at different office locations. “I met Jim 10 years ago and just started explaining what we did. Obviously Jim was specialized in financial planning, insurance and investments, but mortgages weren’t a big part of that, so I became a resource for him,” Harris says. Even when Harris moved and left that company, it didn’t change their relationship. “When Kristian left his past position and chose to go out on his own, I could’ve chosen not to do business with him. I didn’t even consider talking to his replacement because we had built up such a good relationship,” Helkie says. Although, Harris and Helkie met through an existing business relationship, that’s not the only way to foster working relationships. Chris Karram and Elisseos Iriotakis, for instance, met through their mutual love of sports. For Karram, a financial adviser at Safebridge, Toronto, Ont., and Iriotakis,a mortgage agent at Safebridge Financial, Toronto, Ont., it was literally on the

“ when Kristian left his past position and chose to go out on his own, I could’ve chosen not to do business with him. I didn’t even consider talking to his replacement because we had built up such a good relationship ”

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value proposition Mary Gronowski, regional manager with Mortgage Intelligence in Mississauga, Ont., encourages her agents to formulate a value proposition before approaching any referral source, filled with added services that would spark an interest in setting up a meeting to discuss the potential relationship further. She and Lisa Jones, mortgage agents with the Hachey Ross team of Mortgage Intelligence in Toronto, Ont., are two colleagues who came up with the value proposition plan. Example of a value proposition plan:

Financial Advisers - Value Proposition: 1. Client retention. Banks aggressively cross-sell their products and financial planners run the risk of losing existing clients when clients go to their bank for a mortgage. Since mortgage brokers have access to non-bank lenders that do not offer investment products, they help financial planners retain their clients in the long run. 2. Mortgage strategies that help clients build an investment portfolio through their financial adviser. As a mortgage professional, you can help clients refinance their mortgage for debt consolidation purposes saving them hundreds of dollars every month by reducing their monthly debt load. Financial advisers can then take the monthly savings and build an investment portfolio...i.e. RESPs for their children, etc..., creating a win-win-win situation. 3. Referral fees on all mortgages that close. Diversify your income stream by offering another product to clients through a reputable, professional company, and earning a fee for every referral. 4. Many financial advisers are also licensed insurance agents, and every mortgage lead is a potential insurance lead for the financial adviser. “Have a game plan ready of what ‘value added’ proposition you can bring to the financial planner. How can you differentiate yourself so that they want to hear what you have to say and want to create an environment where a relationship can start.”

Top: Chris Karram Middle: Elisse Osiriotakis Middle: Jim Helkie Bottom: Karl Straky

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Referral Series

“ we’ve actually branded the company as one and really try to provide big picture planning for our clients ” basketball court. They’ve been in a referral relationship for nine years and friends for four-and-a-half years. “We met playing basketball and realized the industries we were both in,” Karram says. “One thing we did, even as we were just getting to know each other, was really become intentional with how to educate our clients, but we also educated each other on how to open up doors when sitting with clients.” In 2005, the two started Safebridge Financial and their referral relationship has been one that basically wrote their business model for them. “We were independent, so we needed to refer each other back and forth when we were at two separate firms. We realized the value of combining and branding under one roof,” Iriotakis says. Safebride has two distinct operations: the mortgage side and the financial advisory side, both operating under one roof. “We’ve actually branded the company as one and really try to provide big picture

moving into the 21st century Canadian First Financial Centres is a new and modern way for mortgage brokers to deal with a client’s every need. The more modern way for mortgage brokers to conduct business is by keeping all the services under one umbrella and providing a ‘one-stop’ shopping experience. Karl Straky, president and CEO of Canadian First Financial, believes that the ‘old’ referral system of sending your clients to an outside source no longer works. “In the old days, which for the mortgage industry was 10 to15 years ago, we used to refer to outside sources and they would refer back to me. The problem is I don’t think that works anymore.” he said. A mortgage broker can own his own business and also own a Canadian First. It can be compared to the Tim Hortons and Wendy’s partnership. The mortgage broker, instead of sending the client somewhere else to get extra service, could open up a Canadian First Financial Centre, giving them the ability to offer a full range of services in one visit. “About four years ago I saw that mortgage brokers needed to start helping clients with other challenges in their lives such as saving enough money for retirement, finding a way to put their kids through post-secondary education, or finding ways to take advantage of these new tax-effective ways of savings, like opening a tax-free saving account.” Straky says. They started opening branches in 2009 and currently have 14 branches across Canada.

planning for our clients,” Karram says. “It’s important for clients to know that we have all this in-house, under the Safebridge group of companies, to provide them with this full package.”

Enhance Your Efficiencies.

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Referral Series

Top: Kristian Harris Middle: Lisa Jones Bottom: Mary Gronkowski

Building the ideal referral relationship The ideal relationship is built on trust. Both parties are expected to perform to the satisfaction of the client, thus ensuring positive feedback to the referral source, instinctively creating a loyal referral base and increasing their client base. “When I give Kristian a lead, I expect him to call them back in a reasonable amount of time. I would expect him to give professional advice,” Helkie says. “The expectation is that Kristian is going to get 100 per cent of my leads - I’m not going anywhere else. It’s all about trust.” “At the end of the day this is not about one or two mortgages, it’s about a 10-year relationship and it could become a 20-year relationship,” Helkie says. “The trust is that Jim knows I‘m going to do the best for his clients, and any feedback he gets, I’m hoping is always positive, whether I do a mortgage or not.” There are no referral fees exchanged between the two, so the relationship is truly built on a strong foundation of trust. “It’s not about fees; it’s about doing the right thing for our clients,” Kristian says. “And if I do the right thing for his client, as has happened over the past 10 years, I’ll keep getting referrals, and that’s the important thing.” Since mutual trust is the success element for these two, it’s something that takes time and a lot of work to build up. “The relationship we developed took five years before it turned into a partnership. It started in the basketball court and from there led to coffee, or dinner, a drink, meeting each other’s clients and working one-off deals to the point where you’re

“ at the end of the day this is not about one or two mortgages, it’s about a 10-year relationship and it could become a 20-year relationship ” very purposeful in doing business together,” Iriotakis adds. More than just a referral The model used at Safebridge Financial was built mostly on the concept of Karram’s and Iriotakis’ relationship. They learned that what they had was unique and started matching up their employees using personality profile tests. “We have agents on the mortgage side, agents on the financial side and we’re partnering them up under the same philosophy and they’re doing the same thing Chris and I have been doing for years now, it’s just that it’s all in-house,” says Iriotakis. They are also a hiring a recruiting agent for both sides to help facilitate them in building their own independent relationships with an in-house adviser. “We profile all our agents and then try to pair them up with the right individual on the other side,” Iriotakis adds. “The more we know about the agents we hire, the more capable we are of connecting them with someone who they’ll actually fit with.” CMP

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ISSUE 4.6

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Y ALREAD E TWO OR AR ANY? TOO M

COMMERCIAL RELIEF HOW TO PACKAGE THE PERFECT COMMERCIAL DEAL

SHOPPING FOR VALUE DEFINING VALUE TO CLIENTS, AND IT’S NOT RATES

PROFILED HOW DONNA RAMSAY AND “THE GIRLS” LIVE BIG IN THE SMALL CITY

2009

this time last year Commercial mortgages drying up The supply of money for commercial mortgages had dropped by a third from 2008 and construction financing had become increasingly hard to find. “We are looking at a situation where some [building] owners are going to have to sell something to raise additional equity, take in a partner or look at offering other properties as additional security if they want to obtain mortgages,” said Collier International’s senior vice-president Milton Lamb. According to a report in the Globe and Mail, the scaled-back lending was the result of lost commercial mortgage-backed securities and Canada’s pension funds mortgaging properties in an effort to restore balance to their asset-allocation demands. “This is an industry where things move slowly,” Lamb said. “There is still time for property owners to make changes internally, which will make their situation much more attractive to lenders.” One year later, since October 2009, there has been a dramatic increase in availability in financing for both existing projects and new residential developments. Construction is still hard to come by but condominiums and residential projects seem to have greater availability than some of the industrial or office projects. “Last year a lot of the institutions were looking at their capital requirements and pulling capital back from the market as opposed to lending to the marketplace.” Lamb said. “Since business confidence is back, their capital sheets are extremely strong and now they’re seeking some return on equity so they’re going back out to the marketplace to be active participants.” According to Lamb, not many suffered significant harm when there was a lack of financing, albeit there were a few hiccups along the way. CMP

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New AIC president looks to raise industry standards The Appraisal Institute of Canada was working on a code of conduct for appraisal management companies to prevent agents from valuating properties on the basis of pleasing lender clients, according to then newly appointed AIC president Sheila Young. “What will come out of the code of conduct is a good understanding both on the part of the appraisal management companies and the appraisers as to what the expectations are of the banks using their services and why clients need to be protected,” said Young. AIC was also working on other initiatives including improvements to the appraisers’ professional excellence program and implementation of a peer review program. The association said it would be moving towards International Valuation Standards starting January 2010. One year later, according to Young, AIC has discussed their code of conduct once with AMC and is planning to review it again, she hopes, sometime this summer. Young’s goal is to have it set by the end of this year. The AIC has successfully incorporated the international valuation standards into their model. Young says it was just a matter of reviewing and matching their own standards to them and since they were very similar to begin with, it was all pretty straightforward. The company is currently discussing standards with other appraisal organizations in Canada to see if they can harmonize everyone towards a Canadianized standard. “We’ve had an initial meeting with some of the organizations, it’s been very positive, and we’re going to schedule some other meetings probably in the fall. It’s tough to get people together during the summer.” Young said. CMP

Business Marketing

ways to use newsletters Forget buildings, staff and computers: your most valuable asset is your database of clients, potential clients and referral sources. Simon Payn and Dan Beresford offer tips on how to stay connected

ost mortgage professionals let their database go to waste. Instead of keeping in touch with their database, they let it rot. That’s a huge waste. Every month you fail to contact your database represents thousands of dollars in lost business. Remember it’s not just a databaseit’s a list of people with real needs and feelings. There’s a powerful two-stage process you can follow using print or e-mail newsletters to make the most of this asset. First, newsletters help you strengthen the relationship you have with your database. Then second, they allow you to increase the amount of revenue you can extract from your list of clients. People build relationships with people, not businesses You already know that it’s relationships that keep your business going over the long term. While it’s nice to write one deal, it’s much more profitable to write multiple deals over the lifetime of a client. It’s nice to get one referral but more profitable to earn multiple referrals. And here’s the thing: people have relationships with other people, not with businesses. And they really like to have relationships with people they know, like and trust. Of course, you can’t see all your contacts face to face every month. But what you can do is connect with them by using a newsletter that allows your personality to shine through. Instead of a newsletter packed with rates and mortgage deals, send one that also includes a sense of who you are. You can do that by sharing your opinions or by telling stories of what’s happening in your life. Share the kind of things you might share with people when you meet them face to face. Instead of receiving another business blast or sale flyer, your clients and referral sources

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Business Marketing

receive a message that’s really from you. That’s how relationships are built. Relationships require frequent contact or they die Most people don’t send newsletters often enough – and that’s sad. Like most relationships, your business relationships will die if you don’t nurture them. Regular contact (at least monthly) is essential. Not only does your newsletter keep you front of mind, but it also gives you the opportunity to communicate your latest offers in an effective way. Look at it like this: with your regular (interesting and entertaining) people-centred monthly print or e-mail newsletter, you are positioned as the person who is there for your clients and referral sources and has their interests at heart. That makes you the natural choice when they need to finance their home or refer business. Be the expert, not the salesperson Mortgage professionals who use newsletters to position themselves as an expert will be more successful than those who just “sell mortgages.” Why? Because people like to do business with people they can trust, and they trust experts more than they trust salespeople. People will come to you when they need financing rather than you having to be continually running after them. You position yourself as an expert by providing useful, client-centric information about mortgages. Focus on how you can help homeowners achieve their dreams and goals – and avoid their fears. Of course, not every article should be about mortgages (you don’t want to put your contacts to sleep!), but try to slip a couple into each newsletter you publish. Increase profits with attractive offers Once you have a method of developing relationships, you can start increasing the amount of profit you achieve from your database. Your newsletter can be a powerful source of extra revenue by providing an incentive for your contacts to get in touch with you and potentially buy other products or make a referral. So make sure each newsletter has an offer. For example, offer your clients an annual review. If you manage your database well, you can time a newsletter with this offer to coincide with a client’s mortgage anniversary. Alternatively, a tax-year based article rotation will allow you to promote tax-deductible mortgages in December – the most appropriate time for a client to appreciate this product.

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what goes into a super-effective newsletter? Mortgage content: to position you as an expert and generate extra business • How secured lines of credit can help you use the equity in your home • Tax-deductible mortgages: How they work and why they might make sense for you • How to pay off your mortgage sooner • Ways to finance investment properties • Why every homeowner should have an annual mortgage review • Reverse mortgages: The truth Non-mortgage content: to keep clients interested an engaged over the long term • Local events guide • Local resources • Useful household tips • “How-to” articles that solve typical problems • Articles that share your likes and dislikes – that help people see the person behind the suit

Reach the right person with the right message The most powerful newsletters contain content that closely matches the interests and needs of your contacts. You’ll get more response when they see that your newsletter is clearly aimed at them. The time involved in creating several newsletter editions will pay for itself in increased business. If you segment your database, you can mix and match content to create a newsletter with articles and offers that closely match your target audience. Don’t worry, the entire newsletter doesn’t need to be customized to each group – just one article that clearly speaks to them will do the job. An advanced tactic is to use auto-responder technology to drip relevant articles to targeted readers. For example, put a newsletter sign-up box on your home page that is targeted at firsttime buyers. First-timers who enter their contact information into the box will automatically receive information that’s appropriate to them, cementing your reputation as someone who is best positioned to meet their needs. You can do the same on a page about reverse mortgages or tax-deductible mortgages. Make your newsletter pay Make the newsletter pay for itself by selling ad space to relevant but non-competitive businesses. Or, trade ads with that business so you can promote yourself to a second customer list. Some mortgage professionals have found success by providing a free newsletter that real estate agents can use to contact their own clients. Realtors love getting free tools – if you can help

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Business Marketing

them build their businesses, they will happily send business over to you. A “pass-along” tool to stimulate referrals A newsletter serves as a powerful “widget” that your contacts can use when referring someone to you. After all, a useful, interesting newsletter is much more attractive than a business card. Stimulate referrals by publicly thanking people who have sent you clients. This works because people are much more likely to refer when they see others doing the same. Similarly, publish testimonials from happy clients, and case studies that describe unusual deals. Positive stories from real clients provide what is called “social proof” – something that’s much more believable than anything you say about yourself. A tool to find new clients While most mortgage professionals use their newsletters to keep in touch with current clients, a newsletter can also work to find new ones. Make sure you distribute your newsletter efficiently by sending it to people (and leaving it in

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places) where ideal clients are likely to hang out. Many mortgage professionals successfully send their newsletter to real estate agents – especially if the articles in the newsletter help complete a real estate agent’s knowledge about financing options. Leave your printed newsletter in “community nodes” – the places where your clients are likely to hang out. This sort of targeted distraction is much more effective than a door-drop. Make sure that any newsletter you distribute encourages people to get in touch with you. The best way to do that is to offer free information that people can receive in return for giving you their contact information. Make sure you present that offer of information in a way that telegraphs the benefits of requesting it. People want to get the best deal and avoid making a mistake when financing their home – so produce reports that show people who do achieve those goals.

Simon Payn is president of Ready to Go Newsletters. Dan Beresford, a former mortgage professional in Ontario, is business development manager .For a sample newsletter visit ReadyMortgageNewsletters.ca

Top: Dan Beresford Bottom: Simon Payne

NO. 11

Guide to elite brokering www.mortgagebrokernews.ca

on becoming an

elite broker Building your exceptional sales team

On becoming a better salesperson

How to reclaim your lost clients PUBLICATIONS MAIL AGREEMENT #41261516

contents cmp guide no.11

NO. 11

Guide to Elite Brokering

6 3

On becoming an elite broker What does it take to become an Elite Broker? CMP talks to the sales leaders in the mortgage industry to learn how and what they do on a daily basis that got them where they are today

Regaining lost clients Sometimes with all your effort directed into gaining new clients, the ones you already have might get lost through neglect. Doug Mathlin outlines how to get them back

Building blocks for an exceptional sales team: One of the Keys to Being an Elite Broker is building a strong team of agents and support staff. CMP looks at how to find the best agents that will fit into your vision, then how to manage, train and mentor them successfully

Teamwork at core of success The Greenwood Group of Companies started out as a one-woman show in British Columbia and has grown exponentially over the past six years. CMP talks to the co-owners about their unique business model

10 mortgagebrokernews.caâ&#x20AC;&#x201A;â&#x20AC;&#x201A;

Guide

Business Success

What does it take to become an Elite Broker? CMP talks to the sales leaders in the mortgage industry to learn how and what they do on a daily basis that got them where they are today

ecoming a mortgage broker is easy–take a course, get licensed, find a broker to work for. Each year, hundreds of people across the country make the decision to join the industry and each year hundreds of people leave the industry. According to insiders, nine out of every 10 new agents drop out in a year. Then there’s the moonlighters – those agents who have other jobs and are satisfied with a deal or two every six months. Commission sales can be stressful but can also be most rewarding. It depends on the level of commitment and the burning desire to achieve personal and financial goals – it’s a profession that can earn agents and brokers high monthly incomes. Along the way there are proven methods to help agents become better salespeople, whatever the personal goals. There are, however, some truths: You have to be able to sell, you have to understand loan processing and you have to effectively market yourself. Sales skills are essential to your success as a mortgage agent. Previous sales experience is not important, and won’t necessarily guarantee success so agents must commit themselves to continuously learn about the mortgage-selling process. Understanding the lending process is also critical. Learning each lender’s products, and the criteria for those products, will give agents valuable insights and establish themselves as the expert in mortgages, which will allow them to offer better service, faster closings and a seamless process for clients.

Effective marketing attracts prospects. By keeping the pipeline full, chances for success are greater. Prospecting will always be the cornerstone for any successful agent. It’s not something to do when there’s time or something that others can do, but a routine first step toward a sale. Goal-setting The importance of setting goals cannot be underestimated and should be part of every agent’s business plan. Colin Dreyer, president and CEO of Verico Financial Group, based in Vancouver, B.C., attributes an individual agent’s success to not only having an effective business plan, but being committed to following through with it. “There’s a fine line between winning and losing so it comes down to making sure you’re doing more of the right things,” Dreyer says. “The more successful agents are those who do what other people won’t.” He says they will pay more of a price for success by spending a lot of time learning everything about the industry, about lenders, about rates, etc. and by diligently understanding their customer’s needs. “Over delivering creates a trust relationship between the agent and client and as a result they become a strong referral source.” As for the business plan, Dreyer suggests it include a clear financial picture of the current status of the agent’s earnings and where they want to go. “It has to be realistic,” he says. “If I’m currently earning $50,000 and I want to earn $250,000 next year, you have to really ask yourself if that’s doable. The goal is a good one but the timing may be off, so you continue to learn and grow and systematically move toward that goal.”

on be

elite br

mortgagebrokernews.ca

Guide

Business Success

the 4 steps to successful goal-setting: Decide what you want. Choose the life you want, focus on it, pay the price and pursue it with all your heart. Clarify your values. Too often, people choose goals that are inconsistent with their priorities and daily behaviours. In a clash between your values and your wishes, your values will always win. Be certain your goals are consistent with your most important values. Write them down. Put your intentions on paper, in your own words. Be specific and describe your goals in detail. When will you achieve them? What will success look like? Read your goals every day. Take Action. Success doesn’t just happen. It starts as an idea in your mind, then you take action by learning and gathering the necessary tools. Then every day keep moving in the direction of your goal. It takes skill, determination, persistence and faith.

Salesmanship according to Dreyer is about learning the basic fundamentals and working diligently to reach goals. “Sometimes successful agents are considered lucky; well you make your own luck by consistently doing the right things.”

coming an

oker

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Guide

Business Success

Dreyer’s tip: Get a mentor

Top: Colin Dreyer Bottom: Boris Bozic

The importance of continuing education With the constant changes in the mortgage industry; from changes in lender products and changes in interest rates to varying economic cycles and legislation changes, there’s a lot for agents to stay on top of. For David Armstrong, broker and general manager of River City Financial in Edmonton, Alta., keeping on top of the industry changes and even the industry itself is important to achieve success. “Along with a strong customer focus, agents must be knowledgeable about mortgage products,” he says. “There’s information everywhere. The real challenge is to get agents to live and breathe mortgages. This is what differentiates the top agents. They read the news, the financial news, they research products and read material provided by lenders.” In addition to learning about clients and the industry, that educational component also includes understanding the deal process from beginning to end. “If you know the requirements of your lenders then you can get the ball rolling right away with your clients,” Armstrong says. “And don’t proceed without all the information and all the documentation. When you do this you’re speaking from a position of power and clients want to feel confident that you are doing the xbest job for them on the biggest transaction of their lives.” Armstrong’s tip: Volunteer to assist another agent Education is important, of course, but more importantly is that the knowledge gets used. Joe Pinheiro, vice-president of sales for Mortgage Alliance Canada agrees. “Education is great – it empowers you to be able to look at a client’s situation and offer more solutions, but just the fact that you know something doesn’t matter unless it’s used.” Part of a broker’s job is to also educate the consumer. “Right now consumers love banks – they need to love us,” he says. “The one skill I would urge brokers to hone their ability to empathize with their clients. They must be good listeners and also listen to what is not being said.” Empathy adds an emotional component to the whole process, which allows consumers and the broker together to get emotionally attached to the outcome. When that happens, the customer and broker is not trying to get a mortgage, they are trying to finance a home. “Even in a debt consolidation, brokers can emphasize with the

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10 habits of top producers in the mortgage industry 1. Top producers are extremely organized and on top of things. They never let a small detail slip through the cracks because they know that tiny problems upfront can lead to BIG problems at the closing table. 2. Top producers are proactive. They look ahead. They have foresight and try to steer clear of problems before they arise. 3. Top producers know the mortgage market. They watch the rates closely and lock only when the customer feels comfortable with the rate they are getting and are ready to move forward. 4. Top producers communicate. They stay in constant contact with the customer, their underwriter, and any other third parties they are working with on the loan. 5. Top producers have a start and stop time. Their work doesn’t take over their whole life. They know that things have a tendency to take over whatever available time there is. By setting firm deadlines they know they can accomplish much more than leaving things open-ended. 6. Top producers make to-do lists then cross them off. At the end of the day, they update the list and start over again tomorrow. By writing things down they hold themselves accountable. 7. Top producers love what they do. They enjoy the challenge of the mortgage industry and the daily excitement. They also love helping people achieve their dreams, buying or refinancing their home. 8. Top producers ask for referrals. They tell the customer to keep them in mind if they come across anyone who needs a mortgage or wants a free quote. 9. Top producers market daily. They take at least one step a day towards getting the word out about them by contacting new referral partners, associates and past customers. 10. Top producers listen to advice. They know that being in the mortgage business is a daily education and they aren’t afraid to ask the hard or stupid questions. This, in turn makes them a better trained loan officer and more successful.

Guide

Business Success

client’s stress and describe how good it’s going to feel to have only one payment.” Brokers have to sell solutions to problems and empathy can help you become a better broker, explains Pinheiro. “In the end, a happy client probably won’t remember what you said but will always remember how you made them feel.” Pinheiro’s tip: Try to get all involved emotionally attached to the outcome. A lender’s perspective At Optimum Mortgage, based in Edmonton, Bernie Budney, sales manager for Western Canada and Brian Karim, BDM, have both seen what works and want doesn’t. “The ones who are most successful have found a way to be in constant contact with their client database,” says Budney. “Whether it’s through e-mail or newsletters, the brokers who stay top-of-mind are constantly filling their pipeline – these are the ones who successfully grow their business.” Karim mentions that those brokers who are consistent, who repeat the same steps in the same way, seem to enjoy the most success. “When submitting deals they have a checklist of items, which makes them more confident in their ability to see challenges, so they are able to get to the client’s real story and are able to relate that back to the lender to ensure their deals get approved.” Again the theme of goal-setting, planning, and business-building seems critical to broker success. “You have to ask yourself where you want to be in the industry – where’s your niche?” Karim explains. “The other two components are developing a three-year and five-year plan and then executing those plans. Another key to success is becoming the expert in the eyes of the client to gain their confidence. “”They are not the experts – they want the best advice for their particular situation,” Budney explains. “If you know your lender products, and are able to offer solutions, then you’re the expert. “ Both Budney and Karim emphasize the importance of developing a relationship with the lenders’ BDMs. “If brokers understand that we are partners in their business, we can help them get more deals approved,” Budney says. “For example, we look for deals that make sense to us – our criterion is different than some other lenders. Brokers have to get to the heart of what happened to his client’s credit and we can help offer solutions to move that client forward. By doing it this way you will have a client for life.”

ethics & responsibilities Joe Pinheiro’s definition of mortgage fraud is any misrepresentation or omission on a mortgage application for a lender to approve. Well, it might not be his alone, but it certainly sums it up. “If you’re caught, lenders will cut you off,” Pinheiro says. “Your most valuable asset is your name so you need to protect that asset no matter where you go.” The issue of mortgage fraud is a serious issue for every broker in this industry. Earlier Pinheiro mentioned that consumers love banks – they need to love (brokers) us. “By holding ourselves to the highest standards in our industry, we can turn those consumers our way.”

Budney and Karim’s tip: Get to the heart of the client’s story – know the whys Lenders see them all – the really successful agents and brokers and the ones who struggle with packaging a proper deal. If there is one thing a successful broker does better than anyone else, it is to service both the client and the lender. “Successful brokers have a really good understanding of the entire mortgage process,” explains Boris Bozic, president of Merix Financial Inc. “They understand that there’s a customer and there’s a supplier and are able to make them both happy.” There are brokers who are super salespeople who can attract business, however, Bozic says, “sometimes a really good salesperson may not be an effective broker.” The effective broker is an entrepreneur who looks at building a business not just building a job. “He or she learns the fundamentals, seeks out knowledge, incorporates structure into the day and creates a strategy to build their business.” Bozic also contends that many brokers confuse strategy with tactics. Strategy is determining where you are today and where you want to be in two years time, for example. The tactics are getting to where you want to be. Also critical for success is the team. “You need to surround yourself with people who will help you execute your strategic plan – they will take you where you want to go.” And the most successful brokers, according to Bozic, are the ones who can change course midstream and adapt quickly to the changes in the industry. “These are the brokers who are not married to a single position – they are flexible and can adapt as the need arises.” CMP

Top: Bernie Budney Bottom: Brian Karim

mortgagebrokernews.ca

Guide Feature ELITE BROKERS

building The

blocks

for creating an exceptional sales team One of the keys to being an elite broker is building a strong team of agents and support staff. Jennifer Zalitack looks at how to find the best agents that will fit into your vision for your business, then how to manage, train and mentor them successfully

inding, training, mentoring and keeping a strong support team is key to developing your business and ensuring its success. But in order to build and expand your team, you must be clear about your expectations and understand what you want to accomplish by bringing someone onboard. He or she has to fit into what you value and mesh with the other members of your office. Where to start Different brokers use different methods for hiring and recruiting. For some, it means looking outside of the industry for suitable candidates and taking advantage of their skill set, while arming them with the necessary tools to succeed in the mortgage industry. Other brokers find it

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Guide Feature ELITE BROKERS

“ different brokers use different methods for hiring and recruiting. For some, it means looking outside of the industry for suitable candidates and taking advantage of their skill set ” easier to recruit from within the industry and further develop them. Gord McCallum, broker/owner of First Foundation Residential Mortgages in Edmonton, looks outside of the industry. “We’re focused on finding the people who want some stability and who want a more traditional work schedule,” he explains. “Our team works in an office, Monday to Friday, with very little

overtime and no house calls. We don’t meet clients in coffee shops or do deals out of the trunks of our cars because we find it’s hard to replicate a consistent customer service experience that way.” He has had great success hiring people with diverse work backgrounds other than the usual mortgage and finance backgrounds. A prime example is one of his younger agents Lisa Perrot, who was a finalist at the 2010 CMP Awards for Best Newcomer (Individual). “She’s a perfect example,” he says. “She’s somebody who hadn’t been in the banking or mortgage industry before but had some sales experience and other experiences that were valuable. She came in and learned quickly and had a lot of drive and determination. She’s a good fit here and has been very successful.” Looking at the hiring process from a different perspective, Della Dwyer, a broker with Invis in Barrie, Ont., believes the best places to find agents are in two specific areas: banks and other brokerages.

top 10 qualities of an exceptional sales team • Honest • Great communicators • Have empathy • Confident • Driven • Good attitude • Dedicated to learning • Respectful • Disciplined • Adaptable

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Guide Feature ELITE BROKERS

For Nick Ametrano, vice-president of Monster Mortgage in Toronto, it’s making sure all potential employees have the personality traits to be successful and to help his company thrive. “We do a long screening process; we don’t rush into new hires. The process can easily take up to a couple of months,” he says. “If you’re going to come and work here, we want you to have fun. We want you to wake up in the morning excited about coming to work. In order “Some agents at banks feel they are being kept to do that there needs to be a fit because I don’t in a box, limited to selling only those products want to come to work and not enjoy the person endorsed by their institutions,” she explains. “Then I’m working with either. So we put a strong there are those agents working in a broker house emphasis on fit.” where they are possibly not happy, and wish to McCallum says that he looks for people who have more structure, or a compliance department have certain personality profiles, which they test or mentoring.” for, as well as the technical, computer, and people skills to do a great job. Qualities of an exceptional agent “Over time we’ve learned that business school In an industry that is fairly easy to get into, not only graduates have the technical and computer skills does an agent need to have certain personality traits to do a great job. And as long as they have good to be successful, there are also certain qualities they people skills, can be persuasive when needed, are need. If they don’t have these qualities they must be personable and care about their co-workers and willing to work on developing them. (See sidebar) clients then they fit in well here,” he says.

“ some agents at banks feel they are being kept in a box, limited to selling only those products endorsed by their institutions ”

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Della Dwyer

Guide Feature ELITE BROKERS

Liz Clay, mortgage broker with Greenwood Estates and Mortgages Corp. in Mission, B.C., says they are always open to existing brokers who are looking for a higher level of support than they may currently have. “We find that one of the best ways to recruit people is by utilizing our existing business relationships. With constant economic flux, people are looking for career changes, and for some a brokerage is an excellent option,” she says. “If they are a good fit for Greenwood we are happy to invest the time and energy needed to train and mentor them. Above all that, an exceptional agent is one who operates with trust, integrity and dedication. The value of support staff The value support staff brings to a brokerage is immeasurable. When all the elements are working together: agents, brokers and support staff, then you can truly elevate your business and offer top quality customer service. The family-run and owned business, The Mortgage Centre in Hamilton, Ont., is a perfect example of how working together as a team can truly elevate your business success and provide top quality customer service. “It’s ideal to have long-term support staff who are committed to the success of the brokerage,” says Joe Grifa, owner/ agent of the Mortgage Centre in Hamilton, Ont. “If your support staff are happy than everyone else is happy. Because support staffs are usually the first point of contact for clients, they can make or break a client relationship. “They will always be the backbone of any business.” Build your team Brokerages build their teams in different ways. Grifa, for example, wants to attract high performers so believes like attracts like. “Attracting high performers is crucial in

the mentoring relationship “It is very, very important. Even for me, when I started in this business, I didn’t have any experience in mortgages or finance or real estate for that matter, I was just out of school. I didn’t have anyone in my company I could look up to as a mentor but I looked up to the other people in the industry. In some cases it was other brokers, in most cases it was lenders, BDMs or underwriters or insurer employees who were just nice enough and willing enough to answer my questions.” ~ Gord McCallum, First Foundation, Edmonton, Alta. “We have all had mentors and what we have learned from them gave us the foundation that makes us successful in our careers. Being a mentor is not just about hiring someone, training them and then launching them into the world. It is a commitment to being there long term and always providing encouragement, support and knowledge.” ~ Liz Clay, Greenwood Mortgages, Mission, B.C.

building your brokerage. If you want to attract high performers you must be a high performer,” he adds. At Greenwood Estates, their commission structure and profit-sharing plan helps promote success, teamwork and ensures longevity. “Attracting high performers often comes down to commission splits and for many that works just fine for getting someone in the door. The challenge is always keeping someone for the long term,” Clay adds. The best way to retain a high performer is to provide support, training and mentorship. “Reward performance, and when there is room for improvement, provide the tools and support needed to achieve success.” CMP

Top: Joe Grifa Middle: Liz Clay Bottom: Gord McCallum

Tell us your news Have you held a recent event, made a new appointment, introduced a new product or have a pressing issue you want to share? If so, CMP would love to hear from you, because your news is our news! Send us your news inquiries to: Email: gina.monaco@kmimedia.ca, or call us at 416-644-8740 ext: 250 mortgagebrokernews.ca

Guide

Title Insurance

regaining lost clients Sometimes with all your effort directed into gaining new clients, the ones you already have might get lost through neglect. Doug Mathlin outlines how to get them back

mortgagebrokernews.caâ&#x20AC;&#x201A; â&#x20AC;&#x201A;

Guide

Title Insurance

customer care charter template Dear (insert client’s first name), Ref. Customer Care Charter I’m so sorry that I haven’t been in touch for some time. My intention was to regularly communicate with you to keep you informed about finance industry issues but to date I haven’t been able to do this. I hope that you will forgive me.

onsider this. You have been in the mortgage industry for a few years now. You have written plenty of loans and have a nice loan book. Leads come in naturally from a few sources including your clients and referrers - who are more like friends now. Your peers think you are successful, and by most accounts you are. But deep down you know that you could be doing so much better. In fact, if there was such a thing as a broker report card, yours would probably say: “could do better.” Most of your clients are not advocates of yours and quite honestly, you don’t know what they think or say about you. Your sense is that you would prefer not to know what they think – in case it’s not glowing. When you are really honest, you mark yourself eight out of 10 for salesmanship, but only four for client care.

(Insert business name) has been steadily growing over the past (x) years and we now offer services to our valuable clients that include; (insert offerings)... I want to make sure that you know that we do value you as a client and hope that you will consider us as your financial services provider of choice for the above listed services. If we can assist you with these services, we will be happy to help. A representative from our office will be contacting you in the near future to ensure that we have all of your correct contact details and to see if we can assist you in the coming months. We would also like to hear your suggestions on how we could improve the service that we offer to you. If you would prefer not to be contacted, please respond to this e-mail/letter (or e-mail myname@myoffice.ca) We look forward to connecting with you again soon. Regards,

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Guide

Title Insurance

Call to action Can those clients that rate you a “four” be turned around? Most likely they can. It’s fair to say from the day you open a business that some clients will be advocates and some will not – regardless of the shopping experience they have with you. All you can do is your best, and try to create client advocates as often as you can. But here is a tip. Don’t die wondering. Those clients are assets to your business. It’s their behaviour that will help determine the value and sale price for the business one day. Also, don’t wait until you decide to sell to fix this problem; your actions now will help improve cash flow now and the sale price later. Everyone knows about Albert Einstein’s definition of insanity. So if you don’t address this problem, it will not go away. So here is a suggestion that will help you to recover many of the clients that you think might be lost. First, admit that you have a problem, and then take action. Send out the customer care charter letter; the template of which is provided here, today. But beware. You will no doubt receive negative feedback. The extent of it will depend on the service you provided in the first place. This is not a time to argue with your client – just accept that these are not the ones to spend your marketing dollars on in the future. And make a note of it in your CRM system. You do have one right? You will receive positive feedback too, and that is the response we are after. The reality is that many of these long lost clients will actually

“ don’t tell them what you think they should know, ask them rather to tell you what you should know ” think fondly of you, and almost certainly will not recall any problems experienced during their initial approval and settlement process. Some might even lie to you and say that they were “just thinking about you.” Reluctant caller Follow the letter up with a phone call. This time the positive interactions will trump the negative ones – as long as you have something of value to say. Many brokers that we work with on this issue have what we term “call reluctance” simply because they do not know what they would tell a

mortgagebrokernews.ca

questions to ask a client after a contact lapse 1. Can I check to make sure that we have the correct contact details for you? And your home e-mail address is...? 2. Thinking back to the service that we provided, was there anything we could have done to improve the service that you received? 3. This year, we plan to keep you up-to-date with changes in the finance industry in a regular, brief e-mail message, would you like me to keep you informed....? 4. Are you planning to buy, sell or refinance in the next 12 months? Or can I help you with anything in the coming six months? 5. Do you know anyone looking to sell, buy or refinance? 6. Do you have any questions for me?

client in a situation like this. It is a common challenge in many broker businesses, and we tell them all the same thing: don’t tell them what you think they should know, ask them rather to tell you what you should know. Implementing this practice will be very fruitful for you when it is done well. There is no doubt that you will generate more repeat business through your clients by simply putting yourself back in front of them. Also, remember that you are a people-person. Your strength is in direct one-on-one communication. Even if your clients don’t rate the service that you provided, your attempt to rescue the relationship, convey empathy and commit to rectifying any issues will rebuild relationships. True story: In a not uncommon occurrence, a broker client of mine procrastinated about calling his database for fear of negative feedback. Later, while reviewing his trail fee income form the broker noticed that a regular - and reasonably large - trail payment was missing. Now he called the client. The client told him she had lost his contact details (I’m so sorry) and had refinanced with a bank directly. She told him candidly that if he had called a month earlier, the refinance deal would have been his. I can only imagine how he felt when he put the phone down.

Guide

Title Insurance

action items 1. Commit to contacting every client and prospect in your database this year 2. Ask for feedback – find out what they think of you 3. Do a needs analysis – find out how you can help them 4. Offer appropriate solutions and suggestions 5. Remind them of your referral program (if appropriate) 6. Send thank you cards as a followup when appropriate

The lesson to take away is that business cards go missing and people forget your name if you don’t stay in touch and keep reminding them of it.

Don’t rely on hoping that your clients will remember you – you have to make sure that they can’t forget you. Another true story: A long established and very successful broker was reviewing his performance, looking for trends to plan for the year ahead. There was a very obvious spike in production from months March through April. On reviewing the marketing activities that occurred in January and February, he identified that calling many clients in those two months was a major contributing factor to lead generation (and ultimately settlements) in that period. The broker remembered that they were “uncomfortably busy” during that time and were pleased when the demand subsided. Lesson learned: outbound direct communication with your clients really does work if you prepare well for it. As an alternative to calling clients, why not just invite them in to your office for a free debt review? What’s the worst thing that could happen? CMP

License #11127

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GUIDES

Guide Profile

Teamwork at the core of

Greenwood’s success The Greenwood Group of Companies started out as a one-woman show in British Columbia and has grown exponentially over the past six years. CMP talks to the co-owners about their unique business model

How did you start and how have you grown? Greenwood Mortgage in Mission B.C. has been in business for over six years and is an integral part of the Greenwood Group of Companies, which includes Greenwood Estates and Design 2 Sell. The business started as the brainchild of Liz Clay and for years was a one-woman show. Greenwood has since expanded to include the Real Estate Division and the Design Group. The Real Estate Division has found success with its unique commission structure and Design 2 Sell has become one of the largest home staging and furniture rental companies in Greater Vancouver. “Joining the Greenwood Group gives our mortgage specialists the opportunity to offer clients a highly dedicated level of service,” says company co-owner Paul Therien. “For the consumer, the concept of a one-stop shop has become a reality. The best part is that none of the divisions of Greenwood compete with each other. It is a complete vertical integration that provides

brokers with a toolkit of resources that enables them to provide an unprecedented level of service to their clients.” Being part of Greenwood is being part of a unique family. We are a team in the truest sense of the word,” Therien adds. “We all work together for the mutual benefit of the business and each other’s continued success.” Many companies preach a teamwork attitude but for Greenwood it goes to the heart of its excellence in customer service. The in-house real estate team actively refers leads to the mortgage group. The design group is often a first point of contact for a homeowner who is making decisions about their home. Anyone answering the phone is empowered to assist the client and will ensure that all leads are caught at the call-in stage. Voice mail is avoided at all costs and a fully staffed office guarantees immediate communication with clients. This team approach to sales led to the described name “The Green Team.”

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Guide Profile

however, with the recent announcement of Greenwood’s growth model, calls from interested candidates are flooding in. “It’s fair to say that there is an untapped market of mortgage brokers who feel let down by empty claims of training, lead generation and in-house support,” Therien says. “Growth means always looking at bringing key people onboard who want to be a part of something new and fresh in the industry. People want to join our team because How have you dealt with the recent downturn? they have heard about the unique nature of our There have been a lot of changes in the marketplace business model.” as a result of the recent downturn. With relatively Similar to other brokerages, Greenwood offers recent changes to volume bonuses and how they are aggressive commission splits, but that is not what paid, new government rules and new lender policies, makes the company unique. “Everyone says that there will undoubtedly be changes in the way the they have aggressive splits. We offer something brokerage community does business. different, something bold, and something that can “Banks are very aggressively pursuing market only grow. The best descriptor for this unique share with an ever-increasing workforce of formula is ‘ownership without the risk.’” in-house mortgage specialists. They may only be able to offer one product lineup but they have How is your office structured? the advantage of 100-year-old branding, and a Deals are generally submitted similar to a status rather significant war chest that the independent broker, with buying power advantage. There is one broker community does not have,” says Liz Clay, element that makes Greenwood different from the co-owner of the company. “They are taking a direct rest. “As opposed to a broker hub, we have a run at broker business and one has to wonder why program for all of our team called the Greenwood it took them so long to do it. The old model of how Lender Advocate Program,” Clay explains. “We we do business worked for many years, but as with understand that it is paramount for the mortgage any industry those who survive are the ones who agent to have a ‘go-to’ for complex deals and a can adapt. The status quo simply is not good means to communicate with the lender when extra enough anymore.” attention is required on a deal. Many deals have Greenwood is positioned to not only survive in been saved when the lender advocate has stepped this ever-changing world, but to take full in to scrutinize the underwriting process and offer advantage of the wealth of opportunities that its deal-saving advice. It’s also a phenomenal way to unique model presents. “We are not structured train mortgage brokers to manage their own deals like any other brokerage in Canada, and this has for the next time around.” not only allowed Greenwood to weather the storm successfully but also grow in challenging times.” How’s business now? “Business is great. Our clients love the service To what do you attribute the company’s success? that they receive when they deal with Greenwood, “The absolute No. 1 thing that makes our and we get daily calls from people who have organization a success is that we operate as a heard about us and want to move their business team. Every person who works with us is a over. As we continue to increase the number of keystone to our business; their individual success agents that we have onboard, we can continue to is driven by the success of the group and the way serve the consumer in such a way as to maintain that they, in turn, support their team members.” the high standards that we have established for Most brokerages are based on a franchise the business.” model, which means every broker and every office for themselves. Not only are they competing What will fuel your success in the future? against another brand… but also against their Several things are driving the success of own. Greenwood does not fit into that box; the Greenwood’s business -- its unique business model, company is breaking out of the standard brokerage an outstanding level of service and dedication to model and creating something that is unique to the consumer. “We continue to find ways to the industry. enhance our service offerings. Greenwood is not your cookie-cutter brokerage firm and that plays a How many agents do you have? big part in giving us an advantage for growth on a As of this moment, there is a team of eight; continued but controlled pace.” CMP

“ growth means always looking at bringing key people onboard who want to be a part of something new and fresh in the industry ”

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G R O U P

O F

C O M P A N I E S

opening doors for brokers Join a Winning Team Greenwood offers brokers an exclusive lender advocacy program, ongoing training, mentoring, aggressive commission splits, and access to an internationally accredited personal coach.

A Local Presenceâ&#x20AC;&#x201C;Nationally With boutique offices scheduled to open across Canada, Greenwood offers the unique opportunity to support your communityâ&#x20AC;&#x2122;s Mortgage, Real Estate, and Design needs.

Community Sponsorship Greenwood believes in supporting community teams, events, programs, and charities. Each branch is established with a sponsorship budget, allowing you to actively participate in the best interests of your clients and the community you serve.

Partnerships The Greenwood Group is a unique model that gives you unequaled in-house referrals. Your clients experience a higher level of service and one-stop home ownership shopping, both at reduced cost.

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Feature

Global Competition

competition in a

global world

Comparing Canada’s experience with other countries can offer interesting insights. CMP looks at competition and its effect on brokers in Australia, the U.S. and the U.K., during this most recent Global Financial Crisis (GFC)

Australia Australia has fared well so far during the GFC, joining ranks with Canada as the two global markets having had very similar experiences. “We hardly felt the impact here thanks to the fact that the resources sector continued to boom, strong and early government stimulus intervention and a banking sector which had not got into the CDO market, had little subprime debt and strong supervision,” says Martin North, executive director Industry Group, Fujitsu Australia Ltd. He says some of the reasons for their doing so well is that initially the treasury forecast unemployment rate would rise to above nine per cent, but it actually peaked below six per cent and is currently falling. Also, interest rates were cut to emergency settings, but have been increased in the recent months to near pre-GFC levels. Housing

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Feature

Global Competition

prices rose 12 per cent, and continue to rise, thanks to undersupply and bullish employment. Australia never had a huge subprime market, only ever having less than one per cent, those of which were mostly securitized and non-bank lenders. “They have disappeared as funding dried up and most of the lending is now concentrated in the four major banks, who do little, if any, subprime.” North said. Lenders have now since adapted their practices by consistent reduction in LTV ratios and a raised awareness of savings history from potential first-time borrowers. There is more scrutiny of refinanced transfers and greater segmentation of customer profiling risk and affordability. “Two of the four majors grew their books significantly and on some measures wrote over 60 per cent of new business – so that was a major realignment in the industry.” Another factor is the reduction in the variety of products and price points, more standard products and overall higher margins. “Banks have increased the rates above central bank rate movements because of increased funding costs (especially from overseas capital markets) and there has been a renewed battle for retail deposits to fund the book – so savings rates are higher,” says North. He says competition today is different from pre-GFC and that competition may not actually be beneficial to Australian borrowers. “The big four are competing with each other on pretty standard products and services. The second tier lenders are finding it hard to compete because of higher funding costs and consumers are concerned about “unknown” brands. There has been consolidation, so on some measures competition has been reduced.” The reopening of the securitization markets might make it is possible for non-bank lenders to reappear, he adds but there is little evidence of that so far. Overall, North thinks Australia fared well during the GFC because of its overseas sectors and other practices. “It was due to more conservative banking strategies, higher margins and supervision. We were also lucky because we have a booming resource sector in China. As that country stimulated its own economy, it created demand for minerals etc., so we have planted the seeds for later, with booming housing prices and affordability.” Canada While in many ways Canada and Australia had very similar experiences through the Global Financial Crisis (GFC), it is clear that competition has fared much better over the last two years in the North. According to the Davis and Henderson

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Market Share Report, as of Q3 2009, banks had 55.8 per cent marketshare, while mortgage banks were at 30.8 per cent. Credit unions made up 2.8 per cent of the pie and the rest is non-conforming subprime lenders. Compared to the same period in 2008, the mortgage bank share had actually grown. President Boris Bozic of Merix Financial, a non-bank lender in Canada, says there are two reasons why the Canadian non-bank sector has been resilient throughout the GFC. “The Canada Mortgage Bonds (CMB) Program has continued to help non-banks to compete in this marketplace by offering a competitive cost of funds. While not as cost-effective as the bank’s balance sheets, the CMB has allowed competition to thrive in this marketplace. “Secondly, the non-banks over the previous five years never strayed too far away from quality ‘A’ business. That has served our industry well as Canadians who own homes have the financial ability to remain in those homes.” As in Australia, competition in Canada has been very beneficial to Canadian borrowers. Bozic says non-bank lenders have been able to provide tailored solutions to specific niches that were largely ignored by the banks. As well, the size and speed of smaller non-banks has enabled that sector to drive most of the product innovation in that country – dead-tracking systems for originators, no-frills mortgages and split-level mortgages for example. Bozic adds “Furthermore, non-banks are generally not hampered by multiple distribution channels, which allow them the ability to offer discounted rate sales immediately to the market as cheaper funds become available.” But Bozic forecasts Canada may be heading down a similar path to Australia, although not to the same extent. “There are fewer lenders in this industry today. And on top of that we have seen how lenders in this industry have moved toward this “selective access” approach based on volumes, which, ironically, Merix pioneered five years ago. The result is that many brokers now don’t have access to all lenders. We recognized this at Merix and have shifted our focus. We’re still selective, but the focus is now on efficiencies and this has opened us up to mortgage brokers and their customers who would have otherwise not had access to us.” U.S. The effect of the Global Financial Crisis (GFS) in the U.S. has obviously been much more pronounced. And the decline of competition has coincided with the decline of broker numbers. International mortgage commentator Dave Agena spoke anecdotally on the state of competition in America. He says marketshare

“ Bozic forecasts Canada may be heading down a similar path to Australia, although not to the same extent. ”

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OF THE HERD

ONTARIO’S With Ontario’s new mortgage brokering legislation now in effect, not even two thirds of the province’s mortgage professionals were registered with the Financial Services Commission of Ontario (FSCO) by the July 1 deadline

s of the Canada Day deadline, almost 3,300 mortgage agents from across Ontario found themselves in contravention of the new provincial act, putting themselves at risk for reprimand by the provincial regulator. With an estimated 9,000+ agents in Ontario, this translates into approximately 37% who failed to hold approved licences by the deadline. Ontario’s mortgage agents were bombarded with stern notifications CAAMP, IMBA and FSCO in June, enforcing the fact that, after July 1, mortgage agents not registered under the new Mortgage Brokerages, Lenders and Administrators Act 2006 are forbidden to practice in Ontario. The low number was a surprise to some. After all, the act was designed to improve the mortgage brokering profession by implementing educational requirements, mandatory errors and omissions insurance, and introduce a whole slew of other factors to ensure the safety of consumers and, consequently, improve customer confidence.

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The fact that such a low number of agents took the steps to proactively stand behind it led some to believe that a large percentage of Ontario’s mortgage agent population didn’t care about the best interests of the industry. Others said there were a number of factors at play.

Agents being agents Up until a week before the deadline, Jeff Atlin, vice president and chair of government relations for IMBA, had only received a handful of queries regarding the new act. That number escalated in the week leading up to the mandatory changes – signifying that many mortgage agents weren’t apathetic, they were merely disorganized. “It seems mortgage professionals tend to do things last minute – so, in many ways, it doesn’t surprise me,” he said. “On the other hand, I am surprised that there isn’t a stronger sense of urgency.” While the lack of urgency might be disturbing, Phil McDowell, president of AMBA, said it’s not uncommon. Alberta

Feature

Global Competition

between banks and non-banks “flipped in a heartbeat” as a result of the GFC. Prior to the crisis brokers were sending approximately 70 per cent of their business to non-banks, whereas now it’s closer to 30 per cent. As well, the overall broker population of brokers has plunged from 54,000 to just 15,000 (and continues to drop). “The GFC decimated the brokers because the banks could no longer package the mortgages into Mortgage-backed Securities (MBS) that could be sold to the private (Wall Street) and public (FNMA and FHLMC – the Government Service Enterprises) secondary markets and therefore the liquidity to fund the brokers all but vanished. It was like an electrical grid that went black almost overnight,” Agena says. He adds that the banks’ current monopoly on lending has resulted in slower turnaround times for consumers, higher rates and fees, limited product selection and “severe to draconian credit guidelines.” “Ultimately, I feel competition and the need for the broker will return when the markets start to view MBS as a favourable investment. Then liquidity will return to the mortgage market and the banks will not be able to provide the volume at the profit margins they will want... outsourcing mortgage originations to brokers is a much more efficient and cost-effective way to ramp up volume (via variable costs) than to go in-house (via fixed overhead).” Agena says the decimation of the mortgage broking industry in the U.S. is more than just the result of liquidity problems. “Congress in general and the mortgage industry in particular was looking for a whipping boy, a scapegoat they could point the finger at the “sub-prime meltdown” so they threw the brokers under the bus and backed up and ran over them several more times just to demonstrate (superficially) they were fixing the problem. It was like the winemaker blaming the grape-pickers for the bad grapes that caused the bad wine.” He adds that brokers were an easy target – they were not organized on a national basis, they had little capital to spend on lobbying. “Ironically, a case can be made that the brokers were the least at fault because the broker was only originating (picking the grapes) what the banks wanted them to deliver,” Agena says, adding that brokers had no authority to: determine the underwriting guidelines, appraise the loans, approve the loans, provide LMI approval (the five major private mortgage insurance companies, fund the loans, package the loans into MBS, or rate the MBS’s AAA to CCC.” Agena admits there were plenty of bad apples in the industry, but responsibility for the subprime crisis lay with bigger fish. “Greed is a powerful motivator and left unchecked it will always lead to its own

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demise. The grape pickers were making great money but the winemakers were getting rich and funding their retirement plans at the ultimate expense of the taxpayers.” U.K. Like the U.S., the U.K. suffered much more through the Global Financial Crisis (GFC) than Australia. Alan Shields, director at Retail Finance Intelligence, says a lot of lenders that were active prior to the crisis have now exited. But the makeup of the banking sector is very different to Australia – in the U.K. the equivalent “Big Banks” or High Street Banks, such as Barclay’s Bank or Lloyd’s TSB have between five to seven per cent marketshare each, so they’re not the big home lenders. The largest home lenders in the U.K. are current or former building societies. Halifax, a former building society, has almost 15 per cent of the mortgage market, while Nationwide, which is still a mutual, is the second largest in the home lending space. “You’ve also got much wider range of sizeable players in the U.K. market,” Shields says. “So there are a lot of players that have more than one per cent of market, whereas here, it’s only a handful.” And in contrast to Australia, the deposit base of U.K. institutions is much smaller. For Australian banks about 60 per cent of funding is from deposits, whereas U.K. counterparts derive about 30 per cent of funding from deposits. The U.K.’s reaction to the GFC has been quite different, but Shields says it was by necessity – government bailout of big banks was absolutely vital to ensure they lived to lend again. Fujitsu Consulting’s managing director Martin North agrees. “In the U.K. because several of the banks nearly fell over, the government ended up putting massive amounts of capital into the banks and effectively nationalizing those big banks. The biggest has 40 per cent share at the moment. The next biggest has 25 per cent share. But they’re predominately nationalized institutions in all but name at the moment. Under direction from EEC, they’ve had to sell off pieces of their business. Ultimately, they’ll probably go private again, but not in the short term. What they’ve said in the U.K. is they’re less worried about competition and more worried about survival at the moment. It’s a very different scenario to here. We didn’t have any failures here, whereas they had lots of failures there. The banking system in the U.K., I think has five to 10 years of significant pain with low returns to shareholders, competition has gone through the floor, bank fees have gone through the roof. It’s a very, very sad situation and very different from Australia.” CMP

“ it was like an electrical grid that went black almost overnight ”

Business Marketing

Growing your mortgage business means consistently attracting clientele. Doren Aldana discusses a new way of marketing yourself and how the use of referral systems can generate a steady stream of clients

how to improve your marketing efforts I

f every dollar you spend on marketing isn’t generating more than that amount, then your marketing sucks. Don’t believe me? Let me prove it to you. I recently received an e-mail from an ex-coaching member who asked to be removed from our e-mail list because she’s leaving the business. She explained that, “It’s not worth it and I may have a very nice ‘paying’ job that has more of a ‘consistent’ income which for me is very important.” Sound familiar? What’s interesting, is that just a few months prior she had cancelled her marketing training membership saying she was just “too busy” to take advantage of it. Now, three months later she’s throwing in the towel – not because she’s not a great mortgage broker, not because she doesn’t love the business, but because her marketing sucks! You see, what this well-intended, talented young lady failed to recognize is the TRUTH about what business she is really in. She – along with countless others who call it quits in this business – thought she was in the “Mortgage Business” and her primary function was providing mortgage services. Thus, she considered marketing as optional luxury at best or imposed drudgery at worst. Conversely, all top producers understand that the No.1 most important ingredient to their success is effective (profitable) marketing. They see themselves as marketers first, service providers second. They understand that they could be the best underwriter in the world but if they don’t have any clients, they’re out of

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business! Until and unless you “GET” the fact that you’re in the “marketing” business, you’re going to have skinny kids and a skimpy bank account. At this point you may be thinking, “OK, Doren. I get that I’m in the marketing business, but how the heck do I market effectively?” Good question. Here are three surefire strategies for building a rock solid, consistent income regardless of market conditions: 1. Referral systems. Most mortgage professionals rely solely on word-of-mouth advertising. There’s only one problem with that: it is governed by happenstance! Imagine relying on the lottery to pay for your child’s postsecondary education.

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Sounds ridiculous, doesn’t it? Well, if you think about it, it’s just as absurd to rely on the off chance that maybe, just maybe, your clients or referral partners will refer you business this month. Referral systems, on the other hand, provide you with predictable, consistent, reliable results. And here’s the best part: once they are installed they can often run almost 100 per cent on autopilot! Here’s one example: Monthly Direct Mail Newsletter. By sending this newsletter to your prospects, clients and referral partners every single month like clockwork, you will build “top-of-mind consciousness” so when the time comes that they (or someone they know) need a mortgage, YOU will be the only one they turn to! To a complete, cover-to-cover newsletter sample, showing precisely what you should include in your newsletter, visit: www.Done4UClientLetter.com. 2. Joint Venture Alliances. The typical mortgage broker will call on Realtors and Financial Planners asking, “If I could provide your clients with superior rates and service, would you feel good about referring me?” That approach would work just fine if you were the only one calling on them. But unfortunately, everyone and their dog is saying the same thing. The key to attracting more referrals from your referral partners is to come up with a unique value proposition that makes you an irreplaceable asset on their team. One of the best ways to accomplish this is by providing them with turnkey tools/ systems that actually help them to: • Attract more quality prospects • Covert more prospects into closed deals • Generate more raving fans, referrals and repeat biz • Increase profits without working more hours If you can help them accomplish at least one or all of those four objectives, you will become their HERO! For instance, let’s say you wanted to attract more Realtor referrals. Instead of chasing them around with rate sheets and doughnuts, you would offer them a complimentary Call Capture Hotline to help them generate more buyer leads so they can sell their listing faster and for top dollar. To see a detailed explanation on how this works, go to www.callcapturestrategy.com.

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“ the key to attracting more referrals from your referral partners is to come up with a unique value proposition that makes you an irreplaceable asset on their team ” 3. Lead Generation Systems. These should be highly targeted consumer-direct marketing campaigns designed to generate a profitable, consistent stream of qualified mortgage leads from specific niche markets. Examples of possible niches to go after are first-time homebuyers, reverse mortgages, debt consolidation, renovation loans, etc. An effective lead generation campaign should include the following: a) A free offer – such as a free guide, free report, free CD, free analysis, free consultation, free recorded message, etc. The key is to provide them with a valuable free offer that will get your ideal prospect to respond. b) Focus on the benefits – the prospect will receive when they take advantage of your free offer – use a bulleted list to delineate all the juicy benefits they can expect to gain. c) A call to action (CTA) – that tells the prospect precisely what they need to claim your offer. d) Tracking device – that allows you to track the exact number of leads, apps, deals, commissions and ROI from every marketing campaign you run. Remember, you can’t improve that which you don’t measure. If you’re not holding every marketing dollar accountable, you’re driving blind with no dashboard! That’s not smart. There are many strategies for attracting mortgage clients, but nothing is more profitable than marketing by referral. Referral systems are the single, most profitable way to grow any mortgage business, FAST. When you have systems that consistently generate hot, pre-sold referrals, you control your future. For information on how to do exactly that visit freereferralsecretscd.com. CMP

profile

Making a name with

PROVIDER

Merix Financial CMP talks to Boris Bozic, president of Merix Financial about trailer fees, pooling volumes and helping mortgage originators build their name in the industry

Merix Financial Quick Stats + Offers top, highly experienced qualified originators exclusive access to Merix brand of mortgage products. + In June 2010 Merix Financial will have originated $10 billion in mortgages since its inception. + In 2010 Merix will pay over $3 million in trailer fees + Offers top, highly experienced qualified originators exclusive access to Merix brand of mortgage products. + Primary focus is to provide competitive interest rates and payment options and an unparalleled service experience for mortgage originators. + “Knowledge is Advantage” is the company’s mantra

erix Financial has been signing up individual originators and targeting the individual originator since its inception. The company’s focus, for the last couple of years, has been to take a closer look at the big teams that pool volumes and sign each agent individually to help them start building volumes under their own name.

down the road when their business has grown big enough to submit deals on their own. Most lenders won’t even know who you are because you’ve always been submitting business under one big name” Bozic said. “When we send out renewal or welcome letters, we have the originators name on them. It doesn’t do someone a lot of good if they’re sending deals under someone else’s name.” Merix has also taken on a role in educating and training agents, not so much in terms of product and policy, but on ways to build their book of business. “For example, over the past year we’ve been trying to educate people about the effects the economy has on their business and how to work through it.”

The Merix way When Merix works with the agent submitting the loan application, they don’t demand minimum volume requirements or have them send deals through a pool or a hub. “We’re not a big fan of pooling volumes. It just doesn’t work from an efficiency perspective,” Bozic said. “It’s easier for us to manage efficiencies and really believe that it helps out the originator in the long run. We think it’s better for the industry. Merix works with originators, making sure they understand the lending criteria to ensure that both parties are operating an efficient business. “We’re not going to except business from someone who collapses deals or just ends up getting a lot of declines because they don’t understand what a Merix deal is.”

Trailer fee talk In June, Merix will have originated $10 billion in mortgages since its inception and this year alone they’ll be paying over $3 million in trailer fees. “When we pay compensation, we pay trailer fees,” Bozic said. “When we talk about being supportive and being out there and helping originators build a book of business, we’re actually delivering. We’re not just talking about it, we’re actually delivering it.” It is more costly to pay trailer fees but Bozic believes it is a niche market. “Unless a relatively small or new lender comes out paying trailer fees, I think it’s still going to be a niche market, which is why it’s important to diversify your revenue stream. Merix doesn’t believe that 100 per cent of the originators revenues should not be in upfront because they are not building for the future or adding value to their business. “That’s what we’re talking about when we talk about helping originators build a book of business that has ongoing value, we’re not talking about value in a theoretical sense, we’re talking about real dollars and real cents here, real money,” Bozic said. “We’re helping them build a business and not just a job.” CMP

Boris Bozic

Benefits Merix Financial takes pride in helping agents build their own business. The lender has really started selling and marketing their concept to originators, which involves having the compensation structured so that an agent’s book of business creates ongoing revenues. “The benefit to agents developing a direct relationship with us as a lender will help them

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Profile Brokers

a passion for the

mortgage industry

With a perspective that includes working on all sides of the real estate transaction, Mark Kerzner talks about his passion for the industry, the people in it and hockey.

ark Kerzner has a unique perspective on the mortgage industry. The president and chief operating officer of TMG The Mortgage Group Canada Inc. has worked on all sides of the real estate transaction: On the lender side, the brokerage side and even the Realtor side. Add to that his early ventures as a history teacher, and an entrepreneur who operated a sports-oriented business before chucking it all and returning to the Rotman School of Management in Toronto to get his MBA, Kerzner has the background and the drive to take TMG to the next level of success. TMG is a pioneer in the mortgage industry and is celebrating its 20th anniversary this year. That is a rare accomplishment in an industry

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Profile Brokers

that is so new. The decision to bring Kerzner in to lead the company was not a difficult decision for co-owners Grant and Debbie Thomas. “Mark is very bright and is able to see the industry from all perspectives,” says Debbie Thomas. “He is a strategic thinker who is adding new programs and products that will help brokers excel in the marketplace.” Thomas also mentions Kerzner’s strong sense of ethics and values which are evident in his day-to-day dealing with the company’s brokers. “Kerzner came recommended to us and it was his passion for the industry and his core values that made him the best person for the position.” Kerzner started out as a high school history teacher but during the mid-90s, the field was saturated with teachers so he made a decision to take his passion for helping people to a business domain, and start selling real estate. Interestingly it was with one of the country’s first discount brokerages, Savvy Realty, who offered 3.5 per cent commissions on sales. Although discount Realtors were unpopular at the time among other agencies, Mark did quite well at it. More importantly he enjoyed the interaction with customers. “We had a busy office,” he says. “We may not have made a lot of friends with our competitors but we had a lot of customers and they appreciated what we were able to do for them.” At the same time he co-founded a sportsfocused company (PSA Publishing Limited), not only because he had a strong entrepreneurial bent, but because he is a hard core sports fan – mostly hockey. Kerzner had a lot irons in the fire and decided to reel himself in. He made the decision to go back to school and get his MBA. “Professionally, going back to school full time after a successful business launch and a career in real estate was the biggest risk I ever took.” So Kerzner attended Toronto’s prestigious Rotman School of Management at the University of Toronto and has never looked back. After earning his MBA, his new career started at CIBC Mortgages as its Director of Corporate Development. Then Kerzner moved over to FirstLine Mortgages heading up sales and marketing. Then in 2006 he went over to Paradigm Quest as the EVP of Corporate Development and then as EVP, Operations and was instrumental in growing the company. In the meantime TMG was expanding across the country attracting many high-quality brokers. With its roots in British Columbia, the company expanded into the rest of Western Canada about five years ago, then to Ontario and most recently

Atlantic Canada. With this tremendous growth and changing industry dynamics it decided it needed to inject fresh blood to help. When the Thomas’ were searching for someone to take the helm at TMG to take it to the next level, Kerzner’s name came up. In the fall of 2009, Kerzner joined TMG and is humbled by the opportunity. “I have so much to be grateful for. I have a wonderful family and work in a tremendous organization in the most rewarding business in Canada.” The job is not without its challenges. “The biggest challenge we face, here at TMG and as an industry, is for us to break through the barrier of current perceptions that consumers have about us,” explains Kerzner. “Brokers offer the best value to Canadian mortgage consumers, full stop. We have to make it simply obvious for them to choose to work with brokers as opposed to dealing with their banks directly.” During the time Kerzner worked for lenders he developed a deep respect for brokers and the work they do. It was also a great opportunity for him to work with strong and talented executive leadership teams, which taught him so much. In his current position at TMG, where he now works for the other side, he says he is in some way taking that perspective, knowledge and experience and giving it back to his company’s brokers. “TMG has had phenomenal success and I am committed to promoting our brand, with a strong focus on helping our brokers attract and keep customers.” A big part of the growth of TMG is also its ongoing ability to attract top-notch agents and brokers to the company. Kerzner’s strategy is to come up with new initiatives, new products and developing strategic partnerships. He also stays in touch with his agents in the field. “Face-to-face interaction and open two-way communication is critical to creating the type of company culture where everyone can grow and prosper.” Kerzner describes himself as family-focused, committed, an advocate for customers and appreciative to an industry that he just loves. He has three children, which keeps him busy after hours. They have followed his love for sports and are all active in after-school activities. What would Kerzner do if he wasn’t in the mortgage business? “I was born and raised in Toronto – I can’t help it but I am a die-hard Leafs fan. My dream job is to be the general manager of the Toronto Maple Leafs. As much as I love this industry, if that opportunity arises, I might just have to take it.” CMP

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Guest Column

With all the issues facing the industry today, it’s difficult to determine how to prioritize them. Lisette Amalfi discusses these issues and what can be done about them

The issues we face as an industry can be overcome

I then asked the 15 agents to narrow this list down, to decide which was No.1 on the list. As a group we couldn’t do that. They all are important issues we have to deal with and consider in our business and we have often debated many of these issues. s a principal broker, I regularly hold If we were to Lisette Amalfi meetings with our agents to discuss relevant overcome the biggest mortgage issues. When asked to write this column issues facing the mortgage industry right now, I felt I could get excellent feedback from our group where would we be and most specifically where of agents, whose industry experience ranges from would we be in the eye of the consumer and/or the just three months to close to 20 years. The question lender? Without the consumer this industry would I asked was, “What is the biggest issue facing the not exist. Without the broker-friendly lender we mortgage industry right now?” would have nothing to offer. Will we gain more of I wanted to get consensus on one topic, the their trust? Will we increase our market share? biggest one, the one that matters the most. It I believe that if we are dedicated to overcoming didn’t happen! Each agent shared a different the issues we encounter on a daily, weekly or idea of what they perceived as the important monthly basis; if we respect and work closely issue today and what it could be in the future; with our lending partners; if we continue to perhaps more so, the issues they were personally have the opportunity to offer consumers struggling with. competitive rates and products specific to their These were their responses are in no needs; if we choose not to participate or entertain particular order: fraud in our industry; if we follow and support legislative guidelines, which I believe will create a • Tightening of lending guidelines strong and an accountable industry; if we practice • Staying on top of the ever-changing rates integrity and abide by the ethical standards set by • Industry fraud our associations; if we continue to fight to get the • Understanding the legislative rules, regulations deals we believe in, done; and if we continue to and governmental changes make every effort to get our message out to the • Are we fighting harder to get the average consumer that we are specialized in the world of deal done? mortgage, then I truly believe we will increase our • Media misrepresentations confusing consumers market share. • Constant changes to lenders’ guidelines and the In a sense we are similar to both the insurance communication of these changes and real estate industries, which had huge • Competition with the “Big 5” branch networks credibility issues, but worked diligently to get • The current “credit crunch” consumer recognition and build consumer trust. If • The uncertain economic climate we stay focused on all the issues, big or small, then • Variable versus fixed we will be well on our way. CMP • Lender loyalty Lisette Amalfi is the broker/owner at Mortgage • Volume and finders’ fees Alliance, OAC Mortgages Inc. in Dundas, Ont. • Consumer confidence

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Products What’s New

Here is a roundup of some of the latest products of interest for those working in the mortgage industry Help your clients pay off mortgage United First Financial has introduced the Money Merge Account program that may help clients achieve their financial goals. The software system uses an interest cancellation strategy that will show clients how to reduce debt and create wealth. The key to the program is to help educate consumers about financial matters. Included in the program is information about budgeting, and online software that helps clients understand their finances, along with toll-free client support. To see how a client may benefit, the program analyzes current income, debt and mortgage information and comes up with a projected payoff date and shows the total amount saved in interest. The accounting firm of Ernst & Young awarded United First Financial its Entrepreneur of the Year for 2008 in the Financial Service Industry in Utah, U.S. The program was also noticed by the publishers of Personal Real Estate Investors magazine who awarded the company the Editor’s Choice Award, also in 2008. For more information contact Gazel Chamberlain (Jibb) at 1-866-313-4257 or via e-mail at gazel@i-zoom.net or visit www.u1stfinancial.com/gazel Get your commissions early So, you’ve submitted all your documents for an approved deal with a closing date in 90 days. All your paperwork has been filed with your broker and you wait to be paid. Now, Advance Commission Company of Canada, for a fee, will advance 100 per cent of your commission, prior to closing. The company has worked with Realtors such as Century 21 Canada, Homelife Realty Services and GMAC Real Estate, Re/Max, Prudential, Royal

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LePage, Coldwell Banker and many others. There is no credit application, approvals are instant and deposits are made to your account on the same day they are requested, as long as all the paperwork is in order. If a deal falls through, the agent will remit the amount back on their next confirmed sale. For more information visit advancecommissions.ca or via e-mail at info@advance-commissions.ca. Do you know who you’re dealing with? Whether it’s a background check on the purchaser on a million-dollar deal, or a property check or making sure a suspicious buyer is telling you the truth, Quinn Investigations can help. The company has 15 investigators on staff who are experts at getting information and talking to the right people. “We work for a lot of stakeholders including brokers, agents, banks, and title companies, whether it’s doing due diligence upfront or finding a person who hasn’t made a first payment on a million-dollar deal,” said John Bertuzzi, vice-president. Bertuzzi worked in the insurance industry for 21 years and worked as a mortgage agent as well. His partner Rick Quinn worked as a civilian in investigations with police departments in the U.K. before coming to Canada where he eventually opened Quinn Investigations in 1991. Through three divisions: Insurance Research, Surveillance Investigations and Investigative Services, the company offers a full service to its clientele which includes national insurers and Fortune 500 companies. For more information call 1-877-784-6674 or visit www.quinninvestigations.cvom. CMP

service directory

Banks

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Page 29

Bridgewater Bank www.bridgewaterbank.ca Ph: 1 888 837 2326 Page 9

CreditCRM

Credit CRM www.creditcrm.ca/cmp Ph: 1 877 256 8162 Page 23

Broker Networks

HomEquity Bank www.homequitybank.ca Ph: 1 866 522 2447 Page 25

Macquarie Financial www.macquariefinancial.com Ph: 1 877 462 3788 Page 47

National Bank www.nbc.ca Ph: 1 888 483 5628 Page 31

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Page 11

Resmor Trust Company www.resmor.com Ph: 866 809 5800 Page 39

TD www.tdfinancingservices.com Ph: 866 694 4392 Page 21

Centum Financial Group Inc. www.centum.ca Ph: 1 604 257 3940 Page 5

Dominion Lending Centres www.DominionLending.ca Ph: 1 888 806 8080 Page 43

Get er Done Girls www.geterdonegirls.com Ph: 866 442-5333 Guide Page 8

Non-Bank Lenders

Capital Direct www.capitaldirect.ca Ph: (780) 868-0550 Page 18

Street Capital www.streetcapital.ca Ph: 877 416 7873 Page 27

Concentra Financial www.concentrafinancial.ca Ph: 1 800 788 6311 Page 40

Timbercreek Mortgage Investment www.timbercreekfunds.com Ph: 416-306-9967 Guide Outside Back Cover

Equitable Trust Company www.equitabletrust.com Ph: 1 866 407 0004 Page 45

The Money Source www.mymoneysource.ca Ph: 416 699 2274 Guide page 13

Greenwood Mortgage www.greenwoodmortgage.ca Ph: 1 866 826 4499 Guide Inside Back Cover

INVIS www.invis.ca Ph: 1 866 854 6847 Pages 16 and 17

Mortgage Intelligence www.mortgageintelligence.ca Ph: 1 877 667 5483 Pages 16 and 17

Insurance

FirstLine Mortgages www.firstline.com Ph: 1 800 387 2020 ext. 6044 Inside Back Cover

Canada Guaranty Mortgage Insurance Company www.canadaguaranty.ca Ph: 1 866 414 9109 Page 19

Home Loans Canada www.hlcmortgages.ca Ph: 1 866 452 1821 Inside Front Cover

Genworth Financial Canada www.genworth.ca Ph: 1 800 511 8888 Outside Back Cover

OMJ Mortgage Capital Inc. www.omj.ca Ph: 905 482 9393 Page 30

RMAI Financial Group www.rmaifinancial.com Ph: 1 866 955 7624 Page 35

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service directory

Commercial Lenders

ROMSPEN investment corporation www.romspen.com Ph: 1 800 494 0389 Page 1

The Mortgage Centre Canada www.mortgagecentre.com Ph: 1 800 423 0107 Page 3

Services

Technology/Software

The Mortgage Group www.mortgagegrp.com Ph: 877 899 1024 Page 7

Applied Business Software www.themortgageoffice.com Ph: 1 800 833 3343 Page 15

GoMax Solutions www.gomaxsolutions.com Ph: 1 877 492 5164 Page 8

Trytek Mortgage Partners (Family Lending) www.familylending.ca Ph: 866 941 6678 Guide page 6

Real Estate and Mortgage Institute of Canada www.remic.ca Ph: 1 877 44 REMIC Page 53

Best Points Travel www.bestpointstravel.com Ph: 1 800 551 8786 Page 48

Eprintagent.com info@eprintAgent.com Ph: 1 888 907 5550 Page 61

Tax-Deductible Mortgages

VERICO www.verico.ca Ph: 1 866 983 7426 Page 13 & Guide Inside Front Cover

TDMP.com www.tdmp.com Ph: 1 866 500 8886 Page 55

John Wiley&Sons www.peterkinch.com Page 26

Real Estate

Verico The Mortgage Practice Inc careers@vtmp.ca Ph: 905 458 4222 Page 12

Western Mortgage Services Inc.

Maximize your options let our negotiating powers save you money!

Purchases•Refinances•Mortgage Renewals Mortgage Transfers•Home Lines of Credit

Canadian National Association of Real Estate Appraisers www.cnarea.ca Ph: 1 888 399 3366 Page 41

For service directory listing please contact Trevor Biggs: trevor.biggs@kmimedia.ca

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Accredited Mortgage Professionals. Proud Members Of: +Canadian Association of Accredited Mortgage Professionals +Alberta Mortgage Broker Association Yousra Jomha.AMP +Better Business Bureau 403.652.1997 +Canadian Mortgage Professional (CMP)

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Please contact Andrew Davies at 416-644-8740 x232 andrew.davies@kmimedia.ca

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Homeownership is often the biggest investment of a lifetime, so itâ&#x20AC;&#x2122;s important to educate your customers about the various costs of homeownership. Make sure they understand all the available mortgage options, the impact of rising interest rates and that purchasing within their means are the keys to success. We provide easy to understand homebuyer information about purchasing responsibly at www.HomeownershipHelp.ca

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