CMP 11.01 by Key Media

HOT LIST

MORTGAGEBROKERNEWS.CA ISSUE 11.01 | $12.95

Who brought the heat to the Canadian mortgage industry last year?

CORPORATE RETREATS Smart investment or waste of resources?

00_OFC-SUBBED.indd 2

BUSINESS-FOR-SELF Why you canâ&#x20AC;&#x2122;t afford to ignore this growing market segment

SAFETY NET How title insurance can save your clients thousands

28/01/2016 5:45:08 AM

8:15 AM

ISSUE 11.01

CONTENTS

22 THE

HOT LIST COVER STORY

Meet the 40 men and women who took the Canadian mortgage industry by storm in 2015

License # 10172

WHEN OTHERS SAY ‘‘NO WAY’’ WE SAY ‘‘HERE’S HOW’’. Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $1.5 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M. Blake Cassidy 800 494 0389 or Sylvia Demirdjian 1 514 972 5933 | www.romspen.com

www.mortgagebrokernews.ca DATE:

IFC-03_Contents-SUBBED.indd 1

JANUARY 18, 2016_4:30 PM

LIVE: 7.5” x 2.875”

TRIM: 8.25” x 3.625”

AD NUMBER: ROM CMP 16 01

COLOUR: CMYK

AD / JOB TITLE: HERE’S HOW

CLIENT:

PUBLICATION / RUN DATE: CMP / JAN, FEB, MAR 2016 ISSUES

CREATIVE TEAM: BENSIMON/PARKER

BLEED: 8.75” x 4.125”

ROMPSEN 28/01/2016 7:21:36 AM

ISSUE 11.01

CONNECT WITH US Got a story or suggestion, or just want to find out some more information?

CONTENTS

twitter.com/CMPmagazine plus.google.com/+MortgagebrokernewsCa facebook.com/MortgageBrokerNewsCA

UPFRONT 04 Editorial

PEOPLE

Dissecting the Bank of Canada’s latest rate decision

06 Statistics

New construction looks ready to soar in 2016

08 Head to head

Are lenders being too rigorous in verifying down payment sources?

BROKER PROFILE

It took decades of working at a big bank to convince Enza Venuto that independence was the way to go

10 News analysis

Does FICOM’s proposed fee disclosure rule unfairly target brokers?

12 Commercial update

The good times may be over for commercial real estate

14 Broker network update FEATURES

TOO BIG TO IGNORE

Shut out by the banks, business-for-self clients represent a growing opportunity for brokers FEATURES PEOPLE

INDUSTRY ICON

Steve Ranson explains how HomEquity Bank is making reverse mortgages more userfriendly for brokers

THE WINTER OF DISCONTENT

How title insurance can protect your clients from a host of unexpected snafus

16 Opinion

How to capitalize on a celebrity endorsement

PEOPLE 55 Career path

Blogging put David Larock on the mortgage industry map

56 Other life

Hitting the slopes with Donald Greene

18 FEATURES

CORPORATE RETREATS

Investing in a getaway for your leadership team could pay dividends – if you plan it correctly

Gary Mauris opens up about DLC’s acquisition of Mortgage Architects

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

www.mortgagebrokernews.ca

IFC-03_Contents-SUBBED.indd 2

28/01/2016 7:21:52 AM

IFC-03_Contents-SUBBED.indd 3

28/01/2016 7:22:12 AM

UPFRONT

EDITORIAL

www.mortgagebrokernews.ca ISSUE 11.01 EDITORIAL

Watching the rate

here are eight days each year that brokers, wealth professionals, journalists and various other industry players look forward to with bated breath – eight days when we know we will have something to talk about, dissect, discuss and (at least for journalists) spill a whole lot of ink over: the Bank of Canada’s overnight rate announcement. January 20 was one of those days. Gone is the time when the Bank of Canada went years without budging on its benchmark rate. The central bank ended that era in style last year by surprising millions of people with a rate cut, lowering the long-held 1% rate to 0.75% on January 21, 2015.

“Even if they had cut the overnight rate by 25 basis points, it wouldn’t have followed through fully to the mortgage market” That rate, of course, held until July 15 of last year, when the bank dropped it once again by 25 basis points. And there it will stay once again, as of January 20, 2016 – despite many calls for the bank to lower it even further. So what does the decision mean for brokers? Not much, it would seem – at least as far as mortgage rates are concerned. “I do think that mortgage rates have likely bottomed; even if they had cut the overnight rate by 25 basis points, it wouldn’t have followed through fully to the mortgage market,” says Dr. Sherry Cooper, chief economist for Dominion Lending Centres. “I don’t expect rates to change a lot in the next year; they may edge up a bit, but not much.” While there might not be much to dissect about this specific rate decision – at least compared to the one that was made almost a year ago to the date – there is always another one around the corner. What will the bank choose to do with its target on March 9? It’s anybody’s guess. The team at Canadian Mortgage Professional

SALES & MARKETING

Senior Writer Justin da Rosa

Associate Publisher Trevor Biggs

Writers Olivia D’Orazio Donald Horne

General Manager, Sales John Mackenzie

Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Kevin Babin Nikki Fogden-Moore

ART & PRODUCTION Design Manager Daniel Williams Designer Loiza Caguiat Production Manager Alicia Salvati Traffic Manager Kay Valdez

National Account Manager Trevor Lambert Marketing and Communications Claudine Ting Project Coordinator Jessica Duce

CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global CEO Mike Shipley Global COO George Walmsley

EDITORIAL INQUIRIES

justin.darosa@kmimedia.ca

SUBSCRIPTION INQUIRIES

tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca

ADVERTISING INQUIRIES trevor.biggs@kmimedia.ca

KMI Media 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, Sydney, Denver, Auckland, London, Manila CMCA AUDITED

Canadian Mortgage Professional is part of an international family of B2B publications and websites for the real estate and mortgage industries MORTGAGE PROFESSIONAL AUSTRALIA sam.richardson@keymedia.com.au T +61 2 8437 4787

MORTGAGE PROFESSIONAL AMERICA cathy.masek@keymedia.com T +1 720 316 0151

4 www.mortgagebrokernews.ca

04-05_Editor's Letter-SUBBED.indd 4

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss

28/01/2016 5:56:25 AM

04-05_Editor's Letter-SUBBED.indd 5

28/01/2016 5:58:17 AM

UPFRONT

STATISTICS

Build, baby, build!

CONSTRUCTION GROWTH IN CANADA At the end of 2015, construction starts were down in British Columbia and Quebec, where strong growth in previous months finally tapered as buyers took possession of their new homes. However, much of the rest of the country still saw double-digit year-over-year increases, and, countrywide, housing starts were up 10%.

New construction has an obvious impact on brokers’ business – and the thriving market shows no signs of slowing

MORTGAGE LOANS for new construction properties can be difficult to arrange. The challenge becomes even greater when you consider that first-time buyers and real estate investors are the ones who tend to scoop up these properties. But mortgage brokers need to be prepared for whatever deal comes their way – and right now, new construction is hot. The market for new builds is impacted by a number of factors. For starters, a higher

inventory of new-build projects in the past generally yields fewer starts as buyers take possession of the since-completed properties and builders re-evaluate the market. Jobs data – particularly unemployment figures – also plays a part, as people with a regular income are more likely to purchase homes. Finally, property price determines whether a buyer will choose a resale property or a brand new one.

British Columbia

Alberta

2,173 NOV 2014 2,414 10% NOV 2015

Number of storeys in Canada’s tallest residential building

$7.7 billion Total value of building permits issued in October 2015

Increase in new construction units in Canada between November 2014 and November 2015

4.8%

The increase in resale units in Canada from October 2014 to October 2015

NOV 2015 NOV 2014

3,428 3,079 11%

Sources: CBC, Statistics Canada, CMHC, CREA

MANY INVESTORS GO FOR PRE-SALE

UNEMPLOYMENT MEETS CONSTRUCTION

Number of pre-sale units purchased

There’s an undeniable relationship between construction starts and employment, as people with jobs are more likely to buy new homes. But last year, construction starts rose almost every month, even as the unemployment rate inched up.

None: 56.3% One: 27.2% Two: 5.9% Three or more: 3.0%

While a majority of condo owners purchasing a secondary unit preferred resale, a large number took advantage of new construction projects. According to a CMHC survey, more than 36% of investors purchased at least one pre-sale secondary unit.

Source: CMHC Condominium Owners Survey, May 2015

20,000 7%

15,000 10,000 5,000

No answer: 7.6%

Unemployment rate 8%

Construction starts 25,000

Jan

Feb

Mar April May

Jun July 2015

Aug Sept

Oct

Nov

Sources: CMHC Housing Starts in Canada, January through November 2015, and Statistics Canada Labour Force Survey, January through November 2015

www.mortgagebrokernews.ca

06-07_Statistics-SUBBED.indd 6

28/01/2016 6:02:39 AM

Saskatchewan

555 NOV 2014 554 NOV 2015

flat

Manitoba

298 NOV 2014 276 8% NOV 2015

Ontario

7,498 NOV 2014 5,039 49% NOV 2015

Quebec

New Brunswick

2,859 NOV 2014 3,844 26% NOV 2015

182 NOV 2014 166 10% NOV 2015

Nova Scotia

258 NOV 2014 279 8% NOV 2015

PEI

Newfoundland

38 NOV 2014 29 31% NOV 2015

120 NOV 2014 134 10% NOV 2015

Source: CMHC Preliminary Housing Start Data, December 2014 and December 2015

HOUSE PRICES STILL TRENDING UP The purchase price of a new home (and the mortgage that goes with it) increased year-over-year in most Canadian cities. Notable exceptions were Ottawa and Vancouver. $1,500,000 September 2014 September 2015 $1,000,000

FIRST-TIMERS PREFER RESALE A staggering majority of first-time homebuyers prefer resale properties, making the mortgage application slightly less complicated for their brokers. Still, a fifth of first-timers in Canada opted for new construction – a trend that’s likely to pick up steam.

20%

$500,000

First-time homebuyers who purchased new construction

Ca lga r Ed y mo nto n Ha lifa x Mo nc ton Mo ntr ea l Ott aw a Qu eb ec Re gin a St. Jo hn Sa ’s sk ato on Tor on Va to nc ou ve r Vic tor ia Wi nn ipe g

Source: CMHC Housing Information Monthly, October 2014 and October 2015

80%

First-time homebuyers who purchased resale Source: Genworth Canada, April 2015

www.mortgagebrokernews.ca

06-07_Statistics-SUBBED.indd 7

28/01/2016 6:02:50 AM

UPFRONT

HEAD TO HEAD

Should lenders verify a down payment source? Enough is enough, argue some industry players, as lenders increasingly request proof of the source of a down payment

Michele Hall

Jim Tourloukis

Sean Binkley

Mortgage agent Mortgage Intelligence

President Verico Advent Mortgage Services

Mortgage broker Key Mortgage Partners, Dominion Lending Centres

“Lenders do have the right to ask, and they do because of money laundering and fraud. Still, sometimes I think it’s gone too far. A cheque or proof of transfer should suffice as confirmation of a down payment as a gift. You don’t need to do background checks on the gift-giver unless there are red flags. I think you have to use your judgment. We as brokers have to keep in mind that the clients who deal with their banks won’t have to provide the same amount of confirmation because the bank can look at account history and verify internally, and as brokers, we don’t have the ability to do that. We have to take that extra step.”

“The lenders have the right to ask for whatever documentation they want because they’re lending their money. They set the rules of what they want to see. Basically, they’re trying to get at this anti-money-laundering issue. That’s what they’re trying to prevent; they want the money to come from legitimate sources. I don’t think it’s unreasonable. The good news for us brokers is we have multiple lenders we can deal with. If we’re not comfortable with some of the policies, we can move on. We have so many lenders to deal with that not one lender can dictate the policies of the industry.”

“Absolutely. Verifying the source of a down payment is nothing new. What’s been happening lately, though, is lenders are asking for a second tier of verification when the down payment is gifted. So if mom and dad are gifting a down payment, some lenders request proof of that gift through 90 days of transaction history on mom and dad’s account. Ultimately, lenders cut the cheque, so they have to mitigate the risk. Until we share in the loss, we don’t have much say in underwriting conditions for lending money that’s not ours. If we don’t like it, we [can switch] to a lender that we feel puts fewer roadblocks in the process.”

TOO MANY QUESTIONS? Amid reports of fraud and money laundering, many lenders are asking borrowers to disclose the source of their down payment. That’s nothing new, but some lenders are taking that one step further, demanding proof by way of exhaustive transaction history – even if the down payment was gifted. Some mortgage brokers acknowledge that’s well within a lender’s right – it’s their money, after all – but others believe it’s gone a bit far. What’s more, brokers are increasingly frustrated at the double standard this presents. Bank reps can easily verify a down payment’s source, while brokers are forced to jump through hoops for the same mortgage deal.

8 www.mortgagebrokernews.ca

08-09_Head to Head-SUBBED.indd 8

28/01/2016 6:11:18 AM

Thank you for 20 years of collaboration! 800.511.8888 | Genworth.ca | Homeownership.ca |

08-09_Head to Head-SUBBED.indd 9

Genworthsmartshopper.ca | Genworthmobile.ca

28/01/2016 6:11:21 AM

UPFRONT

NEWS ANALYSIS

Brokers may soon learn their fate FICOM’s window for comment on the pending disclosure rule change is drawing to a close, meaning brokers will likely know soon whether it will go into effect

BROKERS HAD hardly finished digesting their holiday dinners before an influx of news gave them something new to chew on. One major story was that FICOM, British Columbia’s regulator, had finally broken its silence regarding its proposed disclosure rule changes. FICOM issued an open letter to the industry, encouraging broker comment before it officially changes its interpretation of Form 10, which would require mortgage documents to explicitly state how much brokers are compensated. “FICOM welcomes ongoing discussion with you on these and other important issues and questions,” the letter read. “This will help

says the invite is strictly political and that FICOM’s decision has already been made. “The tone of the letter makes it seem as though FICOM is merely ticking a box that requires them to ask for industry feedback before the change can officially be implemented,” the source says. And while that may be a pessimistic view, the source – who is close to the situation – says the industry will not take the change lying down. “I know there are many high-level mortgage professionals who are exploring political avenues to ensure our voices are heard,” the source says.

“Studies have been done that show compensation disclosure actually confuses clients ...” Dustan Woodhouse, Dominion Lending Centres Canadian Mortgage Experts us ensure that the interest of consumers, [the] industry and FICOM are appropriately balanced in our regulatory requirements.” However, while FICOM says it welcomes broker industry input, one veteran – who spoke with CMP on condition of anonymity –

FICOM’s letter, which was sent to CMP by a FICOM representative, explains its proposed plan to require brokers to disclose, in dollar terms, commission and volume bonuses earned on deals, as well as other rewards the broker might earn from the lender. It also

explains the reasoning behind the additional disclosure requirements. “A declaration that the broker is paid by a lender does not go far enough in describing, in a meaningful way, the interests that the broker and related parties receive from the transaction,” FICOM wrote. “It masks the nature of those interests and keeps them hidden from the consumer.” The regulator went on to explain that the changes are a pre-emptive measure. “FICOM’s primary job is to anticipate risks and take action before they can become problems for the public and the economic well-being of the province,” the letter stated. “We take that assignment seriously.” Although FICOM says it’s acting in the best interest of clients, not every industry player sees it that way.

www.mortgagebrokernews.ca

10-11_News Analysis-SUBBED.indd 10

28/01/2016 6:13:50 AM

ARE BROKERS WORRIED ABOUT THE DISCLOSURE RULE CHANGE? MortgageBrokerNews.ca recently conducted a poll to determine what percentage of readers are worried about the change; slightly more than half of those polled said they were concerned.

Unsure

Yes

15%

56%

29%

“There’s a long list of potential influences … Do you really think the consumer is adequately protected?” Blair Anderson, Anderson and Associates “Studies have been done that show compensation disclosure actually confuses clients, and they often end up paying more as a result,” says Dustan Woodhouse, a broker with Dominion Lending Centres Canadian Mortgage Experts. “The regulator says it is acting in the consumer’s best interest, but it is operating in a vacuum that only allows them to impact mortgage brokers. They should realize equal disclosure rules across the industry are what is in the client’s best interest.”

Obviously, FICOM has no jurisdiction over the big banks – something Woodhouse acknowledges – but it could, perhaps, hold off on making a decision that will impact only one sector of the industry until similar requirements are passed across the board. “Bank branch staff are paid tiered commission, which doesn’t have to be disclosed; they are also paid additional revenue for crossselling products that may or may not be in a client’s best interest,” Woodhouse says.

And many brokers will point out that compensation tied to selling specific products would entice bank specialists to encourage clients to purchase such products, even if they don’t need them. Still, Woodhouse and many others are sympathetic to FICOM’s efforts. “Anyone who thinks the regulators’ efforts to protect the consumer are easy or misguided should spend a few days in their shoes; look no further than the number of complaints they receive each year,” says Blair Anderson of Anderson and Associates. “I think FICOM’s open letter does an adequate job of describing the risks, or conflicts of interest, associated with our industry. There’s a long list of potential influences on the mortgage intermediary: tiered pricing, volume bonuses, proprietary points, non-monetary rewards, business partners/relationships, to name a few. Do you really think the consumer is adequately protected?” Anderson suggests all mortgage brokers and agents get involved by contacting FICOM and their respective industry associations to share their concerns. “Changes are coming,” Anderson says, “and it is up to us to provide the necessary feedback so FICOM and other regulators can achieve the balance they are looking for.”

www.mortgagebrokernews.ca

10-11_News Analysis-SUBBED.indd 11

28/01/2016 6:14:58 AM

UPFRONT

COMMERCIAL LENDING UPDATE NEWS BRIEFS

Broker offers advice for breaking into commercial

There is one pitfall all eager commercial newbies should avoid, according to one veteran.“A lot of brokers’ first commercial deal is a storefront with an extra apartment, and most have no trouble with those,” said Dale Bilton, president of Dominion Lending Centres Commercial and Residential Mortgages. “They get comfortable and cocky, develop a premature confidence and sometimes try to take on tougher deals that don’t go so well. That often results in mistakes, and lenders remember how unprofessional they look; they can scar themselves for life.”

Lenders look to increase commercial real estate allocation

CBRE released a survey in December that found 73% of lenders plan to increase their allocation in commercial real estate in 2016. “Favourable debt terms are spurring greater interest in investing in commercial real estate,” Carmin Di Fiore, executive vice president of CBRE’s debt and structured finance group, said in a release. “If you go to the source and follow the money, you have a good idea of what to expect in the year ahead. Economic volatility and a possible US interest rate hike make Canadian lender sentiment even more critical as we head into 2016.”

Certain brokers to benefit from commercial boom

A comprehensive industry survey suggests lenders are still bullish on the Canadian real estate market, but the focus going forward will be on specific cities. The study found that 80% of lenders have a strong desire to lend

in the Greater Vancouver Area, and 77% have a strong desire to lend in the Greater Toronto Area. On the flip side, only 17% of lenders have a strong desire to lend in Victoria, and 37% have a strong desire to lend in the Greater Montreal Area.

MICs help commercial brokers MIC managers can be a boon for commercial brokers because they have more lending tools available to them than the typical private investor, according to Gay Andrews of Caplink Financial Corporation. Those tools include complex deal structuring, mortgage syndication with other private investors and/or other MICs, more flexible mortgage advance schedules, and the ability to meet the growing needs of repeat commercial borrowers. “The scale and dexterity of the average MIC allows managers to be much more creative in solving lending problems,” Andrews said. “That creativity can be a real asset to any mortgage broker trying to facilitate their client’s lending needs.”

Experts forecast strong demand for Vancouver commercial

Industry experts expect the Vancouver market to stay strong, particularly for commercial real estate, in 2016. “In BC, commercial real estate remains healthy overall because the West Coast has always had a certain cachet [for] pension funds, REITs and people who make large-scale investment decisions on property,” Chris Blanchette, Colliers’ managing director of valuation and advisory services, told the Vancouver Sun. “There are basically two kingpin markets in Canada, and that’s Toronto and Vancouver. The other markets are generally good as well, but they’re smaller. And right now, Alberta is off the table.”

Commercial boom coming to an end Are the glory days over for this once-hot segment? Some are signalling the end of the global commercial real estate boom – and Canada is expected to be the hardest-hit country. “The global real estate industry has had a tremendous run,” Avison Young CEO Mark Rose said in a release. “It has been more than six years since the Great Recession. During the steady climb back up, interest rates continued to decline, central banks unleashed quantitative easing, employment recovered, and economies rebounded. The post-recession years have marked a period of rebuilding balance sheets and personal wealth, and relative peace in much of the Western world. The financial and real estate markets appear stable as we begin 2016, but variables now surfacing could undermine short-term prosperity. The year ahead seems to be the waning days of a prosperous cycle – perhaps even a cyclical top in liquidity, pricing and transaction velocity.” Last year was a strong one for commercial real estate, but Avison Young predicts 2016 will be anything but – especially in Canada. “The end of the commodities super cycle, uneven employment growth, disruptive technologies, e-commerce and workplace strategies ... are testing Canada’s otherwise stable commercial real estate sector,” said Bill Argeropoulos, principal and research practice leader for Avison Young. “After entering and exiting a technical recession in 2015, Canada’s economy will endure another volatile year in 2016, leading to disparities in regional performance.” Argeropoulos said the weakened economy that prevailed in 2015 will continue to do so this year. That means a shift toward

12 www.mortgagebrokernews.ca

12-13_Commercial Update-SUBBED.indd 12

28/01/2016 6:17:47 AM

co-working spaces and mobile workforces as companies cut down on costs and try to attract younger employees who value such working arrangements. “The retail sector is something of a chameleon, constantly adapting and transforming as a result of market forces,” Argeropoulos added. “Omni-channel retail is growing exponentially, with retailers streamlining and providing better deals as

“The financial and real estate markets appear stable ... but variables now surfacing could undermine short-term prosperity” pricing trumps brand loyalty and fickle customers comparison-shop instantly using apps. Meanwhile, brick-and-mortar stakeholders are leveraging their geographical reach to remain competitive. “On the industrial front, an established and expanding distribution and logisticsdriven industry and a sustained US recovery will provide upside, and a low Canadian dollar will fuel exports and boost a smaller, but more productive, manufacturing sector.”

Q&A

Michael Nisker

Opportunities, not problems

Managing partner TREZ CAPITAL

Years in the industry 22 Biggest challenge “Ensuring that we deploy our investors’ capital on a judicious basis to ensure that we can maximize return, but structuring a deal in such a way that should we have to realize on that asset, we’re fully protected on the downside”

How are things in the commercial space right now? Things are quite positive. We’ve had a busy start to 2016 in terms of our origination pipeline. Most of what we do is financing of cash flow in commercial assets. I think in today’s environment, where you hear discussions around bubbles in the residential markets, in particular around Vancouver and the GTA, I think there’s more stability in the commercial market than exists in the pure residential market. I think there continues to be an increase in foreign investment in the Canadian market generally, [which applies] to both commercial and residential assets. In general, Canadian real estate markets are seen as safe havens, and you’ve got investors – in Asia, particularly – who are looking for those safe havens. I think it’s a fair comment to say that most assets are fully valued today. In order to create upside, somebody buying an existing commercial asset today needs to have a strategy around repositioning of that asset. Being fully valued is a bit of a doubleedged sword in that regard, but for those who are creative and understand how to reposition assets, there remain opportunities to create incremental value to what otherwise seem to be fully valued assets. Are any challenges or opportunities presenting themselves as we head into the new year? I think one very good example of where there are challenges and opportunities is the Alberta market. The Calgary market in particular – and, to a lesser extent, the Edmonton market – is driven by oil production. There are certainly some weak asset classes in those markets today. What I’d call Class A office space is hurting. The residential housing market is somewhat depressed. So many lenders in our space have sort of red-circled Alberta as a market not to be in. We have a different view of Alberta for a number of reasons. Our business was really built in Alberta, and over time we’ve developed a core group of what are now amongst the largest property owners and developers in their respective classes in the Alberta markets. While others are selling and trying to extricate themselves from those markets, there are developers and property owners, such as our core clients in Alberta, who see opportunities there. What’s the most important thing going on in commercial lending right now, in your opinion? I would say probably the biggest thing lenders have to watch out for in a fully priced market is valuation. Historically, real estate values move in cycles. Canada’s not the only country, but there is less than a handful of other countries, where we’ve been on kind of an upward trend for 15 or 16 years. That’s longer than most real estate cycles. At some point, something will trigger a correction. The Canadian market has been extraordinarily stable … but to think that upward swing will always continue is naive. In the short-term lending business, you always have to keep one eye on an exit strategy.

www.mortgagebrokernews.ca

12-13_Commercial Update-SUBBED.indd 13

28/01/2016 6:18:05 AM

UPFRONT

BROKER NETWORK UPDATE

Inside DLC’s big deal The network’s multi-million-dollar acquisition signifies just how bullish they are on the mortgage industry

(and other lenders) do not,” Mauris wrote. “Instantly there becomes a significant advantage to the banks in Canada as their staff and mobile mortgage sales force start advertising and start saying, ‘Why would you use a mortgage professional and pay a fee when you can get your mortgage through us, and it’s free?’” Despite these concerns, Mauris and Dominion Lending Centres forged ahead with the largest acquisition the industry has seen since DLC purchased The Mortgage Centre in 2013. It was a move that seems to fly in the face of the trend that is sweeping the industry.

“We believe the next five years will be the best five years for the industry” Dominion Lending Centres purchased Mortgage Architects in a landmark multimillion-dollar deal that was finalized at the end of 2015. CMP recently sat down with DLC head Gary Mauris; when asked if he had second thoughts about the deal, considering the potential disclosure changes FICOM has proposed, he barely batted an eye before responding. “There are always changes and challenges in every industry, and there are always going to be regulatory challenges,” Mauris says. “We are bullish on the mortgage space, and

NEWS BRIEFS

we believe the next five years will be the best five years for the industry.” That’s not to say Mauris takes lightly the potential FICOM rule interpretation change (which is examined in more detail in News Analysis on page 10). He recently penned an open letter to the industry, which ran exclusively on MortgageBrokerNews.ca. “Imagine this: FICOM continues with this mandate and regulates that all mortgages originated via the mortgage broker channel have to disclose their exact compensation, where the bank staff and their MMSF

Toronto firm partners with Verico

Toronto’s Dynasty Wealth Management, which seeks to provide clients with mortgages while helping them increase their financial well-being, recently signed on with the Verico network. Owner Douglas Emmanuel cited strategic partnerships with peers in the real estate and finance industries as key components to his success. “We will start with mortgages,” Emmanuel said, “but we will by no means be limited to them. We consider our Realtors and other financial service professionals as valued partners.”

“There has been so much change in the industry at the network level; there has been a lot of downsizing, but we’re going the other way,” Mauris says. “We’re jumping in with two feet.” Indeed, this year promises to be a big one for the country’s largest broker network – DLC recently launched its own insurance brokerage as well. “There are 100,000 new mortgages per year, and every one of them requires a home insurance policy,” Mauris says, noting that the company plans on rolling the offering out to Alberta and Ontario within the first six months of the year.

Dominion Lending Centres acquires competitor

Dominion Lending Centres has finalized its acquisition of Mortgage Architects. The broker network will now boast close to 40% market share and a combined $32 billion in annual mortgage volume. “Dominion Lending Centres is thrilled to welcome Mortgage Architects and its team into the DLC family,” Gary Mauris, president and CEO of Dominion Lending Centres, said in a release. “Since its inception in 2005, Mortgage Architects has been a strong brand in the Canadian mortgage space.”

14 www.mortgagebrokernews.ca

14-15_Network Update-SUBBED.indd 14

28/01/2016 6:19:46 AM

Q&A

Kathryn Grant Director of broker services

The future looks bright for broker networks

CENTUM FINANCIAL SERVICES

Years in the industry 10 Fast fact In addition to serving as Centum’s director of broker services, Kathryn Grant also owns a successful Vancouverbased Centum franchise

How are things looking for broker networks right now? I believe things are exciting. There is a buzz in the air; it’s a new year. We are receiving a lot of inquiries from new and seasoned agents looking at our brokerages.

Is it a good time to be in the space? Yes, it’s always a good time to be in the space; brokering is a very rewarding career. Of course, there are times when it can be challenging and stressful, but at the end of the day, we help our clients out of tough financial situations. We help them acquire their first home and offer many lending products.

What challenges are on the horizon going into 2016? I believe the challenges are always the new rules and regulations that come into play or change. We have to keep up with new terms or new rules in disclosure procedures – but this is all part of the job!

How about the future? How can brokers keep pace with the changes? Numbers don’t lie. More Canadians use mortgage brokers than ever before, so the future is bright. Even with uncertainty in the economy, etc., people will always need homes and professional advice on their financing options – which we as mortgage

Alberta brokerage joins Verico network

Edmonton-based brokerage Mortgage Success has joined the Verico network. “Maintaining the independence of my brand and business is definitely a priority,” says broker/owner Roberta Hardern, “and this network allows me to do that.” Chad Dreyer, Verico regional sales manager for Western Canada, adds, “In Verico Mortgage Success, we see the potential for a lot of growth in the next five years. They will be able to make excellent use of the agent training, Canada-wide networking and member-exclusive tools.”

brokers have. We can keep up with the changes by always being up-to-date with our industry products and looking at new ways of doing things by aligning ourselves with the right people, networks, organizations and leaders.

What’s the most important thing going on in the network space right now, in your opinion? The most important thing going on is tech trends. I know I’m not telling you anything new, but this is so important. Consumers shop online for everything; Internet presence and systems that make it easy for a consumer to use regarding mortgage rates and approvals are so important. I can tell you that Centum’s lead-generation tool, The 15-Minute Mortgage, is one of the tech trends that works and has increased my web presence and funding amounts incredibly.

Are there any greater economic trends particularly affecting the networks or the mortgage industry overall right now? Probably unemployment, and oil prices are not positive – but I am also noticing and hearing that there are more people creating and opening up their own small businesses, which in turn could help the local economy and employment in our own backyard. I’m not an economist – but I am an optimist.

Latest jobs report gloomy on mortgages

Once again, the Canadian economy showed signs of struggle based on the December jobs report, which showed gains only in Ontario; jobs were flat or down in every other province. “We are likely to suffer continued weakness in the Canadian dollar and the underperformance of the Canadian stock market,” said Dr. Sherry Cooper, chief economist for Dominion Lending Centres. “Mortgage rates are rising, and government actions to cool the housing market will also contribute to downward pressure on the economy.”

Broker channel giving back to the community

Giving back is nothing new for DUCA President & CEO Richard Senechal, who once again took part in the Covenant House Sleep Out: Executive Edition in November. The event helps raise funds and awareness for children in crisis who are living on the streets Toronto. “Together with almost 70 Toronto business leaders, we raised over $1 million for the work Covenant House Toronto does in support and prevention,” Senechal said. “I am so proud of what we do, making a difference in the community.”

www.mortgagebrokernews.ca

14-15_Network Update-SUBBED.indd 15

28/01/2016 6:19:53 AM

UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email mortgagebrokernews@kmimedia.ca

The skinny on celebrity endorsements Big-name partnerships often cost a big buck, but it can be well worth it, writes Kevin Babin – if you take advantage of the opportunity

WHEN MOST Canadians hear the word ‘mortgage,’ they immediately think ‘bank.’ This is more common in some regions than others. For instance, those in New Brunswick are more likely to go to a big bank to get a mortgage than those in British Columbia. While there is growth potential for the mortgage brokering industry in your community, no matter where you live, there are still too many homeowners and potential homeowners who don’t understand what we do. Many others don’t even know we exist. A few years ago, Dominion Lending Centres decided a celebrity spokesperson was one way to change that. Love him or hate him, there is no arguing that Don Cherry is an attention-grabber. He is one of the most recognized and colourful figures in this country – and that’s even before he speaks. Cherry wasn’t chosen by Dominion Lending Centres because he’s an expert on mortgages; in fact, he admits he isn’t. He just told people there is help when it comes to getting a mortgage. That advertising campaign did what it was supposed to do: It increased our profile. In the years since the ads first started airing, countless people have said to me, “I know hockey, but I don’t know mortgages.” The campaign increased the basic understanding of our business, but it had another positive impact – clients who sat with us for the first time felt a little more comfortable dealing

with a mortgage broker because of that brand recognition. Branding is crucial to the success of any business. Large corporations such as Coca-Cola, Tim Hortons, Scotiabank and CoverGirl continuously increase their reputations on their brand recognition. Nestle is

broker doesn’t mean our calendars will automatically fill with appointments. But it did give us the opportunity of increased awareness, and many agents took advantage of it. They used Don Cherry’s image in local campaigns. Some put it on their vehicles and business cards; others used it in parades and in community look-alike contests. Others used his distinctive voice on radio campaigns. That opportunity led to more business and increased the awareness of Dominion Lending Centres and its brokers. It’s hard to put a number on how well the campaign worked – not just for Dominion Lending Centres, but for the industry as a whole. No matter what company an agent works for, there is a little more understanding of our industry. But there is more work ahead of us. We have to capitalize on this opportunity to educate Canadians about what we do. Take a minute when you first meet a client to explain how your business works. We have to convince clients that what we’re doing is not unique. Insurance brokers have been doing it for years, and when we want to get insurance for our car, we’ll most likely go to a broker. The insurance

“The campaign increased the basic understanding of our business, but it had another positive impact – clients who sat with us for the first time felt a little more comfortable dealing with a mortgage broker …” currently using Danny DeVito and George Clooney in its Nespresso campaigns. Many companies have used celebrities to get customers’ attention. I think it’s a safe assumption that a celebrity endorsement is not cheap, but you have to weigh that cost against the success of the campaign. Not all brokers at DLC were in favour of the Don Cherry campaign. Some have said that the campaign did nothing for their business. My question to them is: What did you do capitalize on the celebrity endorsement? Just because Don Cherry says homebuyers should speak to a mortgage

industry is constantly reminding Canadians of the service they provide through television advertising – why can’t we? As mortgage brokers, we can’t expect Don Cherry to make us successful. In the end, the product and service have to be good. But a celebrity endorsement can open a door and get us to our goals more quickly.

Kevin Babin is the broker/manager for Dominion Lending Centres in the Maritimes. Prior to entering the mortgage industry, he worked in television news for 25 years, finishing that career with Global Television.

www.mortgagebrokernews.ca

16-17_Opinion-SUBBED.indd 16

28/01/2016 6:33:42 AM

EQB_

PRIME REASONS

Why eqb evolution suiteâ&#x201E;˘ can work for you!

Service Culture

Relationship Benefit

Competitive Rates

For more information, call us today! Ontario

1-866-407-0004

Atlantic Canada 902-880-2843

Western Canada (BC) 1-866-505-6886

Western Canada (AB, SK, MB) 1-866-940-1201 equitablebank.ca

EQB_CMP_Ad_FullPg_10.01.indd 1 16-17_Opinion-SUBBED.indd 17

2016-01-19 1:58 28/01/2016 6:33:47 AMPM

PEOPLE

INDUSTRY ICON

BRINGING IT TO THE BROKERS Reverse mortgages are nothing new to brokers, but HomEquity bank president and CEO Steve Ranson is helping take them to the next level

STEVE RANSON was working for the securitization group of Scotia Capital when he met William Turner, the founder of HomEquity Bank. He was so impressed by Turner’s company and product that he soon found himself in a leadership position at HomEquity. “I met the guy who founded the company, William Turner, when I was pitching him for business,” Ranson says. “He had done some deals, and in my investment banker role, I thought it was an amazing product – the things it does for clients, how it helps them out. One thing led to another, and I ended up joining as chief financial officer, and shortly after became president.”

Broker focus Eighteen years later, one of Ranson’s main priorities today is the broker channel. “For us, the mortgage broker channel is fairly new,” he says. “We really have focused on it in the last six to nine months. We have a program where we’re out educating and training brokers on our product, how it works, how clients can use it.” The bank has seen phenomenal success in its efforts to reach out to brokers. “We certified

over 1,300 mortgage brokers since we started this at the beginning of July of last year,” Ranson says. “Part of it was just an education and certification program. The other thing we did was, it used to be fairly cumbersome for

easily as a first mortgage.” Ranson has identified the channel as a major contributor to HomEquity’s success; he’s hoping it will originate $125 million in direct business through the D+H platform in

“We thought, if this many brokers were calling us and it was difficult for them to deal with us, we needed to make it easier. They can now get a reverse mortgage as easily as a first mortgage” brokers to work with us, but we’re on the D+H platform now.” It’s a far cry from when HomEquity first started originating through the channel. “We were getting a lot of brokers calling us anyway. Our broker business was growing 20% to 30% per year; for a couple years it was our fastest-growing channel,” Ranson says. “We thought, if this many people were calling us and it was difficult for them to deal with us, we needed to make it easier. They can now get a reverse mortgage as

2016, as well as an additional $50 million through the older process, which allowed brokers with interested clients to refer them directly to the bank, bypassing the required educational course. “We would work with the clients and pay the brokers a fee,” Ranson says. “In the new process, the brokers are the liaison with the client.” The reason HomEquity is targeting the broker channel is because the bank believes it is here to stay.

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 18

28/01/2016 6:34:52 AM

PROFILE Name: Steve Ranson Company: HomEquity Bank Title: President and CEO Career lowlight: “Heading into the credit crisis, we relied pretty much exclusively on the securitization market. When the market really seized up, our access to money dried up.” Career highlight: “Becoming a bank really helped us get access to the retail deposit market and lowered our cost of funds, which is a benefit we passed on to customers. It’s had a significant impact on the amount of business we’ve been able to do.”

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 19

28/01/2016 8:51:47 AM

PEOPLE

INDUSTRY ICON STEVE RANSON’S CAREER HIGHLIGHTS

1997 Becomes CFO of Canadian Home Income Plan Corporation (which, at the time, is only available in Ontario and BC) “The market share numbers have been stable for a number of years now, and as the population ages and more people come into the demographic where they’re buying homes, I think the mortgage broker channel will only grow,” Ranson says. “Older people are the ones who are usually married to their banks.”

share of challenges, especially when it comes to reverse mortgages. “The product just isn’t very well-known,” he says. “It’s hard for us to overcome the marketing efforts by other institutions for other products. There is this perception that we are the lender of last resort, and we

“The market share numbers have been stable for a number of years now, and as the population ages and more people come into the demographic where they’re buying homes, I think the mortgage broker channel will only grow” Brokers also do a really good job servicing their customers, Ranson adds. “It’s not that our salespeople don’t, but brokers do an excellent job,” he says. “They help clients move through the process relatively quickly. There are more clients in the channel using the money to buy homes, which isn’t what we usually see.”

Going in reverse HomEquity is doing what it can to help brokers effectively add reverse mortgages to their pool of offerings for clients. “We’re doing what we can to support the industry,” Ranson says. “We’re working with the broker houses to make sure they get the right training. For us, it’s a really great channel, and we think brokers do a great job servicing their clients, so it’s important to us that we service this channel.” Still, Ranson says the bank has its fair

certainly aren’t seeing that in the broker channel. Particularly in that channel, we have a lot of clients who are buying another house. We get people who want to give money to children, grandchildren. There are a lot of things that can be done for income tax management.” However, there are still some common misconceptions about the product, according to Ranson. “Some people believe that somehow we end up owning the house, which never happens,” he says. “The clients always own their house. There is no contractual maturity. The mortgage doesn’t come due in five years or whatever; people can stay in their home as long as they want, and the mortgage only comes due when they want to sell. It’s very client-driven. People are actually using it for more interesting and practical reasons.”

1998 Is promoted to president and CEO

1998 to 2001 CHIP opens for business in all provinces

2002 CHIP goes public on the TSX as Home Equity Income Trust; total assets are $370 million

2009 Home Equity Income Trust becomes HomEquity Bank

2012 HomEquity Bank is acquired by Birch Hill Equity Partners; total assets number $1.3 billion

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 20

28/01/2016 8:52:02 AM

Ready, Set, GO! Looking to get ahead in the mortgage industry? At Mortgage Centre Canada, we offer state of the art tools including Property Valuation System, one-on-one development sessions, monthly webinars and training, constant head office support, access to CRM platform, innovative marketing and social media strategies, and access to a network of mortgage professionals nationwide. We provide the coaching and support that helps you develop a career in the mortgage industry the way you want! Start the New Year off right!

18-21_Industry Icon-SUBBED.indd 21

28/01/2016 6:36:57 AM

FEATURES

COVER STORY: HOT LIST

HOT LIST The 40 movers and shakers who have made waves in the mortgage industry this year

WELCOME TO CMP’s annual Hot List, which honours the industry’s most engaging, most successful and most innovative people. From CEOs and presidents of major lenders to local heroes, these folks are the cream of the crop in the mortgage world. While this isn’t an exhaustive list of the Canadian mortgage industry’s influential players, we’ve narrowed

it down to a group of people we think merit a mention for their stellar achievements. Our picks run the gamut, from brokers boasting hundreds of millions of dollars in closed loans to CEOs whose innovations are helping to change the way mortgage pros do business. But everyone on our Hot List has one thing in common – they’re all reshaping the Canadian mortgage industry.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 22

28/01/2016 6:47:35 AM

HOT LIST 2016

INDEX BY NAME NAME

STEPHEN POLOZ GOVERNOR BANK OF CANADA Appointed as governor of the Bank of Canada in 2013 for a seven-year term, Stephen Poloz also serves as chairman of the bank’s board of directors and a member of the board of directors for the Bank of International Settlements. Last year, Poloz made headlines when the Bank of Canada decided to lower its overnight rate target not once, but twice. In January, he was tapped to chair the BIS Consultative Council for the Americas, a body that facilitates communication between the central banks of countries throughout North and South America. Poloz has more than 30 years of experience in financial markets, forecasting and economic policy, working in both the public and private sectors. In addition to his work at the Bank of Canada, Poloz has held positions with BCA Research and Export Development Canada, where he served as CEO.

DUSTAN WOODHOUSE OWNER DUSTAN WOODHOUSE CONSULTING One of Dominion Lending Centres’ top originators, Dustan Woodhouse is a leader in the key Vancouver market. Woodhouse is the recipient of numerous awards for his work, including repeated appearances on CMP’s Top 75 Brokers list. He’s also the author of Be The Better Broker, which was a number-one bestseller in the real estate category on Amazon.ca.

PAGE COMPANY

Beckette, Michael

Mortgage Alliance

Bozic, Boris

Merix/Lendwise

Bruce, Collin

Dominion Lending Centres Mortgage Mentors

Butler, Dave

Verico Butler Mortgage

Cameron, Michael

Axiom Mortgage

Charania, Alim

Dominion Lending Centres Regional Mortgage Group

Clement-Allen, Adela

Dominion Lending Centres Regional Mortgage Group

Cocciollo, Eddy

Mortgage Centre Canada

Collu, Albert

Mortgage Architects

Conroy, Kevin

Canadiana Financial

De Silva, Ron

RMAI

Desjardins, François

Laurentian Bank

Dreyer, Colin

Verico Financial

Dreyer, Jared

Mortgage Professionals Canada

Eisner, Dan

True North Mortgage

Gale, Samantha

Mortgage Brokers Association of British Columbia

Gascon, Robert

Redwood Mortgage Corporation

Hilson, Mark

Romspen

Howard, Sara

PropertyGuys.com Mortgage

Iriotakis, Elisseos

Safebridge Financial

James, Dustin

Dominion Lending Centres Premier Financial Group

Kerzner, Mark

TMG The Mortgage Group

Kosturos, Dimitri

VWR Capital Corp

Laird, James

CanWise Financial

L’Ecuyer, Nicholas

Verico The Mortgage Wellness Group

Loewen, James

Loewen Group Mortgages

Mauris, Gary

Dominion Lending Centres

McKeough, Janet

Mortgage Brokers Association of Atlantic Canada

Morneau, Bill

Ministry of Finance

Patel, Manzeel

Mortgage Architects

Poloz, Stephen

Bank of Canada

Reed, Kerri

Verico Premiere Mortgage Centre

Singh, Jason

Broker Financial Group

Strandlund, Hali

Fisgard Asset Management

Strong, Cameron

Invis/Mortgage Intelligence

Suepaul, Shane

IMBA

Therien, Paul

Centum Financial

Tzaferis, Marcus

MorCan Direct

Woodhouse, Dustan

Dustan Woodhouse Consulting

Xu, Christine

Mortgage Architects

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 23

28/01/2016 6:48:05 AM

FEATURES

COVER STORY: HOT LIST

MICHAEL CAMERON CEO AXIOM MORTGAGE As CEO of Axiom Mortgage, Michael Cameron leads one of Canada’s premier broker network groups. Cameron has driven innovation at Axiom: In 2014, the company introduced a consumer-facing web portal, a first for the mortgage broker channel. In 2015, Axiom was a finalist for the CMA National Broker Network of the Year Award. Cameron also serves as director of Mortgage Professionals Canada (formerly CAAMP).

DAN EISNER FOUNDER AND CEO TRUE NORTH MORTGAGE Dan Eisner founded one of Canada’s most successful brokerages in the online and storefront spaces. Between 2009 and 2014, True North saw its revenue grow by 454%. In recent years, the company launched a real estate brokerage that exclusively serves its clients in Calgary and Toronto. In 2015, True North ranked 141 on Profit magazine’s list of the 500 fastest-growing businesses in Canada, and was among the top 10 fastestgrowing financial services businesses.

SHANE SUEPAUL PRESIDENT INDEPENDENT MORTGAGE BROKERS ASSOCIATION OF ONTARIO As president of the Independent Mortgage Brokers Association of Ontario, Shane Suepaul leads the organization’s efforts to advance the mortgage industry through public advocacy and consultation with industry regulators. Last year saw the culmination of more than two years of planning and negotiation as IMBA joined forces with other provincial broker associations to form the Canadian Mortgage Brokers Association. In addition to his duties at IMBA, Suepaul serves as the principal mortgage broker with Avanti Financial Services in Pickering, Ont. He has more than 25 years of industry experience, having held senior credit positions with several financial institutions, including Laurentian Bank and Canada Trust.

COLIN DREYER PRESIDENT AND CEO VERICO FINANCIAL Colin Dreyer founded Verico Financial Group in 2005. Since then, he has seen his company gain huge momentum: Today, Verico originates more than $13 billion in loans annually, helping more than 45,000 families with their mortgage needs each year. Previously, Dreyer served as vice president of communications and business development at Invis. He’s also served as president of the Fraser Valley Real Estate Association, director of the Canadian Real Estate Association and BC Real Estate Association, and president of Mortgage Professionals Canada (formerly CAAMP). Dreyer was one of the originating designees of that organization’s Accredited Mortgage Professional designation.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 24

28/01/2016 6:50:46 AM

HOT LIST 2016

BILL MORNEAU MINISTER OF FINANCE DEPARTMENT OF FINANCE Canada’s new finance minister hit the ground running after taking office last year. In an attempt to cool the red-hot housing markets in the country’s major cities, Morneau announced new down payment rules for high-value home purchases – a move that’s proved controversial. Morneau comes to the job with a distinguished record in business and an impressive record of more than two decades of active volunteering in Toronto Centre. Morneau headed up consulting and outsourcing company Morneau Shepell, expanding it to provide stable work for more than 3,300 Canadian families. He’s also served as a member of the Ontario government’s Pension Advisory Council and as pension investment advisor to Ontario’s minister of finance.

BORIS BOZIC

ALBERT COLLU

PRESIDENT AND CEO MERIX/LENDWISE

PRESIDENT MORTGAGE ARCHITECTS

With more than $20 billion in funded mortgages, a staff of more than 250, and more than 70,000 customers across the nation, Merix is one of Canada’s premier lenders. As its founder and CEO, Bozic helped steer Merix’s Lendwise operation to gold medals in seven out of 10 categories in CMP’s 2015 Brokers on Lenders survey – the best performance of any company. But that’s almost old news to Merix; the company has taken the top spot (awarded by CMP readers) for several years running.

Albert Collu began his career in the mortgage industry at Home Trust more than a decade ago. Since then, he’s gained a reputation as an industry leader, growing his own brokerage – Argentum Mortgage and Finance Corp. – to a network of more than 500 brokers. Recently, Collu shepherded Mortgage Architects through its acquisition by Dominion Lending Centres. Staunchly committed to advancing the mortgage industry as a whole, Collu has served two terms as president of IMBA.

THE BEST APPRAISERS IN CANADA ARE LICENSED AND REGULATED BY

LOOK FOR THE PROFESSIONAL DESIGNATIONS

DAR & DAC

THE CANADIAN NATIONAL ASSOCIATION of REAL ESTATE APPRAISERS CALL 888-399-3366 or FIND AN APPRAISER at WWW.CNAREA.CA www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 25

28/01/2016 6:52:05 AM

FEATURES

COVER STORY: HOT LIST PAUL THERIEN VP OF OPERATIONS CENTUM FINANCIAL Paul Therien grew up in the financial services industry, working on both the broker and lender sides. A veteran with more than two decades of experience, Therien is currently vice president of operations at Centum Financial, Canada’s premier franchised mortgage brokerage company. Last year, under his guidance, Centum launched its 15-Minute Mortgage widget, a first-of-its-kind online prequalification tool. Therien is also active in charity and social justice causes: He’s the founder and chairman of Q Hall of Fame Canada, the country’s national human rights recognition program and the only national program of its kind in the world. He’s also a recipient of the Royal Order of the Maple Leaf for outstanding contributions to human rights. Therien is a founding member of Mortgage Professionals Canada, an alumnus of multiple past CMP Hot Lists and the recipient of numerous awards for both his professional and charitable efforts.

MARK KERZNER PRESIDENT TMG THE MORTGAGE GROUP As president of TMG The Mortgage Group, Mark Kerzner heads up one of Canada’s most successful brokerages. TMG, which celebrated its 25th year in business in 2015, now boats nearly 800 brokers and agents nationwide. Along the way, the company has racked up numerous honours, including the CMA Network Broker of the Year Award and Employer of Choice Award, and Mortgage Professionals Canada’s Partners in Excellence Award. The company also has been recognized as one of the best places to work in British Columbia. “As wonderful as the accolades are, and as proud as we are of these achievements, we won’t sit back and rest,” Kerzner says. “There is much more to do. After 25 years, it’s important that we continue to find innovative ways to help brokers succeed.”

DIMITRI KOSTUROS VICE PRESIDENT VWR CAPITAL CORP In his capacity as vice president of underwriting, marketing and IT, Dimitri Kosturos was instrumental in VWR Capital’s entry into the Saskatchewan, Manitoba and Ontario markets. He’s also helped grow the company’s portfolio from $100 million to $180 million and vastly increase the number of mortgages under management. Kosturos is currently the president of the British Columbia MIC Managers Association, an industry group representing 35 MICs with a total lending capacity of $1.7 billion. He also serves as vice chair of the Langley Community Service Society, which offers a wide array of programs in the family services.

SAMANTHA GALE CEO MORTGAGE BROKERS ASSOCIATION OF BRITISH COLUMBIA The head of the Mortgage Brokers Association of British Columbia, Samantha Gale has taken on a record number of regulatory issues, from anti-spam legislation to bank brokers. She’s also tackled private lender issues like CRA super priorities and broker issues such as the collection of fees by unregistered brokers. Gale is credited with advancing the broker agenda on MIC regulation and other key fronts.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 26

28/01/2016 6:51:50 AM

TODAY

IT’S THE DAY YOU FINALLY STOP FEELING...

OVERLOOKED!

OUR MARKETING TOOLS MAKE SURE YOU STAND OUT. With Mortgage Architects’ award winning in house branding and advertising at your fingertips you’re guaranteed to get a second look … or third.

WEBSITES

CRM PROGRAM

OUR BRAND

We’ve made the web easy, simple to setup, SEO optimized with a fresh look to give you the tools you need to succeed online.

Staying in touch with your clients is easy. With 38 touches over a 5 year period you’re sure to stay front of mind.

As the Winner of Best Advertising at the Canadian Mortgage Awards, you have the best opportunity to get noticed!

Begin your journey to incredible success with MA!

JOIN US TODAY! JOINMA.ca

22-41_Hotlist-SUBBED.indd 27

28/01/2016 6:52:19 AM

FEATURES

COVER STORY: HOT LIST DAVE BUTLER MORTGAGE BROKER VERICO BUTLER MORTGAGE For Dave Butler, mortgages are a family business; his father and brother are also brokers, and his mother works on the compliance side. When Butler finished university in 2004, he apprenticed under his father for about eight months before setting off to start his own team. In 2012, he and his father and brother started Butler Mortgage. Last year, Butler was number two on CMP’s Top 75 Brokers list, raking in more than $218 million in total volume on 761 loans.

FRANÇOIS DESJARDINS PRESIDENT AND CEO LAURENTIAN BANK Until recently, François Desjardins headed up Laurentian Bank’s B2B Bank subsidiary before becoming president and CEO of Laurentian Bank itself in November 2015. He began his career at the bank in 1991, working in various capacities in operations before moving into the ranks of management in 1999. In 2004, Desjardins was appointed as president and CEO of B2B Bank, and he became executive vice president and a member of the management committee at Laurentian Bank in 2006. In 2010, he was named one of Canada’s Top 40 Under 40.

KERRI REED VICE PRESIDENT AND OWNER VERICO PREMIERE MORTGAGE CENTRE As vice president, Kerri Reed led the way for Verico Premiere Mortgage Centre’s Ontario location to achieve more than $400 million in annual funding. Reed also believes in giving back to the community; she has participated in Habitat for Humanity with a team of mortgage brokers. In October, Reed received Mortgage Professionals Canada’s Mentor of the Year Award, given annually to a mortgage professional who has inspired others with exceptional qualities and competency.

GARY MAURIS PRESIDENT DOMINION LENDING CENTRES Gary Mauris has played a central role in creating three national companies from the ground up. Currently the president of Dominion Lending Centres, Mauris has helped build the company into one of Canada’s top brokerages. Under Mauris’ leadership, DLC recently acquired Mortgage Architects – a deal that makes DLC the largest originator of mortgages in the country. A finalist for Ernst & Young’s Entrepreneur of the Year Award, Mauris also has been recognized with the CMA National Broker Network of the Year Award.

EDDY COCCIOLLO PRESIDENT MORTGAGE CENTRE CANADA Eddy Cocciollo took the reins at Mortgage Centre Canada in 2009. He leads one of Canada’s most established mortgage broker networks, working with more than 100 franchises and more than 1,200 professional mortgage agents across the country. Under his leadership, Mortgage Centre Canada was among CMP’s 2015 Superbrokers and a finalist for the 2015 CMA National Broker Network of the Year Award. Prior to joining Mortgage Centre Canada, Cocciollo served as vice president of national sales for CIBC Mortgages and as regional vice president of sales for GE Money.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 28

28/01/2016 6:52:40 AM

HOT LIST 2016

JAMES LOEWEN BROKER/OWNER LOEWEN GROUP MORTGAGES James Loewen is a force to be reckoned with in the mortgage industry. Not only has he been among CMP’s Top 75 Brokers for three years running, but he also took home last year’s CMA award for Mortgage Broker of the Year (Fewer Than 25 Employees). Under his guidance, Loewen Group Mortgages has been recognized for its outstanding customer service with both award nominations and consistently high ratings from customers. Loewen also created the Loewen Business Bursary at Gravehurst High School, a $2,500-a-year scholarship for under privileged students who want to go to business school.

22-41_Hotlist-SUBBED.indd 29

28/01/2016 6:52:56 AM

FEATURES

COVER STORY: HOT LIST RON DE SILVA CEO AND PRINCIPAL BROKER RMAI In 2006, Ron De Silva decided to launch a brokerdriven and broker-focused network that operated under the guiding tenets of transparency and simplicity. Today, RMAI continues to operate by the same values. “We have all the tools that brokers need to grow their businesses,” De Silva says. “What we don’t have is an unfair compensation plan that charges the veteran broker for tools and services they don’t need so the company can pay for a new agent’s learning.” RMAI’s model has been a success: The company was a nominee for the 2015 CMA Best National Broker Network Award and was one of CMP’s 2015 Superbrokers.

JASON SINGH OWNER BROKER FINANCIAL GROUP Broker Financial Group is still the new broker network on the block – it launched last July – but it already has hundreds of brokers and is ready to take on the industry’s power players. In its first year of existence, the company made CMP’s Superbrokers list. Prior to founding Broker Financial Group, owner Jason Singh had made a name for himself in the mortgage world as a top producer for Verico; he made CMP’s Top 75 Brokers list in both 2011 and 2012. As the head of Broker Financial Group, Singh leads a company whose state-of-the-art mortgage platform allows brokers to choose between a flat-fee model and a 95/5 split, depending on their desired level of autonomy, and provides them with a variety of ancillary products to allow them to capitalize on multiple revenue streams.

MICHAEL BECKETTE PRESIDENT AND CEO MORTGAGE ALLIANCE Since founding Mortgage Alliance in 1998, Michael Beckette and his partners have seen the company grow into one of Canada’s premier mortgage networks, counting more than 2,000 mortgage professionals among its ranks. Last year, Mortgage Alliance released MOPOLO, a first-of-its-kind mobile app that provides communication between brokers and consumers and allows customers to submit credit applications directly from the app. Mortgage Alliance also was named one of CMP’s Superbrokers in 2015. Prior to his role at Mortgage Alliance, Beckette served as a vice president with Coldwell Banker, a district manager at Canada Trust RE and a regional manager at Montreal Trust.

ADELA CLEMENT-ALLEN BROKER/OWNER DOMINION LENDING CENTRES REGIONAL MORTGAGE GROUP Adela Clement-Allen already has more than a decade of experience as a mortgage agent. She consistently brings in close to $30 million in annual volume with no associates working behind her. A shareholder in both DLC Regional Mortgage Group and Our CFF Centre, ClementAllen is also a member of Mortgage Professionals Canada, AMBA and AMP. She’s also instrumental in organizing DLC Regional Mortgage Group’s Golf/Build a Kid to Cure fundraiser, which has helped raise almost $2 million for Central Alberta children’s charities. Her charitable efforts have drawn national attention; in 2015, DLC Regional Mortgage Group won the CMA Best Community Service of the Year Award.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 30

28/01/2016 6:53:57 AM

ARE YOUR CLIENTS STRESSED OUT ABOUT THEIR MONTHLY PAYMENTS? EXHAUSTED AND FRUSTRATED WITH THE LACK OF CONTROL ON THEIR DEBT? Your clients have worked tirelessly to get to where they are today. Help them enjoy their retirement by eliminating the stress of making monthly payments and consolidating their debt in one place with the CHIP Reverse Mortgage from HomEquity Bank. Homeowners 55+ can qualify for up to 55% of the equity in their home as tax-free cash and pay for whatever life throws their way. Best of all, there are no regular monthly payments and no medical checks required. For more information, visit www.homequitybank.ca or call 1-866-536-2447 to find out what amount your client may be eligible for.

22-41_Hotlist-SUBBED.indd 31

28/01/2016 6:54:02 AM

FEATURES

COVER STORY: HOT LIST CHRISTINE XU MORTGAGE BROKER MORTGAGE ARCHITECTS Christine Xu has been working in Toronto’s financial industry since 1990. In 2000, she became one of the city’s first Mandarinspeaking mortgage agents. Ever since she was a rookie agent, Xu has increased her business by more than 20% per year. In 2014, she was ranked at number four in CMP’s Top 75 Brokers. In 2015, she moved up to number three, thanks to a total loan volume of more than $138 million. She’s also been named one of CMP’s Top 10 Commercial Brokers. Xu is a recipient of the Queen Elizabeth II Diamond Jubilee Medal for community service, the Chinese Business Chamber of Canada’s Social and Community Contribution Award, and the CMA Alternative Lender Broker of the Year Award.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 32

28/01/2016 6:54:30 AM

HOT LIST 2016

CAMERON STRONG CEO INVIS/MORTGAGE INTELLIGENCE As CEO of Invis/Mortgage Intelligence, Cameron Strong leads a growing company that boasts more than $140 billion in mortgage originations. In 2015, Invis won the CMA Best National Broker Network Award and was among CMP’s Superbrokers. Strong, who joined Invis in 2000, has more than 30 years of experience in accounting, financial management, corporate finance, and mergers and acquisitions. During his tenure as CEO, he has attracted new financing and implemented cost management strategies that have been key to the company’s continued growth and profitability.

MARK HILSON MANAGING GENERAL PARTNER ROMSPEN Mark Hilson is a managing general partner at Romspen, one of the country’s largest mortgage investment corporations. MICs are becoming increasingly important to brokers as tighter lending guidelines squeeze many buyers out of the conventional market. At Romspen, Hilson oversees overall operation and performance. Prior to joining the company, he was a managing director at Onex Corporation. He’s also held positions at Merrill Lynch and Procter & Gamble.

The Lending Alternative EQUITY OPTIONS

CONSTRUCTION LENDING

ALT A LENDING

For British Columbia APPROVALS GUIDED BY EQUITY · BFS – Stated Income · New Immigrants · Credit Challenged · Discharged Bankrupts

p e o p l e s t ru s t . c o m

RATES STARTING FROM 4.7% FIXED OR FLOATING · No Sliding Scale · Fully Open · All Beacon Scores Welcome · Interest Only Payments Available

BREA WATSON

TOM WOLLNER, ri, amp

Business Development Manager breaw@peoplestrust.com 604-209-0702

Manager, Residential Mortgages tomw@peoplestrust.com 604-331-2210

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 33

28/01/2016 6:54:36 AM

FEATURES

COVER STORY: HOT LIST COLLIN BRUCE BROKER/OWNER DOMINION LENDING CENTRES MORTGAGE MENTORS There’s no other way to put this: Collin Bruce is a powerhouse. Last year marked Bruce’s second year in a row at the number-one spot on CMP’s Top 75 Brokers list, and the fifth year in a row he’s been in the top five. The broker-owner of Dominion Lending Centres Mortgage Mentors racked up an impressive $258 million in 2013, but that’s nothing compared to his 2014 finish – a mind-boggling $331 million. Bruce started as a broker in April 2006 and quickly took the mortgage world by storm. In 2009, he opened his own DLC franchise, quickly becoming DLC’s top agent in both volume and units for five years running. He also won the Mortgage Broker of the Year and Brokerage of the Year awards at the CMAs in 2015.

NICHOLAS L’ECUYER MORTGAGE BROKER VERICO THE MORTGAGE WELLNESS GROUP Based in Barrie, Ont., Nicholas L’Ecuyer founded The Mortgage Wellness Group in 2010 and already boasts nine offices across the province, employing a team of 60 mortgage specialists. L’Ecuyer himself is a recognized star in the field; he received the CMA Best Newcomer – Individual Agent or Broker Award in 2009. In 2013 and 2014, he was listed among the top mortgage brokers in Canada, and in 2014, The Mortgage Wellness Group was a finalist for the CMA Brokerage of the Year Award. The firm was recently named Barrie’s best mortgage brokerage by both the Barrie Advance and the Barrie Examiner newspapers. Last year, L’Ecuyer was named one of CMP’s Top 75 Brokers, boasting more than $97 million in volume.

ALIM CHARANIA MORTGAGE BROKER DOMINION LENDING CENTRES REGIONAL MORTGAGE GROUP Alim Charania came from a banking background, getting into the mortgage business just a few years ago. In that time, he’s already become one of Calgary’s top-producing agents, funding $22 million in volume in 2014 alone. “He’s a master of social media and treats his forever-referring clients like gold,” says DLC Regional Mortgage Group’s Jean-Guy Turcotte.

HALI STRANDLUND SVP OF RESIDENTIAL MORTGAGE INVESTMENTS AND BROKER RELATIONS FISGARD ASSET MANAGEMENT Hali Strandlund is a founding director and senior vice president of Fisgard Asset Management, one of the largest private MICs in western Canada. Last year, Stradlund guided the two-decade-old firm’s expansion into Ontario, Saskatchewan and Manitoba. Stradlund is also a past chair of Mortgage Professionals Canada and served two consecutive terms as the president of the Mortgage Brokers Association of British Columbia. She’s also served as a director of the Mortgage Investment Association of BC and the BC MIC Association. Strandlund has been recognized as one of Canada’s top 100 most powerful women, and in 2010 she became the youngest woman to win the MBABC Pioneer Award for lifetime achievement. She’s also the youngest female to be inducted into the Canadian Mortgage Hall of Fame.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 34

28/01/2016 6:55:36 AM

HOT LIST 2016

ELISSEOS IRIOTAKIS CO-CHIEF EXECUTIVE OFFICER SAFEBRIDGE FINANCIAL Considered by many of his peers to be one of Canada’s top mortgage professionals, Elisseos Iriotakis co-founded Safebridge Financial in 2006. Under Iriotakis’ guidance, Safebridge saw a more than 40% increase in mortgage volume in 2015. He also led the way in implementing procedures that helped raise lender funding ratios to 75% corporately. Prior to co-founding Safebridge, Iriotakis held positions at CIBC World Markets, the Ontario Teachers’ Pension Plan and The Mortgage Centre. He’s also guest lectured at the University of Toronto and Seneca College, and is frequently sought out by major media outlets for his expertise.

22-41_Hotlist-SUBBED.indd 35

28/01/2016 6:55:46 AM

FEATURES

COVER STORY: HOT LIST DUSTIN JAMES

ROBERT GASCON

MORTGAGE AGENT DOMINION LENDING CENTRES PREMIER FINANCIAL GROUP

MORTGAGE BROKER REDWOOD MORTGAGE CORPORATION Robert Gascon has been in the lending, mortgage administration and mortgage brokerage business for more than 35 years. His longstanding relationships in the mortgage, real estate and lending industries allow him to navigate even the most difficult transactions. Gascon is a founding member of Mortgage Professionals Canada (formerly CAAMP) and was elected to both the national and provincial IMBA associations. Gascon was named one of Canada’s top independent brokers by CMP. He’s also the recipient of the IMBA President’s Award. In 2012, Gascon founded Sea Raven Private Lender Services, a mortgage administration service that allows private lenders to manage their portfolios with state-of-the-art technology.

Dustin James works tirelessly for his clients, and that hard work has allowed him to bring in tens of millions in sales volume. James been selected as his community’s favourite mortgage broker for several years running, and has been among CMP’s Top 20 Small-Market Brokers for two consecutive years. James also gives back to his community; he has served as an event organizer for Lindsay Unites, which raises money to allow underprivileged children to participate in team sports.

MANZEEL PATEL MORTGAGE BROKER MORTGAGE ARCHITECTS With Mortgage Architects since 2013, Manzeel Patel has built a formidable reputation as a top broker. With $125 million in total volume and 300 loans originated, Patel was one of CMP’s Top 75 Brokers in 2015. Patel is also the owner of Toronto CitySuites, a property management firm for short-term furnished rentals. Prior to joining Mortgage Architects, he was a senior mortgage underwriter at Street Capital Financial Corporation.

MARCUS TZAFERIS MORTGAGE BROKER MORCAN DIRECT Marcus Tzaferis joined MorCan Financial, now MorCan Direct, in 2002, taking the position of vice president of sales and marketing. In less than a decade, he led the company to a portfolio of more than $2 billion in residential and commercial mortgage origination. Tzaferis makes regular appearances on CBC’s The National, Global News and CP24 to share his outlook on the Canadian mortgage and real estate industries. In 2014, he was named one of CMP’s top independent brokers.

SARA HOWARD SENIOR UNDERWRITER AND PARTNER PROPERTYGUYS.COM MORTGAGE Along with her partner at PropertyGuys.com Mortgage, Sara Howard is at the forefront of innovation in integrating mortgage professionals into the private sale process. Her involvement in building that integration within the company and with lenders is changing the way the industry looks at mortgage agents. She’s also no slouch on the sales side, racking up $15 million in volume in 2014.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 36

28/01/2016 6:56:05 AM

MCAP Fusion Mortgage is a mortgage and a line of credit… …a POWERFUL combination with flexible financing options to meet your customers’ financing needs. Ask your MCAP Business Development Manager for more details.

www.mcap.com MCAP Service Corporation Ontario Mortgage Brokerage #10515 Ontario Mortgage Administrator #11692

22-41_Hotlist-SUBBED.indd 37

28/01/2016 6:56:11 AM

JANET MCKEOUGH PRESIDENT MORTGAGE BROKERS ASSOCIATION OF ATLANTIC CANADA An award-winning producer in her own right, Janet McKeough heads up the Mortgage Brokers Association of Atlantic Canada, which represents the industry in the Atlantic region. Last year, the MBAAC became a charter member of the new Canadian Mortgage Brokers Association. A dedicated industry advocate, McKeough participates in numerous focus groups and facilitates education and training for members of the Nova Scotia Real Estate Association. In addition to her role at the MBAAC, McKeough is the mortgage broker for Verico Success Mortgages in Halifax, and holds an Accredited Mortgage Professional designation from Mortgage Professionals Canada (formerly CAAMP).

22-41_Hotlist-SUBBED.indd 38

28/01/2016 6:56:27 AM

HOT LIST 2016

JARED DREYER

JAMES LAIRD PRESIDENT CANWISE FINANCIAL James Laird took the reins as president of CanWise Financial in September 2014. Before that, he served as COO of True North Mortgage. In that capacity, Laird helped grow True North to become one of Canada’s largest brokers, as well as the country’s most successful storefront-focused broker. Laird also serves as a managing director for New Gentry Capital. An acknowledged industry expert, Laird is frequently sought out for his perspective by major media outlets, including Reuters, The Globe and Mail and the Toronto Star.

CHAIR MORTGAGE PROFESSIONALS CANADA As the new chair of Mortgage Professionals Canada, Jared Dreyer heads up the organization’s advocacy efforts as it transitions from its old identity as CAAMP. Dreyer is also the president of Dreyer Group Mortgages, one of the top mortgage brokerages in Canada, and serves as vice president of Verico Financial Canada. He’s a past president of the Mortgage Brokers Association of British Columbia, past chair of the Verico Financial National Advisory Council and past director of the Mortgage Brokers Institute of BC.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 39

28/01/2016 6:56:41 AM

FEATURES

COVER STORY: HOT LIST INDEX BY COMPANY COMPANY

PAGE NAME

Axiom Mortgage

Michael Cameron

Bank of Canada

Stephen Poloz

Broker Financial Group

Jason Singh

Canadiana Financial

Kevin Conroy

CanWise Financial

James Laird

Centum Financial

Paul Therien

Dominion Lending Centres

Gary Mauris

Dominion Lending Centres Mortgage Mentors

Collin Bruce

Dominion Lending Centres Premier Financial Group

Dustin James

Dominion Lending Centres Regional Mortgage Group

Alim Charania

Dominion Lending Centres Regional Mortgage Group

Adela Clement-Allen

Dustan Woodhouse Consulting

Dustan Woodhouse

Fisgard Asset Management

Hali Strandlund

IMBA

Shane Suepaul

Invis/Mortgage Intelligence

Cameron Strong

Laurentian Bank

François Desjardins

Loewen Group Mortgages

James Loewen

Merix/Lendwise

Boris Bozic

Ministry of Finance

Bill Morneau

MorCan Direct

Marcus Tzaferis

Mortgage Alliance

Michael Beckette

Mortgage Architects

Albert Collu

Mortgage Architects

Manzeel Patel

Mortgage Architects

Christine Xu

Mortgage Brokers Association of Atlantic Canada

Janet McKeough

Mortgage Brokers Association of British Columbia

Samantha Gale

Mortgage Centre Canada

Eddy Cocciollo

Mortgage Professionals Canada

Jared Dreyer

PropertyGuys.com Mortgage

Sara Howard

Redwood Mortgage Corporation

Robert Gascon

RMAI

Ron De Silva

Romspen

Mark Hilson

Safebridge Financial

Elisseos Iriotakis

TMG The Mortgage Group

Mark Kerzner

True North Mortgage

Dan Eisner

Verico Butler Mortgage

Dave Butler

Verico Financial

Colin Dreyer

Verico Premiere Mortgage Centre

Kerri Reed

Verico The Mortgage Wellness Group

Nicholas L'Ecuyer

VWR Capital Corp

Dimitri Kosturos

KEVIN CONROY PRESIDENT CANADIANA FINANCIAL Kevin Conroy took the reins at Canadiana Financial in 2013, bringing with him more than a quarter century of experience in the financial services sector. As president, Conroy leads the charge to bring Canadiana customers more nimble products and pricing flexibility. A big believer in technology solutions, Conroy has made video, social media and other emerging platforms core components of the company’s communications strategy. In the last year, Conroy has overseen Canadiana’s growth as the company has made several key hires, including a new VP of national sales and directors of business development for Vancouver and GTA East. Prior to his appointment at Canadiana, Conroy served as a regional manager and then vice president of home financing solutions at Scotiabank. He also served as a regional sales manager at TD Canada Trust.

www.mortgagebrokernews.ca

22-41_Hotlist-SUBBED.indd 40

28/01/2016 6:57:06 AM

Insuring what matters most.

National Bank offers title insurance on mortgage loans including the All-In-OneTM to protect from unforeseen events.

Talk to one of our experts, or visit nbc.ca/mortgage for complete details.

TM National Bank All-In-One is a trademark of National Bank of Canada. Financing is subject to credit approval by the National Bank. Certain conditions and restrictions apply.

22-41_Hotlist-SUBBED.indd 41

28/01/2016 6:57:12 AM

FEATURES

BUSINESS FOR SELF

Too big to ignore As tough times continue and jobs remain scarce, the business-for-self segment has potential to grow, thanks to brokers and alternative lenders who are recognizing the value in this client base MANY BUSINESS-FOR-SELF clients have found themselves locked out in the cold in recent years when it comes to securing prime lending. Tighter CMHC rules that created a more restrictive lending environment have hit this segment particularly hard. “With all the new government regulations that have come out over the last few years, it has affected the self-employed the most,” says Bryan Guertin, principal broker for Mortgage Intelligence in Oakville, Ont. “CMHC no longer insures stated-income mortgages, and the other two insurance companies that still do

have really tightened up with the qualifications. Many self-employed people are finding out that their bank can no longer help them.” Brokers and alt lenders have already stepped up their game to work with selfemployed Canadians, such as freelancers, contractors and small business owners. “We have to make these potential clients aware that there are other mortgage lenders out there that can qualify them in a different way to make the numbers work,” Guertin says. “Placing BFS mortgages has always been easy, but we now find them tougher to place.”

GROWTH OF THE BUSINESS-FOR-SELF SEGMENT Home Trust’s Pino Decina takes a closer look at the latest numbers and the potential for increasing your BFS client business The most recent statistics indicate that the alternative market expanded by roughly 25% year-over-year, while the prime market grew at a much slower 4%. With BFS clients making up more than half the client list for many brokers, the potential impact of self-employed borrowers on a broker’s bottom line cannot be ignored. According to a recent StatsCan report, the number of Canadians now considered to be self-employed is pegged at 2.76 million, or nearly 16% of the country’s working population. This number is trending higher, and there are several factors driving this new phenomenon. Anecdotally, at least, it appears that Canadians are embracing entrepreneurship in greater numbers. Put this down to the impact of millennials, perhaps, but there is no question that many younger workers are taking a different career path from that of previous generations; many are choosing to start their own small companies or operate as sole proprietorships. In other cases, self-employment is being forced on more workers as companies look to shed costs by replacing full-time workers with contract workers or freelancers hired on an as-needed basis. The Bank of Canada’s latest quarterly report indicates that the hiring outlook for the year is now at its lowest level since 2009, when the previous recession forced companies to reduce their original hiring plans. With fewer companies expecting to hire this year, and with those that do scaling back on their previous intentions, a growing number of Canadians may have little choice but to go into business for themselves.

The catch-22 of BFS deals The new lending requirements have created a sort of catch-22 for BFS clients who do have the financial qualifications for prime financing, but have difficulty obtaining it because of their credit history. “We think all the changes CMHC has announced over the last five or six years have inevitably acted to constrain the growth of the prime market,” says Michael Jones, president and CEO of Equity Financial Trust, “so we want to go where the best opportunity is and where we can partner with brokers to find solutions for their customers.” While the opportunities are there for the taking, the paperwork needed for a loan application can be intimidating, which makes it incumbent on the broker to be proactive and ensure that all of the t’s are crossed and the i’s dotted. “A lot of the sub-trades who own their own businesses – like house painters – are getting paid in cash,” says Tylor Volk, a lead planner with Mortgage Architects. “It is these clients who need to be encouraged to show their invoices and deposit their pay, instead of just taking it and spending it.” Lenders like B2B Bank have products that are 65% loan-to-value – but there is an expectation of income reasonability as well, which demands the broker be thorough with the client. “A lot of people think they can just state whatever income they want,” Volk says. “What we’re seeing now is that we are having to demonstrate and prove income in an alternative and reasonable manner.” And while those deals are more difficult, BFS clients are the bread and butter for alternative lenders during uncertain

www.mortgagebrokernews.ca

42-45_Ad-led Home Trust-SUBBED.indd 42

28/01/2016 7:02:13 AM

economic times. “A-lenders used to have business-for-self equity programs, but they are nonexistent now,” says Christine Xu of Mortgage Architects. “It’s pretty much only alternative lenders doing insurance for self-employed people who want investment properties as well.” According to a CIBC report – which was based on Statistics Canada data and released to the Financial Post – the value of loans underwritten by alternative lenders grew by a staggering 25% in 2015, while the overall mortgage market grew by a mere 4% over the same period. “Alternative lending gives brokers and their clients relief from the often stringent requirements of traditional lending institutions,” says Dimitri Kosturos, vice president of VWR Capital Corp. “Alternative lenders give clients another option to complete a purchase or reduce their monthly debt obligation.”

Document, document, document While mortgages for BFS clients can be tough to secure, they can result in some of the most

“Most prime lenders simply cannot provide BFS customers with an equivalent level of support” Pino Decina, Home Trust Company loyal clients a broker can have. Danielle Cawley of Neighbourhood Dominion Lending Centres in Barrie, Ont., says that doing your homework is essential to getting underwriting approval for BFS clients. “Obviously with the changing market and lenders changing their guidelines, it is more important to have the documents upfront,” she says. “For ease of underwriting, making sure we are submitting accurate information creates ease when it comes to conditions in funding. That is really the key to businessfor-self.” Having detailed conversations about credit history with the client right from the start is key, Cawley says, so that the broker is aware if there are any blemishes. “That way when you are submitting

a deal, you are giving the lender all the information, making it so much easier for them to underwrite your deal,” she says. “By providing all of the information upfront, underwriters can look at all of the conditions while underwriting the deal, creating a much smoother system.” ‘Document, document, document’ is the drumbeat from underwriters everywhere – and for those clients who are commissionbased or on contract, that drum beats very loudly. By coaching the BFS client, brokers can avoid any potential roadblocks during the application process. “Gather everything upfront and really know your deal,” Cawley says. “If credit is the issue, then you have the conversation around that. If it is a BFS person who needs to be declaring

www.mortgagebrokernews.ca

42-45_Ad-led Home Trust-SUBBED.indd 43

28/01/2016 7:02:20 AM

FEATURES

BUSINESS FOR SELF more, versus doing a ton of write-offs, having that kind of conversation is crucial. It is telling them, ‘This is what you look like today, but this is what you need to do in the next year or two to get you over here.’” Helping clients navigate the application process and ensuring that appropriate supporting documents are submitted is a critical service brokers provide to BFS clients, says Pino Decina of Home Trust Company. “It is this ability to work closely with clients, and to build a lasting relationship with each client, that will prove to be an important differentiator,” he says. “Most prime lenders simply cannot provide BFS customers with an equivalent level of support.” And to get the most out of the relationship, brokers also need to do their homework when it comes to their client’s line of work, advises Anthony Spadafora, principal broker with Mountainview Mortgage/The Mortgage Centre. “Understanding the nature of their client’s business is crucial to keeping these professionals in a broker’s book of business for a lifetime, and why lenders need to know as much as possible about the client.”

The alternative solution Brokers tend to gravitate to alternative lenders, says Cawley, because they understand the unique needs of BFS clients. The number of alt lenders in the BFS space speaks to the large market that is available, Spadafora adds. “There are a lot more offerings in the marketplace. B2B Bank has come right in between those traditional alternate lenders by providing a fair solution,” he says. “You can put someone into that alternate space and not subject them to exorbitant fees and an exceedingly high rate.” All in all, the future looks good for BFS deals in the alternative space, Decina says. “Despite concerns for certain regions of the country, overall, the Canadian housing market continues to show stout resilience,” he says. “Even more encouraging is the strong likelihood that the alternative market – and the business-for-self segment in particular – will continue to grow at a much faster pace than the prime market.”

Q&A FUTURE TRENDS IN THE BFS SEGMENT CMP sat down with Gleb Ioussoufovitch, director of sales and marketing for Xceed Mortgage Corp., to discuss growing trends in the business-for-self segment.

real income from their business activities. In today’s reality, many BFS borrowers state on applications the income they plan to make, not the one they are actually making.

CMP: What are the opportunities for brokers to grow their books by reaching out to BFS clients? Gleb Ioussoufovitch: Many BFS clients are optimizing for income tax planning opportunity. They are not trying to maximize personal income. In today’s regulatory environment, the number of mortgage options available to such consumers from traditional lenders is shrinking. This is a great opportunity for mortgage brokers to fill the void and approach self-employed consumers with solutions offered by alternative lenders. These lenders are willing to look at the whole picture of a client, including his/her business, as opposed to a client’s personal income, and use a common-sense lending approach.

CMP: What are the challenges in the loan process for BFS clients? GI: Quite often, the BFS clients are trading off [personal] income for greater value in their business and future growth by leaving a portion of income within business. The two most common issues are lack of full documentation and unrealistic income estimates put on applications. Poor disclosure is not necessarily intentional, but is often driven by an “I didn’t think this was important” approach, and this puts the onus on brokers, who have to ask BFS borrowers the right questions to get the full picture and relay it in their loan application to the lender.

CMP: What do BFS clients need to know to ensure their applications are viable and accurate? GI: BFS clients need to appreciate the current environment and be realistic in terms of their rate expectations. Many consumers believe that even if their income is not fully documented, they can get a bank-priced deal because of their credit, net worth, business holdings, etc. Sometimes it does happen if they have a really low LTV, but most of the time, the borrowing costs for these borrowers are higher. Also, they need to be prepared to provide paperwork to back up the income of their business if this is what is used to qualify the deal. In situations when alternative lenders ask BFS borrowers to provide their income estimates, such borrowers have to be realistic in terms of numbers that they put in the applications, as these numbers have to be supported by

CMP: Where is this segment headed? GI: This is definitely a growth segment, and as lending policies become tighter, the number of consumers in this segment will be increasing, as traditional lending institutions won’t be able to assist them. This opens a fantastic window of opportunity for mortgage brokers and monoline alternative lenders who can become the major providers of mortgage financing to BFS borrowers.

www.mortgagebrokernews.ca

42-45_Ad-led Home Trust-SUBBED.indd 44

28/01/2016 7:02:36 AM

42-45_Ad-led Home Trust-SUBBED.indd 45

28/01/2016 7:02:39 AM

PEOPLE

BROKER PROFILE

Playing the long game She might not be longest-serving mortgage broker in the business, but Enza Venuto is hardly a rookie

A THREE-DECADE-LONG career with a major bank doesn’t often make for a think-outside-the-box type of mortgage broker. But, in the case of Enza Venuto, that’s exactly what happened. Before joining the independent side of the industry, Venuto worked her way to the top of CIBC’s retail mortgage business. “Our branch was ranked number one in Canada in mortgages,” she says. “That was my forte; that’s always been my forte.” In 2005, though, Venuto was given the ‘golden handshake.’ She gladly left the bank behind and seized the opportunity to sharpen her business management skills. She tested the independent waters at a small brokerage and earned her licence in 2008. Instead of joining another firm, she opened her own company, Streetwise Mortgages, which operates under the Centum umbrella. “I decided to open my mortgage brokerage because I wanted a unique boutique, a totally different boutique, that really didn’t fit the model of other brokerages that are out there right now,” Venuto says. The variety of lender options that independence offered also excited her. “That’s what frustrated me within the bank; we were in a little box, and we couldn’t step out of the box – with rules and guidelines and the different formulas,” she says. “It was the bank’s way or no way.”

Serving the self-employed Venuto paved another way with Streetwise. She places a great emphasis on quality, not quantity, and her agents mirror that sentiment. “We don’t hire other agents to go out there and grab the business because they have to get the business,” she says. “We work with agents who want to work under our model, and our model is relationship-building and strategically planning solutions for clients’ needs.” Indeed, strategic planning is a big part of Venuto’s business – finding the right product for the client, no matter the lender. But in today’s lending environment, even that can be a challenge. “The challenge is not the rate; it’s the positioning of the self-employed,” Venuto says. “Right now, the self-employed people are the people who are hit the hardest.” Venuto laments the lack of A and B lenders with products suited to self-employed buyers – a subset that makes up almost 85% of the province of Ontario, she says. Many of those clients are also real estate investors who face similar challenges when trying to add to their portfolios. “We help them position their real estate holdings,” Venuto says. “We know the rules of the banks, so we can educate the client so that they understand why they’re doing this.”

“Within the bank, we were in a little box, and we couldn’t step out of the box – with rules and guidelines and the different formulas. It was the bank’s way or no way”

www.mortgagebrokernews.ca

46-47_Profile-SUBBED.indd 46

28/01/2016 7:03:47 AM

VENUTO BY THE NUMBERS Enza Venuto is a multi-hyphenate: She’s not only an awardwinning mortgage broker, but also a successful business owner and best-selling author.

$1.7 billion The total dollar amount of mortgages funded by Venuto’s Streetwise Mortgages

45 The total number of years of banking experience held by the Streetwise team

14 The number of months Venuto’s book spent as a bestseller

45 The rank Venuto achieved on CMP ’s Top 75 Brokers list in 2015 Book smarts Education is a big part of the relationship between Venuto’s team and their clients. About four years ago, Venuto and Dalia Barsoum, a member of the Streetwise team, penned a book called Canadian Real Estate Investor Financing: 7 Secrets to Getting All the Money You Want. Venuto says the book has been a great tool to educate clients and support their investing activities. “The book talks about strategic planning for the client – a starting point – and understanding credit, and different types of ventures that people can get into,” Venuto says. “It was geared more for the investor, but anyone can pick up the book. “We didn’t write the book to make money,” she adds. “The book is more for credibility.” As if Venuto needed the book to add weight to her already sterling reputation. Her passion for the business and her desire to help her clients is evident, and certainly contributes to her success. “When you have passion for what you do, it just snowballs in everything,” she says. Venuto gathered speed during the past year in particular: She was named to CMP’s Top 75 Brokers list – an honour she says pushed her to work even harder. “[Winning the honour] feels good because it feels important, but it just makes me want to do more,” she says. “The more you do, the more you want to do.”

www.mortgagebrokernews.ca

46-47_Profile-SUBBED.indd 47

28/01/2016 7:04:16 AM

SPECIAL PROMOTIONAL FEATURE

TITLE INSURANCE

The winter of discontent How title insurance offers homeowners all-season protection

PURCHASING A HOME is likely the biggest investment your clients will ever make. As a mortgage professional, you want to help ensure it is secure and viable for years to come, and that the overall experience is pleasant and efficient. For 25 years, FCT has provided title insurance solutions that support simple, secure mortgage transactions. Our goal at FCT is to increase your efficiency and reputation as a trusted advisor while providing your clients with the best protection available. Before your clients purchase a property, that property – not to mention the land that it stands on – might have changed hands several times. Even with a new build, somewhere along the way, there might have been an error: a clerical mistake with the title registration, a forged document, an incorrect survey, a nonexistent permit – the list goes on and on. And unfortunately, these issues are much more common than you think. Moreover, remedying errors or defects, or having to legally defend ownership, can be very stressful and costly. These are the types of things title insurance can protect against.

What is title insurance? Title insurance is a unique form of insurance. Unlike home insurance, which insures the structure and its contents, residential title insurance protects the homeowner against actual loss as a result of challenges to the title (i.e. ownership) and other defects relating to the property. When your client purchases property, whether a single-family home, condo or

www.mortgagebrokernews.ca

48-51_Ad-led FCT-SUBBED.indd 48

28/01/2016 7:13:15 AM

cottage, they purchase the title. The registration of the title confirms that they are the rightful owner. Sometimes, however, that ownership might be challenged, or homeowners might be exposed to potential losses associated with title fraud, survey and title issues, or even pre-existing defects. Title insurance protects against all of these risks and much more.

What does title insurance cover? A typical title insurance policy covers common issues (known and unknown) that might have happened both before and after purchase. This is sometimes referred to as pre- and post-policy because the day the purchasers take ownership of their home is generally also the effective date of the policy. The most common issues covered under a typical homeowner’s title policy include, but are not limited to, the following*: • Real estate fraud and forgery • Survey issues • Encroachments • Zoning bylaw challenges • Building permit issues • Property tax arrears • Known and unknown defects • And much more ... Title insurance also provides the duty to defend as part of its coverage. This means that if there is ever a challenge to a matter covered under the policy, the insurer is responsible for paying all legal costs to defend the homeowner and their title. And what’s more, the cost of that defence does not reduce the amount of insurance under the policy.

The benefits of title insurance from FCT More and more homeowners are having to defend the right of ownership or having to deal with issues such as fraud and survey defects. Not only are these issues stressful and time-consuming to rectify, the associated costs can be significant and potentially financially devastating to your clients. Comprehensive and cost-effective, title insurance affords the following benefits:

FROZEN IN WINNIPEG: A CASE IN POINT Like most new homebuyers, Tim and Brittany Gietz were excited when they purchased their first home in the cozy St. James neighbourhood of Winnipeg in August 2013, along with a homeowner’s title insurance policy from FCT. “My dad is in the mortgage lending business, so I have heard a number of stories over the years about homes that had hidden problems,” Brittany says. “I wanted to make sure that I had the best protection for my investment, so we bought a homeowner’s title insurance policy.” And thank goodness they did. After one particularly cold spell, their pipes froze solid. They called a contractor, who promptly instructed them to contact the city of Winnipeg. After further investigation, the Gietzes learned that the city had issued a bylaw violation, which required the previous homeowners to repair plumbing and electrical work, as well as an improper stair guard leading to the basement. They never did. Floor joists and the foundation also required structural repairs. Now the city was demanding the Gietzes comply with the bylaw violation within 14 days, or face potential legal action. They were gobsmacked. The bylaw violation notice from the city triggered coverage from FCT because the homeowners were being forced by a governmental authority to remedy an existing structure built without a required building permit. FCT hired an engineer to complete the report on structural repairs to the floor joists and foundation. In the summer of 2014, work began on the home to fix the foundation, plumbing, electrical and structural issues. During this major renovation, Tim and Brittany had to move out of their home for more than three months. FCT also covered their temporary housing costs while the work was being done to the property. Near the end of 2014, the Gietzes got word from the city of Winnipeg that the final inspection was completed and the bylaw violation was closed. “For a couple of hundred dollars, paid once when we bought the home and with no annual premium, we realized a significant benefit,” Brittany says. “Without the team at Castle Mortgage Group to inform us about the great insurance program that FCT has, we would have ended up with debt that we could not pay off for years. I cannot even imagine having to come up with the money to complete such a major renovation only months after purchasing the home. FCT fixed our home and provided us with a housing allowance while we were displaced. Since this has happened, I have now joined the team at Castle Mortgage Group and always make sure our clients purchase this insurance.”

*For specific coverage details, please refer to the actual policy. www.mortgagebrokernews.ca

48-51_Ad-led FCT-SUBBED.indd 49

28/01/2016 7:13:21 AM

SPECIAL PROMOTIONAL FEATURE

TITLE INSURANCE • Save time and money by reducing the number of costly searches required to meet most lenders’ requirements. With title insurance, you can complete the deal faster and with lower closing costs for your clients. • Close on time, as planned, regardless of known defects. FCT can easily customize coverage that is right for each unique situation. • Feel confident with comprehensive coverage and a no-fault claims process. FCT assumes the risk, responsibility and cost associated with defending the homeowner’s title, and provides quick and easy resolution in the event of an actual loss for a covered risk. • Differentiate your service offering by providing your clients with the best protection and service possible by partnering with FCT, the pioneer of the Canadian title insurance industry.

becoming more and more common, and nothing covers like title insurance. In Ontario, both the owner and the lender are title insured in approximately 90% of all residential real estate purchase transactions – most real estate professionals see and value the role of title insurance within a mortgage transaction. The lender policy protects the validity, enforceability and priority of the lender’s mortgage on the title; the homeowner policy protects the homeowner against losses associated with title fraud, survey and title issues/ defects, as well as challenges against their ownership. In Ontario, licensed legal professionals must discuss all options to protect a homeowner’s interest in title during a purchase transaction. However, in many other provinces, it is less likely that the homeowner will obtain a title insurance policy – often there is only a lender’s title insurance policy in place.

“For a couple of hundred dollars, paid once when we bought the home and with no annual premium, we realized a significant benefit. Without the team at Castle Mortgage Group to inform us about the great insurance program that FCT has, we would have ended up with debt that we could not pay off for years” Brittany Gietz, homeowner How much does a policy cost? For a low one-time premium, homeowners can purchase the protection they need for as long as they own their home, and the policy can even be transferred to their heirs in some cases. The actual cost of a homeowner policy is based on the value of the property and varies by province. Getting a detailed quote only takes only a few minutes.

Does every homeowner need title insurance? Absolutely!

Homeowner

claims

are

Unfortunately, despite ongoing education efforts, many still question the value of title insurance for homeowners. As a result, homeowners are being exposed to unnecessary and potentially devastating risk. As a broker, you can help ensure that each and every one of your clients understands the benefits of having a homeowner title insurance policy from FCT and that they get the comprehensive coverage needed to protect their biggest asset. In doing so, you’ll create a satisfied, loyal client base that is happy to refer your services.

ABOUT FCT Founded in 1991, the FCT group of companies is based in Oakville, Ont., and has more than 800 employees across the country. The group provides industry-leading title insurance, default solutions and other real-estate-related products and services to approximately 1,250 lenders, 43,000 legal professionals and 5,000 recovery professionals, as well as real estate agents, mortgage brokers and builders nationwide. FCT has been recognized by Achievers as one of the 50 Most Engaged Workplaces in Canada since 2012, and in 2015, was named one of the Top 50 Workplaces in Canada by Great Place to Work. For more information, please visit www.fct.ca.

This material is intended to provide general information only. For specific coverage and exclusions, refer to the policy. Copies are available upon request. Insurance brokerage services by FCT Insurance Services Inc.

www.mortgagebrokernews.ca

48-51_Ad-led FCT-SUBBED.indd 50

28/01/2016 7:13:36 AM

15-073 C

Borrowers want:

Insight

Savings

Advice

Faster closings

Choice

Experienced partners

Peace of mind

Service excellence

Borrowers want Platinum Service from FCT.

To learn how you can outshine the competition and for a list of participating lenders, visit FCT.ca. u FCT.ca

I 1.855.500.3565

Residential Lending Solutions

ÂŽ Registered Trademark of First American Financial Corporation. â&#x201E;˘ Trademark of First American Financial Corporation. Services by First Canadian Title Company Limited.

48-51_Ad-led FCT-SUBBED.indd 51 15-073 CMP ad_v2.indd 1

28/01/2016 7:13:44 AM 2015-04-13 2:48 PM

FEATURES

CORPORATE RETREATS

Are corporate retreats worth it?

Nikki Fogden-Moore explains why strategic escapes are essential for creativity, performance and leadership THERE’S A shift occurring in the business world that is happening outside the office – conferences and retreats are becoming the norm. The agenda is shifting from bar voucher to spa voucher, from boardrooms indoors to holding meetings outdoors – even on surfboards. So, is this working? Despite a backlash in the US many years ago about lavish retreats (after AIG executives reportedly spent more than $400,000 on a corporate retreat after receiving government bailout money in 2008), corporate retreats are back in vogue – and rightly so, for they can provide a crucial, authentic timeout for leaders and key teams to reconnect, assess productivity and build shared purpose at even the most challenging times. The corporate retreat is a vital part of the strategic year for companies that value their team as much as their bottom line. The trick is to ensure you plan your retreat like you would your business: Who should be there, what is your budget, and do you have your purpose? With the right team running this with you, an annual break away for body and mind could be the perfect formula to keep your team healthy, wealthy and wise. After more than a decade of running corporate and boardroom retreats worldwide, I can give you three reasons why the well executed ones work.

Creativity

Creativity requires space to think and environments that can inspire. Providing a digital detox and fresh perspective for your team can get the brain off autopilot and

into fifth gear with energy and vision. Like the saying goes: Keep doing the same thing, and you’ll get the same results. So instead of repainting the office walls and moving some plants around, plan in creative breaks during your strategic corporate retreats that truly allow time to reflect, think and indulge in ideas, as well as space to offer feedback. If you want to see changes in the level

of creative thinking, initiative and a fresh approach to corporate challenges, then the best thing to do is create a real opportunity for people to switch off and have time to think, talk, create and engage. Choose your location based around this thinking – get back to the ocean or nature spots. Think about the use of space and where you will stay. The creativity starts the moment you arrive.

www.mortgagebrokernews.ca

52-53_BIZSTRAT Corporate Retreats-SUBBED.indd 52

28/01/2016 7:15:01 AM

Close the laptops and bring out large sheets of paper. The cognitive connection to thinking and writing is incredible – it allows a flow and a dynamism that cannot often be captured by tapping away at a keypad. Bring your team back to basics by making idea generation and problem-solving larger than life on big sheets of paper that hold opportunities, as well as a page for concerns and challenges. Bring it out into the open, and tackle each area with transparency and shared purpose. Allow the conversation to continue over dinner or lunch, and be open to the idea that an agenda can flow when people are given the opportunity to open up and share ideas without a stopwatch. Take notes at lunch or dinner – and add those to the ones from the more official creative brainstorming sessions. Carry this through and identify how you will share these ideas when back in the office.

back to the office as well. Create tangible milestones for KPIs and performance during the retreat that you all agree to continue in the office. Most of all, if you’re going to take away your findings and apply agreed-upon accountability measures, make them official, and show that ideas generated on retreat can be swiftly implemented back at work.

Corporate retreats are back in vogue – and rightly so, for they can provide a crucial, authentic timeout for leaders and key teams to reconnect, assess productivity and build shared purpose at even the most challenging times Leadership

Performance Part of the purpose of a retreat is to help recharge mental and physical batteries, not deplete them any further. Integrate a yoga or fresh-air session in the morning with a mid-afternoon session outdoors or doing something that gets people moving. Engage in earlier drinks before choosing healthy, inspiring dinners at venues that understand delicious, fresh, high-quality ingredients. Encourage ‘homework’ or calibration time in the evenings, and embrace the value of sleep. View the retreat as time to share the value of bringing personal and business vitality to life and how this can be integrated seamlessly back at the office. Bring in speakers and facilitators who understand the importance of both personal and business acumen – it can make a world of difference in teaching your leadership team how to take all areas up to the next level. If you’re the CEO or the leader of this retreat, then set the scene upfront. Time out in strategy sessions, combined with fresh air, fresh food and a fresh perspective, can create an incredible shift in old-style, work-hardplay-hard thinking. Bring balance into the day, and watch this philosophy find its way

ethic inside a company – it’s essential for our increasingly virtual world. This all greatly improves productivity and accountability. Finally, whatever you do, keep it relevant and efficient, and forget about the fad gadgets and gimmicks or signature flashlights and backpacks. The best place to spend your budget is on the right location and the people hosting the retreat for you.

I always say there are three pillars of true leadership: • leading from within • leading by example • leading others Corporate retreats are an ideal opportunity for executive teams to test elements and roll them out for a period of time before sharing with the broader teams. It may be a fourweek implementation period post-retreat that requires a regroup before rolling out. By leading by example and practicing what you preach, the element of authenticity and trust is improved, creating a real engagement with leaders across divisions as well. Often retreats are an opportunity to see other skills, characteristics and ideas from those around you – a forum where problem-solving and collaboration can show leadership in a different light. Most important, leadership teams and executivelevel management have an opportunity to explore the core commercial elements on the agenda, as well as their own personal wellbeing and goals, in a safe and constructive environment. Increasing personal connection can greatly improve the collaboration and work

You don’t want your leadership team coming back into the office on Monday, exhausted from late nights of too many drinks and not too sure about what the next steps are. This is about lifting your corporate sessions up a notch and getting engagement from the get-go. It’s the conversation, the quality connections, and well-organized time and content that allow a perfect blend of relaxation, connection and strategic thinking. Corporate retreats, if executed well, efficiently and with purpose, are a powerful tool to reignite shared purpose, engagement and a passion for performance in business and in life. Run your retreats like you do your business. Have a purpose, and define who needs to be there and what value you want in return. At the end of the day, building a culture that is healthy, wealthy and wise is the winning trifecta, and corporate retreats are an ideal place to benchmark those three elements together.

Nikki Fogden-Moore specializes in coaching high achievers to bring business and personal vitality to life. Her new book, VITALITY, is available internationally.

www.mortgagebrokernews.ca

52-53_BIZSTRAT Corporate Retreats-SUBBED.indd 53

28/01/2016 7:15:14 AM

Years celebrating excellence in the canadian mortgage industry

Join the CMA Honourees List in 2016 For 10 years, winning a CMA has been the most prestigious and recognized accolade in the Canadian Mortgage Industry Make sure your peers are recognized this year by nominating them!

NOMINATIONS NOW OPEN! BROUGHT TO YOU BY:

Friday 13th May 2016 The Liberty Grand | Toronto

We would like to thank our Partners:

ORGANISED BY

MEDIA

速

canadianmortgageawards.com CMP_CMA16_NominationsOpen_012616.indd 1 54-55_Career Path-SUBBED.indd 54

27/01/2016 6:14:34 28/01/2016 7:16:23 AM AM

PEOPLE

CAREER PATH

THE WRITE STUFF

David Larock might be a mortgage industry veteran, but he achieved independent success by way of blogging 2014

2011

WINS INDUSTRY AWARD

WRITES BLOG POST THAT PUTS HIM ON THE MAP

Larock’s hard work educating the public has hardly gone unnoticed. In 2014, CAAMP (now known as Mortgage Professionals Canada) honoured him with its inaugural Financial Literacy Leader of the Year Award “That was a nice pat on the back for those long Sunday afternoons”

His blog has helped Larock win clients from across the country – especially in 2011, when he got the business boost of a lifetime. When Larock sent a blog link to Rob Carrick at the Globe and Mail, he didn’t think much of it – until his readership suddenly jumped into the hundreds

“When I started out, I was excited when I got 10 views a day. Now I get 500 hits on average per day, but it didn’t come easy” 2007

GETS LAID OFF

After the collapse of the commercial paper market in 2007, Xceed lost funding for its subprime mortgages. The company shifted focus to the less-profitable prime mortgage business, and under the recommendation of its executives, Xceed released its management team – including Larock “I spent time thinking about what I wanted to do. I decided that was the time to run my own business, if I was going to do it”

2010

JOINS TMG THE MORTGAGE GROUP In March 2010, Larock opened his own mortgage shop. To build business, he made cold calls, forged referral partnerships with real estate agents and started blogging “I did a lot of blogging because I thought I could set myself apart. I could share my knowledge of lending and financial markets”

2004

SITS ON A PANEL ABOUT SUBPRIME MORTGAGES Larock’s division was so well positioned that he was invited to speak as an expert on the subprime market at the 2004 CAAMP conference. The CEO of Xceed Mortgage was in the audience, and he invited Larock to join his company as VP of sales and marketing. On Larock’s first day at Xceed, the company went public, and Larock had to learn the ropes quickly “It inspired me to work really hard, and then we had success, which bred more success. We were growing so fast, we didn’t have enough room to put people”

2001

ENTERS THE MORTGAGE INDUSTRY THROUGH CIBC Before accepting the RBC gig, Larock had also interviewed at CIBC. When the bank learned he was looking for work, they offered him a job as an internal consultant for CIBC Mortgages. He eventually became the national director of business development for CIBC’s subprime mortgage division, FirstLine Access Mortgages “I was there for two years, and we set records for profit and volume each year. We were well-positioned for the subprime market when it was starting to grow”

2000

EARNS MBA AND JOINS RBC SECURITIES

After graduating from Western University in 1997, David Larock joined a commercial leasing company, then called CB Commercial, to gain some life experience. He enjoyed the sales side of the business, but decided to join RBC Securities’ generalist program after earning his MBA “Because the position [at CB Commercial] was so tough to get, I took it without questioning if it was what I wanted to do. I took the job, worked for four months, hated it and quit”

www.mortgagebrokernews.ca

54-55_Career Path-SUBBED.indd 55

28/01/2016 8:54:13 AM

PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email mortgagebrokernews@kmimedia.ca

A SLIPPERY SLOPE From the ski industry to mortgages, Donald Greene is a financing guru DONALD GREENE can thank his passion for skiing for his success as a mortgage broker. In 1968, Greene was inspired by Canadian Nancy Greene’s Olympic win, so he found a job at the ski shop at Sun Valley in the Laurentians and immediately took to the slopes. “It was so much fun,” Greene says. “It was incredible; I was hooked.” While at McGill University, he joined the ski team and became a ski instructor. That gig introduced him to Conrad Guay, the ski school director and father of Canadian skiing great Erik Guay. Greene worked with the elder Guay on the prestigious Pinoteau Racing Team in Tremblant, Que. “After that, I was drafted by the ski industry,” Greene says. “I was fortunate enough to be in contact with people like the Crazy Canucks.” Greene later became the first employee of Salomon Canada before joining the optical industry, where he became involved in financing lasers for eye operations. In 2008, Greene made the jump to mortgages and joined a start-up called Planiprêt, which is now the number-two brokerage in Quebec. But he’s still got a toe or two on the hill. “We moved up north,” Greene says, “so we’re about 10 minutes away from the ski hill!”

1936

The year alpine skiing made its Olympic debut

275

The number of ski areas in Canada

2.5 million The estimated number of Canadian skiers or snowboarders

56 www.mortgagebrokernews.ca

56-OBC_Other Life-SUBBED.indd 56

28/01/2016 7:19:20 AM

CANADAâ&#x20AC;&#x2122;S NATIONAL MORTGAGE COMPANY Dominion Lending Centres has grown to more than 2,400 experienced mortgage professionals in just 10 years! Thank you for helping us become the #1 mortgage company in Canada and we look forward to working with you in 2016.

JOIN THE COMPANY THAT IS ALWAYS FIRST TO POWER ITS MEMBERS WITH THE BEST!

1-888-806-8080 DominionLendingCentresCanada

56-OBC_Other Life-SUBBED.indd 57

JoinUsNow.ca DLCCanadaInc

28/01/2016 7:19:34 AM

Are some of your clients just a few dollars short? Affirm Financial has an important opportunity for your sub-prime and near-prime clients. Sometimes a whole deal can ride on finding just a few more dollars. But not everyone qualifies with today’s traditional or even private lenders. An Affirm Term Loan can be the ideal solution for your clients who need that last bit of financing to get a deal completed. We offer the flexibility not usually seen in sub-prime financing.

Affirm Term Loan Features

 No payments for the first 45 days   Repayment terms of 6 to 60 months   Fixed monthly payments 

 No penalties for early repayment   Reports to the credit bureau*   Interest rates from 29.9%-39.9% 

Want to learn about our Referral Program? Call or email today for more information. We look forward to working with you!

Who is Affirm Financial?

Affirm also offers the Affirm MasterCard®

Affirm has served over 45,000 Canadians and is a leading provider of financial solutions for people who can’t obtain loans or credit cards from traditional financial institutions. They also serve people in bankruptcy situations who are still working toward completing the process.

• • • • •

A true credit card – no security deposit required Reports to the credit bureaus* Use it anywhere MasterCard® credit cards are accepted No cash advance Fixed interest rate of 29.99%

For more information contact Peter Young 1-844-266-4401 | peter.young@affirmfinancial.ca You can also visit our website at AffirmFinancial.ca/CMP. Affirm Financial products are not currently available to residents of Quebec. Affirm MasterCard®. Fixed interest rate of 29.99%. This card is issued by Peoples Trust Company under license from MasterCard International Incorporated. “MasterCard” is a registered trademark of MasterCard International Incorporated. *Affirm Financial Services reports credit card payments to TransUnion Canada and Equifax, and term loan payments to TransUnion Canada.

56-OBC_Other Life-SUBBED.indd 58

28/01/2016 7:19:40 AM