Canadian Mortgage Professional (CMP) Issue 4.12 by Key Media

Alt Lending guide Issue

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www.mortgagebrokernews.ca

issue 4.12

4 2009 1 3 things you won’t forget about

Marketing Easy ways you can start a website

ANALYSIs Live from San Diego, it’s the Mortgage Bankers Association

ProfileD Gord Dahlen: At home with the Invis and MI president

PUBLICATIONS MAIL AGREEMENT #41261516

Scotia Capital’s Adrienne Warren

4 2009 1 3

In the Scotia Economics’ most recent Global Real Estate Trends report, it says, among other things, that things it’s looking good for the global real estate market – and even better for Canada. CMP recently spoke with Adrienne Warren, economist and author of the report

things you won’t forget about

cover story

36 Five things you won’t forget about 2009 2009 was, undeniably, a year of ups and downs. Erin Letson looks at the events – and the people – that shook up the industry over the past 11 months

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contributors

contents

NEWS 8

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

10 VFC rebranded, Home Trust expanded; Grow-ops get high, commercial market gets low; clients shopping around too much, fixed/variable debate too close to call; Katherine Gregory makes the Profit list, Canadian Mortgage awards announces its MC; and more…

Jessi Johnson

NEWS ANALYSIS 34 F.Y.I.: Following CMP’s visit to the Mortgage Bankers Association (MBA) conference in San Diego, we thought it timely to update Canadian mortgage professionals on some of the key acronyms in vogue south of the border

MARKETING 52 www.you.com: Today, not having a website would be the equivalent to not having your number in the phone book 10 years ago. If you don’t have a site already, Jessi Johnson, a Vancouver based, web-savvy broker, explains the easiest way to start and maintain one

PROFILES 57 Provider: Choice in the matter: Seeing a need to increase its broker status program, National Bank recently decided to not only increase its status tiers, but also the amount of choices that brokers are given access to for rewards. Sebastien Kuperhause, national sales manager, recently spoke to CMP about some of the changes

58 Everywhere Man: It wasn’t easy, but CMP caught up with Gord Dahlen, the new president of Invis and Mortgage Intelligence, as he reflects back on a 20-year ST_CMP_ThirdPg_08_09final career in the mortgage8/26/09 industry 12:28 PM Page 1

and service [Security in the right combination ]

INSIDE

is the president and CEO of the Jessi Johnson Mortgage Team with the VERICO network and writer of this month’s tech article, www.you.com (page 52). Priding himself on being a tech-savvy broker, he thrives off the tools available to increase efficiency. Through using a combination of creative marketing and technology, Johnson plans to be one of Canada’s top brokers.

Guide to alternative lending In CMP’s continuing series of guides, we look at the growing niche market of alternative lending and talk to the lenders and brokers that thrive within it. Including tips on how to get a deal done, a look at equity lending and a listing of what lenders have to offer, this guide is not to be missed.

Insight: Covering new ground: With a new real estate business in place, the Brampton-based mortgage brokerage Financial Ties is looking to build referrals for its agents while keeping them educated along the way 62 Favourite things: Greg Martel, mortgage broker/ owner, Harbourfront Dominion Lending Centres Victoria, B.C. 61

regulars 30 International News 32 This time last year 63 CMP Service Directory

Over the past 100 years, Stewart Title has become one of the largest, most reliable title insurance companies in the world. We are continually investing in both technology and people to streamline the real estate process, and provide the resources needed to handle transactions faster and more efficiently. With experienced underwriters, Stewart Title can provide unsurpassed customized policy coverage for both residential and commercial transactions. At Stewart Title, we know it’s our relationship with our clients that determines our success. That’s why service is the foundation of our business and integrity, the keystone in all our dealings. Contact us at 1-888-667-5151 or www.stewart.ca

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Editor’s Letter

Happy holidays If you’re one of the lucky ones, by the time this issue hits your desk you won’t be there. You will probably be some place warm and sunny sipping cocktails out of coconuts, or perhaps just hanging around the house enjoying the fact that you no longer have to endure the daily commute. In fact, you might not even read this until 2010. If however, you don’t happen to have early holidays, forget everything I just said. Free time is overrated anyways. Like me, you are still stuck to your desk, but since everyone else seems to be in holiday mode, what better time to slack a little and flip through the pages of CMP? Consider it research, as our staff writer, Erin Letson, did while she hit the books (and by that I mean search engines) hard, compiling as many of the major events that shaped the mortgage industry in 2009 so that you don’t have to (for the year in review, see page 36). From record low interest rates and perhaps one of the most closely watched Bank of Canada Governors, to the roller-coaster ride of Canada’s mortgage insurers, not to mention its economy - we have been through quite a bit in the past 11 months. Speaking of roller-coasters, CMP was also able to catch up with Invis/MI’s new president, Gord Dahlen, as he took some much needed time off from his hectic travelling schedule. As part of our regularly occurring in-depth profiles of the people who make this industry great, what better time to take a closer look at someone who has been in the industry 20 years and is now finding themselves at the head of not one, but two national brokerages? This issue also marks another edition of our popular CMP Guides series, this time looking at the alternative lending market. It was two years ago that we last looked at this facet of the industry (called subprime at that time), and while so much has changed, you would be surprised to see who and what are still the same. So put on your favourite holiday sweater, kick your feet up and have a flip through the issue over a glass of rum and egg nog. While it may not be the holidays yet (for some of us), that’s no reason not to pretend it is. Regards, Jesse Kinos-Goodin Associate Editor Jesse.kinosgoodin@kmimedia.ca

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4. 12 issue

“

The word is on the Street. Street Capital works with us to get our deals done. They make us feel like valued clients and partners. Andrea Wadden Bedford, NS, CEO Status

Street Capital is broker friendly and broker exclusive, they are very supportive and a valued partner for INVIS. Kevin Boucher Newmarket, ON, CEO Status

”

Street Capital is a big reason for our success during our first year and will be an integral part of our brokerage’s aggressive goals for the foreseeable future. Whether it’s underwriting, sales support or the efficiency of the closing department, Street Capital truly understands how to help us grow our business. Bottom line: Street Capital gets it. Glenn May-Anderson Belleville, ON, President Status

Talk to your RVP for more details, including how to become a Street approved mortgage professional. Vince Agozzino

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Quotables

“I think the biggest change with the new position is being able to make decisions that will affect the entire company, and I’m very excited about that. It’s taking my old job and multiplying it by two, but I love it.”

“Canada’s relatively stable real estate market reflects, in large part, its traditionally conservative lending practices and mortgage products. This has, and will continue to, limit the speculative activity by buyers and builders behind the bigger boom and bust cycles of many other countries.”

- Gord Dahlen, president and CEO of Invis and Mortgage Intelligence, on his new role, page 58

“Lenders are still grappling with how to lend in a marketplace like this, so as brokers, we have lots of stories of when we thought we had a deal and then there was an underwriting change or a policy change just based on what was happening in the market – that’s what stands out most in my mind.”

- Adrienne Warren, Scotiabank economist, discussing Canada’s place in the global real estate market, page 50

- Dylan Gallagher, broker/owner of Bridge Capital, reflecting on what affected the mortgage industry in 2009, page 36

December 2009 Publications Mail Agreement #41261516 Postmaster: Return undeliverable addresses to KMI Publishing, 100 Adelaide Street West, Suite 300, Toronto, Ontario M5H 1S3

ASSOCIATE EDITOR

Jesse Kinos-Goodin

STAFF WRITER

Erin Letson

SALES MANAGER

Scott Clarke

OFFICE MANAGER

Marni Parker

SUB-EDITORS

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PRESIDENT INTERNS

Simon Parker Tim Duce Kaleigh Ambrose Melissa Kim

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TRAFFIC COORDINATOR

Vice President, Operations & Editorial

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Reader’s write Web comments

Some (not so) kind words for Mark Carney The economy will recover when consumers start spending again. And not just on small items, but big-ticket items like housing. Mr. Carney is making cautionary comments, but all they are doing is making an already spend-fearing population even more fearful. According to CAAMP’s Will Dunning, only one-third of the mortgages this year were for purchases. That should be more like 55 to 65 per cent as purchases. We need more home sales in order to fully pull out of the recession, not less. Mr. Carney’s comments are well intentioned, but now is not the time for them. - David Neville

the client has decided to not proceed with you then move on to the next one because it’s life and that’s how things work. I can’t see how the courts can let this go on. - Ray B.

Check the facts The Financial Post article [“CMHC: Canada’s Freddie and Fannie”] is typical of the media reporting on items that they have not researched thoroughly enough. Comparing CMHC to Freddie Mac and Fannie Mae is ludicrous, since those are privately owned corporations whereas CMHC is a crown corporation whose sole mandate is to insure and provide “affordable housing to Canadians.” I I think Carney should put a sock in it or audition for am appalled that a respected publication such as the FP would allow that article to go to print a spot on CNBC. Enough said, don’t ya think? - Ted Shackleton without someone checking the facts. - Max Cafissi To chase or not to chase clients for commission? If I get any vibe from the client that they are a shopper, I send them packing and tell them to contact me again when they have finished their do you personally feel that shopping and I will tell them if they have the best rate. If you don’t have a relationship with your Canada is out of the recession? client from the outset, you never had a client to begin with. If you do the work and they shop you, Every month CMP will have a new broker poll on you obviously didn’t make the right impression and mortgagebrokernews.ca. Here are the results of the didn’t spend enough time reading the client. latest one.

- Brian Matthey I’ve got no problems when another institution beats my rate. But when I consistently come back with the lowest rate and clients take it to a lender and they match it, then I feel that I should be entitled to some form of compensation. I was responsible for the lower interest. They would not have received that low interest rate had it not been for the work I did.

- Rhett If your client is using you just to get the best rate and his FI is willing to provide the best rate, the client can negotiate somewhere else and that is what is going to happen. Stop selling rate and start selling service. If you can’t prove to your client that your service is better than the banks’ then you need to work harder on that. Would you give up a better deal just to stay with the person who may or may not have done his best, but knows he will get paid just because it came to him? - Clayton Carby Last time I looked as brokers we needed referrals to make a living. Taking a client to small claims court because they don’t proceed with us because they got a better rate someplace else is ludicrous and wrong. If the deal does not go through because

mortgagebrokernews.ca

56%

Somewhat. It’s steady but I could use some more business.

22%

Experts say so, but in the real world? Not at all.

17%

Yes, business has never been better.

Total Votes: 78 If you have something to say and would like to potentially see it in the pages of CMP, you can either comment on mortgagebrokernews.ca or send a letter to Jesse.kinosgoodin@kmimedia.ca. Letters and comment may be edited for length and clarity.

Debbie McInnis of Shelkor Mortgage Inc. prides herself on her ability to make her clients feel completely comfortable and on her strong relationships with lenders. And we are committed to helping maintain her success, with dedicated relationship managers who have decision-making authority, consistent adjudication and a full suite of mortgage products.

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News

community

In the community Above More than 500 ING Direct employees volunteered to build a new natural playground – which includes climbing boulders, trees, musical instruments and a sandbox – at a park in Toronto’s Leslieville neighbourhood in September. The project was part of ING’s “Orange in the Community” initiative and was praised by Toronto mayor David Miller and councillor Paula Fletcher. Right Monster Mortgage held its annual, pre-Halloween Monster Bash at its Toronto office on Oct. 29 to show appreciation to its lending and service partners. Close to 100 people attended. From right to left: Dave Currie and Pamela Marr from Monster Mortgage, Kathy Lillie from First National and Joe Rosati from MCAP.

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News Industry

Reverse mortgage rates see big drop

Bridgewater Bank launches rental mortgage tools for brokers To help brokers target more real estate investor clients, Bridgewater Bank launched a new information website, Bwbrentalinvestor.com, with tools like regional regulations, calculators and tax-planning information. “In the off-season, brokers can usually devote more time to training and education, so we decided to launch the site in the fall,” said Liz Elliott, marketing channel facilitator for Bridgewater Bank, adding the program fits with lender’s rental property mortgage program, but is also a useful

VFC renamed as part of TD rebranding effort Alternative mortgage lender VFC Home Inc. and TD Canada Trust’s indirect lending business joined together and began operating under a new name, TD Financing Services, Nov. 16. “With both TD’s and VFC’s knowledge, expertise and presence in the point-of-sale financing space, TD Financing Services has a significant opportunity to expand and drive growth,” said Erik de Witte, president of TD Financing Services. “The combined business will also provide seamless loan decisions to our business partners and improve the financing experience for consumers.” TD Bank launched VFC Home, which targets non-prime borrowers who can’t qualify under mortgage insurance guidelines, in February. The company lends in Ontario, B.C., Manitoba, Saskatchewan and Atlantic Canada and works through the mortgage broker channel. Anne Albani-Dolson, the company’s national sales director, mortgages, said the lender will be launched in Quebec as of Nov. 16 and Alberta soon (a date hasn’t been set yet). Under its new brand name, TD Financing Services said it plans to launch automotive and home improvement lending products in January. CMP

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standalone tool for brokers who want to learn more about real estate investing. The site’s main features are Microsoft Excelbased calculators and sample worksheets, which determine if clients qualify for a single or multiple rental properties and figure out their potential cash flow. In conjunction with the new site, Bridgewater Bank BDMs are hosting rental investor seminars across Canada and giving brokers the option to request private training sessions. CMP

Home Trust broadens Accelerator program To further build on the success of its Accelerator program, Home Trust is expanding its high-ratio insured products to Manitoba, Saskatchewan, New Brunswick, Newfoundland and Labrador and extending lending areas in all other Pino Decina provinces. “This is another step forward in our evolution,” said Pino Decina, senior vicepresident of mortgage lending at Home Trust. “We started out 30 years ago as an Ontariobased, alt-A residential niche lender and have grown to a national trust company offering one-stop mortgage solutions to a wider range of clients.” Home Trust launched its Acclerator program in July 2008 and introduced a variable-rate product to the program’s lineup last summer. CMP

The rate on a CHIP Home Income Plan reverse mortgage dropped to 3.75 per cent, down from 4.95 per cent, as a result of HomEquity’s recent transformation to a chartered bank. “Becoming a Schedule 1 Bank has allowed us to lower our rates because we now raise funding the same way that other banks do,” said Greg Bandler, senior vice-president of HomEquity Bank, adding the company is seeing more demand for reverse mortgages due to the growing population of seniors in Canada. Along with the lowered rate, HomEquity Bank – which now issues GICs – is also offering a discount program for customers who pay their full interest annually. The program reduces the interest rate on a CHIP mortgage to as low as 3.25 per cent. At the end of September, HomEquity’s reverse mortgage portfolio totalled about 7,000 with an accrued value of $837 million. The company provides reverse mortgage products directly to consumers as well as through referrals from banks, financial planners and mortgage brokers. CMP

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News

mortgages in the press

Commercial

Canada’s alt-A market still performing well Home Capital Group, whose principal subsidiary is the Home Trust company, recently posted a third quarter net profit of $38.2 million. Gerry Soloway, the chief executive, spoke with the Financial Post about the better than expected results, as the lender saw shares increase 37 per cent from last year, not to mention a return on equity of 28.7 per cent. “If I tell you there may be 10 per cent unemployment, there are still 90 per cent working and the people who are still working have a good opportunity to buy a house at a low interest rate,” he told the paper. Perhaps the most interesting part of this is that the core of Home Trust’s business is in the alt-A market, which is seeing a bit of resurgence in Canada. The Post lists as one of the reasons for Home Trust’s strong performance being the exodus of large U.S.-based lenders, such as GE Capital, Wells Fargo and GMAC, and the decrease in competition for the national lender that this resulted in, but failed to mention the functioning Canadian lenders still operating in this sphere CMP

Canadians on mortgage “binge” Canadians are taking out mortgages nearly eight per cent faster than they did a year ago, according to a report in the Globe and Mail, sparking concern that highly leveraged borrowers will be in over their heads when interest rates rise. “We know that cheap money in the past caused some problems. This is a time to be prudent,” CIBC economist Benjamin Tal told the Globe, adding that household debt in Canada rose 3.4 per cent in the first half of the year and the debt-to-income ratio rose to 140 per cent. The report warned that borrowers’ decision to take on bigger mortgages is not consistent with larger paycheques and could be problematic if housing prices take a hit once the buying frenzy cools down. There are also concerns of a housing “bubble” due to the high number of sales and the pace of price increases. “It’s environments like these that breed bubbles,” ING Direct Canada CEO Peter Aceto told the Globe. Mark Carney downplayed the risk of a housing bubble in a recent speech, saying he expects the real estate market to cool down by 2011. He added he will take necessary measures if low interest rates continue to spur out-of-the-ordinary activity. CMP

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Commercial real estate down until mid-2010: PwC Commercial real estate is not expected to improve until the middle of next year, according to a PricewaterhouseCoopers LLP (PwC) report released Tuesday in conjunction with the Urban Land Institute. In Canada, commercial real estate values have decrease by 10 to 20 per cent since the market started falling. Although this market is expected to do better by mid-2010, PwC points out that investors might be more keen on investing in foreign markets instead, such as Brazil and India. “For 2010, we are rating only fair investment outlooks for most property types and predict generally weak conditions for development,” PwC partner Chris Potter told the Globe & Mail. “Limp demand threatens to soften property cash flows across all sectors and most markets.” The expected capitalization rate for Canadian office spaces at the end of 2010 is 8.1 per cent, according to the “Emerging Trends 2010” investment report. Urban office spaces will have the greatest increases in capitalization rates, whereas malls, suburban shopping centres, and hotels’ rates will increase only slightly. The lower the capitalization rate, the lower the selling price. Investment prospects for the industry were rated on a scale of one to 10. Hotels were rated at 3.69, industrial at 4.68, retail at 5.0 and office space at 5.04. For offices, the report heeded to avoid the suburbs and stay in downtown locations. As for retailers, the report suggests to stay away from “malls in secondary cities with shrinking, aging demographics” and power centres. The report also recommends investing more in urban shopping areas and grocery stores. Industrial spaces and hotels will suffer the most in 2010, with some industrial spaces potentially losing anywhere between 30 to 40 per cent in value, whereas others will remain stable. Ontario will be the core of the issues with industrial spaces. Hotels will suffer because Americans are not travelling as much to Canada, which chiefly affects the higher-end lodgings. The results of the report are based on survey responses and interviews with investors, developers, real estate experts, property company representatives, brokers, lenders and consultants. CMP

out of

Number of homebuyers in Ontario who value energy efficiency when making home purchases, according to the most recent EnerQuality survey.

News Economy

Grow-ops leave mortgage industry dazed and confused

Above Women from the mortgage industry gathered at Piper’s Heath Golf Club in Hornby, Ont. on Nov. 4 for the second annual professional women’s charity mortgage conference. MCAP, Genworth, Filogix, Solidifi and First Canadian Title were the key sponsors and proceeds went to the Women’s Habitat of Etobicoke and the Halton Women’s Place.

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Marijuana grow-ops have become a massive industry in Canada, and the negative effects are widespread well beyond the realms of crime enforcement. Grow-ops also expose homebuyers and lenders to mortgage fraud, said Marie Dyck, senior adviser, fraud, insurance, servicing, CMHC at the second annual CAAMP mortgage summit in Toronto. It was estimated that in B.C. alone there is some 18,000 to 20,000 grow-ops, while the police only have the capacity to deal with approximately 250 per year. The problem for lenders stems from the fact that proprietors of grow-ops often obtain mortgages fraudulently on the properties, and then leave them in an unliveable state, including excess carbon monoxide due to tampering with the furnace, and an overabundance of toxic mould. In order for a property that was used as a grow-op to be resold, a letter from the city is required stating that after repairs were made the house is now deemed safe to live in. “We will never give a letter that a building meets code,” said Jim Jessop, deputy fire chief of the Niagara Falls fire department. “I’m not going to have a three-year-old crawl around on the floor, or put her toys somewhere or sleep under ceiling tiles that are dripping with insecticide.” CMP

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News Industry

Paralegal says people use brokers to shop around “far too often” Mortgage brokers who prepare a deal with a lender only to find out their clients have used the rate information to shop around is something that happens “far too often” said paralegal Jeff Greenberg, who recently launched a business to help Ontario brokers collect commissions from clients. “After a client has signed a mortgage commitment and all the documentation, the broker has done their job and therefore they’ve rendered a service and are entitled to get paid for that service,” said Greenberg, who did legal work for an Ontario mortgage brokerage for three years before branching out on his own. Greenberg first tries to settle these types of situations amicably by asking clients to pay the commission the broker would have collected had the deal closed (this amount excludes volume

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bonuses and other incentives). If that doesn’t work, he issues a claim and takes the clients to small claims court – something he said happens in about 60 per cent of the cases he sees. “Brokers don’t want to sue their clients and it’s not good business, but the fact is that it’s not good business for a client to negotiate in bad faith and to take advantage of someone who relies on their commissions to live,” he said, adding lenders are not part of the process of collecting payment from clients. CMP

82%

The decline in the inventory of homes for sale in Toronto in September compared to the same month last year, according to Market Watch.

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News Industry

Fixed or variable decision “much closer to call,” bank report says While variable-rate mortgages continue to beat out fixed rates when it comes to cost savings, the gap between the two is likely to become closer due to the economic environment, a bank report says. “Fixed rates were advantageous during only two recent periods - through the late 1970s and briefly in the late 1980s; in both cases, ahead of a period of rising interest rates, as is the case now,” the report by BMO economists Douglas Porter and Benjamin Reitzes said. Variable-rate products have proven the better option 82 per cent of the time since 1975, Porter and Reitzes wrote, and forecast that variables will continue to remain cheaper than fixed-rate mortgages. This is in part due to the rising Canadian dollar, which has reduced the Bank of Canada’s short-term need to raise the key interest rate. On the other side, the report argued the economic recovery - and the expected rise in interest rates next year - has potentially caused “one of those rare periods when a fixed rate turns out to be the superior choice.” It also pointed out that negotiated rates (as opposed to posted rates) make fixed and variable products closer to call. CMP

Canadians more diligent savers in ’09, survey says More than half of Canadian workers have changed their spending habits and reduced their debt in 2009, according to the Sun Life Financial Canadian Unretirement Index. “In December 2008 we saw that many Canadian workers were conflicted about their retirement prospects, but now, almost a year later, there’s an increased confidence in their ability to save enough for certain things like basic living and medical expenses,” said Dean Connor, Sun Life Financial Canada’s president. “According to our survey, paying housing expenses is the No. 1 financial priority of Canadian workers until about age 51, when retirement saving takes over as the top priority.” The survey revealed that 60 per cent of the 1,200 respondents have reduced their debt this year and 59 per cent have cut back spending since January. Canadians are also more confident with their retirement prospects, with 55 per cent of those surveyed saying they believe they will be retired by age 66, up four per cent since the 2008 Unretirement Index. CMP

36%

The percentage of younger Canadians (aged 18 to 34) who said they couldn’t have afforded their first home without help from their family.

New home prices way up In September, new home prices rose by 0.5 per cent-the most since January 2008, according to the recent New Housing Price Index released by Statistics Canada. The index was only expected to increase by 0.2 per cent. Between August and September, Vancouver, Saskatoon, Toronto, Ottawa-Gatineau, Calgary and Oshawa, new home prices increased because of increased market interest, higher labour/development costs, and/or preferable market conditions. Declines in prices were found in Sudbury, Thunder Bay, Victoria, and Edmonton; but none were hit as hard as Windsor at -0.7 per cent. Reuters reports that permits for September’s housing construction was amplified by 9.4 per cent. Toronto alone is expected to partake in a 26 per cent increase in new housing for next year, according to the Canadian Mortgage and Housing Corporation. James Bazely, president of the Ontario Home Builders’ Association, speculates that builders and renovators are scrambling to get as much work done as possible before the HST is implemented next July. CMP

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News

Housing market

Profit calls Paradigm Quest’s Katherine Gregory “one to watch” Katherine Gregory, president and CEO of the mortgage outsourcing company Paradigm Quest, has been named the No. 1 Canadian female entrepreneur to watch by Profit magazine. “The reason Profit told me they selected me was the uniqueness of the fact that I founded this company and women are generally not founders,” said Gregory. “But I think what’s important is that our leadership team are truly the domain experts in the mortgage market and that’s what is driving the company forward.” Gregory added the company’s success – a one-year sales growth of 55 per cent and annual revenue of close to $20 million – is based on

aggressive targets and a unique business model that focuses on the back office processing of mortgage transactions. Clients include ING, Merix, CMHC, Genworth and Merrill Lynch. For 2010, Gregory said the company will continue its production of a proprietary technology and end-to-end platforms that can better serve its clients across Canada. It will also launch services in Quebec next year. “Paradigm has built its reputation on speed to market and product innovation and we want to provide our clients with the best service to both their origination channels and their customers – it’s really that simple,” she said. CMP

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

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

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

Calgary

Suite 1115-Bentall Two 555 Burrard Street, Box 231 Vancouver, BC V6C 3K4 Fax: 604-683-2787 Email: vancouver@peoplestrust.com

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

News Economy

Solidifi advances in U.S.

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600

billion

Solidifi continues to capitalize on new regulatory requirements imposed on U.S. lenders and valuation companies, reporting strong growth in its first year of operations south of the border. “Since our entrance into the U.S. market one year ago we have helped over 100 of the top U.S. lenders and Government Griff Straw Sponsored Enterprises (GSEs) with our next generation approach to appraisal management and collateral risk management,” said Loren Cooke, executive vice-president, sales and marketing at Solidifi. The company, which has its U.S. operations based in Chicago, also added more than 10,000 appraisers to its national panel in the first 12 months of operation, said Cooke, who spoke with CMP at the latest Mortgage Bankers Association (MBA) convention and expo in San Diego. He said Solidifi had no issues meeting the beefed-up regulatory requirements in the U.S. appraisals industry, including the Home Valuation Code of Conduct (HVCC) and Real Estate Settlement Procedures Act (RESPA), which both seek to eliminate conflicts of interest in the mortgage appraisal space. HVCC rules in particular aim to keep loan writers and various third parties, including mortgage brokers and real estate agents, from having any influence or control over mortgage appraisers. That U.S. mortgage brokers and loan writers could once directly select an appraiser, giving them the ability to influence the home appraisal process, has been identified as one of the key reasons for the surge in foreclosures and mortgage defaults. Cooke’s comments came not long after the company appointed a new president to the company’s U.S. operations. Griff Straw, CMB, was appointed president of Solidifi U.S., Inc. in early October. The company said he brings more than 30 years of experience including several senior level positions at United Guaranty. He will report to Jason Smith, CEO of Solidifi Inc. Cooke was confident Solidifi’s U.S. operations would continue to prosper in the next 12 months. “In 2010 we are planning to more than double our efforts and growth into the U.S. mortgage market,” he said. CMP

The amount of mortgage insurance CMHC can have outstanding, up from the $350 billion cap at the end of 2007.

Housing starts bounce back Housing starts have begun to recover and are expected to see improvements for the remainder of the year, according to CMHC’s fourth quarter housing market outlook. “Demand for existing homes has rebounded since the beginning of the year,” said CMHC chief economist Bob Dugan. “In addition, lower inventory levels characterize both the new and existing home markets. As a result, stronger housing demand will be reflected in higher levels of housing starts in 2010.” Saskatchewan was said to see the biggest drop in housing start activity - 3,600 units in 2009 compared to almost 6,000 in 2008. Ontario also saw an almost 40 per cent drop in housing starts this year, but was expected to see a recovery in 2010. The CMHC housing outlook went on to say the strong pace of MLS sales seen in the second and third quarters of this year reflects activity that was delayed in the previous two quarters and is “not likely to be sustained.” The organization estimated home sales will reach 441,300 units in 2009 and 445,150 in 2010. It also predicted house price increases in all provinces. CMP

News Industry

CMHC neither Freddie nor Fannie Karen Kinsley, president and CEO of the Canada Mortgage and Housing Corporation (CMHC), recently voiced her “disappointment” at the Financial Post for suggesting that the mortgage insurer was “reckless” while at the same time comparing it to Freddie Mac and Fannie Mae in the U.S. In a letter to the Post published Oct. 30, Kinsley points to some key differences between the Canadian and American economies, such as a “lack of subprime issues, strong economic fundamentals,” and low interest rates in Canada. She then goes on to note that while CMHC is entitled to insure up to $600 billion in mortgages, it only insures $480 billion now; that it maintains capital reserves for future losses that are twice the minimum requirement set by the Office of the Superintendant of Financial Institutions (OFSI); and that it is “subject to stringent government oversight” that includes regular reporting to Parliament. Brokers also had a chance to weigh in on the Mortgage Broker News forum and showed a large amount of support for CMHC. “The facts are that Canada/CMHC and lending institutions here have always maintained higher lending standards than many other governments and continue to do so in the environment coming out of this recession,” wrote Brian Matthey. “[CMHC] tends to underwrite their loan insurance in a conservative manner and relies on the lender to be prudent and check for falsified information,” wrote a reader simply referred to as John. “Last time I checked, CMHC was still a Crown Corporation and Freddie and Fannie were privately held bankrupt corporations.” Or as Kelly Rowe summed it up: “As a broker, I’m not always all that happy with them ... but as someone who works in this industry, I can assure you CMHC is not giving away the farm.” CMP

Canadian Mortgage Awards

2o1o

April 23, 2010 • Liberty Grand • Toronto

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CMP names name 2010 awards host Canadian comedy star Jessica Holmes is set to host the 2010 CMP Canadian Mortgage Awards, taking place April 23 at the Liberty Grand in Toronto. Holmes is known for both her television and stand-up comedy work. She held a regular spot on CBC’s Royal Canadian Air Farce and had her own sketch comedy program on CTV called The Holmes Show. She has also appeared in numerous specials on the Comedy Network and has opened for comedians like Jerry Seinfeld and Leslie Nielsen. The 2010 CMAs promise to build on last year’s awards with more categories and a glamourous 1960s theme inspired by Mad Men. Nominations for the awards are open until Jan. 14, 2010. Please visit Canadianmortgageawards.com for more details. CMP

Jessica Holmes

The percentage that houses in Alberta and B.C. are overvalued, as concluded by a working paper released by the International Monetary Fund.

NOMINATE

NOW!

Visit www.mortgagebrokernews.ca Nominations close January 14th 2010

Invis.

Right where I want to be.

Hi everyone, Gerri here. Running a successful brokering business takes time and effort, and so does raising a family. And with Invis on my side, I can balance my business and my life. My work days are busy. I’m focused on my mortgage clients… and doing everything it takes to make sure they stay satisfied clients. But life’s busy, too. Caring for my family keeps me on the go. Being there at my kids’ ball games. Checking homework. Serving in my community. With all this on my plate, Invis is a fantastic team to have working for me. I love it that brokers have a strong voice at Invis. Managers at all levels are just a phone call away. They get what we as brokers need. They get problems solved. At Invis, they make it easy for me to work with my colleagues. We don’t solicit each other’s referral sources. We share information and best practices. We share our successes. We know that we’re in this together. Invis gets the value of a solid reputation. They’re leading the charge for greater professionalism in our industry. Quality matters, and I benefit directly from the respect and credibility Invis has with lenders. I have choices and I choose Invis. I’m right where I want to be.

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Gerri Vaughan Senior Mortgage Associate Invis Inc. Edmonton, AB

www.invis.ca 1.866.854.6847

News

Appointments

appointments Dominion Lending Centres announced the following new franchise owners: Aaron Theodorou, DLC Secure Line, Richmond Hill, Ont.; Mark Rempel, Mac Shahsaver and Glenn Proutt, DLC Elite Advantage Financial, Winnipeg, MB; Melissa Hammer, DLC Your Financial Solutions, Olds, Alta; Shafiq Rammay, DLC ABC Mortgages, Calgary; Dougal Shewan, DLC Valley Financial Specialists, Langley, B.C.; Wyatt Tunnicliffe, Jennifer Estrada and Lynn Smith, DLC Gold Financial Services, Chilliwack, B.C.; Steve Moffitt, DLC Ratestreet, Vancouver; and Lucy Huang, DLC MetroCentre, Burnaby, B.C. Equitable Trust has three new appointments: Wendy Powell joins the company as a residential mortgage officer, Thom Henderson has been appointed director, commercial mortgage underwriting, and Joanna Koutso takes on the role of commercial funder.

Tara Messersmith has been appointed vice-president, technology solutions at Equifax.

Matthew Scaife is the new business development manager for Optimum Mortgage in interior B.C.

ING Direct Broker Team recently appointed two new regional sales managers – Rick Wilson (left) for Calgary and Alberta South and Trevor Gordon (right) for Atlantic Canada.

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International

australia Australian mortgage and financial services company Firstfolio has confirmed the launch of a boutique aggregation model targeting top performing and next generation mortgage brokers. The new business, to be branded Firstfolio One, will deliver an aggregation service targeted at brokers writing upwards of $5 million per quarter. The move reflects Firstfolio’s intention to become the aggregator of choice with A-grade brokers looking for new growth opportunities, according to Andrew Russell, Firstfolio’s general manager for third party and product distribution. “The model [will enable] us to specialize in providing dedicated services under the provision of Firstfolio One,” he said. Russell added that Firstfolio wanted to attract experienced brokers interested in developing the next generation of top performing brokers. His objective for the new aggregation business is to double the business being written across its platform after the first year, and double it again after the second, he said. CMP

26% Increase in the percentage of U.K. residents who have filed for personal bankruptcy in the last year compared to the previous year.

u.k For the second time this year, the Council of Mortgage Lenders (CML) has reduced its forecast of home repossessions to 48,000 in 2009, or 0.43 per cent of all mortgages in the U.K. The original prediction from last year expected 75,000 homes would be repossessed this year, while the number possessed in 2008 was 40,000. “We are glad to have been wrong on our previous forecast for mortgage repossessions this year,” Michael Coogan, director general of the CML. “Although the economy is not out of the woods yet, we no longer expect a dramatic rise in properties being taken into possession, unless interest rates rise from the low levels that most commentators now expect to persist for some time.” The council said the figures were not as bad as previously predicted because of an effective combination of caution with lenders, low interest rates and government measures. There are 11 million mortgages in the U.K., valued at over £1.2 trillion. In the CML’s revised forecast for 2010, it predicted the number of repossessions will be 53,000, or 0.48 per cent of all U.K. mortgages. In the same breath, CML – which makes up 98 per cent of undertakers of all U.K. residential mortgage lending – said it also expects housing sales will rise to 810,000 this year and 850,000 in 2010. “Although we have become more optimistic, we remain cautious about market prospects,” said Coogan. CMP

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u.s. The U.S. government’s mortgage relief initiative has reached more than 650,000 borrowers as of October, according to the U.S. Treasury Department. “Struggling homeowners in every state now benefit from reduced monthly mortgage payments and have an opportunity to stay in their homes,” said treasury assistant secretary Michael Barr in a statement. “The program is having a pronounced impact in areas particularly hard hit by the housing crisis.” Under the Home Affordable Modification Program (HAMP), Freddie Mac and Fannie Mae refinance home loans for a new, affordable monthly payment plan. The program, which was unveiled in February, is committing $75 billion to prevent foreclosures for three to four million Americans over the next three years. Through refinancing, the Treasury Department says that the average person can save $150 per month. The report said that about 20 per cent of homeowners were offered modifications for a trial period. Morgan Stanley, Citigroup Inc., and JPMorgan Chase & Co. are the banks doing most of the modifications, reported Bloomberg news. Citigroup took care of about 40 per cent of its eligible mortgages, JPMorgan has gone over 32 per cent of theirs and Morgan Stanley has started 44 per cent of theirs. U.S. banks received federal aid from the Treasury Department to lower mortgage payments for at-risk borrowers. CMP

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News

ISSuE 3.12

subhead

THE YEAR IN

REVIEW What to make of ‘08

PLUS: SUPERBROKER ISSUES How can brokerages up their games? MARKETING Embracing the online world PROFILE Jessi Johnson CMP CANADIAN MORTGAGE AWARDS 2009 NOMINATION FORM ENCLOSED

2008

this time last year AGF streamlines operations AGF Trust cut 10 per cent of staff across its trust operations due to market conditions and sent a memo that said “while other mortgage lenders have had to leave this business, AGF Trust remains dedicated to the mortgage broker channel…to fund existing and new commitments.” It also put a hold on new mortgage initiatives and said there would be dedicated area lending managers as the single point of contact to answer service and sales inquiries. One year later, and AGF Trust is still in the mortgage lending game and is still working through the broker channel. The lender also released the Simple Mortgage, a new CMHC-insured high-ratio mortgage product, in mid-October. The product has an up to 95 per cent LTV, a 60-day rate hold and discounted rates and flexible repayment options, among other features. AGF Trust said it will hold Simple Mortgages on its balance sheet as opposed to securitizing them. “We remain strongly committed to the mortgage broker channel and to providing products and services that will help brokers meet their clients’ needs,” an AGF Trust spokesperson told CMP. CMP MBABC adopts AMP MBABC and CAAMP announced the provincial association would adopt the national AMP accreditation and promote the benefits to its membership (there were about 500 MBABC members who held the designation at the time). The agreement involved CAAMP appointing an MBABC representative to its board each year and having the two associations work more closely on advocacy and government regulation efforts. CAAMP said it had no specific plans to partner with other associations, but Jim Murphy said the next step would be to discuss a similar agreement with AMBA due to its high number of members who also hold AMP designations.

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One year later, and MBABC president Joe Santos said it is still too early to provide comments about how the two organizations are working together – something he expects to develop further over the next few months. When CMP asked AMBA if there was any word of a CAAMP/AMBA partnership, president Todd Fralic responded with this:“We acknowledge all the hard work CAAMP has done with the AMP designation to increase the level of professionalism in our industry. We see the importance of a recognizable, appropriate designation for mortgage professionals, but at this point AMBA has not organized any formal committee to consider the endorsement of any designation.” CMP Home renovations on the rise RBC’s 2008 Renovation Study revealed 70 per cent of respondents planned to renovate or make home improvements in the next two years and the average budget for renovations was up 10 per cent from 2007. However, only 28 per cent of those polled – compared to 41 per cent in 2007 – said they would consider using the equity in their home to finance it. Homeowners in Alberta and Atlantic Canada proved to be the most likely to renovate. One year later, and RBC’s latest Renovation Study found that 76 per cent (or three in four) Canadians who are planning to renovate will pay for most or all of it with cash or savings compared with 70 per cent last year. In addition, the number of respondents who plan to use a credit card to cover renovation costs is down eight per cent compared to 2008. “Whether Canadian renovators plan to fix up and sell or renovate and stay, most are taking advantage of tax credit and incentives. They’re also planning to use cash or lower interest credit to finance those renovations,” said Marcia Moffat, RBC head of home equity financing. CMP

www.hometrust.ca

News Analysis

F Y I

Following Simon Parker’s visit to the Mortgage Bankers Association (MBA) conference in San Diego, we thought it timely to update Canadian mortgage professionals on some of the key acronyms in vogue south of the border

cronyms can be a curse when you’re trying to make sense of something. And what makes it tougher is when a spate of new acronyms (or old ones back in favour) burst forth into popular circulation. This is the case within the U.S. mortgage space of late following the recent push for more regulation of the mortgage sector. MBA (Mortgage Bankers Association). An organization many Canadian mortgage professionals would already be familiar with, this body represents real estate finance professionals in the U.S. HVCC (Home Valuation Code of Conduct). Introduced May 1 of this year, this code aims to ensure home appraisers are given the independence they need to provide accurate and unbiased property valuations. One of the key changes involves a lender’s loan production staff. They are banned from being involved in the selection of appraisers, and the code limits the degree and basis of communication the two parties can have. Moreover, where the lender has its own appraisal team, this group is kept entirely separate to the loan production and sales departments within that organization. RESPA (Real Estate Settlement Procedures Act). A consumer protection statute introduced in 1974, it has been updated with new rules due to come into effect Jan. 1, 2010. One such rule relates to changes to the ‘Good Faith Estimate’ (GFE) – see next point for more details. GFE (Good Faith Estimate). This provides borrowers with an estimate of what their settlement charges and loan terms will be. A pdf copy of the Good Faith Estimate can be obtained at: Hud.gov/offices/hsg/ramh/res/gfestimate.pdf

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GSE (Government-Sponsored Enterprise). This includes organizations such as Fannie Mae and Freddie Mac, both of which have been hit hard since the crisis started. This was highlighted in 2009 third quarter results - Fannie Mae recorded a net loss of US$18.9 billion, while Freddie Mac posted a $5 billion loss. These organizations were originally set up by Congress to help ensure the supply of money for home ownership. MIRA (Mortgage Improvement and Regulation Act). This is how the MBA would like to see regulation of the mortgage industry handled in the U.S. The proposal, which has been forwarded to Congress, aims to remove the patchwork of state and federal rules relating to mortgage lending. CFPA (Consumer Financial Protection Agency Act). This is the bill the MBA has some concerns about, hence its MIRA proposal. The MBA argues that the bill fails to empower the CFPA “to establish uniform national standards that will regulate all lenders and protect all borrowers consistently regardless of where they live.” The final version of the bill was approved by the House Financial Services Committee on Oct. 22, with President Obama’s support. “The Consumer Financial Protection Agency will prevent predatory lending practices and other abuses and will ensure that consumers get clear information they can understand about financial products like credit cards and mortgages,” he was reported as saying. The bill’s next stop was the full House for a vote after which, if passed, it would proceed to the Senate. HUD (Department of Housing and Urban Development). No, this isn’t what a football quarterback says in order to receive the ball. It’s the country’s housing agency, a body dedicated to sustaining homeownership, creating affordable housing opportunities for low-income Americans,

www. yourfirsthomecanada .ca

not to mention supporting the homeless, elderly, people with disabilities and people living with AIDS. HUD is also responsible for the Making Home Affordable program, a plan which the department says aims at stabilizing the U.S. housing market by enabling an estimated seven to nine million people to reduce their monthly mortgage payments to more affordable levels. The program is broken up into two parts: The Home Affordable Refinance Program (HARP), which gives up to four to five million homeowners an opportunity to refinance into more affordable monthly payments, and the Home Affordable Modification Program (HAMP), which provides $75 billion to keep up to three to four million Americans in their homes by preventing avoidable foreclosures. FHA (Federal Housing Administration). Part of HUD, the FHA provides mortgage insurance on loans for single-family and multi-family mortgages made by FHA-approved lenders in the U.S.

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REO (Real Estate Owned). This is a property that a lender has failed to offload at a foreclosure auction, and remains on their books as a non-performing asset. Not to be confused with 1970s hit band REO Speedwagon, nor Oreo, a chocolate cookie that, when compared to the mountains of foreclosures in the U.S. (see next point), leaves a much more palatable taste in one’s mouth. OMG (Yes, Oh My Goodness). But this isn’t to do with the plethora of acronyms that abound in the U.S. mortgage industry. It’s the foreclosure numbers that have prompted this response. Take the number of workout plans, where borrowers have received assistance in order to avoid foreclosure, that have been implemented since July 2007 (as of Aug. 31 this year) – more than 5.2 million. That’s bigger than the population of B.C. Recent changes to the Freddie Mac Relief Refinance Mortgage program (part of HARP), which includes an increase in the maximum allowable loan-to-value ratio up to 125 percent and the ability to refinance through any servicer, is likely to see many more people qualify for help, and illustrates the depth of the problems south of the border. CMP

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Cover

Year in review

3 1

1 243 things you won’t forget about

2009

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Year in review

2009 was, undeniably, a year of ups and downs. While talks of a recession segued to talks of a housing bubble, everyone had their eyes fixed on Bank of Canada governor Mark Carney to see what he would do next. But it was also a year that saw a lot of industry-specific events that could very well change the way brokers do business in 2010. Here, Erin Letson looks at the events, the people and the decisions that shook up the industry over the past 11 months 1. The ‘R’ word and the new lending landscape

Hands down the recession was the newsmaker of the year. Its effects were felt throughout the industry and, not surprisingly, the other events on this list are all directly linked to it. Although the blows of the financial crisis are easing and brighter forecasts are in place for 2010, it has marked a clear shift in how brokers, lenders and insurers do business. “We were still in the thick of the subprime crisis fallout for most of this year,” says Dylan Gallagher, broker/owner of Bridge Capital in Calgary. “Lenders are still grappling with how to lend in a marketplace like this, so as brokers, we have lots of stories of when we thought we had a deal and then there was an underwriting change or a policy change just based on what was happening in the market – that’s what stands out most in my mind.” Brokers noticed more stringent lender and insurer guidelines, even for traditional ‘A’ clients, making it harder to keep on top of what deals would fit where. Alt-A clients, particularly self-employed borrowers, were even more scrutinized and subprime borrowers with mortgages up for renewal saw their options disintegrated (see subprime sidebar for more details). Many lenders also made it more difficult to purchase an investment property due to adjusted rental income offset guidelines which, in some cases, dropped from 70 to 80 per cent to 50 per cent. “The policies and procedures of the different lenders have completely changed, so it’s not that easy to get a mortgage anymore – and it makes our job a lot harder,” says Elana Rendell, a broker with Mortgage Architects in Burnaby, B.C. Lisa Manwaring, a broker/partner at Meridian Southwest Mortgage in Delta, B.C. agrees, saying it was tougher and more time-consuming for brokers to get deals done this year “I found in the summer it got a little bit easier with lenders, but I would honestly say in the last month we’re getting back to some of that tough stuff again and they want a lot,” says Manwaring. “In some instances I agree with that, but if a guy has been with the federal government for 20 years, for example, and he’s given me a job letter and a pay stub, I don’t understand why we’re being asked for tax documents and things like that.”

did you know? According to Merix Financial, only one-third of mortgage activity this year was from new mortgages while two-thirds was from renewals and refinances.

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Year in review

As tough as the residential mortgage lending situation has been, commercial lending took an even bigger hit, largely because of a lack of investor interest in commercial mortgage-backed securities. There was a 50 per cent decline in transactions in the first half of 2009 and commercial real estate values are estimated to have dropped as much as 20 per cent throughout the recession, according to a November report released by PricewaterhouseCoopers.

2. Mark Carney and his low rate drama

Within the first three weeks of the year, the Bank of Canada lowered the overnight target rate to one per cent. Three months later, it dropped again to a record-low 0.25 per cent and marked the beginning of a period of rock-bottom variable-rate mortgages, particularly for homebuyers who signed onto variables when rates were in the “prime minus” zone in mid-2008. Fixed rates, although unaffected by key interest rate cuts, also became a bargain when they dipped under the four per cent mark. Cheaper mortgages allowed those who couldn’t previously afford to get into the housing market a chance to get their feet wet, but as effective as low interest rates were in spurring mortgage business, they also presented a set of challenges. “The movement of rates up and down this year actually caused a lot more work for brokers in the sense you’ve got files that are complete and in the eleventh hour you’re fighting to keep the client when you have newer, lower rates coming in,” says Jim Tourloukis, broker/ owner of Verico Advent Mortgage Services in Markham, Ont. “I found that it’s created a lot more work for the brokerage community relative to the past.” Along with purchases, low interest rates – and the urgency of consumers who wanted to take advantage of them – sparked a flurry of renegotiation inquiries and confusion around

mortgagebrokernews.ca

Lenders come and go While the lending landscape may not have shifted as dramatically as in 2008 when several subprime lenders exited the market and Scotiabank launched its rebranded Scotia Mortgage Authority, there were some notable arrivals, departures and shifts in business. Wells Fargo Canada’s exit from the mortgage market in July came as a big surprise for many people in the industry. Soon after, Citizens Bank shut down its mortgage division. And while HSBC didn’t stop mortgage lending, it did announce it would only be working with a select list of brokers. Despite the pull-outs, there were some new additions to the lending landscape. Alternative lender VFC Home – now under the TD Financing Services name and brand – started operations in February and helped fill a void in the alt-A market across Canada (it’s launching in Alberta shortly). The U.K.-based lender Lloyds TSB also introduced its International Mortgage Service in Canada at the beginning of the year, giving Canadian residents an option for purchasing property abroad. Also notable on the lender side was the conversion of HomEquity (which offers the CHIP Home Income Plan reverse mortgage) to a chartered bank. Former subprime lender Xceed Mortgage Corporation is also set to become a Schedule 1 bank early in 2010 and will switch to a conventional lending model. And Street Capital built on the roll-out of its prime insured mortgage program in 2008 by introducing its conventional lending program in select provinces in April.

the IRD (interest rate differential) penalty that comes with breaking a mortgage. In the summer, the Financial Consumer Agency of Canada told the Montreal Gazette it received 80 mortgage penaltyrelated complaints since January, largely because of the consumer assumption that they would only be penalized three months of interest for breaking their mortgage. “The penalty situation with respect to those plummeting interest rates was a huge problem,” says Paula Scott, broker/owner of Best Rate Financial (Axiom) in Ancaster, Ont. “When penalties went from your traditional $2,000 to $3,000 up to $12,000 to $15,000 that was a big shock for a lot of clients that were looking to do something with their mortgages, be it get a better rate or refinance.”

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Year in review

As Bank of Canada governor Mark Carney has stated numerous times, he intends to keep the key interest rate at 0.25 per cent until June unless inflation poses a threat (so far, this hasn’t proved too much of a concern). The Bank’s position has caused a flurry of speculation, particularly after countries like Australia and Norway raised rates due to active housing markets. But whatever happens, it’s clear that both mortgage industry players and consumers are going to be keeping a close watch on what Mark Carney does next.

3. The roller-coaster real estate market

It’s safe to say Canada’s housing rebound exceeded expectations this year with soaring sales and prices across the country. While the early months looked dismal – national house sales fell 37 per cent in January compared to a year earlier – spring saw a rebirth of consumer confidence that exploded throughout the summer and fall (the Canadian Real Estate Association said national resale housing activity climbed to the highest level of any third quarter on record).

CMP Top 50 Peter Kinch: Man with a plan CMP published its second annual Top 50 Brokers list, based on voluntary volume submissions from mortgage professionals across Canada, in May. Peter Kinch of Dominion Lending Centres clinched the top spot on this year’s list – and it seems he hasn’t slowed down since. “This year was a year of adaptation and change – my business has been completely reinvented in 2009,” says Kinch, who is based in Vancouver. “I wanted to create an outsource model and really focus on writing and speaking.” The core of his plan involved partnering with other DLC brokers and rolling out “PK-approved” offices across Canada (there are already six in

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Ontario, five in Alberta and three in B.C., with more to come). Kinch trains brokers in these offices to package deals for real estate investors, his target clientele, and then refers business to them (taking a referral fee) through his other speaking and media engagements, which will soon include the promotion of his upcoming book The Canadian Real Estate Action Plan. “In the book, a couple attends my workshop, meets others and, through that, learns a three-phase action program and how to build a real estate portfolio,” he says, adding the book is written in an entertaining style “a la Wealthy Barber.” Also on Kinch’s packed agenda are plans to launch a national syndicated (and sponsored) version of his educational radio spot, “The Mortgage Minute” and keep up regular appearances on CTV news.

We’re on top of the trends

At CMHC, we’ve been a leader in the Canadian housing industry for more than half a century and we add the value of our experience into every mortgage we insure. We have everything you need to make homeownership for your clients a reality and to further grow your business. CMHC. Everything you need to open new doors. Visit EverythingYouNeed.ca for industry tools you’ve never seen before, videos and helpful information you can share with your clients.

Cover

Year in review

Scotia Mortgage Authority’s Jim Smith (left) and Verico’s Colin Dreyer

The third annual CMP Canadian Mortgage Awards in April was a fun-filled, ‘80s-themed evening attended by more than 400 industry professionals. Verico took home the biggest award of the evening for Mortgage Brokerage of the Year, while Calgary broker Greg Williamson – also with Verico – snagged the Mortgage Broker of the Year (national network) award. Congratulations again to all this year’s finalists and winners. The 2010 CMAs are scheduled for April 23, 2010, at the Liberty Grand in Toronto and nominations are open until Jan. 14. Visit canadianmortgageawards.com for more details – we’d love your input.

“MLS sales in Canada in January were just under 317,000 and by August, the number was about 509,000. That’s almost a 61 per cent rebound in activity that I don’t think anyone predicted,” says Bob Dugan, CMHC chief economist. But even with the real estate pick-up, the slow start put many brokers in a tough position. Nadine Jackson, a mortgage agent with Mortgage Intelligence in Halifax, says her business is down from last year and she has only very recently seen things start to pick up. For Lisa Manwaring, the housing rebound – which was accompanied by buyer competition and multiple offers – provided another set of challenges. “We had lenders saying they wouldn’t fund a deal for 10 days after receiving all final conditions, so it was tough because you had Realtors negotiating extremely tight turnarounds. They’re telling you they need a subject removal in two days and that they’re going to complete in two weeks, and then you had lenders who were saying, ‘I don’t think so,’” she says. Experts agree the fast pace of home sale activity seen in the latter half of the year isn’t sustainable, especially with affordability, the main factor cited for causing the housing frenzy, sliding due to rising prices and mortgage rates. New listings also remain low compared to last year. But it’s safe to say the worst of the slump (think back to January) is over.

Will subprime borrowers be left empty-handed? The Globe and Mail ran a series of features on the subprime mortgage situation in Canada this year and estimated there were close to 85,000 of these types of mortgages granted. One of the main questions that came out of the Globe’s features was where these borrowers will place their mortgages when they’re up for renewal since many subprime lenders have left the market or changed their business to serve prime clients. One report said as many as 25,000 Canadians could lose their homes upon renewal, even if they’ve been making regular mortgage payments. Paul McGill, CEO of NorthBrook Capital, started a lobby group earlier this year urging the government to grant assistance to subprime borrowers. Although progress with the government has been slow, McGill told CMP the issue is far from dead. “We’re going to continue to push – subprime mortgages will be a significant issue in 2010 with all the renewals coming up and we have to get this resolved.”

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Cover

Year in review

Jan. 27 Federal budget announcement leaves no 100 per cent guarantee for private mortgage insurers.

Apr. 21 Carney drops key interest rate to 0.25%.

Jan. 1 Mark Carney officially declares recession with his first rate cut of the year.

Jan. 20

Feb. 17 FSCO suspends 79 brokerages for not having mandatory errors and omissions insurance.

New set of FSCO rules in place for Ontario brokers.

Big appointments Here were the movers and shakers of the mortgage industry in 2009: The provincial mortgage broker associations all appointed new presidents: Jeff Atlin at IMBA, Todd Fralic at AMBA and Joe Santos at MBABC. In the national broker network category, Mark Kerzner was named president and COO of The Mortgage Group and Gord Dahlen became Invis and Mortgage Intelligence’s president and CEO. Sam Kay was promoted to vice-president of Centum Canada and Meini Ickert moved up to the position of vice-president national sales at Mortgage Architects. On the lending side, Kim Luxton was appointed as the new director of lending and broker sales at ING Direct and Jill Paish was promoted to vicepresident, originations at Merix Financial. When VFC Home – now called TD Financing Services – launched in February, it introduced Rita Job as director of mortgage operations and Anne AlbaniDolson as national sales director for mortgages. Among mortgage industry service providers, Jim Aber was named president and CEO of Marlborough Stirling Canada, Sharon Castelino switched from CIBC to Solidifi to become the company’s executive vice-president, lending solutions and Sheila Young was appointed president of the Appraisal Institute of Canada for the 2009-2010 year.

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“There is a clear indication based on the strength in the existing homes market that things are getting back on track from the downturn we experienced in the first half of the year,” says CMHC’s Dugan.

4. The ups and downs of the three mortgage insurers

It wasn’t a particularly easy year for any of Canada’s three mortgage insurers, with each facing a different set of challenges and company changes. The federal budget announcement in February brought some disappointing news for AIG United Guaranty and Genworth Financial Canada. Both private insurers failed to see their request to be fully guaranteed by the federal government fulfilled, something both said would help level the playing field with the 100 per cent-backed CMHC. As the year progressed, AIG’s Canadian arm felt the effects of the financial tumble (and bad press) of its parent company, shying away from public attention for much of

Apr. 28 Manitoba announces it will be retooling its Mortgage Dealers’ Act.

cover

Year in review

Genworth MI Canada generates $850 million after closing its initial public offering.

Jul. 7

Industry feedback comes in on the first draft of the new Mortgage Brokerages and Administrators Act in Saskatchewan.

Finance Minister Jim Flaherty renews the $125 billion Insured Mortgage Purchase Program.

Sep. 25 May National resale housing market activity returns to pre-recession levels and jump 43 per cent compared to January 09.

CIBC World Markets says the mortgage market is growing at a year-over-year rate of 7.8%.

Nov. 19 Posted rates on fixed mortgages drop between 0.25% to 0.10%.

Aug. 12 Oct. 6

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Cover

Year in review

Brokers on Lenders Top three overall: First National, Merix and MCAP

the year. In March, it was announced that AIG United Guaranty would join a new global offshoot company of AIG called AIU Holdings Inc. But even with its presence downplayed, AIG’s Canadian mortgage insurance division has emphasized it’s still very much a player in the market here. Genworth’s Canadian arm also felt the repercussions of the economy when its parent company in the U.S. faced big losses. It issued an initial public offering of 44.7 million common shares in July and generated proceeds of approximately $850 million, with most of it going to Genworth Financial in the U.S. Things looked up later in the year when Genworth loosened its tightened credit guidelines. The company’s homeownership assistance program also proved to be a success, with the company recently stating that 3,300 homeowners have been helped by the initiative. Despite having the largest market share of mortgage insurance in the country and dodging the financial woes of its competitors, CMHC didn’t go unscathed this year, facing both praise and criticism for its $125 billion Insured Mortgage Purchase Program as well as continued debate about its 2008 decision (which has since been reversed) to insure 40-year, zero-down mortgages.

5. The rules are changing

Ontario brokers rang in 2009 with a second set of rules related to the new Mortgage Brokerages, Lenders and Administrators Act implemented by the province’s Financial Services Commission (FSCO). Later in the year, regulatory bodies in Manitoba, Saskatchewan and Quebec all announced they would be retooling provincial mortgage broker legislation, marking a clear trend to better protect consumers. Among FSCO’s new requirements were disclosure statements for consumers and mandatory errors and omissions insurance – something the commission suspended 79 brokerages for not having after conducting a random audit in February. “It’s not easy to pass legislation and I think FSCO has made a huge move in the right direction with these new regulations,” says Graeme Moss, broker/owner of Fair Mortgage Solutions in Hamilton, Ont. “I think the key word is there’s more accountability, so if an agent does something wrong it goes right up the chain of command and the principal broker has incentive to make sure agents tow the line – otherwise they could lose their licence.” Moving west, the Manitoba

One broker’s rate forecast “Rates are bouncing between 3.8 per cent and 4.5 per cent and they’re going to continue to bounce at the lowest rates we’ve had due to the short-term economic status. You can think of them as emergency rates to keep the economy going. If the economic recovery is slower, then rates will stay low for longer and now that the dollar’s higher they’re going to have a harder time raising rates. Combine that with the fact that the U.S. consumer is not leading the recovery, so they’re not going to be getting us out of this recession – it’s all going to be dependent on government spending. So we’re going to bounce between 3.8 per cent and 4.5 per cent until we do get out of the recession – it’s going to go up and down a few more times.”

- Mark Herman, Mortgage Alliance

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Cover

Year in review

44% Mortgage broker share of first-time buyers market

44%

Mortgage brokers’ share of the first-time homebuyers market in Canada, up from 35% in 2007, according to Yes, it caught me completely off-guard CMHC’s mortgage consumer survey.

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government announced in the spring that it would introduce new amendments to its Mortgage Dealers’ Act, including stricter education requirements and more disclosure. New legislation is still in the drafting process and is expected to be proclaimed in the New Year, says Manitoba Securities Commission registrar Bill Baluk. Meanwhile, Saskatchewan’s Financial Services Commission completed new draft regulations in the late summer, outlining more education and on-the-job requirements for mortgage brokers. Also switching up the rules is Quebec. CAAMP says it hopes to see new licensing requirements that differentiate mortgage brokers from other real estate professionals in place by early 2010. New rules didn’t just stop at certain provinces, either. CAAMP increased the amount of education required by its members by two hours per year – something the organization says will help raise the bar of professionalism among members. CMP

Economy Q&A

In the Scotia Economics’ most recent Global Real Estate Trends report, it says, among other things, that it’s looking good for the global real estate market – and even better for Canada. CMP recently spoke with Adrienne Warren, economist and author of the report Adrienne Warren

Scotia Capital’s

Adrienne Warren Canadian Mortgage Professional: The Scotia Economics report states that stabilization could be underway for the Canadian real estate market. What factors point to this? Adrienne Warren: Home sales have firmed up since the spring as buyers take advantage of historically low mortgage rates and new tax credits for first-time homeowners. Combined with a shortage of listings for sale, home prices are being bid up once again.

CMP: You talk about boom and bust cycles around the globe in your report, and Canada comes off relatively well, not experiencing a major boom or bust (relatively speaking). Long term, does this fare well for the Canadian real estate market? AW: Canada’s relatively stable real estate market reflects, in large part, its traditionally conservative lending practices and mortgage products. This has, and will continue to, limit the speculative activity by buyers and builders behind the bigger boom and bust cycles of many other countries.

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CMP: How might the increase in housing starts affect the real estate market from a buyer’s perspective? AW: The recent pickup in new construction provides potential homebuyers with a competitively priced option to a resale house. New home purchase incentives may be particularly attractive in the condo market, which faces a larger glut of empty new units.

CMP: Can you identify areas where job growth will be strong in the next 12 months? AW: Skilled construction trades will likely be in high demand in 2010, benefiting from strong renovation activity and the pickup in homebuilding, as well as major infrastructure projects underway across the country, from upgraded roadways and transit systems, to expanded health care and education facilities.

CMP: How will inflation correlate with interest rates in 2010? AW: With the Canadian economy gradually turning the corner, inflation and interest rates are both headed higher, but only slowly.

CMP: In your opinion, will 2010 still be a buyers’ market? Why or why not? AW: The buyers’ market that existed in early 2009 had shifted back in favour of sellers by the summer as new listings lagged the pickup in sales. An improving economy in 2010 should prompt more sellers to test the waters, leading to the return of a more balanced market. CMP

LAST CALL NOMINATE NOW Visit www.mortgagebrokernews.ca Nominations close January 14th, 2010

Canadian Mortgage Awards

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April 23, 2010 • Liberty Grand • Toronto

And you thought the 2009 Awards was a blast? We can’t wait to show you what we have in store for 2010! For more information including sponsorship opportunities please contact Trevor Biggs at 416-644-8740 x 236 or Trevor.Biggs@kmimedia.ca

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MARKETING Websites Social Media

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MARKETING Websites

m o

Today, not having a website would be the equivalent to not having your number in the phone book 10 years ago. If you don’t have a site already, Jessi Johnson, a Vancouver-based, web-savvy broker, explains the easiest way to start and maintain one

bout three-and-a-half years ago, I obtained my mortgage broker licence. It was a good day, but now what do I do? I can ramble on for hours about marketing but none of it means anything unless you have one key tool – a website. This wonderful instrument should be a staple in the daily operations of every broker, especially when looking forward to the years ahead. Without a sharp sword, how can a warrior fight? A sharp website can be viewed as a glorified business card. Would you go to a networking event without business cards? Of course not, so why would you run your business without a site? There is a very good chance you may already have a website and if this is the case, I hope my article can provide suggestions on how to increase your traffic. I will say it now and I will say it again, get a website and be discovered. There are two main types of mortgage broker websites. The first is a supportive tool where potential clients can look you up online, check out your pretty pictures and hopefully call you or apply online. The second is a marketing tool used to generate business. I myself have both, but certainly don’t suggest that for everyone. Maintaining a good website is a lot of work, and even more when you have two. First, decide which type of website you are going to create, then progress from there. This is very important because your first step or phase of website creation is to pick a domain. Your domain will appear in the URL (Uniform Resource Locator), which is the small box on your browser where you type in a website address. This is the most important item because it is the ultimate key word for search engines. Take your time when deciding the domain. If you are going to create a supportive website then the domain is simple, www. yourname.com. If you are creating a marketing site with a specific niche, then I would take more time with your domain decision. To me, dot coms are not so crucial these days. Dot ca will work great but there are others to consider: dot me (.me) or dot tv (.tv), etc. Once you decide on your domain, you need to create a budget for your website creation. There are cookie-cutter websites out there for about $500, or you could drop as much as $20,000. It all depends on how crazy you want to go. Do your research and get quotes in

Jessi Johnson

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MARKETING Websites

“ make sure you have a blog or at least an area where you can continuously add content. Search engines love new content and so do your viewers ”

writing with detailed breakdowns of what is being offered. You should expect to pay $2,000 -$5,000 for something good, and I suggest using Ballistic Arts (ballisticarts.com) for this price range. Anyone reading this article who knows me personally knows that I am very particular when it comes to business (or in general, according to my fiancée), and therefore I always do my research. Technical support So now that you have an idea of what you are going to do and who is putting it together, we must decide on a backend. This is the program used to update and maintain your website. Yes, you can pay someone each month to update your site for you, or you can use a nice backend tool like Wordpress. This allows you to easily update your website without throwing money away by the hour. Both my sites, for example, are designed on Wordpress (Jessijohnson.ca and Firsthomeinfo.ca). Different people are comfortable with different levels of technology, so do your research and select what works for you. Your next step is to decide on key words. These wonderful words are to be used throughout your site and will be what people type in a search engine to find you. I suggest choosing 10 and sticking with them. Now comes the fun stuff - creating content. Good content helps generate traffic. It is suggested to have to least 250 words of copy per page. Write everything on a word document to be easily copy and pasted onto the site. Once you have a good enough idea for your content, you need to create a layout. Try to make this simple and easy to navigate. Your web designer should have many ideas for you, so I suggest researching other quality sites in your industry to bring even more ideas to him/her. There are some important items in these current times to remember when creating your layout with a website for a mortgage broker in mind. For starters, always make sure to have your “follow me” social media links to expand your network. Always have a “subscribe now” and “unsubscribe” link for your newsletter. Post testimonials from your clients about how great you are. Don’t forget your online mortgage calculator (hint: send this link to all your Realtors). Have an area for reciprocal industry links to high quality sites, which will help generate traffic. Offering free reports is a great way to increase your database. If you post rates, keep them current. It looks terrible having outdated stats. And last, but certainly not

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MARKETING Websites

least, make sure to have an online application on your site. Instead of programming or designing an online application, I suggest talking to Morweb. In my option they are the superior choice for a program to work on mortgage deals and their online applications are excellent. Just remember to collect ID and thoroughly review documents if you don’t meet the client when using an online application. The most consistent expense you will have with running a website is your hosting cost. This can range from about $10 a month to hundreds depending on the service. Hosting is the location for your website and data to be stored. If you are just starting out, Godaddy.com will have some good cost-efficient hosting packages for you. Their customer service is reasonable but you will eventually need to upgrade if your site grows with traffic. Now I use a company called Robson Inc, and they are rock-solid and worth every penny. Getting noticed So you have a website, now what do you do? First off, make sure you have a blog or at least an area where you can continuously add content. Search engines love new content and so do your viewers.

steps: Phase one: 1. Figure out your niche 2. Buy a domain (check out Dotster.com or Godaddy.com) 3. Create a budget and find a web designer 4. Decide on a back end (wordpress, blogger, etc) Phase two: 1. Decide on 10 “keywords” 2. Start writing content 3. Create a website layout 4. Purchase Hosting (I suggest Robson Inc.) Phase three: 1. Create your blog or area for continuous content additions 2. Design your site to be SEO-friendly 3. Decide how you are going to market your site 4. Tell everyone about your awesome site

Remember to use your keywords and keep focused on your niche. The word of the day is SEO, which stands for search engine optimization. The concept is to maximize your sites potential to be found on search engines. By using certain strategies in your website design, this will gain you higher rankings with the search engines. A high Google ranking means more visitors which generates more business. Google isn’t the only search engine but it is certainly the largest. Also, don’t expect overnight success from your website. If done properly you will see results in good time. I am by no means the master of SEO and this is always a learning process, but I do know that the Internet will be your best friend if you learn how to use SEO. Marketing your site is another step but prior to this you need to have your site connected to Google Analytics. This magnificent tool monitors your site traffic and marketing campaigns. By now you should already have a blog on your website and some content, so now let’s work on showing this to the world. There are many ways to generate traffic. You can read and comment on relevant industry blogs with links to your site, and advertising on Google Adwords or Facebook can be successful but certainly not cheap. Personally, I suggest using this only after the above stages are complete. Here you have the option of paying on a per click basis or per view. If you would like to learn more about advertising your site, I suggest checking out Reachd.com and attending a few seminars. I remember one day this past summer, the sun was shining, the temperature was about 35 degrees and I was working from home where the pleasures of air conditioning doesn’t exist. The fan was on full blast but I needed more circulation. My front door doesn’t stay open on its own so I had to prop it up, and after looking around I discovered the perfect tool – a Yellow Pages book. Do you get my point here? Gone are the days of flipping through countless pages to look something up, if people want anything they look for it on Google. The Yellow Pages are archaic. Search engines will make you money. Get a website and be found.

Jessi Johnson is the president and CEO of the Jessi Johnson Mortgage Team with the VERICO network. Priding himself on being a tech-savvy broker, he thrives off the tools available to increase efficiency. Through using a combination of creative marketing and technology, Johnson plans to be one of Canada’s top brokers. CMP

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OF THE HERD

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

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

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

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

NO. 9

Guide to alternative lending www.mortgagebrokernews.ca

alternative options alt lending tips 10 top

What you need to know about home equity loans

Q and A Lester Shore Nick Kyprianou PUBLICATIONS MAIL AGREEMENT #41261516

www.hometrust.ca

contents cmp guide no.9

NO. 9

Guide to Alternative Lending

cover story

10 2

Top 10 tips for alt-A lending A lot of brokers will occasionally deal with a non-prime client, but to build a business based solely on that model takes a different skill set than dealing with just prime. Here, Melissa Kim talks to Canada’s most successful alternative lenders and asks them for their top tips when dealing in this niche market

The keys to success Optimum Mortgage, a division of Canadian Western Trust, was established in 2004 to provide brokers with an alternative mortgage product. Today, it originates and funds alternative and traditional, insured or conventional residential mortgages throughout Western Canada and select regions in Southern Ontario. CMP spoke to Lester Shore, manager, to get tips for being successful with alternative lending.

Alternative options: There’s no question the alternative lending market has been on quite a ride for the last few years, but despite it all, it would be fair to say that the remaining are in Canada have weathered the storm nicely and is even seeing resurgence. CMP explains

Understanding home equity loans When times are tough – or when new opportunities arise – many clients look to their homes for extra cash. CMP navigates home equity loans and looks at both the options available and what clients need to watch out for

Back to the classics With a growing demand for alternative products in the marketplace, Home Trust recently re-launched its “classic” program. CMP spoke to Nick Kyprianou, president, about this and the alternative market in general

Alternative lending, strong financing The continuing economic uncertainty and the recent credit crisis have changed the landscape of the mortgage industry significantly. All major U.S. alternative lenders exited the Canadian market while those who remained slowed down to assess and manage credit more prudently making tough decisions on lending areas, falling property values, loan to values and credit requirements. Equitable Trust’s Andrew Moor explains

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Guide Feature

ips 0 T p1 To

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A lot of brokers will occasionally deal with a non-prime client, but to build a business based solely on that model takes a different skill set than dealing with just prime. Here, Melissa Kim talks to Canadaâ&#x20AC;&#x2122;s most successful alternative brokers and asks them for their top tips when dealing in this niche market

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Guide Feature

Tip 1: Know what your client needs versus wants There’s nothing wrong with trying to please your client. However, you’re the broker here, and when dealing specifically with alternative lending, you’re supposed to know what’s best. Your client, on the other hand, may not, according to Barb Wetmore of AK Mortgage Mill in Barrie, Ont. “It’s important to really find out if the client has paid their mortgage because half the time they come and want a better rate or to pay off something, when in actual fact they’re just about to lose their house,” she said. Wetmore stresses the importance of asking your clients the right questions to understand where their portfolio is so you know precisely how to help them. In other words, know what your clients needs, even if they are not quite sure what they are looking for. Wetmore advises, “Rather than send a client away and say ‘No, you can’t do that,’ we try to get him or her something that’s going to make him or her reasonably happy and put him or her back on the right track.”

“ although it’s important to keep your clients happy, do remember that it’s not all about the client. Forget about your relationship with your lender and its priorities and you might not be in business for long ”

many brokers will take a client’s word for something without documentation. It’s not that the client is trying to mislead, but more that he or she does not know how to properly answer the question. “A lot of people are afraid to ask questions or they don’t know the right questions to ask and it creates delays and problems and such when you’re trying to get a mortgage approved,” said Vaughan. “I’ll ask for a couple years of financial statements Tip 2: Respect your lender upfront, that type of stuff. Ask a history of how Although it’s important to keep your clients happy, much they’ve made versus what they show, and do remember that it’s not all about the client. questions like that.” Forget about your relationship with your lender and its priorities and you might not be in business Tip 4: Find a mentor for long, according to Wetmore. As competitive as the alternative mortgage “We need to understand that [lenders] can’t do business is, it’s not always every person for every deal. We can’t put together all the deals themselves. Barb Wetmore and Morgan Vaughan because a lender still has to be secure in the deal both recommend finding a mentor. Having they’re doing,” she said. “I know some brokers who someone else looking out for you will make your will try to talk the lender into deals that will make job less daunting, especially when you are first their client happy, but sometimes the deals just starting out. can’t be done.” “I think a lot of people tend to waste a lot of There’s an old ‘hand-biting’ adage that could go time on a deal that maybe never was going to go here, but we’re sure you get the picture. anywhere because they don’t know and viceversa,” said Vaughan. “If you ask maybe there is a Tip 3: Present a thorough application mentor in your brokerage or something that you If you don’t put together a thorough application, can work with for a period of time. I think there not only will your client most likely end up in the are a lot of experienced guys who are happy to do wrong deal, but your lender is going to be miffed that for new agents.” when things do not add up later on. Wetmore especially emphasizes the importance To avoid this scenario, Morgan Vaughan of of finding a mentor if you are doing business from MorCan Financial in Concord, Ont. recommends within your home where another alt-lending asking the client every question about his or her broker may not be as accessible. financial background and getting as much “It’s a good idea to pick somebody that’s been in documentation as possible upfront. He warns that the business for awhile, run the deals by them or

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Guide Feature

send them some questions so that you know exactly how to do this kind of lending because it’s difficult,” she said. Tip 5: Treat your client Just because some clients that need alternative lending may not have verifiable income, it does not mean that they are not giving you verifiable business. Show them that they are just as important as any other client. In fact, show all of your clients that you are personable and worthwhile to do business with by treating them every once in awhile. Mario LePage of Multi Prets in Gatineau, Que. holds two annual get-togethers – one in the spring for clients and one in the fall for agents. In the spring he rents out a screen in a movie theatre and provides popcorn and refreshments for about 350 people. In the fall he hosts a barbecue where he makes sure that there is wine and beer for everyone.

“ whether it’s a matter of cleaning up old debt, working towards verifying their income or fixing bad credit, it’s important to work with your client over a set period of time to increase their A lender eligibility for a much lower interest rate ”

Halifax, N.S. understands this very well. He advises that the broker sit down with the client and strategize how to get qualified for an A lender. Whether it’s a matter of cleaning up old debt, working towards verifying their income or fixing bad credit, it’s important to work with your client over a set period of time to increase their A-lender eligibility for a much lower interest rate. It’s a matter of attacking the little things that add up to a need for alternative lending, such as needing to pay off 50 per cent of their Visa card. Another example is if Leighton’s client had a phone bill that needed to be corrected from his or her credit bureau, he would give his client a month to fix that. Once that time had elapsed, he would quickly check in with his client to ensure that he or she is working just as hard as he is. “Surprisingly enough, a lot of people don’t do what they’re supposed to. But I would just remind them that even though it’s kind of a hassle, it’s definitely worth your while to do because you can save another $300, $400 a month on payments,” he said. “Just keep working with them along the way and make sure they’re doing what they’re supposed to do. As long as you have a plan and follow through with it, it works out.”

Tip 7: Always disclose the CMAC premium You may not be inclined to tell your client about it because you fear it will sour the deal, but not talking about it is the equivalent of not telling your latest significant other that you haven’t moved out of that living situation with your ex. Your new love will find out with or without you and not be happy about it either way. But being upfront about it will soften the blow, according to Naseer A. Chaudhry of A Plus Financial in Winnipeg, Man. “The more careful you are in taking care of your The CMAC premium is over six per cent if it’s a customer and your underwriter, the more success stated income instead of a verifiable income and is will be very fast,” said LePage. “The customer added to the mortgage price. For example, if the realizes that they are very important to me and client is trying to buy a $300,000 home, that they like that.” premium adds up to an extra $18,000. Treating your client in such ways outside of “That’s where everybody gets a surprise at the actually helping them with alternative lending is end so it’s important that the client knows about it often a successful encouragement to have them upfront before they get into it,” said Chaudhry. refer you to new customers. Also be sure to let your client know that the CMAC premium is greater with a stated income Tip 6: Make sure you have a good exit strategy than with a verifiable income. Hopefully knowing Clients who resort to alternative lending don’t want this will encourage your client to do the work to to be involved with alt-A lenders forever – it can be prove a verifiable income if he or she does not want too expensive. Keith Leighton of Ideal Mortgage in that higher premium.

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Tip 8: Know your lender It’s one thing to respect your lender, but how can you accomplish that if you don’t even know them? Lenders differ in specialization and in terms of conditions they require, so it’s not a one-size-fitsall situation, especially in alternative lending. It’s important to determine what conditions your client can provide in order to fit them to a lender, according to Shawn DeCascro of RBC Alternatives. “When you’re speaking with your client and asking those questions, it helps you determine which lender you can go to and satisfy your conditions,” he said. “The reason I say that is this: the best approval for a client is not necessarily the one you can get a commitment letter on. The best approval for your client is the one they can satisfy the conditions on.” In order to really know what your lender is all about, DeCascro recommends speaking to the lender directly, asking detailed questions about what they look at for approval as well as what they look at for satisfying conditions to close a mortgage. Tip 9: The clearer, the better Sure, you may have gone through your client’s application with a fine-tooth comb, but can you properly relay the story to your lender? According to senior mortgage specialist Sarah Miller of Meridian West Coast Mortgages in Coquitlam, B.C., painting a clear picture of why alternative lending makes sense for your client is of the utmost importance. “It’s a little more creative. You have to provide a little more information and a little more insight as to exactly what the client is doing,” said Miller. She recommends that you find out exactly how the client’s business works, especially if he or she is self-employed, and how the business generates money. For instance, does he or she make money in cash or credit? Learn how the business operates so that you can explain it confidently to your lender. Knowing your client’s business as well as your client will help you to present a portrait, because your client is more than facts and numbers.

Centum Hewmac Mortgage Centre in New Market, Ont., mortgage brokers in alternative lending need a system to help keep track of clients, investors, fellow brokers and lenders. Bath took organization seriously enough to contribute to the making of Pri-Mor Systems Inc., launching in January for Ontario mortgage brokers who want to get into alternative lending. But program or otherwise, Bath recommends looking after clients even after the mortgage gets paid off so that they become “a client for life.” Do your best to develop your own personal organizational tool so you know exactly when clients’ mortgages are to be paid off at any given time, whether it’s a mortgage management system or a mortgage origination system. Remember, the more organized you are, the more clients you can handle. CMP

th is e b n e ca ot st a n ne pp ge ce r yo o ur n. t a ssa ova cli Th com ril l fo y sa ent e b m th r a tis is est itm e o cl fy th a en ne ien “ th e o pp t t e c n ro let you e on th val ter di ey fo tio c r ns an on ”

Tip 10: Have a well-organized system in place So you’ve managed to obtain some clients and lenders. Then what? According to Paul Bath of

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alternative options There’s no question the alternative lending market has been on quite a ride for the last few years, but despite it all, it would be fair to say that the remaining alternative lenders in Canada have weathered the storm nicely and are even seeing resurgence. CMP explains

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n 2007, when CMP launched its first guide, it was called the Guide to Subprime Mortgages and was a huge success. In 2009 most of the lenders mentioned in that guide had either dropped the product or left the market entirely, but there is definitely a still a good chunk of them in the alternative lending game, the term “alternative” being key. To use the word subprime in today’s context to describe a client that simply doesn’t fit into the parameters of a prime mortgage would be devastating, and according to Nick Kyprianou, president, Home Trust, “words like subprime aren’t relative to what we’re doing. I don’t think they are subprime. Just because you’re not the mainstream it doesn’t mean you’re not good.” Even the word B is a “hard thing to market,” he says. “For the broker, they don’t want to tell their client, ‘Oh, you’re a B client.’ It’s like telling somebody their baby is ugly – they don’t want to hear that. They would much rather hear, ‘I can’t

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get you with the bank, but we do have an alternative program that we can fit you into.’ Alternative, from a marketing perspective, from a lender perspective, and from the broker who is with the client’s perspective, is a much more user-friendly term.” Under the alternative banner, the lenders that made it through the difficult markets of the past two years have come out stronger not only because they had an opportunity to capture more market from the exiting lenders, but most importantly, because they were balance sheet lenders. “There are less lenders in play to support the alt-A world but the ones that remain are committed to it,” says Lester Shore, manager, Optimum Mortgages. “It’s probably survival of the fittest amongst the lender group, and the ones who were approaching the alt-A opportunities from a common sense, reasonable standpoint are the ones that remain, continue to be successful in mortgage lending and have very satisfactory lending portfolios as a result.” As for seeing new lenders in the near future, the prospects probably aren’t as good. “Maybe at the margin, one or two,” says Andrew Moor, president, CEO, Equitable Trust. “I just don’t think people have the balance sheet for the capital required, as it’s basically a balance sheet business and will be that way for a while. Looking up Moor says he noticed the market for alternative lending really started picking back up again in May, and “has been getting better ever since,” he says. Kyprianou is quick to point out that, as a national lender, it’s important to look at it regionally. “Every market in the country has been hit differently,” he says. “Ontario has been relatively stable, but Western Canada, especially Alberta, has been hit significantly. They have suffered some pretty big decreases in values and Eastern Canada has remained relatively stable. The positive to all this, of course, is that rates are really low.” In fact, out of everyone CMP spoke with for this guide, lenders and brokers, everyone shared at least a few similar sentiments that things are looking positive. “Everything just seems to be more of a settled nature and there is probably a higher degree of approval levels than there would have been a year ago,” says Shore. “Everybody’s got a better understanding to where the goal posts are with respect to the lenders and the borrowers.” Shore adds that things are so good for Optimum that they “have the green light in terms of bank liquidity to try to double the size of business,” he says. “It’s a key priority.”

alternative lending quick facts CMP polled various alternative lenders to ask them for some basic information regarding their products. While Firstline and MCAP also have alternative products, they chose not to participate as each deal is looked at on a case-by-case basis In fact, each alternative lender voiced the opinion that it is tricky to summarize their products in a box, so we urge you to always contact them for more up-to-date information, as results may vary from the time of writing. Company: Equitable Trust Company Interest Rates: can vary Maximum LTV: can vary Min loan amount: $100,000 Max Loan amount: Deal-by-deal basis. Provinces served: Ontario, Manitoba (Winnipeg), Alberta Market preference: Clients that fall slightly outside of traditional banking guidelines. Lender Fees (if applicable): Deal-by-deal basis. Broker incentives: Annual “take off” Incentive program which runs in a fiscal year. Fund $2 million and receive choice of either a $1,000 travel voucher or a retail gift certificate from a national retailer. Fund $3 million and receive $2,000 in gift certificates. Open only to single-family residential deals. Counted on an individual broker basis, not by brokerage house. Monthly sales award (with varying prizes) drawn from pool of brokers who submit and fund two or more deals in the month. Contact: Regional business managers listed on Equitabletrust.com. Company: Home Trust Company Interest Rates: Based on posted rates, and can vary between provinces. Starting at one-year for plus 25 bps, to five-year for plus 100 bps Maximum LTV: Up to 85 per cent Min loan amount: $100,000 Top: Nick Kyprianou Middle: LesterShore Bottom: Andrew Moor

Max Loan amount: $750,000 Provinces served: British Columbia, Alberta, Ontario, Quebec, Nova Scotia Market preference: Small business owners, new immigrants, Canadians with former credit difficulties that have since been resolved including discharged bankrupts. Lender Fees: Zero to one per cent Broker incentives: Fee splits are 75 to 100 bps, more for equity line Visa. Contact: Visit Hometrust.ca/broker continued on page 8

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The pricing gap The biggest issue that alternative lenders faced though was on housing prices. While statistically the numbers seemed to be going up, the appraisers operated on a different level. “Appraisers have been appraising lighter than expected, which has been the greatest challenge when closing transactions,” says Moor, before adding that the market was “through the bottom of that around the April or May time period, just when things started to take off. At the time just working with our partners to see what kind of a deal could be done was a bit of a challenge.” While this obviously applies to all sectors of the market, it’s especially true for alternative lenders because of their heavy reliance on quality real estate to base their loans. “When you’re an alternative lender you’re overlooking some other things, but the real estate rules the day,” says Kyprianou. “Marketability, location and exit strategy. For Home Trust it has always been that way, which is why I think we have survived for so many years.” One unfortunate side-effect of this, at least according to the forum on mortgagebrokernews.ca, is the access to alternative funds in remote areas. “Residents of small cities, towns and rural areas have no options given to them by the B lenders,” wrote one reader. “Expensive, private money is their only choice. B Lenders need to realize that these properties are marketable and sometimes nicer than those in the bigger centres. [They] need to step up to the plate and expand their lending areas. Well and septic are not bad words.” “There is a need, and not at a minimal LTV either. We need it up to 90 or 95 per cent like in the major urban centres,” wrote another. And while there may be a need, lenders still view rural areas as higher risk. “If a house becomes abandoned, for instance, you have to deal with the snow removal, make sure the pipes don’t freeze and vandalism,” says Kyprianou. “It becomes more costly to manage, and because of that you can’t lend at the same LTV.” While the alternative market may be back, it’s nowhere near 2006 levels, so things have obviously softened a bit. But for clients who don’t fit in the big bank’s box, it’s nice to know there is still a place for them. This is particularly true for the growing amount of business-for-self clients, especially as unemployment numbers grow. “You may have to piece together the track record of earnings, for instance,” says Moor. “That’s what we’re seeing more and more of. You have people out of unemployment but into a part-time job, perhaps with some consulting on the side. That’s where this is really strong. Certainly any well-rounded, qualified broker is going to use alternative products as any part of their overall solutions for what they’re doing.” CMP

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alternative lending quick facts continued from page 7

Company: Optimum Mortgage - A division of Canadian Western Trust Interest Rates: it is based on the banks’ posted rates and will be discounted below on stringer deals (at time of writing between five or six per cent). Maximum LTV: For conventional mortgages, up to 80 per cent. With mortgage insurer up to 95 per cent. Terms: Everything up to a five-year in a closed mortgage. Also a one-year open product. Min loan amount: $50,000 Max Loan amount: No maximum, but average loan size is $250,000 to $300,000. Provinces served: Southern Ontario, Manitoba, Saskatchewan, Alberta and British Columbia Market preference: Clients who have demonstrated redeeming credit, as well as affordability and a subject property that is in satisfactory condition. Underlying asset is important. Lender Fees: No lender fee on term of three-, four- or five-year product, unless a high risk situation. A fee does imply on shorter terms, which is generally around one per cent. Broker incentives: With the broker fee, the longer the term, the better fee. Contact: OptimumMortgage.ca, or 866-441-3775 Company: Peoples Trust Company Interest Rates: Starting rates around 5.5 per cent for a one-year open, one-year closed or a two-year product. A three-year is about six per cent. Priced to risk though so rates may increase with the level of risk on the file. Maximum LTV: 70 per cent for a purchase and 65 per cent for a re-finance. There are exceptions for strong files but LTV may also decrease for riskier deals. Terms: One-year open mortgage, as well as one-, two- and three-year closed. Other terms can be negotiated for specific files (18 months or five years, for example) Min loan amount: $125,000 Max Loan amount: $2 million, but there are exceptions for string files up to $3 million. Provinces served: B.C. for residential (lower mainland, from Squamish to Chilliwack; Vancouver Island, from Victoria to Courtney; major Okanagan centres). Exceptions to geography for right file. Market preference: Business for self individual who cannot confirm income through traditional means, who may have had bruised credit and is on the way to repairing. Lender Fees: Two per cent fee to be split with broker (this is negotiable). Broker incentives: Varying finder fees. Contact: Peoplestrust.com, or 877.855.9750, 604.331.2210 Company: TD Financing Services Interest Rates: Can start as low as four per cent depending on the client, LTV and whether it is a purchase or refinance. Maximum LTV: 90 per cent Terms: three- and five-year terms Min loan amount: $50,000 Max Loan amount: $600,000, depending on the area Provinces served: Currently all provinces with the exception of Alberta (with plans to launch Dec. 1, which was after time of writing) Market preference: Client’s who may not qualify for traditional lending. Fees: Admin fees vary depending on LTV Broker incentives: Broker referral fees: three years = 100 bps; five years = 125 bps If interested, a broker should contact: VFC.ca or local area manager

Broker QnA

the keys to success Optimum Mortgage, a division of Canadian Western Trust, was established in 2004 to provide brokers with an alternative mortgage product. Today, it originates and funds alternative and traditional, insured or conventional residential mortgages throughout Western Canada and select regions in Southern Ontario. CMP spoke to Lester Shore, manager, to get tips for being successful with alternative lending.

Lester Shore

CMP: As a lender, what is your definition of alternative lending?

should be able to demonstrate reasonable repayment ability for the future as well.

Lester Shore: Alternative mortgages, or alt-A mortgages, are geared towards borrowers, like entrepreneurs or small business owners, who may find it difficult to conform to the specific and often rigid requirements established by many traditional lenders. Our parent company, Canadian Western Bank, was built on meeting the needs of small to mid-size businesses, so this is a clientele we understand well. That understanding has helped us recognize and serve this segment of the market.

CMP: What can brokers do to be successful in closing an alternative lending application?

LS: The solution we offer is called sensible lending, where each customer and each credit application are considered on their own merit and circumstances. The philosophy of sensible lending is rooted in the fact that Optimum Mortgage is willing to look at more than just credit ratings or debt ratios - we look at the big picture. For example, the value of the subject property, and the nature of the borrower’s vocation and income is all taken into account. Each application is considered on an individual basis, with no automated model applied, to render a sensible decision.

LS: For challenging or more intricate applications, we like our brokers to call one of our regional representatives first to discuss the deal. For any broker, it is important to be as thorough as possible with the application and give us as much information as they can, upfront, to avoid any surprises for anyone once we start to look more closely at the deal. Each borrower’s circumstances are unique, so if there are unusual or mitigating circumstances, let us know. For every bruised beacon score and less-than-perfect credit bureau, there is always the rest of the story. If brokers can include a copy of the credit bureau, and provide us as much information/ explanation as possible, this also helps us consider the deal on its own merit, and helps us turn around the application that much faster. Providing as much information as possible about the property is also helpful. A copy of the MLS listing, a pre-purchase building inspection report, a recent appraisal, digital photos…. the more advance information we can receive, the better.

CMP: As a lender, what do you look for in an alternative lending application?

CMP: What makes Optimum Mortgage successful as an alternative lender?

LS: When we are working with a stated income application, the income must obviously make sense in relation to vocation, and we need to be able to confirm that the borrower has a reasonable history in that vocation as well. The client should be able to demonstrate a historical willingness and ability to repay credit, and their current circumstances

LS: In a nutshell, we’ve succeeded because we use a common sense approach to doing business. We are committed and empowered to give our broker network good business decisions in a prompt and efficient manner, such as deal turnaround within 24 hours or less, and we are good at what we do. CMP

CMP: What is your approach to alternative lending?

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When times are tough – or when new opportunities arise – many clients look to their homes for extra cash. CMP navigates home equity loans and looks at both the options available and what clients need to watch out for

home equity loans

understanding

rranging home equity loans and lines of credit can be a big boost to a mortgage broker’s business, particularly in these times of tightened credit, low housing inventory and increased job loss. As the spring and summer housing market cools, Paul Bath of Centum Hewmac Mortgage Centre in Newmarket, Ont., says these products have become a major focus of his business. “Right now we’re doing more refinances and home equity loans and lines of credit than we are purchases,” he says, citing debt consolidation and home renovation as the two most popular reasons his clients look to the equity in their homes for extra cash. Other reasons people borrow against their homes can include paying for a wedding, or using the extra money for investments, businesses or tax-deduction purposes. Recent research by CIBC World Markets also showed Canadians are relying more and more on their homes as retirement safety nets. Economist Benjamin Tal said that as of the second quarter of 2009, 38.5 per cent of Canadians’ wealth is tied up in home ownership, up from about 16.3 per cent two decades ago. Regardless of reasons, setting up a client with a home equity loan or HELOC means navigating through a range of product options and borrower criteria, which varies from lender to lender. Like a first mortgage, if a client doesn’t qualify for a

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home equity loan at an institutional lender, there is also the task of finding a private or B lender that will get the deal done. Types of home equity loans There are two main types of home equity loans – a fixed-term HEL, which is a lump sum payment and can also be referred to as a second mortgage; and a home equity line of credit (HELOC), which is a revolving loan generally tied to the prime interest rate (lenders can also raise rates on these products). The common thread between these types of loans is that they both become debt secured against the borrower’s home (as opposed to unsecured debt, such as a credit card).They also, in general, only go up to 80 per cent loan-to-value at the institutional lending level, with private lenders sometimes allowing borrowers to push that number higher. “There is some confusion about how companies market home equity loans,” says Rajan Kaushal, president of the GTA-based private mortgage lender The Money Source. “But as soon as a loan or line of credit becomes secured on a property, it becomes a second mortgage.” Janice Rickard, mortgage broker and manager of corporate underwriting at RMAI Financial, often recommends a HELOC over a home equity loan because it is readvanceable, it has low upfront costs and, in some cases, it can be segregated (i.e. a husband and wife can have their own separate accounts from one line of credit). She adds that having a HELOC can provide protection against title fraud because it creates a charge on an owner’s title even after the loan is paid off. But Rickard also points out that HELOCs are usually reserved for ‘A’ clients who have solid credit and stated income. If someone doesn’t qualify, she will check and see if they can get a co-signer – which is still workable on certain home equity loan products – before seeking out alternative lenders.

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Paul Bath also likes HELOCs over HELs because he says they are usually lower cost in the long run. But he points out there are instances when a lump sum with fixed payments is a better fit – and, in some cases, banks will pick up the tab for legal and appraisal costs for a home equity loan whereas they tend to pass these onto the client for a HELOC. “If a client is doing a major renovation like a kitchen or basement and the contractor is going to have it done in two to three months, then I would do the home equity loan,” says Bath. “The beauty of them is that the client has permanent payments, so they are always going to be reducing the mortgage in the long run.” He adds the most common mistake he sees when people get a HELOC is that they think of it like a regular line of credit and not a mortgage against their house. “A lot of times they don’t understand that even when they’re told – we’ve run across that many times,” Bath says.

Top: Rajan Kaushal Middle: Paul Bath Bottom: Janice Rickard

“ if a client is doing a major renovation like a kitchen or basement and the contractor is going to have it done in two to three months, then I would do the home equity loan ”

development manager at Capital Direct, adding the score is still important due to the risk involved. “We want to make sure that even though it’s an equity deal the client is still comfortable paying those debts.” Haymour adds that even clients with very poor credit scores have the potential to qualify, although they might need to give six to 12 months of payments to the lender upfront for security. For ‘A’ clients who are using home equity loans Private versus institutional for debt consolidation after they’ve lost a job or Like HELOCs, home equity loans granted by suffered another financial blow, Bath says they can institutional lenders are reserved for clients still qualify with an institutional lender if they with strong credit scores and stated incomes. act quickly. In addition, they cannot be used to pay off tax “A lot of lenders rely on the beacon score, so arrears, judgments, collections or missed first most clients, if they are ahead of the game, do debt mortgage payments. consolidation right when they start getting into When a client is looking for a second mortgage trouble and we can place them with any lender as or home equity financing but doesn’t have the long as the formulas like the TDS and GDS work,” requirements to qualify at a financial institution says Bath. “But if clients wait too long and the (or with a mortgage insurer), the next option is beacon score drops down to the low 600s, then we finding a private or ‘B’ lender that has more lenient have to send them to B or private lenders.” underwriting standards and doesn’t require Interest rates are, of course, higher at private mortgage insurance. lenders – they start at 11.99 per cent at The Money At the private home equity lender Capital Source and 7.75 per cent at Capital Direct. Then Direct – which has offices across Canada – loans there are additional fees, which start at two per are still granted based on the basis of beacon score, cent of the loan amount. Terms are also shorter at but there is more flexibility and the appraisal of a private lender – one to two years – so clients can the property significantly contributes to how look at placing the loan somewhere else when their much someone qualifies for (homes in urban situation has improved or when they can pay off areas are easier to obtain loans from than those in the loan through a refinance or sale. rural places). “Basically, the loans are for people who can’t verify their income – which is the case when they Some popular mainstream HELOC products include come to us about 90 per cent of the time – or the Scotia STEPS mortgage, National Bank All-inthey’ve gotten themselves into some trouble with One, FirstLine Matrix. their credit score,” says Moe Haymour, a business

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Client cautions For most borrowers, it makes sense to take out a home equity loan or line of credit with the same lender they have their first mortgage with. But if that can’t be arranged, a private lender can go behind another lender for a second mortgage, says Kaushal. He adds there are only a few lenders and a few cases where he has seen the first lender put a restriction on a borrower to take out a second mortgage with another company. If the customer opts for a straight HELOC or a re-advanceable mortgage with a HELOC feature, the money goes straight into a chequing account (no lawyer required). But even with a product as simple as a HELOC from an institutional lender, Rickard says she still precautions her clients. “With HELOCs, the No. 1 thing is to make sure the client is very aware that there isn’t a protection against rising interest rates because the line of credit is tied to prime,” says Rickard. “There is also a concern that the client will tend to look at the HELOC as a regular line of credit and not a mortgage and therefore there isn’t as much incentive to pay it down.”

“ with the line of credit, I really encourage clients not to just make the minimum payment but to treat it like a mortgage and pay it down so you build up some equity in the house because that’s the whole goal. ” Bath also reiterates to clients that they are taking on more debt so they have to be careful, especially with the option of interestonly payments. “With the line of credit, I really encourage clients not to just make the minimum payment but to treat it like a mortgage and

five facts each about HELOCs and HELs HELOCs • Interest compounds monthly on the amount taken out • Variable rate (follows prime) • Lenders can change rates • Interest-only payments available • Generally reserved for clients in good financial standing HELs • Can also be referred to as a second mortgage • Fixed rate • Interest-only payments available • Set terms • Can be granted through a private lender

pay it down so you build up some equity in the house because that’s the whole goal,” he says. “I also remind clients that they’ve incurred more debt that is going to take up to 20 years to pay, so they’ve got to watch out for any new debt down the road and watch out for getting too comfortable and borrowing more money.” CAAMP’s spring mortgage survey showed that 15 per cent of Canadians cashed out equity in their homes over the past 12 months, with 57 per cent of that number using all or part of the funds for debt repayment and consolidation. With increasing unemployment, many clients are likely to continue inquiring about home equity products, making it important for brokers to stay educated on product offerings and have a plan B if deals with institutional lenders don’t go through. “Second mortgages are a very niche product,” says Kaushal. “We find that a lot of our strong brokers are very knowledgeable about it because it’s great for them to be able to provide a product that isn’t as readily available in a bank.” CMP

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WHO IS CANADA’S NEXT ALTERNATIVE BROKER OF THE YEAR? Nominate today by visiting www.mortgagebrokernews.ca Don’t forget to check out the other 19 categories that you can nominate for Nominations close January 14th, 2010

Canadian Mortgage Awards

2o1o

April 23, 2010 • Liberty Grand • Toronto

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Official publication

Another event organized by

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Broker QnA

What sort of problems are alternative lenders facing today? First of all, a lot of them have disappeared. The liquidity crisis killed the securitization market of non-insured business, so they didn’t have any money left. The balance sheet lenders lent too aggressively at Nick Kyprianou the top of the market and got in trouble. Now they’re dealing with their arrears situations. Home trust deals with Alt and Prime. Is that a key way for Alt lenders to survive? First of all, to be an alternative lender you need to be a balance sheet lender. That’s the only real way to make it work. Secondly, to be successful, you have to administer your own files. You have to originate, underwrite and administer them. I think that’s the only way you will keep on top of it and manage the files properly. If you get into a model where you sell off your servicing or you’re not controlling your underwriting it’s just a recipe for disaster. People have been saying that small towns find themselves in situations where it’s hard to access alt lending. Is this true? It is harder to get money in smaller towns because of the underwriting in the alternative lending business. On a remote or rural community you have to look at your exit strategy. And the time to market and sell a property in a rural community takes much longer than it would in an urban centre. If you look at some of the alternative lenders that ran into trouble, one of the biggest mistakes they made was lending too high of a LTV

in these remote locations. If you can get them done insured it takes the risk out of your book and that’s fine, but if you have to do them conventionally you have to look at the risk. Risks and rewards have to be balanced. What do brokers need to know prior to approaching Home Trust? They should have all their information together first: what the need is, what they need the money for, if it’s a refinance, where the money is coming from, if it’s a purchase, and so on. I think the more information they give us, the easier it is for us to give them a quicker approval. What are good ways for brokers to better educate themselves about the alternative options out there? There’s not a lot of alternative options out there currently. But at Home Trust we run educational seminars, lunch and learns, and if a brokerage house wants us to come out and do one of these for them we’re more than happy to do so. If they think they’re not as busy as they used to be and they want to expand their products, we’re happy to come out there and teach them how to do alternative lending, how to prime the customer, talk about our equity line Visa product, which is also very complimentary, and we can help them get educated on that. Home Trust has just re-launched its Classic program. What are the strategies for that? The strategy is going back to the classic alternative products. It is real estate-focused, so if the real estate is marketable we’ll try out best to make the deal make sense. That, along with our Accelerator Program of insured A products, means we can now offer A products at a very competitive rate, but also offer alt-A and B products out there for the brokers who want them. CMP

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Special ad supplement

Alternative Lending, Strong Financing The continuing economic uncertainty and the recent credit crisis have changed the landscape of the mortgage industry significantly. All major U.S. alternative lenders exited the Canadian market while those who remained slowed down to assess and manage credit more prudently making tough decisions on lending areas, falling property values, loan to values and credit requirements. Equitable Trust’s Andrew Moor explains

he future in alternative lending is undeniably crucial as it caters to a fast-growing niche in the Canadian economy. The slow deterioration of the manufacturing sector has given rise to more entrepreneurship and business ownership across Canada. These trends further underscore the importance of alternative lenders that can adequately serve the mortgage financing needs of self-employed borrowers, new immigrants and investors. When an application comes to Equitable, the team looks for an immediate solution to address the client’s mortgage financing needs whether it is a flexible GDS/TDS (up to 50/50) that may be required, a longer amortization of up to 40 years without a surcharge or the option to allow for a gifted down payment. Borrowers faced with changing lifestyles or the necessity of selling their homes can benefit from the flexibility of an open mortgage. Being a transitional lender to new immigrants allows borrowers to establish credit to later lock into longer more favourable term loans. At Equitable Trust, we offer mortgage financing to self-employed borrowers with as little as 15 per cent down payment with less than two years tenure for business. BFS mortgages can be assigned under a corporate name as long as a personal guarantee is available from one of its directors. The solution team can offer generous rental offsets as well as flexible pre-payment options. For added convenience, affordable tax account management and post-funding services to clients who can use their own lawyers for a purchase and refinance is available.

Andrew Moor

mortgagebrokernews.ca

Making it work In order for brokers to take advantage of emerging trends, a team of Equitable Trust alternative specialists travelled to key Canadian markets to present “How to target and sell alternative deals” as part of CAAMP’s Continuing Education Program. The program identifies typical alternative characteristics of clients declined by the traditional lenders and how a broker can work with a lender to offer a solution to make the deal work. Together, the broker and the alternative lender can manage a borrower’s expectations. At Equitable Trust, our solutions team works with mortgage brokers to tackle a borrower’s financial challenges. For more than 40 years, Equitable has listened to, thought through and found a way to get the deal done. From the time the application is submitted to the underwriting process and funding requirements, the team solution-based approach has opened doors for home ownership. As the market continues to recover, Equitable Trust will be enhancing and launching solution-oriented services and products that the market demands. CMP

Some people only see mortgage challenges. Our team sees the solutions. Yes,

at Equitable we’re a team.

We understand challenges, but focus on solutions. That’s why, for 40 years Canadians have turned to us for innovative residential and commercial financing options. Working together we overcome the obstacles, to make the deal work for you. At Equitable, you’re part of the solutions team, that opens doors for more customers.

www.equitabletrust.com Ontario 416.515.7000 1.866.407.0004

Western Canada 403.440.1200 1.866.940.1201

Optimum Mortgage serves mortgage brokers in British Columbia, Alberta, Saskatchewan, Manitoba, and Southern Ontario.

What sets us apart? We work for brokers; always have, always will. Our Philosophy is SENSIBLE LENDING速. n

Each deal considered on its own merit.

Stated income product.

High-ratio insured (CMHC or Genworth).

SErvIcE is our Number One Priority. n

Deal turn-around inside of 24 hours.

Broker fees paid weekly.

Always reach an underwriter (no voicemail) during business hours.

www.OptimumMortgage.ca

Questions? Comments? Deals? We always welcome your call. Alberta North, Brian Karim 780.915.3381

Vancouver Island & Lower Mainland, Ian Silvester 604.317.4027

Ontario Northeast, Rick Glauser 705.331.5954

Alberta South, Janice Legere 403.998.6010

Interior British Columbia, Matthew Scaife 250.212.3763

Ontario Southwest, Joe Foggetti 416.882.9919

Manitoba & Saskatchewan, June Craig 204.998.3899

Multi-Family Res. & Commercial Lending, Bill Kilgour 780.974.0300

Underwriters, Corporate Office 866.441.3775

provider Q n A

Seeing a need to increase its broker status program, National Bank recently decided to not only increase its status tiers, but also the amount of choices that brokers are given access to for rewards. Sebastien Kuperhause, national sales manager, recently spoke to CMP about some of the changes

choice in the matter

Sebastien Kuperhause

National Bank has decided to launch a new status program. Could you tell us about it? After going out and conducting five broker panels in August and July in order to get feedback about National Bank and its MVP program, we have taken our existing programs and just turned them up a notch by giving the brokers what they were asking for, which is choice. We’ve given the broker three choices: You can sell it as a value proposition where you cover the lawyers and appraisers; or maybe you need to make more money to help offset some of the client’s penalty, then you can do that too; the third option can be, ‘you know what, I just need to have the lowest rate all the time.’ How many tiers are there and how do they work? To gain access to the program you need 15 funded deals. And it’s within our fiscal year, so Nov. 1 to Oct. 31. Tier two starts at 37 deals, tier three starts at 50 and tier four starts at 100. We felt that a fair process was to go by deals funded, not by dollar amount. It’s not fair to expect someone in Atlantic Canada to fund $10 million dollars like someone in Alberta or British Columbia, so we’ve built it in that way to make it fair across the board.

Is there any efficiency tied into that? Currently there are no efficiency ratios required, but it is something we will be working on. We focused on launching the program before 2010, but efficiency will most likely be tied into it for 2011. We’ve also created a different MVP program to work with the access desks or hubs that a lot of brokerage firms have created. We have a separate program to access all these brokerages’ access desks, and if the brokers use this but then decides later on that there is an advantage to being independent, then they can change from one program to the other and take advantage of the other MVP program. What exactly does being a part of the MVP program get the broker? The MVP program can get you rate discount, free appraisals, cash back, extra compensation and, the big one for us that we started last year and we’re doing it again is that, if you fund 100 deals, we’re going to give the broker $15,000 to go travel the world. The idea is to just go travel, to do something with the money that you would have never had done. A lot of people say I’d love to go to Australia but I just can’t justify the money. You can now go to Australia and fly first class if you want. The decision to go by deals instead of volume. How was this determined? It allows small market and big market players to be on a level playing field. That’s really what it comes down to. We just wanted to keep it simple and broker-focused. When are the changes effective? Nov. 2. If brokers have further questions, they should contact their local BDM. CMP

mortgagebrokernews.ca

Profile Brokers

It wasn’t easy, but CMP caught up with Gord Dahlen, the new president of Invis and Mortgage Intelligence, as he reflects back on a 20-year career in the mortgage industry

Everywhere Man B

ooking a time to interview Gord Dahlen, the recently appointed president for Invis and Mortgage Intelligence, is a practice in patience and timing. Not only does his new role have him endlessly travelling across Canada meeting brokers and lenders, making the act of getting him on the phone difficult, but then it is the matter of getting him to sit down long enough to think back on his life in the mortgage industry. Luckily, CMP was able to catch up with Dahlen on one of the rare mornings where he was truly in his element – at his home just outside of Vancouver. “My schedule is such…,” he says before trailing off, looking for the right words. “I’ve made five trips to Toronto in three weeks, I arrived home last night at midnight and I’ll be back in Montreal on Monday, then Kingston and Ottawa next week, then I return to Toronto in three weeks time. Plus I’ll be criss-crossing the country and could be anywhere between Victoria to St John’s Newfoundland and Halifax in the next month.” Just trying to calculate the frequent flyer miles that Dahlen will be accumulating is enough mental math to fry any brain, but it doesn’t take a calculus professor to figure out that if you multiplied the amount of times Dahlen has unpacked his bags in a new hotel by the amount of airport taxis he’s taken in the last month, divided by the square root of brokers he’s met face to face since becoming president (that number was 300 at the time of writing), the answer would be that Gord Dahlen travels a lot. While Dahlen is “literally just coming home, dumping clothes and then heading back out,” it comes as a bit of shock that he is, well, in a better mood than most people before their third cup of morning coffee. “The one thing I would say is that there is a lot more information coming at me and decisions have to be made very quickly, but I relish every minute of it,” he says.

“Going back there were a lot of aldermen and mayors in our family,” he says. “Our last name is synonymous with that little community up there. We just tend to gravitate towards that I guess.” And it seems to be something Dahlen picked up at a young age. “If there were six people standing around I would kind of make a plan. As a kid it would even be, ‘alright, let’s go down to the Dairy Queen then to the movie’, and I’ll plan it and that’s sort of how it was growing up.” In 1984 he entered the industry with a role at Household Finance (HFC), going into the broker realm three years later with Household Trust. After that, he says, his involvement with brokers became “serious” as he moved to Mutual Life, which later became MCAP. “In the last 20 years I’ve only had two jobs – 11 years with Mutual Life and MCAP, then over to Invis in 2000.” Ron Swift, a friend of Dahlen’s from school and current president at MCAP, was responsible for introducing him to the broker realm. “I was in Victoria when Ron [Swift] called me up and offered me a chance to go back to Vancouver with Mutual Life. I was happy it was a chance to go back to Vancouver but I didn’t know what I was getting into at all. I didn’t seek it out to be honest, but I’ve enjoyed every minute ever since and wouldn’t think of leaving it.” Dahlen’s willingness to trust Swift in this new endeavour could be dated back to their college years. “Gord and I met at BCIT (the British Columbia Institute of Technology) in 1981,” says Swift, adding that their friendship grew as a result of playing hockey together. “He was my goalie and I cleared the front of the net for him. We had each other’s back.” In 1994 Dahlen was what Swift refers to as his “right-hand man,” leading the Western Canada operations. A B.C. boy “Then Gord left MCAP to help start up a new Dahlen was born and raised in Dawson Creek, B.C. brokerage company, Invis, and I knew he would do and grew up in a family of “planners.” very well. His commitment and passion to

mortgagebrokernews.ca

Profile Brokers

Quick Q&A with Gord Dahlen + Toughest challenge? It remains everyday that I want my children to be healthy and happy and lead productive lives. I never stop thinking about that. + Unfulfilled ambition? To travel the world. + Greatest risk? Leaving MCAP + If you were not in the mortgage industry what would you be doing? A CFL (Canadian Football League) general manager. + Hobbies? Dirt bike riding, camping, travelling and competing. + What words would you use to describe yourself? Passionate, honest, and hyperkinetic. I love life in general. mortgagebrokernews.caâ&#x20AC;&#x201A;â&#x20AC;&#x201A;

Profile Brokers

Gord Dahlen’s recognitions: 2008 MBABC/CAAMP award for outstanding contribution at a provincial and national level 2007 MBABC outstanding contribution award; nominated for Canadian mortgage hall of fame 1999 CMHC award for highest volume broker lender

providing exceptional service, building strong relationships through trust and integrity and genuinely caring about people are his strongest attributes,” he says. While licensed since 1997, Dahlen has never actually been a broker himself, but he has always been a broker advocate, whether it was helping to build the broker channel at MCAP, being a part of MBABC and CAAMP, including serving on the B.C. board three times, and generally promoting broker awareness. “That’s been my life for the last 20 years,” he says. “I haven’t quite caught up on the broker side though. I’m a little over on my lender side, but in the next year and a half or so that should be equal.” Just a hobby farm In the summer of 2000 on a hobby farm in the quiet town of Langley, B.C., a hand-painted sign for what would eventually become Invis mortgages leaned against the back door of a chicken coop. Inside the chicken coop seven owners were not only waiting for a proper office space, but for what would be their first mortgage as a new company. Out of those seven, only one, Dahlen, is still with the company. “I guess you could say the first mortgage rolled out of a chicken coop,” he laughs. “We’ve come a long way. I remember that first mortgage in 2000 and today we’re billions of dollars.” Since then Invis (and eventually, MI) has grown into a brokerage known for its inner culture, and a big part of that is its annual galas. “It’s a big part of what we do,” says Dahlen. “We love to recognize our folks. We’re big on culture.” It’s also something not lost on those within the mortgage community. “The one thing Invis has done uniquely is truly to build an internal culture,” says Boris Bozic, president, Merix, and long-time peer of Dahlen’s. “I believe that Gord was the one to coin the phrase invision (sic), and he’s a strong believer in that and has certainly been able to impart it on his employees.” Bozic, who says he has always worked with Dahlen based on a customer/supplier relationship, with the roles mutually reversing over the years, adds that Dahlen is not the type of individual to point fingers when something goes wrong.

mortgagebrokernews.ca

“He understands that whenever there is an issue that the accountability is shared. He has the ability to look at things from the macro perspective, as in, one specific issue will not be final judgement on our entire working relationship,” he says. Home sweet home Just in the midst of a tour when CMP spoke with him, Dahlen has plans to work more from his home office once it’s over, and considers himself a family man first and foremost, coaching his eight-year-old son’s hockey team and being a “soccer dad’ with his youngest daughter. “We just relax,” he says about his home life. “I live in a small community of about 2,000 tucked away in the trees so it’s great to come off the road and kind of retreat into the bush. “I’m really looking forward to being back on home turf and finishing up telling the Invis/MI story here, and then I will stay right here in B.C. and enjoy my family and some downtime.” And he should have plenty of time to do that as he continues to grow into his new position from the comfort of his home office. “I think the biggest change with the new position is being able to make decisions that will affect the entire company, and I’m very excited about that,” he says. “It’s taking my old job and multiplying it by two, but I love it.” CMP

Profile

Insight

With a new real estate business in place, the Brampton-based mortgage brokerage Financial Ties is looking to build referrals for its agents while keeping them educated along the way

Covering new ground A

Moninder Khudal

Quick facts Financial Ties + Company started: February 2007 + Head office: Brampton, Ont. + Number of mortgage agents: 36 + Number of lenders Financial Ties works with: 40+ + Associated real estate brokerage: Homexperts

fter launching his GTA mortgage brokerage Financial Ties two-and-a-half years ago, president and CEO Moninder Khudal decided it was time to diversify his business. So he opened the real estate brokerage Homexperts in September and says he hopes to have 200 real estate agents on staff by next fall. “All mortgage brokers need to find business and most business comes from referrals, either from lawyers or real estate agents or past customers,” says Khudal. “Having a real estate brokerage goes hand in hand with the mortgage business because you can feed your mortgage agents referrals so that side will grow. We really want the businesses to flow into each other.” Homexperts – which is located beside Financial Ties’ Brampton head office – will cover real estate in all parts of the GTA and Khudal says there are plans to open storefronts in different areas to increase brand awareness.

(who are often also new to the business) for six weeks. After that, they can come to refresher sessions as needed. One session a week looks at lender product offerings while the other teaches agents how to structure different types of deals, often using case studies to demonstrate. “The sessions are all in-class so that any questions agents have can be properly addressed,” says Khudal.

Support system Along with the training sessions, Khudal points to the brokerage’s “buddy system” as being a key part of the training program. When a new agent joins, they are partnered with a senior agent in the office to answer questions and help them with their first batch of deals. “There is always somebody who is there to help them for all their questions and concerns,” he says, adding there are also options for agents The training component to branch into the commercial side of the Financial Ties currently has 36 mortgage agents mortgage business or learn more about private on staff – a scaled-back number from a year ago, lending. (Financial Ties works with several which Khudal says is a result of the company private lenders.) focusing more on training, especially with FSCO’s And while some of the agents work off-site, new compliance rules for brokerages. especially after they are more established, “We don’t just want numbers – our focus is to Financial Ties’ head office offers them office space, give agents a proper understanding of the boardrooms for client meetings and an answering industry,” he says. “It may seem easy to get into service and paging system. the mortgage industry, but it’s very hard to be With an eye on expanding – but not growing successful in the business because of the challenges too fast – Khudal says he will be continuing to in the market, lots of competition, and products build staff at Homexperts and adding a new changing all the time. You have to be able to round of employees on the mortgage side in 2010. deliver to clients.” “We’re not rushing to grow the numbers on To keep new agents up to speed, Financial Ties the mortgage broker side – as long as they know holds on-site, two-hour training sessions twice a how to properly handle the clients, that’s what week. The sessions are mandatory for new hires matters,” he says. CMP

mortgagebrokernews.ca

Profile

Favourite Things

Greg Martel + Mortgage broker/owner + Harbourfront Dominion Lending Centres + Victoria, B.C.

Favourite Things Music/Band Coldplay or the Tragically Hip. I grew up with the Hip and they’re a good Canadian band, and I recently saw Coldplay live.

Drink Vodka and water. It hydrates you while you drink, and with no sugar the hangover isn’t as bad.

Movie The Hangover. A funny movie.

HOBBy Golf, although I don’t get out as much as I would like to. I have a six-month-old at home so it’s hard.

Celebrity Can I say Tony Robbins? Maybe him and T. Harv Eker, author of Secrets of the Millionaire Mind. I’ve seen them both speak.

mortgagebrokernews.ca

Vacation spot Probably Italy, Cinque Terre, which is five little cities, each one on the Riviera and connected by train or hiking trails. You can walk to each one and it’s all bed and breakfasts, and there is no credit, only cash. Place to be Just at home with my family.

Sport Hockey. I play in a recreational league, the Victoria Hockey League (VHL), for the Stingers.

Food Lasgana. Homemade of course because I’m half Italian. Also sushi. BOOK How to Win Friends and Influence People

service directory

Banks

Broker Networks

Optimum Mortgage A Division of Canadian Western Trust www.OptimumMortgage.ca Ph: 866 441 3775 Guide Outside Back Cover

Bridgewater Bank www.bridgewaterbank.ca Ph: 1 888 837 2326 Page 13

National Bank www.nbc.ca Ph: 1 888 483 5628 Page 49

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Page 22

Street Capital www.streetcapital.ca Ph: 877 416 7873 Page 5

Scotia Mortgage Authority www.scotiamortgageauthority.com Page 9

Axiom www.axiommortgage.ca Ph: 1 866 504 0516 Page 19

Dominion Lending Centres www.DominionLending.ca Ph: 1 888 806 8080 Page 25

Home Loans Canada www.hlcmortgages.ca Ph: 1 866 452 1821 Page 23

Non-Bank Lenders

Abode Mortgage Corporation www.abodecorp.com Ph: 1 877 226 3305 Inside Front Cover

The Money Source www.mymoneysource.ca Ph: 416 699 2274 Page 45

Equitable Trust Company www.equitabletrust.com Ph: 1 866 407 0004 Guide Inside Back Cover

VFC Home Inc www.vfc.ca Ph: 1 877 273 7498 Page 39

Home n Work Mortgages www.homenwork.com Ph: 1 866 658 0492 x 100 Page 28

INVIS www.invis.ca Ph: 1 866 854 6847 Page 27

Insurance

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

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Page 33

Macquarie Financial www.macquariefinancial.com Ph: 1 877 462 3788 Page 7

AIG United Guaranty Mortgage Insurance Company Canada www.aigug.ca Ph: 1 877 244 8422 Page 31

Canada Mortgage and Housing Corporation www.cmhc.ca Ph: 1 888 463 6454 Page 41

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

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

Mortgage Intelligence www.mortgageintelligence.ca Ph: 1 877 667 5483 Page 43

VERICO www.verico.ca Ph: 1 866 983 7426 Page 17

mortgagebrokernews.ca

service directory Technology & Software

Verico The Mortgage Practice Inc careers@vtmp.ca Ph: 905 458 4222 Page 16

Title Insurance

Stewart Title Guaranty Company www.stewart.ca Ph: 1 888 667 5151 Contents Page

Filogix Limited Partnership www.filogix.com Ph: 1 866 345 6449 Page 18

Real Estate

Commercial Lenders

GoMax Solutions www.gomaxsolutions.com Ph: 1 877 492 5164 Page 20

Nexus Investment Corp www.nexusinvestment.ca Ph: 1 604 664 7079 Page 48

Appraisal Institute of Canada www.aicanada.ca Ph: 613 234 6533 Page 29

Solidifi Inc www.solidifi.com Ph: 1 866 583 3983 Page 11

Harbour Mortgage Corp. www.harbourmortgage.ca Ph: 416 361 3315 ext. 221 Page 47

MORCAN Financial Inc www.morcanfinancial.ca Ph: 1 877 732 2801 Page 21

Tax-Deductible Mortgages

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

TDMP.com www.tdmp.com Ph: 1 866 500 8886 Page 15

Please contact Trevor Biggs: trevor.biggs@kmimedia.ca

Is your company looking for a new team member? Please contact Trevor Biggs: trevor.biggs@kmimedia.ca

Got news? Y Your

news n ews is our news!

Do you hav have a e news to share? r Hav ave you you held d a recent event v or made d a new w appointment? pp If so,, Have CMP W WANTS ANTS to hear from ffrom you. Send us your newsworthy submissions and photos, and you may find your story printed in a future issue of CMP. Send your news to: jesse.kinosgoodin@kmimedia.ca

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