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SUPER BROKERS Your complete guide to the offerings and innovations of Canada’s largest broker networks

SUITE DEAL What CMHC’s latest changes could mean for borrowers

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BROKERS VS ROAD REPS New ways to arm yourself for battle

GENERATION GAP How to manage millennial employees more effectively

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ISSUE 10.11

CONTENTS

SUPER BROKERS COVER STORY

Thinking of making the leap to a new network? Read what the networks themselves have to say about their latest offerings and planned initiatives

OppOrtunity is Often simply a matter Of seeing it first. Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $1.5 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M. Blake Cassidy | 800 494 0389 | www.romspen.com

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CONTENTS

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UPFRONT 04 Editorial

FEATURES

NEW BROKER TOOLS

FEATURES

Home Trust offers a sneak preview of the new tools it will be introducing at the CAAMP Forum

Equitable Bank’s Andrew Moor on how brokers and lenders can work together to move the industry forward

08 Head to head

Advice for lenders on retaining clients at renewal

10 News analysis

What brokers can do to battle road reps

12 Broker network update

Is Facebook planning to start assessing borrowers’ credit?

20 Opinion

FEATURES

LEADING GENERATION Y

Managing millennial employees effectively often means rethinking your leadership style

How CMHC’s secondary suite rule change could benefit – or hurt – borrowers

PEOPLE

FEA

50 Broker profile

When he moved from residential to commercial mortgages, Omid Jalili kept his focus on quality service

60 Career path

In less than a decade, Collin Bruce went from zero to one of the highest-grossing mortgage brokers in the country

63 Other life

Bobby Magee helps both homeowners and skydivers make the leap

FEATURES

BE LESS BORING Five ways to boost audience engagement during presentations

Grow your book of investor clients

14 Alternative lending update

Find out what happened when one lender turned to broker feedback to improve its business model

INDUSTRY ICON

06 Statistics

DLC’s chief economist offers interestrate predictions

THE BROKER EXPERIENCE

PEOPLE

Why more brokers are considering creditor insurance

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

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INT FO BU

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UPFRONT

EDITORIAL

www.mortgagebrokernews.ca ISSUE 10.11 EDITORIAL

Insuring peace of mind

he sun is still shining on Canada’s mortgage market, and brokers continue to make hay – well, actually, they continue to make strong origination volumes. But while 2015’s revenue boost mirrors that of past boom years, it’s also distinctly different. “We’ve learned from past boom-and-bust cycles,” says one young agent, only four years in to what he hopes will be a lifelong career in the channel. “Where we used to just do the mortgage and move on to the next, we’re now getting as much revenue [as possible] out of a deal first.” Surprisingly, for a growing number of industry players, that means going where they’ve refused to go before: creditor insurance. While apprising clients of their coverage options has always been part of the origination script, brokers are no longer glossing over the part where they explain the ins and outs of the one insurance product they are, in fact, entitled to hawk.

Now brokers – even those once stridently opposed to creditor insurance – are convinced of its shortterm, if not entirely long-term, benefits It means more and more brokers are closing deals for creditor insurance rather than trusting that a client will follow through on advice to meet with a life insurance agent and get covered. Quite frankly, brokers concede, too many new homebuyers simply fail to show up for those meetings, and that leaves their spouses and their children exposed to the threat of losing a home if the mortgagor dies. With a growing number of dual-income households struggling to meet mortgage payments, that kind of exposure simply isn’t acceptable. Now brokers – even those once stridently opposed to creditor insurance – are convinced of its short-term, if not entirely long-term, benefits. The challenge, still, is getting clients to see that. But brokers are overcoming those objections with a focus on the stopgap protection creditor insurance affords homebuyers before they make their way to a life insurance specialist. Accepting that broker-arranged coverage in the interim wins them peace of mind, but it also allows brokers to wring all the revenue any deal has to offer. That kind of quid pro quo works to everyone’s benefit, come rain or shine. Vernon Clement Jones, editor

Editorial Director Vernon Clement Jones

SALES & MARKETING Associate Publisher Trevor Biggs

Senior Writer Justin da Rosa

General Manager, Sales John Mackenzie

Writers Olivia D’Orazio Donald Horne

National Account Manager Trevor Lambert

Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Sarah Derry Gabrielle Dolan Jane Anderson

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

Marketing and Communications Claudine Ting Project Coordinator Jessica Duce

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

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

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

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

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UPFRONT

STATISTICS

All about investors

RENTAL PROWESS Vacancy rates are a great indicator of a region’s rental market, and investors rely on these figures when considering a property. While the national vacancy rate rose in October 2015 from the year-ago period, city-specific figures were a lot more promising.

Real estate investors are set to be your next biggest client base – this is what you need to know about them

CANADIANS HAVE gone real estate crazy – but can you blame them? With vacancy rates bottoming out in major cities and interest rates at all-time lows, it seems everyone is looking to make a buck or two by investing in real estate. The vast majority of those investors are Canadian nationals who plan to hold the property for a while, likely renting it out and using that income to cover the expenses,

Canada

including the mortgage. More important, that mortgage is likely coming from the same broker – more than three quarters of repeat buyers are loyal to their mortgage broker, and more than 85% renew with the same lender. Still, hard data counting the number of real estate investors is sparse, though the Canada Mortgage and Housing Corp. [CMHC] and Statistics Canada are aiming to fill those gaps with new surveys and reports.

3.5%

from Oct 2014

British Columbia

1.2%

from Oct 2014

Vancouver

0.8% Victoria

86%

Percentage of mortgage renewers who were loyal to their lenders

77%

Percentage of repeat buyers who were loyal to their lenders

20%

Percentage of buyers who used social media to gather mortgage information

0.6%

17%

Percentage of buyers who used a mobile device to gather mortgage information Source: CMHC, May 2015

1.1%

Source: CMHC, May 2015

0.3%

0.7% 0.1% 0.1% Ott aw a Mo ntr ea l

0.2% 0.1% Vic tor ia Van co uv er

Don’t know/didn’t answer 7.5%

1.5%

Tor on to

A combination of fixed and variable rates 9.4%

2.4%

2.3%

Wi nn ipe g

Variable 35.9%

Almost half of real estate investors surveyed by CMHC prefer a fixed-rate mortgage, though another third said they enjoy variable rates for their non-primary condo units. Regardless, it’s important to consider your client’s personal investment strategy when recommending a particular mortgage.

Canadians were surprised late last year when the CMHC reported that foreign condo owners represented less than 3% of owners in the country’s major cities. The organization said it is now looking deeper into the issue of foreign ownership.

Re gin a

Fixed 47.2%

FOREIGN CONDO OWNERSHIP

Ca lga ry Edm on ton Sa ska too n

THE MORTGAGE INVESTORS PREFER

Source: CMHC, December 2014

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Newfoundland & Labrador

4.0% Alberta

from Oct 2014

St. John’s

5.6%

4.5%

from Oct 2014

Prince Edward Island

Calgary

Manitoba

5.3%

2.9%

Edmonton

Winnipeg

Montreal

Charlottetown

4.2%

2.9%

4.0%

3.9%

Saskatchewan

6.8%

Québec

4.3%

from Oct 2014

3.9%

from Oct 2014

Ontario

2.3%

from Oct 2014

FLAT

from Oct 2014

Regina

Toronto

New Brunswick

Nova Scotia

5.3%

1.6%

7.4%

3.9%

Saskatoon

Ottawa

Saint John

Halifax

6.5%

2.6%

8.3%

3.5%

from Oct 2014

Source: CMHC, November 2015

BEST BETS FOR INVESTORS

TIME TO STRATEGIZE

Investors are always looking for the next hotspot, and CMP sister publication Canadian Real Estate Wealth recently published a list of them. According to CREW, these cities have the highest cap rates in each Canadian province – and could soon welcome an influx of mortgage clients.

Every investor will have a different strategy when it comes to purchasing a property. Some prefer a fix-and-flip, while others want to hold the property and wait for it to appreciate. Either way, more than half of the country’s condo investors plan on keeping their property for more than five years.

ON AB QC BC

Windsor

12%

Grande Prairie

9.8% Mirabel

9.7% White Rock

8.6%

NB SK NS MB

Moncton

8.1% Regina

6.8%

PEI NL

Stratford

Less than two years

St. John’s

Two to five years

3.4%

Bedford

More than five years

Winnipeg

Don’t know/didn’t answer

6.5% 5.3%

Source: Canadian Real Estate Wealth, December 2015

10.1% 17.1%

52.6%

20.2% Source: CMHC, May 2015

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UPFRONT

HEAD TO HEAD

What can lenders do to combat churn? Brokers offer their best advice for lenders keen to hang on to clients come renewal time

Dalia Barsoum

Sean McCormick Mortgage agent Capital Mortgages

Mortgage broker TMG The Mortgage Group

“At renewal time, clients do one of three things: renew at the rate the lender offers, negotiate the rate down or shop the rate through their broker. I recommend lenders offer incentives to both brokers and clients to retain the business. For brokers, lenders might introduce renewal incentives that are comparable to those offered when refinancing or switching to another lender. For clients, lenders should offer their best rates at renewal time and show how their rates stand against the competition. But while rate is very important to many clients at renewal time, a lender’s service levels also play a role in retaining the client.”

“There are number of lenders already combating churn, and that’s through trailer fees for brokers. But to really combat it, lenders should create a better system to notify brokers when a client comes up for renewal. Most brokers are fairly indifferent to trailer fees, but unless a broker is really good at maintaining a database, they’ll work with new clients coming in. Some lenders don’t do anything, and brokers end up battling with renewal specialists. There always has to be some motivation for the broker to keep business with the current bank, maybe by offering better discounts on penalties when a client wants to refinance, for example.”

“Clients have become broker loyal, not bank loyal. Lenders tend to work hard to get the first deal, but they’re not interested after the fact. Once they find out they’re going to lose a deal, then they’re willing to pull out the red carpet. As a broker, that’s where I step in, and that’s why clients are loyal to the broker, not the bank. Some lenders, though, are allowing a six-month early refinance without penalties. Still, keeping our relationships with clients at the forefront is probably the most important thing brokers can do, so when they do come up for renewal or refinance, they’re thinking of the broker, not the bank.”

Mortgage agent and author Centum Streetwise Mortgages

Carrie Cardinal

CHALLENGING THE CHURN The consensus among brokers is that lenders aren’t great at maintaining contact with clients. Of course, that varies among different lenders, but clients frequently find themselves in a difficult position come renewal time. However, that can often mean more business for brokers as clients decide to shop around their rate or change lenders outright. In fact, brokers’ market share of renewals increased from 25% to 28% in 2014. Still, brokers say, there are some simple things lenders can do to combat client churn. Incentives for clients and trailer fees for brokers often top the list, but outstanding customer service also can go a long way in keeping a client’s business on the books.

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UPFRONT

NEWS ANALYSIS

Brokers find road-rep work-around Many brokers saw the addition of non-mortgage bank products to road rep arsenals as another nail in the channel’s coffin, but industry veterans say there are other ways for brokers to expand their own income streams IN A LATE September quarterly profit phone call, CIBC executives announced that the bank will be investing in “mobile mortgage advisors, which were changing to mobile advisors generally, so [they will] not just focus on mortgages.” Some brokers see bank reps selling nonmortgage products as a cheap trick to keep clients away from the broker channel. However, many originators are already finding opportunities to earn additional income themselves. “I am licensed in insurance and I’m licensed for investments, so I have access to a lot of

order to expand and diversify income streams. “I was asked by my clients, year after year, to help them finance a mortgage or do debt consolidation,” Elgersma says. “They go hand-in-hand because it’s all financial planning.” Adding a variety of licences, however, isn’t the only way for mortgage brokers to increase their earnings. Steve D’Souza, broker and owner of Client First Mortgage Solutions in Maple Ridge, BC, uses the banks’ value-add products to better his own book of business.

“It’s more about what we can do to change ... complaining about what banks can do is not going to help us” Maurice Elgersma, Real Mortgage Associates things that just a mortgage-licensed broker doesn’t have access to,” says Maurice Elgersma, an agent with Real Mortgage Associates in Lynden, Ont. “So I think if brokers want to expand their business, they should do so.” Elgersma is one of a growing number of mortgage brokers actively seeking licences in alternative and arms-length industries in

“Through some of our banking partners, we can offer some products, but we are not getting paid on it,” he says. “Any time you can add extra services or extra offerings for your clients, I think it’s a benefit.” Still, D’Souza acknowledges that offering more banking products, such as unsecured lines of credit, can be a double-edged sword –

often, banks intend on using those products to retain the client. However, that retention isn’t always in the best interest of clients. Brokers have one more trick up their sleeves when it comes to keeping client business: giving it away. “I look at the ability to sell insurance as an ability to also work with my referral partners,” D’Souza says. “I know that they’re trusted and vetted, so I know [my clients] will be taken care of. I think the give-and-take with referrals that way is a benefit to the client, to have a good financial team working for them, rather than me trying to be a jack-of-all-trades.” D’Souza says the specialists he works with are able to look at his clients’ wants and needs, and better help them select the best product for their budget.

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THE LONG-STANDING BROKER-BANK FEUD Banks might still beat out mortgage brokers when it comes to total market share –brokers’ 30% trails the banks’ 55% – but the broker channel isn’t taking that fight sitting down. Brokers’ share of outstanding mortgages has been steadily increasing since 2012, while the banks’ market share has remained stagnant. BROKERS’ SHARE OF OUTSTANDING MORTGAGES

25%

28%

30%

2012

2013

2014

BANKS’ SHARE OF OUTSTANDING MORTGAGES

55%

2012

2013

2014

Source: CAAMP, January 2015, December 2013, December 2012

“Any time you can add extra services or extra offerings for your clients, I think it’s a benefit” Steve D’Souza, Client First Mortgage Solutions What’s more, D’Souza says the reciprocal referrals he receives are more than enough to keep his business bustling. “Referrals back are still going to compensate me rather than direct compensation,” he says. “For me, if you do right by the client, you’ll make money rather than just trying to sell as many products and make as much as you can off them.” Regardless, D’Souza says the ability to

provide clients with products outside the mortgage space – just like many road reps can – is a good tool to have in his belt. For his part, Elgersma says mortgage brokers need to be more proactive if they want to grow their income streams. “We just can’t always be worrying about what the banks can or can’t do, because they can do things that we … can never do,” he says. “It’s more about what we can do to change and

get a better outcome – and complaining about what banks can do is not going to help us.” Elgersma says his ability to offer clients even more than a bank’s road rep can helps to stave off any negative impact from banks adding products to their reps’ kitbags. “I can offer more than a bank can offer,” he says. “We can sell the banking products. I can broker GICs; I can refer clients. I have relationships with banks that aren’t even in the broker channel. If you’re licensed and independent, you can work different carriers to find the solutions clients are looking for.” Plus, a variety of products and services can help lift a broker’s reputation. “The benefit of offering … all those extra things,” D’Souza says, “is that it just makes you look like the complete broker [who can] take care of all their financial needs.”

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UPFRONT

BROKER NETWORK UPDATE NEWS BRIEFS Verico adds an economist to its ranks They’re one of the industry’s largest networks, and Verico now has become the second mortgage company to add a dedicated economist to its ranks. The network has hired Michael Campbell, one of the country’s leading economic analysts, to provide regular reports and videos, and speak at the network’s events. “Now when we send newsletters to customers about market developments, having an economist as a resource will really benefit us,” Joseph Park, a broker with Verico JP Mortgage Services, told MortgageBrokerNews.ca.

Mortgage Alliance franchise conference a success

Mortgage Alliance held its 2015 franchise conference in Ochos Rios, Jamaica, at the beginning of October. The conference was centred around the theme “Planning for Your Future,” and included sessions meant to help brokers learn more about processes, systemization and commercial lending. “One of my favourite events that I believe is integral to our organization’s continued success, the franchise conference is really where new ideas are conceived and new initiatives are launched that change [what] the organization looks like and impacts the brokerage industry as a whole,” said Michael Beckette, CEO of Mortgage Alliance.

Best Mortgage Loans moves to Verico When the owners of their previous brokerage retired, Dan and Scott Conte of Best Mortgage Loans were left to find a new network to work with, and they ultimately landed on Verico. “Over the past eight years, the mortgage industry

has been through incredible change, and Verico has remained a key player in the game,” Scott Conte said of the decision. “Owning a business has its own set of challenges,” added Martin Marshall, Verico’s regional sales manager for Eastern Canada, “and that is why being a part of the Verico Network is so beneficial for firms big and small, old and new.”

Network arms itself against potential litigation One major network is implementing the use of an indemnification form for private lenders to sign to avoid suits brought forth against brokers. The form indicates the private lender will not take legal action against members of the RMA network in case of borrower default or because of any other mortgage or market issues. It will be required for all privately funded deals as of October 31. “In the last few years, the industry has experienced an increased number of lawsuits from private lenders,” Ron De Silva, president of RMA, wrote in an email sent to all of the network’s brokers. “Many of these suits are as a result of losses incurred from the non-performance of the mortgagor, who we have no control over.”

Brokerage partners with Walmart One brokerage has firmly implanted itself in eight Walmart stores throughout the GTA. Tridac Mortgages, originally formed by Arnold Molder in 1977 and now co-owned with his son Christopher, has plans to open in another two Walmart locations in the fall. If that seems like an unlikely partnership, consider this: Walmart employs more than 2.2 million people, including almost 91,500 in its 395 Canadian stores. “Why not Walmart?” said a mortgage agent working at the brokerage and speaking on condition of anonymity. “It’s the highest grossing onestop shop in North America.”

How low can interest rates go? One broker network’s chief economist argues that rates have hit rock bottom After two rate cuts by the Bank of Canada in 2015, will interest rates continue to trend downward? Dr. Sherry Cooper, chief econo mist for Dominion Lending Centres, doesn’t think so – but she also doesn’t see the ultralow-rate environment ending any time soon. Cooper argues the Bank will maintain its target for the overnight rate at 0.5% for at least the next year, regardless of what move the US Federal Reserve makes with its own rate. “It is my view that growth will exceed … forecasts by as much as 0.5 percentage points, owing to the likely mix of government spending increases and middle class tax cuts, although the details and timing of these actions are yet to be nailed down,” Cooper says. “In consequence, the Bank of Canada’s easing cycle has ended, and rightly so. The Bank has run out of bullets with overnight interest rates so close to the zero lower bound.” And because rates have bottomed out, the mortgage industry has likely hit its peak, Cooper believes. “Canadian interest rates have bottomed,” she says. “Most particularly, mortgage rates have bottomed. The growth in mortgage lending has likely peaked, or will very soon.” According to Cooper, the most recently released BoC data points to mortgage growth that has slowed over the course of the year, and it will continue to do so. “With 70% of Canadian households already owning their own homes and housing afford ability declining with the bottoming in mortgage rates and the rise in house prices, lending activity will inevitably slow, as will the rise in the price of homes, which has continued strong in Vancouver and Toronto, particularly

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in the single-family sector.” While Cooper doesn’t foresee a housing crash in the cards, she does predict a slowdown in the white-hot condo building market. “We will not experience a housing crash as some Cassandras have predicted for decades,” she says. “We will, however, see a slowdown in the pace of house price appreciation, especially for the condo sector, where overbuilding is most evident.” Cooper also sees the Liberals’ recent election win bringing more changes to the economy.

“Canadian interest rates have bottomed. More particularly, mortgage rates have bottomed. The growth in mortgage lending has likely peaked” “The Liberals will introduce a more proactive fiscal policy, reducing the reliance on monetary policy to do all of the heavy lifting in boosting economic activity,” Cooper says. “The Liberals won on the platform of running budget deficits over the next three years to boost economic growth, which has been languishing despite repeated reductions in interest rates.”

Q&A

Samir Asusa Senior vice president and CFO CANADIAN ASSOCIATION OF ACCREDITED MORTGAGE PROFESSIONALS

Years in the industry Eight years with CAAMP; 16 years in association management; 20 years as a CPA Career highlight “The energy and entrepreneurial spirit our members display” Biggest challenge “Communicating amidst the sea of information our members receive”year.”

CAAMP focuses BC disclosures What do you think is the most important challenge facing mortgage professionals right now? The mortgage market in Canada is functioning well, and generally speaking, policy and regulatory framework have found a good balance between managing risk on the one hand and promoting competition and consumer choice on the other. We need to work at making sure this balance continues by monitoring federal and provincial issues. What are some of the issues CAAMP is focusing on right now? One key provincial priority right now is [British Columbia’s] proposed changes on borrower disclosure forms. We believe that industry consultation is paramount on this issue, and we’re actively working with FICOM, the finance minister and other key BC government officials to ensure our industry has a voice on this very important matter. We have released a survey to our 1,600 BC members, the results of which will be forwarded to key members of government as our official position regarding this issue. From a federal standpoint, we are fine-tuning our government relations strategy as we await the new cabinet, and specifically a new finance minister. Our plan includes meetings with the minister and other key MPs and political staff, and ensuring our presence, research and industry message continue to be valued in Ottawa. As soon as our fall consumer survey is finalized, we will ensure this influential research continues to be shared in Ottawa and with media. What challenges or opportunities do you see on the horizon, and how can mortgage professionals prepare for them? Making sure the new federal government is brought up to speed on the importance of the mortgage industry nationally, and making sure they are informed with our extensive research and consumer data. Part of any advocacy effort is in the strength of many voices. Familiarizing themselves with the key federal and provincial issues – and being ready to participate across the country – is important. Are there any regulatory issues in the mix right now that mortgage professionals should be aware of? Definitely what is happening in BC. We believe disclosing calculations and exact amounts of potential broker compensation would have adverse effects, including greater borrower confusion, misunderstanding and distraction from the far more important terms and conditions of their mortgage, [and] borrowers wrongly concluding that it is more expensive to use a broker. So is now a good time to be a mortgage professional? Yes. Those who work hard and ensure they stay on top of new developments, best practices, etc., will always succeed in this industry. We have a fabulous industry filled with veteran professionals who are open and inviting for newer brokers and agents to approach them with questions and seek advice. We truly offer Canadian borrowers choice that no other channel can offer.

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UPFRONT

ALTERNATIVE LENDING UPDATE

Using social media to assess credit Could new technology streamline the origination process for alternative financing?

may not get a loan. And so I think that it may be a return to potential loan discrimination.” That type of discriminatory lending was prevalent in the 1950s and actually led to the advent of credit scores, according to Simmons. For their part, brokers argue the technology just won’t provide an accurate enough picture of creditworthiness. “It won’t capture an accurate enough picture of creditworthiness at all,” says Dave Trithart, broker/owner of Dominion Lending Centres 1st Financial Link. “It won’t show how much credit someone is utilizing, which affects a credit score.”

“It won’t capture an accurate enough picture of creditworthiness at all”

Brokers rely on credit scores as an integral piece of information when trying to get a mortgage for clients – and now, emerging social media technology could give brokers a more complete picture of a client’s creditworthiness. Facebook recently locked down a patent for technology that would examine creditworthiness based on the people an individual has in his or her social media circle. If a client has a high proportion of friends with bruised credit, it could affect his or her chances of getting a loan.

NEWS BRIEFS

“When an individual applies for a loan, the lender examines the credit ratings of members of the individual’s social network who are connected to the individual through authorized nodes,” the patent reads. The idea has already earned its fair share of critics. “I think that may strike fear into the hearts of many people trying to get a loan,” Shannon Lee Simmons, a financial planner at the New School of Finance, told CBC. “Maybe you have a good credit score, but because you hang out with some shady people, now you

MBABC cites alternative deals in fee argument

In a bid to have the government reconsider its ban on cancellation fees, the Mortgage Brokers Association of British Columbia argued brokers may be reluctant to take on difficult residential mortgage clients if their fee is contingent on the application being approved and funded. “Sometimes mortgage commitments are obtained by mortgage brokers after they have invested significant time into the file, but the client will eventually opt for alternative financing or decline the offered financing,” the association said.

While brokers might be willing to embrace new technology that expedites the lending process – especially for alternative deals – it seems this idea may be just a bit unrealistic. “It’s just absolutely bizarre – how can you use a social media profile to determine creditworthiness?” Trithart says. “It’s completely absurd.” Despite the patent, the social media giant has not yet announced any plans to use the technology for this purpose. “We are not aware of any plans by Facebook to launch an initiative related to this patent in Canada,” Valerie Lawton, senior communications advisor at the Office of the Privacy Commissioner of Canada, told the Toronto Star last summer.

Brokers hope deal will offer more alternative options

Now that Home Capital Group has finalized its purchase of CFF Bank, brokers are looking forward to having a strong, well-capitalized lending partner. “Obviously we will have more products to choose from,” said Eric Coching, a broker with the Mortgage Centre and an operator of a CFF Centre. “CFF might have been undercapitalized, and Home Trust brings that capital.” Home Capital Group announced on Oct. 2 that its wholly owned subsidiary Home Trust Company had completed the acquisition of CFF Bank for $18.2 million.

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Q&A

Pino Decina EVP of residential mortgage lending

The changing landscape of alternative lending

HOME TRUST

Years in the industry 27 Best part of being in the industry “The people we deal with, whether it’s the employees here at Home Trust or the multitude of Canadians looking for solutions to either acquire or refinance their homes” Biggest challenge “In this industry, it’s all about market share. To establish market share, you need to understand your market … brokers need to educate themselves and really become industry experts”

How are things in the alternative space right now? Things are always good in the alternative space. I think it’s continuing to evolve. It has been rapidly [changing] for the last two years as mortgage rules have continued to evolve. There have been a lot of changes in the mortgage industry as a whole in the last two years, so that space continues to evolve. From our perspective, it’s understanding the space, understanding what the market is and how it performs in this space. The borrowers that we tend to service continue to perform very well. Their sustainability of repayment continues to look very good. So from that perspective, it is a good time to be in the space.

What challenges or opportunities are presenting themselves right now? I think the challenges or opportunities today are no different from what they always are – and really, that’s understanding the market that you’re dealing with, because the definition of the Alternative-A space is constantly changing. Borrowers always look for an A mortgage as a first stop. So changes in the A space define the alternative space. It’s always changing and evolving, so that means you need to always understand the kind of customer you’re lending to. The reasons they’re ending up in that space are always changing, so you need to understand who they are and what

Government keeping an eye on ‘shadow’ lenders

Documents from a meeting between the Department of Finance, the Bank of Canada and CMHC suggest the Department of Finance is keeping a close eye on private and alternative lenders. The documents, obtained by The Canadian Press, indicate the unregulated mortgage market was among the topics discussed in a meeting last November. According to CP, the Bank of Canada warned of potential risks these lenders pose on the country’s financial stability. CMHC told the Canadian Press it is monitoring the unregulated mortgage market.

their expectations are. And like anything else in business, you’d better be prepared to live up to those expectations.

So how can alternative lenders keep pace with the changes? Listen to your brokers. If you’re operating in the broker-lender space, listen to your brokers. That’s where the rubber hits the road. With the alternative space being so broad, you really need to understand from your brokers what works and what doesn’t work. Much of what we do and how products evolve is the result of feedback we get from our broker partners.

What’s the most important thing going on in alternative lending right now, in your opinion? I think it’s that the customers we see today are improved, if you will, over the customers we saw many, many years ago in this space. The challenges are in meeting all of the credit or all of the income requirements of a Schedule A bank. So you really have to do your due diligence, and if you do, you see how good these borrowers are. I think that’s one of the most interesting things we’re seeing right now in the space. We’ve sort of had to change the way we offer our products and what they look like. When you’re dealing with customers who have a higher Beacon score and two years ago could have gotten approved at a bank, you need to offer products that look like what they’re used to.

MICs thriving amid low-interest-rate environment

In light of the continuing low-yield environment, mortgage investment corporations have seen dramatic growth recently as investors search for return and capital preservation, says one mortgage investment analyst. “Capital sourcing by many established MICs has appeared to be steadily reliable and available in the current environment,” said Michael Graves of W.A. Robinson Asset Management and Pillar Financial Services. The Bank of Canada rate is anticipated by many to remain at or near all-time lows.

Alternative lending more prevalent in US

While big banks dominated the US mortgage market until the economic downturn, alternative lenders issued 53% of all government-backed loans in April. That has a number of players south of the border worried. “This is a whole new era,” Marshall Lux, co-author of a new study from the Harvard Kennedy School on the rise in non-bank mortgages, told the International Business Times. “It’s a night-and-day situation.” However, that worry may be misplaced, as non-bank lenders have received similar ratings to their big bank counterparts.

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PEOPLE

INDUSTRY ICON

TRUE BELIEVER A self-described ‘mortgage geek,’ Equitable Bank president and CEO Andrew Moor believes brokers are key in growing the channel

WHEN YOU cut your teeth in the mortgage industry as a broker, it helps empathize with brokers when transitioning to the lending side of the business. That certainly has been true for Andrew Moor, president and CEO of Equitable Bank. “The basic reality is that mortgages are very tricky, complicated financial instruments,” Moor says. “I’m a bit of a mortgage geek, and I still find myself learning a lot. Brokers have a huge value proposition when they figure out how to deliver that complexity to the client and get people the right products.” Moor would know: Throughout his career, he has worked in various financial services roles, from managing director at CIBC World Markets to president and CEO of Invis, before landing in his current role as president of a Schedule I bank. Moor even wrote his business-school thesis on mortgage-backed securities. So when he speculates about how the industry will evolve, players take note.

A changing industry Moor believes banks like his will be at the forefront of the industry’s evolution. “At Equitable, we really feel we’re in the right spot,” he says. “So although we don’t have the brand of one of the Big Six established banks that have been around for 150

years, banking is changing very drastically. I think 10 years from now, generally speaking, going into a bank branch for a transaction will seem a bit like going to a Blockbuster. A few years ago, that’s how you’d go get a movie, but now that seems like an anachronism. I think banking will be the same, so companies like us are really well-positioned because we don’t have all

he says. “Those messages need to continue to be communicated to the public in order for brokers to continue to add value to the consumer. I think using a broker just makes sense. You have a range of lenders to deal with, and you’ve got customers who have a range of needs, and you can fit those needs to the range of solutions available. There is always a better solution.”

“I think using a broker just makes sense. You have a range of lenders to deal with, and you’ve got customers who have a range of needs, and you can fit those needs to the range of solutions available. There is always a better solution” that overhead associated with branches and all the costs that come with that.” And, Moor adds, brokers are equally well-positioned to excel in a post-bankbranch world. “Brokers can up their game by knowing all the product features, including the prepayment options, which are generally better at the monolines than the big banks,”

Moor believes brokers’ market share is set to increase as well, especially as more customers become aware of the product features and knowledge brokers can offer. Still, there are certain areas where the industry could stand to improve, he says. “It’s a bit frustrating at times that we don’t speak as one voice, but we’re all kind of different, so there are different ways of

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PROFILE Name: Andrew Moor Company: Equitable Bank Title: President and CEO Career highlight: Refocusing the strategy at Invis, which was trying to become an online origination platform when Moor came on board. “The highlight was realizing customers could get better service from a knowledgeable broker who focused on customer service,” he says. Career lowlight: Living through the financial crisis. “Seeing what can go wrong was extremely challenging,” Moor says. “You couldn’t trust money at the big banks even. It was a tough time.”

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PEOPLE

INDUSTRY ICON

tackling various segments of the market, and we don’t necessarily have to agree on the approach for the broker channel to win. I think it’s quite exciting to see different people trying different things. Not everything is going to work, but some of it is, and it will help the channel grow.”

quickly, but I don’t think we’ve looked at documents and said yes, then come back some time later and said no,” he says. “We don’t have a second set of order for files just before they close to say yay or nay; the people who say yes the first time are the people who have the authority to make the

“Sometimes brokers can do a better job of assembling everything they need upfront to really understand the credit they’re dealing with. The key is building a relationship with the underwriter. You’ve got to get to know your lenders for sure – get to know what their particular nuanced needs are” A lender’s perspective A major issue among brokers recently has been lenders’ lengthy turnaround times. Industry players point to the low-interestrate environment, seasonality and insufficient staffing as the reason; Moor says brokers can ease the frustration by building good relationships with lenders. “I would say sometimes you get people who don’t know the full story, and there is a bit of back-and-forth,” he says. “Sometimes brokers can do a better job of assembling everything they need upfront to really understand the credit they’re dealing with. The key is building a relationship with the underwriter. You’ve got to get to know your lenders for sure – get to know what their particular nuanced needs are.” Brokers have also complained about last-minute audits, but Moor says that isn’t happening at Equitable Bank. “There’s no doubt that when times are busy, documents aren’t looked at quite as

decision.” Increased regulatory pressures are also contributing to delays, Moor says, as lenders have been forced to adapt to more stringent requirements. “We’re always tinkering with processes,” he says. “If we learn something from one file, we apply it to the process. It’s a constant process of trying to make things better. When they put in B-20 two years ago, there were certainly some changes to our processes to make sure we were compliant. They were rigorous, and they have stood the test of time.” However, Moor is the first to admit it hasn’t always been easy. “There have been a few areas where we’ve either overcooked it and made it difficult to actually deal with us and in some areas where we realized we hadn’t managed to meet the standards we were trying to hit,” Moor says. “That still goes on; there are always areas you can look at [and improve].”

ANDREW MOOR’S CAREER TIMELINE

1987-1996 Managing director CIBC World Markets

1996-2001 President SMED International

2002-2007 President and CEO Invis

2007-present President and CEO Equitable Bank

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10/1/2015 4/11/2015 8:45:01 8:35:19 AM AM

UPFRONT

OPINION

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

Help with affordability CMHC’s decision to offer a full offset for secondary suites across Canada will help buyers struggling with affordability – if they have a solid rental market to draw from, writes Len Lane THE SECONDARY suite has been discussed in every major city in Canada where housing affordability has been eroded by the high cost of buying a home. Edmonton even considered allowing a suite over the top of a detached garage, and back lane housing in Vancouver has been around for quite some time. Now, CMHC has brought the need for affordable housing to the forefront by allowing all Canadians to use 100% of the income from a secondary suite when qualifying for a mortgage. Is the change significant enough to give the first-time buyer a hand up in purchasing their first home? I think it will now – not only has CMHC created affordable housing, but the buyer can now be given consideration by the insurer for adding in the income that will be produced by the suite. A 5% down-payment minimum will still be required, but the new rule might move the first-time buyer from a condo to a single-family home. Let’s look at it as a case study. A client has a household income of $80,000 a year, a credit score of 700-plus, a monthly car payment of $400, property taxes of $3,000, a $150 monthly heating bill and monthly rental income of $2,000. When we look at the current 50% rental offset using the Filogix setting (i.e., adding percentage of gross income), the client would qualify for a mortgage of $600,000 with a 5% down payment, based on today’s average five-year fixed rate of 2.69%. The monthly mortgage payment would be $2,701, so the client could

be living in a portion of the home for $701 a month. Now consider the same scenario, except that the rental offset is increased to 100%. The client would now qualify for a $675,000 mortgage, and payments would increase to $3,039.25. It might not seem like much, but

she has a vacant month. We could be putting first-time buyer clients into a scenario where, unlike a seasoned real estate investor, they might be unable to make their mortgage payment should there be a drastic change in the economy of their area. This is what happened in Fort McMurray with the downturn of oil; vacancy rates jumped from zero to 24% in less than a year. Many homeowners lost their tenants – and the extra income they relied on to make the mortgage payment. Some who have been able to keep a tenant have had to reduce the rents just to keep some cash flow coming in. CMHC reported vacancy rates across the country in June, and they are a mixed bag of numbers. The East Coast is seeing numbers in the 8% range, while Toronto, Vancouver and Victoria are all under 2% vacancy. Calgary and Edmonton, both of which were under 2% vacancy a year ago, have moved up to 3.2% and 2.4%, respectively. I’m hoping we will see some savvy first-time buyers purchasing more home than

“I think the onus will be on the mortgage industry to explain the possible pitfalls of this program and to suggest that clients be prudent in how much they spend on these purchases” $75,000 can move you a long way up the real estate ladder. I know these numbers probably seem low for many cities in Canada, but I think it shows how big a difference this could make for clients looking to get into the market as a first-time buyer with a 5% down payment. Take the same property and make it $900,000 in Vancouver or Toronto – or, for that matter, Fort McMurray, where you can get $2,800 a month for a basement suite. While you would have monthly mortgage payments of $4,000, you could be living there for $1,200 a month. So what are the dangers of this program? First and foremost, I think the biggest danger will be what happens to the client when he or

they might have originally, while being cautious to not max out their budgets, which are already so tight they could face issues should the suite not be rented. I think the onus will be on the mortgage industry to explain the possible pitfalls of this program and to suggest that clients be prudent in how much they spend on these purchases. Will the change be significant? In some markets, perhaps, but not all will benefit from it, as rental vacancies obviously vary across the country. Len Lane is the broker/owner of Verico Brokers for Life, which is based in Edmonton and licensed in five Canadian provinces with a team of 15 associates.

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FEATURES

COVER STORY: SUPERBROKERS

SUPER BROKERS Broker networks lay all their cards on the table and share just what sets them apart. What can you expect from these superbrokers today, and what do they have planned for the future? [Note: The following information has been submitted by the companies concerned. KMI Publishing does not endorse or confirm the veracity of the submissions.]

WHETHER YOU’RE thinking of making the initial leap to a broker network or are shopping around for a new one (or are just curious about what the different networks have to offer), you’ll find the definitive source of comparison here. On the following pages, 11 of the country’s largest broker networks share their current offerings and provide some insight as to where they’re headed in the future.

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CENTUM Compensation All franchises are on a 5% royalty plan. Agent compensation is determined between the franchisees and the agents

Broker model 100% franchise organization. We are the only brand that, for the past 14 years, is a member in good standing of the Canadian Franchise Association (the Canadian governing association of franchise organizations) and adheres to their strict code of ethics and standards in franchising

Ancillary services CENTUM Primo® white-label program, typically the lowest rates offered in Canada. (As of press time, our five-year fixed rate is a full 10 bps lower than any other lender.) This product still pays the broker full compensation CENTUM Primo Options®, a network of private and commercial lenders across Canada that provide comprehensive lending solutions for our offices Multifaceted unsecured consumer lending programs with rates as low as 5% and loans as much as $30,000 An enhanced number of investment products for consumers, including GICs, RRSPs, TFSAs and syndicated mortgages Commercial leasing program that allows the CENTUM family to offer solutions for their self-employed clients Mortgage Protection Plan (MPP) provides consumers the opportunity to protect their investment CENTUM OnlineOffice® provides a fully integrated back-office system that includes management of multi-templated websites, training resources, office management, reporting, lead management, communications, franchise administration, business operations, integration with social media and more CENTUM CustomerConnect® is a proprietary, fully intuitive customer relationship management [CRM] system

with hundreds of regularly updated marketing pieces. Pre-programmable functionality allows brokers to set the CRM to automatically stay in touch with clients, no matter the occasion (birthdays, anniversary dates, etc.). The system is fully integrated with D+H Expert, allowing single entry, and also allows for seamless merging of contacts for database management with minimal effort CENTUM Customer Product Advisor® is designed to provide real-time solutions to CENTUM family members by giving them access to the most up-to-date lender guidelines, as well as lender comparison to allow them to find the perfect mortgage for customers CENTUM Financial Literacy for Adults is a program specifically created by financial experts to focus on helping Canadians deal with the new realities of consumer debt, cost of living and a guide to homeownership that helps our customers make educated homeownership choices. This program is provided free of charge to all CENTUM members and consumers The ScoreUp consumer credit management program provides consumers with enhanced credit management capabilities, including exclusive Point Deduction Technology, to better understand credit and how to effectively manage it CENTUM Business Benefits are industryexclusive partnerships with companies that provide enhanced offerings – such as fleet programs, office supplies, technology and telecommunications – to CENTUM franchisees and agents to dramatically lower their cost of doing business CENTUM Consumer Partnerships offer CENTUM customers heavy discounts on items like furniture, vehicles, gasoline, moving supplies and resources, travel, accommodations, and much more The CENTUM Vision Awards and Conference is a one-day event that focuses on continued education and recognizing the top performers in the organization CENTUM provides a fully integrated recruitment and retention program for our franchisees to assist them in attracting and retaining top talent. We offer a Career Web

I’m often asked about the challenges in our industry, and what we as an industry need to do to overcome them. It’s a difficult question, because frankly I don’t see challenges – I see opportunities. I believe that with every obstacle that we encounter, we have a choice. We can lament it and cry foul, or we can use it to inspire innovation and drive the business forward. I don’t think we should resist change. We are smarter to embrace it and use the knowledge and expertise we have to be better, do more and reach beyond our self-imposed limitations. Those are the tough ones, the limitations we impose on ourselves. We all look for leadership, but the most powerful leader is the one that resides within us. Recognizing our inner leader, our own strengths and weaknesses, and how to use those to chart new and exciting paths is the entrepreneurial spirit at its finest. At CENTUM, we believe in the entrepreneurial spirit because of the positive impact it can have in the world. Our parent company, the Charlwood Pacific Group, was built on that spirit. They have helped tens of thousands of people around the world recognize it in themselves, harness it and build a bright future for themselves and their communities. So if you ask me again, are there challenges? Yes, there are. The greatest challenge is recognizing the opportunities change presents and how to make them work for us and our customers. Paul Therien Vice president of operations CENTUM

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FEATURES

COVER STORY: SUPERBROKERS Online sourcing of mortgage information continues to increase, and the consumer is demanding faster response times. A company needs to be nimble and quickly adapt to change – we need to be where the future customer is ABOUT CENTUM As the industry continues to evolve, CENTUM believes that as a national brand, we have an opportunity to provide innovative solutions that drive the business forward. We realized several years ago that continuing to do the same things, like traditional advertising, was not going to be wholly effective on its own. Online sourcing of mortgage information continues to increase, and the consumer is demanding faster response times. A company needs to be nimble and quickly adapt to change – we need to be where the future customer is. One of CENTUM’s advantages is being a part of the Charlwood Pacific Group of companies. Over the past decade, they have invested heavily – more than $20 million – in technology for all of their brands. One of the most innovative solutions has been The 15 Minute Mortgage, a patent-pending technology that is specifically designed to reside on third-party websites, which drives leads not only to mortgage professionals, but also to our referral partners. That means that, unlike the traditional act of going to people with palm out asking for business, we are creating a true partnership that directly benefits both parties. The results have been nothing short of amazing. We did a soft launch of the program in November 2014, and a full launch in January 2015. Since January, we have distributed more than 4,900 free leads to the CENTUM family and their referral sources – a number that continues to grow at a pace that exceeds our expec tations. The 15 Minute Mortgage is only the tip of the iceberg; CENTUM is poised to launch more innovative – and industry-exclusive – programs in the coming months. These are exciting times.

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TMG THE MORTGAGE GROUP Compensation Full-service brokerage offering compensation that is internally consistent and externally competitive Progressive partnership with brokers that rewards production – the more business, the larger share of revenue No franchise fees, no monthly fees, no royalty fees, no locked-in contracts

Lead generation

Broker model

The 15 Minute Mortgage is the only patentpending lead generation program in the industry, designed to generate significant leads for the CENTUM family and their referral partners. In a 30-day period, it generated more than $469 million in new mortgage leads. Since launch, the funding ratio on these leads, when managed effectively, has been over 80%. The best part? The leads are free We have exclusive marketing partnerships with industry-leading companies to deliver bottom-line results for our brokers We provide our brokers with vital qualified leads directly through the industry-leading online platform CENTUM.ca – all leads are provided free of charge We offer hundreds of customizable marketing pieces and programs designed for use in social media, online and print Our back-office systems provide agents and franchisees with comprehensive lead management technology The CENTUM Productivity Enhancement Process® coaching and mentoring program has been proven to improve agent productivity by as much as four times

The 800+ brokers, associates and agents in TMG’s network operate under provincial licences across the country. This allows TMG to foster strong national relationships with regulators, mortgage associations and lenders, ensuring consistency across the country Powered by TMG The Mortgage Group™ provides independent brokerages the infrastructure to reduce operating costs, accelerate growth and enjoy all the benefits of a full-service brokerage

Compliance and payroll Centralized accounting services to handle collection, reporting and distribution of lender/partner payments with efficient same-day direct deposit to franchisees Our systems eliminate the need for monthly reporting, writing cheques for royalty or marketing funds, or providing financial statements to us as a franchisor

Ancillary services TMG Merchant Capital Group allows brokers to help their self-employed clients improve cash flow and grow their businesses TMG-branded mortgage products help brokers preserve and protect client relationships TMG Mortgage Insurance offers mortgage insurance coverage, as well as term and permanent coverage for life, critical illness, disability and job loss The TMG Commercial Mortgage offers a new, innovative product for business clients who want to own their property An industry leader in broker support and training, TMG TV offers leading-edge webinars and webcasts, while BrokerNet provides brokers with a secure intranet with daily interest rates, industry news, marketing tools, resources and more TMG’s paperless document storage platform, DOC Central, has regulatory compliance covered TMG’s dedicated Deal Centre provides

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brokers assistance with applications and exclusive promotions

Lead generation TMG offers a Customer Relationship Management program that brokers can use to manage client communications, leading to referrals and increased business State-of-the-art broker websites to assist with lead generation Active social media that generates brand recognition A variety of automatic client communications, including breaking news, monthly bulletins and a quarterly newsletter TMG Design Services provides seamlessly integrated services, from advertising campaigns and exhibit graphics to websites and marketing literature TMG provides direct access to experienced executive and regional management; an open, progressive, entrepreneurial environment; progressive, proprietary technological solutions; and extensive training, tools and marketing systems to help brokers generate and cultivate leads

Compliance and payroll Our state-of-the art automated accounting and payroll system is centrally managed by TMG, at no cost to brokers

Since the global financial crisis hit in 2008, the mortgage industry in Canada has undergone increasing scrutiny, regulatory oversight and, in some cases, reduced competition among lenders. At the same time, however, the broker channel has been very resilient. Despite continued challenges, we have grown market share because brokers represent the best solutions for consumers looking for mortgage financing. To continue to serve our clients, we must keep up-to-date with changes. We must arm ourselves with continued training and support tools that are vital for our success. Education is one of the pillars of TMG, and we are recognized as one of the market leaders in training. TMG constantly explores ways to use technology to help our brokers be more efficient and effective. Considering how much we view the brokerage industry as ‘relationship-centric,’ I am extremely proud when I say that more than anything else, TMG is its people. From the most dedicated and passionate staff (winners of the 2013 CMA Employer of Choice Award) to its professional, empathetic and caring brokers, TMG represents leadership in the broker channel and strength and stability for consumers. This notion is further supported by us scoring over 90% in our annual broker surveys for the past five years in a row. As brokers, one of our key value propositions is choice. This involves selecting the right lending solution for each client’s unique needs. In this market, we continue to prove ourselves as the clients’ best advocates. As a broker, you also have a choice. In a competitive environment, it’s critical that you align yourself with a company that supports you and gives you the tools to ensure your success. Your business is working with clients. Our business is helping you do just that. Working with a full-service mortgage brokerage company provides you with an opportunity to focus on your core competency – originating mortgages. Our part of the equation is to effectively manage compliance, payroll, training and lender relations, work with regulators, and create sales tools. And in the end, as a brokerage, we are completely aligned with your success – as you grow, TMG grows alongside you. Mark Kerzner President TMG The Mortgage Group

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FEATURES

COVER STORY: SUPERBROKERS Secure, online compliance software is integrated within our DOC Central system, which also provides paperless document imaging Regulatory compliance, policies and procedures are monitored All data is secured and held in a sophisticated internal and external backup storage system Brokers are notified when payment is received by the lender Detailed commission statements are available on BrokerNet State-of-the art reporting and goal-tracking technology

ABOUT TMG THE MORTGAGE GROUP For the past 25 years, TMG has experienced steady growth in the Canadian market. Our driving principle has always been, and continues to be, supporting brokers and the clients they serve. All of TMG’s programs, systems, training and technologies are tested against that principle: Does it support brokers in their business, and does it assist the client? Through the years of continued and impressive growth, TMG has been able to maintain and even strengthen its corporate family culture. During that time, we have developed some of the best lender relationships in the industry, which stems from a corporate philosophy that lenders should be treated like customers. Early on, we decided to grow the company organically. Today, TMG has nearly 800 brokers and agents nationwide. The company continues to attract like-minded, professional individuals by treating them with respect, providing good value and continually responding to their needs. “Our core values help promote an open, progressive, entrepreneurial environment,” says Mark Kerzner, president of TMG. “We think in terms of partnerships with our brokers and staff. In a market that seems to be changing by the day, we do not take our business, our brokers or our customers for granted. So much of our success is based on the relationships we have developed, and we continually look for new, innovative ways to enhance a broker’s value with the end consumer.”

INVIS/MORTGAGE INTELLIGENCE Compensation Highly competitive compensation model with commission splits for those new to the industry up to the very seasoned highvolume broker Splits are on gross earnings, not after royalty or franchise fees

Broker model Full-service brokerage offering a personal branding flexibility Opportunity to become a shareholder Network partner model gives ability to work under own brand/licence at top commission split No monthly fees No royalty fees No lock-in contracts

Ancillary services Experienced regional support for training, business and marketing planning, team building, feet on the street. They are there for our brokers, and not just to recruit Free placement desks so all brokers can enjoy top lender status, assistance with their inter-provincial deals and get access to product specialists to help with tough deals Support from award-winning marketing department Broker websites with global feeds so rates, content and news are continuously updated, along with easy management of SEO Mobile websites with updated rates, news and excellent mobile calculators CRM options to fit each broker’s business model Monthly webinars on compliance, insurance, Equifax, lender sessions and more Graphic design services Content library for email, mail, blogs and social media Video library for TV, websites, digital display, emailing and social sharing, and nine short educational animated videos Automated weekly rate mail Daily lender rate sheet with an economic

ABOUT INVIS/ MORTGAGE INTELLIGENCE Invis/Mortgage Intelligence is having a fantastic 2015, with so many high points and continued differentiated value offerings. Free marketing workshops were held across the country that focused on web and social media marketing, and on the support available from our award-winning marketing team. To celebrate our 15th anniversary on July 15, we held 17 birthday parties in 17 cities across Canada that saw incredible broker, lender and staff engagement. Our free Access Desk continues to offer all brokers status rates, status service levels, full finder’s fees and a designated underwriter. We’ve become a home for bank reps whose transitional success increases under our comprehensive full-service model, and we had nine of our brokers recognized on CMP’s Young Guns list. Our brokers engage with us via award and recognition events such as our yearly production and Mover & Shaker Awards, and service recognition at 5, 10, 15 and 20 years. Thirty-four brokers will be part of our 2015 Caribbean Cruise production contest, and our unique Unplugged Challenge promotes work/life balance. Best-in-class iprotect mortgage life, disability and critical illness insurance helps build longterm annuity income. And our Unitas Home & Auto insurance program pays referral fees and provides the best E&O insurance in the industry. Both experienced and young brokers benefit from the strongest regional support team in the industry. We listen to our brokers via 30-day and one-year check-ups for new brokers, and an annual survey for all brokers. The best onboarding team in the industry makes moving to Invis/Mortgage Intelligence a breeze. We stand by our commitment of no long-term contracts and no monthly fees. The strength of our model is evidenced by our strong agent retention – more than 50 brokers have been with us for over 15 years, and hundreds more have five-plus years of service. And we were recognized in 2015 with the Best Broker Network and Best Marketing Effort awards at the Canadian Mortgage Awards.

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FEATURES

COVER STORY: SUPERBROKERS In 2015, it became even more evident that brokers need to take another look at their businesses and determine how they will compete, given the growing trend toward online rate shopping. Brokers can choose to compete with the online players or differentiate themselves via niche marketing, by adding value to client relationships and finding ways to connect on a personal level. We continually stress this message and provide guidance via our free marketing workshops, PD days, regional manager support and monthly webinar series. We also continue to believe that our industry goal shouldn’t be the number of brokers but quality, well-trained brokers. We need to turn mortgage brokering into a sought-after profession and bring in bank/insurance reps, graduates and MBAs who have fresh ideas and new perspectives. We thoroughly scrutinize all hires, and our focus on quality versus quantity has given us average production per broker that is higher than the industry average. We also ensure new brokers are supported by their team lead, mentors and their regional manager, greatly increasing their ability to succeed. And we continually look for ways to raise the bar by having highly regarded compliance standards. In fact, regulators invite us to help craft their standards and practices. Our access desk (with top status rates) acts as a product knowledge centre and provides deal coaching, which results in incredible broker efficiencies. Cameron Strong CEO Invis/Mortgage Intelligence

update with articles for reposting, Tweeting and blogging Automated monthly newsletter Intranet site with branded materials for marketing and relationship management Realtor feature sheets with demographic and neighbourhood information Free HTML email program to customize and target messages Reporting for business monitoring, including YOY by lender and team member, renewal opportunities reports and more IT support Free PD days with AMP credits Forums to discuss deals and other business issues with peers Corporate benefits program Discounted E&O rates with premium coverage Trade show support with free use of booths and banners Award-winning community service culture through national charity Angels in the Night

Lead generation Competitively priced iprotect mortgage insurance builds a fantastic annuity income Home and auto insurance referral fee program – just four referrals a month can give brokers $3,360 in additional income each year Private-label WealthLine and Partner mortgages with excellent rates, features and ability to earn annuity income with automatic payment at renewal. Our brokers have their own retention teams focused on keeping their business Robust and compliant lead-generation programs through several established financial planner networks Industry-leading corporate websites getting traffic and leads Small business loans referral programs Access to private and commercial lending experts

Compliance and payroll E-compliance process through expert exchange Compliance required for all brokers, regardless of the model they are working under with the company

Excellent compliance protects brokers’ reputations and helps them stay ahead of changing rules Weekly automated payroll by direct deposit with detailed statements and customized team setups A key differentiator is payroll and compliance for those at the highest splits, not available at other brokerages Active in industry associations CAAMP, MBABC (president), AMBA (president), MBAAC (two directors) and the Mortgage Brokers Regulators Council (two members)

VERICO Compensation New industry-exclusive opportunity that can increase revenue for every deal No taxes (i.e. royalties) on commissions No franchise fees No advertising fees Full control of revenue streams and lender relationships Full control of commission and agent splits Proprietary loan products with trailer fees

Broker model The first and largest true network model in Canada Stringent application process that ensures the calibre of our members reflects the high standard of VERICO’s reputation Helping owners achieve their business goals is the single focus of VERICO Canada, but you will find that we do it differently. VERICO supports members in all aspects of their business while fostering the entrepreneurial spirit.

Ancillary services BrokerBase, a proprietary suite of tools and the support system to help our broker present themselves professionally with all the collateral that bank reps have access to. This strategic platform, free to all agents and licensees, allows brokers to position themselves as their clients’ one and only point of contact and also offers brokers additional revenue streams Website Builder, Brochure Builder and

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COMING TO TERMS WITH YOUR CLIENTS’ INSURANCE NEEDS

65% 58%

of Canadians would have trouble covering their living expenses, including the mortgage, for more than a few months if the primary wage earner died.*

of Canadians find it difficult to decide on the type of insurance to buy.**

43% 36%

of Canadians between the ages of 25 and 44 have no individual life insurance and 79% of Canadians have no individual disability insurance.**

of Canadians say no one has approached them about insurance.**

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■

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■

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■

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* Source: LIMRA, Canadian Billion Dollar Baby Revisited, 2014. ** Source: Manulife Financial Advisors Focus Spring/Summer 2013. Mortgage Protection Plan® (MPP) insurance is underwritten by The Manufacturers Life Insurance Company (“Manulife”) and administered by Benesure Canada Inc. (“Benesure”). Credit Security Insurance Agency Inc. (“CSIA”) and its appointed agents provide insurance sales services. Benesure and CSIA are wholly-owned subsidiaries of Manulife. ® Registered trademark of Benesure Canada Inc.: used under licence. Manulife and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under licence. Manulife, PO Box 4213, Stn A, Toronto, ON M5W 5M3.

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10/2015 15.9097

The Manufacturers Life Insurance Company

4/11/2015 11:43:12 AM

FEATURES

COVER STORY: SUPERBROKERS As VERICO celebrates its 10th anniversary this year, we can’t help but take a look back at our impact on the industry and our future role in the channel. “We began with a simple idea,” says Colin Dreyer, president of VERICO Canada. “We wanted to unite top mortgage brokers and collectively create additional opportunities and value for this group of highly driven professionals.” “The industry used to be dominated by a few national superbrokers and even fewer franchise models,” says John Kelly, co-founder of the network and COO of the company. “Colin and I wanted to do something different. We wanted an ‘un-franchise’ model that measured up to our vision and fit the needs of our founding broker-owners.” This new model put the business, brand, lender and customer relationships back into the hands of the independent broker-owner. “As a result, the VERICO model attracted many agents who were working for super brokers or franchise operators but had their own entrepreneurial aspirations,” Kelly says. “Today, in addition to offering our key value proposition of true independence, VERICO offers a suite of support and tools that are unrivalled in the industry.” “Ten years ago, the VERICO model imposed an entrepreneurial standard between broker, borrowers and lenders, with very positive results,” Dreyer says. “Our continued evolution and innovation in the areas of member support, lender relationships and technology continue to support the success of each one of our members.” Colin Dreyer President VERICO Canada

Banner Ad Builder Automated marketing program Customizable client tip sheets and feature sheets Automatic newsletter program to keep your name top of mind with clients D+H online and offline application that feeds directly into your Expert account Exclusive lender relationships and privatelabel mortgage products with financial benefits Trailer fees Deposit brokering profit centre opportunities VERICO Insurance for mortgage, life protection and critical illness Wealth management Education and training with worldrenowned Brian Tracy Group, 40 hours of training in the robust VERICO Academy video library, one-hour webinar sessions featuring top VERICO members and lender speakers, as well as training support from VERICO’s member services team Full resource centre offering branding, marketing and advertising support, PR and media outreach, an enterprise-level CRM system and consumer newsletters VERICO white-label products to service the needs of clients through every stage of their lives. Whether they are trying to move into a bigger home for an expanding family or wanting to cash in some equity for college funds, a VERICO mortgage can help clients achieve their financial goals In-house preferred suppliers, including Rogers Wireless, The Brick, Petro Canada Corporate leasing National and local events where members from across the country can network and take advantage of VERICO’s collective expertise

Lead generation BrokerBase is a cutting-edge CRM system based on enterprise level Microsoft CRM Dynamics. We transformed what was out of the box and turned it into a 24/7 automatic marketing machine that provides first-class service and regular customer touchpoints BrokerBase outperforms the competition, turns clients into fans and gets the phone

ringing, generating more repeats, more referrals and more renewals

Compliance and payroll VERICO members operate their businesses using best practices and comply with regulations to the highest degree Licensees retain full control of revenue streams and lender relationships Lenders pay directly to licensees VERICO Payroll system built and customized ADP payroll Lone Wolf

ABOUT VERICO VERICO, Canada’s biggest broker network, celebrated our 10th anniversary this year. What was true 10 years ago remains true today: VERICO only succeeds when our owners and members succeed. Helping owners and agents achieve their business goals is the single focus of VERICO Canada. This unwavering dedication to supporting your success is evident in the distinct way VERICO operates. Large organizations and individual brokers alike continue to see the value offered by VERICO and choose to join and stay with the network, even in the absence of long-term contracts. VERICO consistently attracts 100+-agent firms and boutique brokerages largely due to our philosophy of offering solutions to each and every firm in the network – no matter their size or volume. The custom-made suite of products and tools offered by VERICO helps brokerages in every market across Canada capture present and future opportunities to increase their business. This past year, the VERICO network launched additional cross-sell opportunities with mortgage life insurance and unsecured personal loan products, responding to the constantly evolving needs of your clients in the current market. Our members know that our products and services make a difference in their business. “In the last year, I have been able to increase my revenue by well over 20% per deal,” says Garth Ellis, President of VERICO Ellis Mortgages. “I first joined VERICO because of its reputation, but I’ve stayed in the network and have been a proud member of VERICO for 10 years because, at the end of the day, I see results.”

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FEATURES

COVER STORY: SUPERBROKERS We are in a very fortunate spot – all of us. Mortgage brokers help Canadians with some of the biggest financial decisions of their lives, and look what we have behind us – a strong housing market, market-share increase, healthy average income for mortgage brokers and a bright future for the industry we all love. I recently heard David Chilton speak, and he said that the only problem with our industry is that the consumer doesn’t realize how valuable mortgage brokers are to them. I’ve been fortunate enough to work in this industry a long time. I’ve been in the trenches as a mortgage agent, so I know how hard it is, but I also was lucky enough to know how rewarding it is. I work closely with more than 1,000 mortgage professionals in my network and also have the privilege to serve our industry as a board member of CAAMP. The spectrum of our industry is incredible. Veteran mortgage brokers, some of who have seen the housing market collapse twice, still haven’t changed the way they do business, yet are tremendously successful. And the new entrants to our industry are out there blogging, vlogging and doing what the millennials demand of them in order to get the message out. No matter how you do your business – picking up the phone, using social media, having a web-based business or having a strategic storefront – the beauty is that all these ways of doing business can be successful as long as you are committed to your craft. If you are reading this, hopefully you are saying, “Yes, I am fortunate to be in the industry, I do take this career seriously, and I am committed to my way of doing my business.” Be proud and be loud, because you make a difference in people’s lives! Eddy Cocciollo President Mortgage Centre Canada

MORTGAGE CENTRE CANADA Compensation Each office independently owned and operated within our franchise network Collects a royalty fee based on the dollar volume funded by the lender; fee typically less than the average competitor, allowing franchises to use the additional revenue the way they want to grow their businesses Franchises retain 100% of trailer fees, which stay with them in perpetuity Independently owned franchises negotiate competitive commission splits directly with their respective agents based on experience, quality and volume

Broker model New franchise cost is $16,500 plus HST Head office provides on-site and/or

Mortgage brokers help Canadians with some of the biggest financial decisions of their lives, and look what we have behind us – a strong housing market, market-share increase, healthy average income for mortgage brokers and a bright future for the industry we all love webinar support during initial setup, along with ongoing training to ensure successful franchise launch Contracts with franchise owners based on a five-year mutual commitment Presence coast-to-coast, except in Quebec, with approximately 95 franchises and more than 1,200 agents

Ancillary services Relationship with Dominion Lending Centres allows members to enjoy a significant discount on products and services not offered by other brokers Creditor life insurance via Mortgage

Protection Plan – ancillary revenue stream with multiple methods of payment (upfront and/or residual fees offered) Unique mail campaign (Stay in Touch) that allows members to offer clients or referral sources a personally branded hard-copy output every other month MCC Client Communicator tool gives members ability to send a personally branded email newsletter to their database on a monthly basis Head office provides ongoing training, support and development via live monthly webinars throughout the year On-site sales training and mentoring programs available for new and existing agents Secure intranet site with a host of business tools, advertisements and templates Additional programs include MCC Client Connect (CRM solution) and MCC

Lender Connect (deal placement assistance) Annual conference for the entire network, focused on sharing of best practices and personal development Property Valuation Tool allows members to access property information easily and quickly offering more information, knowledge and statistics Social media training and webinars offered by head office, including one-onone training

Lead generation Client prospect leads generated through

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our public portal evenly distributed to franchise owners based on geographic proximity Agent prospect leads handled and distributed in the same manner

Compliance and payroll Franchise licensees responsible for provincial compliance requirements Ongoing training and support provided by head office in accordance with provincial legislation Access to a policy and procedures manual, which was developed to govern franchises and assist in the compliance process Detailed reporting and payment weekly through head office via EFT

ABOUT MORTGAGE CENTRE CANADA Mortgage Centre Canada is a network that is highly supportive, innovative and competitive. We do this by constantly watching trends, keeping up with current events and industry news, and then taking that information and turning it into opportunities: opportunities to grow our business, opportunities to strengthen our team, but more important, opportunities to learn and expand our knowledge about an ever-changing industry. Within the last year, Mortgage Centre Canada has provided many tools to better our network and continue success as brokers, agents and brokerages as a whole. This year we have launched a property valuation tool that gives our agents the capability to retrieve more information about properties and their corresponding demographics, allowing agents to close more deals and drive more business. Additionally, the MCC head office is composed of a dynamic team working to better our agents’ businesses and provide them with the support they need. We have a strong focus on and dedication to monthly and one-on-one training, new technology and tools, and constantly providing our network with up-to-date information and trends in order to stay ahead of industry standards. We continue to strive for excellence and keep our finger on the pulse of an industry that is forward-thinking and continuously progressing, and that is something Mortgage Centre Canada is incredibly proud of.

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FEATURES

COVER STORY: SUPERBROKERS RMAI On February 20, 2006, I was in the Monday morning meeting with the senior management team of Cervus Financial. I was the VP of sales and marketing. We were discussing how to get better adoption of the trailer fee compensation model by the broker community, when at 9:20 a.m., I received an email from the head of a major mortgage brokerage. He told me not to discuss the trailer fee compensation with his agents and brokers. Trailer fees don’t belong to the broker, was the message in the email. When the meeting ended, I followed my COO to his office and resigned from my role. I had had enough. At that moment, I decided to launch a mortgage brokerage that was broker-driven and broker-focused. Three months later, RMA was launched based on the guiding tenets of transparency and simplicity. Today, RMA (and its sister corporation, RMAI) continues to operate with the same codes of transparency and simplicity. We have all the tools that brokers need to grow their businesses. What we don’t have is an unfair compensation plan that charges the veteran broker for tools and services they don’t use so the company can pay for a new agent’s learning. The new battleground for brokers in 2016 and beyond is to decide which strategies and tools you need to grow your business but also manage your resources carefully. Remember, if your net profit margin is 50%, a dollar sold is only 50 cents in your pocket. But a dollar saved is a dollar saved! Ron De Silva CEO and principal broker RMAI

Compensation All franchises, senior brokers and affiliates receive 100% of commissions (finder fees and volume bonuses), no splits The cost of association is $750 per month or a Pay Per Deal program In 2014, we introduced a 90/10 split program as well. Then we went one step further and capped the programs at $9,000. Therefore, once RMAI collects $9,000 from the 90/10 or the Pay Per Deal of the flat fees, no more is deducted from the agents/brokers

Ancillary services All franchisees, affiliates, agents and brokers have free access to CRM software through inContact’s Nexa program, which is fully integrated in real time with D+H Expert Affiliates have access to a software program called Teneda on a pay-asyou-go subscription basis. It is a full mortgage life-cycle solution, starting with lead capture, mortgage application

The new battleground for brokers in 2016 and beyond is to decide which strategies and tools you need to grow your business but also manage your resources carefully. Remember, if your net profit margin is 50%, a dollar sold is only 50 cents in your pocket The corporate volume bonus paying lenders qualifies you for an added 23 bps on average automatically as part of the network membership We operate our corporate head office on the fees we get. We don’t charge for advertising or origination software

Broker model There is no cost to purchase a franchise Our licensed affiliates are not expected to carry and promote our brand. Their businesses operate under their own brand names Standard termination clause is 30 days Agents/brokers that don’t have their own licensed broker firm can join our corporate store, Real Mortgage Associates (RMA), under the same compensation model Agents joining our firm who are new to the industry must work with a manager/

trainer. The manager/trainer’s compensation is tied directly to funding of mortgages by the new agents, ensuring the highest level of support for new entrants

processing and post-funding client engagement. It uses a directed workflow engine that manages the client life cycle from both a time perspective and business rules. Recognizing that a broker/agent may want to originate more than just a mortgage, the software has the ability to capture client data that will support the origination of other retail credit products. RMAI is the only network that has Teneda fully integrated with D+H Expert RMA agents/brokers have access to an in-house commission advance program All franchisees and affiliates have free access to a fully functional extranet with up-to-date rates, lender guidelines, lender BDO contacts, CRM online and an auto-underwriting system to select the best lender for a deal. The extranets are branded with the franchisee’s own logo. Head office manages the updating

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RMA was launched based on the guiding tenets of transparency and simplicity

and maintenance of the extranet on behalf of the franchisees and affiliates so they have more time to generate business for themselves Some franchisees, affiliates, agents and brokers that fund smaller volumes don’t have access to all the lenders. For these originators, a lender access desk opens a door to all lenders, including some with preferred/unpublished rates and compensation Our commercial division handles commercial mortgage leads on the agent’s behalf. Simply provide a name and phone number, and the referring agent gets 50% of the fee when the deal funds Don’t know where to place a deal with unique qualifications? Enter the application information into Lendervault, and the system finds a lender that will do that deal. This web-based, automated underwriting software is available for free to all franchisees, affiliates and agents/brokers Free, consumer-targeted websites are available to agents and brokers to market themselves. The back end has an easy-to-use content management system to update the site Free semi-monthly webinars are conducted to keep franchisees, affiliates and brokers up to date on the latest industry changes, new lender offerings and other ancillary products

Compliance and payroll File auditing and compliance services are provided for franchisees, affiliates and RMA brokers in Ontario Payroll is direct deposit and conducted weekly for RMA and twice a week for franchisees and affiliates

MORTGAGE ALLIANCE Compensation Choice of relationships, services, opportunities and fees. The mortgage entrepreneurs within the organization appreciate the many services and compensation choices available

Broker model Brokers choose the relationship that best meets their goals: franchisee, team leader, corporate broker or affiliate

Ancillary services Three unique branded mortgage products Guaranteed Issue Creditor Life Insurance Program Unsecured Loans Program Term insurance Home and auto insurance Registered, non-registered and TFSA GICs Investment products In-office closing centre services Leasing Commercial lending services Emergency Home and ID Theft Protection Program Access to a ‘money market’ of MICs and private lenders in MortgageBOSS™ VIP Lender Hub (top-level access to all top broker lenders) Wealth algorithm identifies customers for additional services and revenue opportunities

Lead generation Our national advertising campaigns include radio, television and social media to build awareness and feature the quality of Mortgage Alliance professionals. Our innovative campaigns raise the profile and likability of our brokers all while directly generating consumer leads to our brokers’ phones/ websites Since 2007, Mortgage Alliance has awarded more than $800,000 in prizes

Last year I spoke about adaptability. You know the old adage: Things change, we adapt, get used to it! It seems we’ve adapted pretty well. This year we’ve seen 35% mortgage origination growth in our organization, plus a new ownership structure that brings new expertise, experience and opportunities for Mortgage Alliance brokers. We are adapting to the environment by allowing brokers the opportunity to be the conduit to a suite of financial services if that’s their wish. We’re encouraging the systemization of brokerage businesses through the use of our proprietary enterprise technology that allows mortgage professionals to prospect more, transact more and follow up more, much more easily. We’re embedding additional services like unsecured loans, credit cards, insurance and investment right into the system and taking access to lenders to a whole new level. I’m pleased to see how many Mortgage Alliance brokers are adopting a philosophy that focuses on customers in their database versus deals, since, as entrepreneurs know, a customer is worth so much more than a deal. We are behaving more like entrepreneurs running businesses every year, and that’s one of the reasons we are introducing the most unique educational offering in the mortgage industry in 2016. We have partnered with one of the most recognized global brands in entrepreneurship to bring our mortgage professionals an exclusive 10-month program, which is based on the Dragon’s Den Guides to Business and culminates with a Certificate in Entrepreneurship. We’re excited about becoming Mortgage Dragons! Michael Beckette President and CEO Mortgage Alliance

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FEATURES

COVER STORY: SUPERBROKERS I’m pleased to see how many Mortgage Alliance brokers are adopting a philosophy that focuses on customers in their database versus deals, since, as entrepreneurs know, a customer is worth so much more than a deal to our brokers’ customers through the $100,000 Minimize Your Mortgage Sweepstakes Timely, professionally written monthly customer communication, with a phenomenal 30% open rate, educates

customers and generates leads and referrals INSPIRE Variable Direct Mail Program integrated into MortgageBOSS™ that customizes content and graphics for every marketing piece with customer- or

ABOUT MORTGAGE ALLIANCE This has been a prosperous year for Mortgage Alliance brokers. We deployed a variety of new initiatives to expand our brokers’ value proposition and increase revenue. We raised our network’s profile and directly generated leads to our brokers with cross-Canada spring and fall TV campaigns. Mortgage Alliance commercials reached more than 30 million Canadians and were aired on many mainstream shows such as Big Brother, The Voice, House Hunters, Dragon’s Den, Income Property and Blacklist, just to name a few. Mortgage Alliance brokers enjoy free social media management that ensures a professional presence on social media and generates both interest and leads. One of the most significant digital strides this year was the launch of the MOPOLO app, a first-of-its-kind consumer app for the mortgage industry that provides customers with a unique inventory tracker, calculators, direct messaging centre and provides seamless communication between broker and customer. Customers also can submit credit applications, including for mortgages and personal loans, directly from the broker MOPOLO app. We also embraced the customized print technology revolution, which led to a significant increase in lead generation and sales across different industries. The INSPIRE variable direct mail program, integrated into MortgageBOSS™, allows brokers to send state-of-the-art direct mail pieces to prospects, referral sources and past clients with custom content that relates to every single contact, making the pieces extremely relevant and effective. We’ve also fuelled our transaction-based customer follow-up program, IMPACT, with this new technology, creating an even more impactful program that generates referrals, renewals and refinances from existing clients. In terms of expanding broker service offerings beyond mortgages, this year we added the Unsecured Loans Program to our portfolio of ancillary services, giving customers one less reason to visit a bank and allowing brokers to earn more revenue. The Money Market program is a smart solution that allows brokers to send deals to MICs and private lenders directly in MortgageBOSS™ or easily access a pool of lenders if they’re unsure about a mortgage file. Finally, brokers have access to top-level lenders and best rates, with no volume requirements, through the VIP Lender Hub.

referral-source-related data for maximum impact and lead generation Transaction-based IMPACT customer follow-up program focuses on generating referrals and repeat business Personalized marketing consulting and design, producing unique broker self-branding materials Various automated email-based lead-generating communication programs within MortgageBOSS™, our integrated dashboard, that are super-easy to use and CASL compliant Fully customizable Weekly Advisor keeps brokers top-of-mind with referral sources and prospects Industry renowned Lion’s Share Client Communication Program, integrated in MortgageBOSS™, has an 80% repeat business generation success rate Free social media management services for our brokers Sales training, education and networking through Mortgage Alliance University The MOPOLO mobile app is the best business card for any mortgage professional

Compliance and payroll Dedicated in-house compliance officer that offers guidance and support to agents, brokers and franchise owners Safe Docs system allows customers to securely upload their docs directly to their file in the MortgageBOSS™ system Secure online compliance process for all Mortgage Alliance professionals with documents attached and stored right with the customer’s actual mortgage file on their contact record Daily direct deposit payroll Payroll is fully integrated, allowing brokers to view real time receipt-ofcommission notices, reports and balance statements Brokers can view their deal pipeline, deal status and paid or pending commissions in real-time using MortgageBOSS™

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4/11/2015 8:58:04 AM

FEATURES

COVER STORY: SUPERBROKERS As a broker for more than 20 years, I have seen the evolution of our channel and have passionately fought to ensure we continue to build on professionalism and integrity. The goal is strengthening our market share by ensuring a meaningful and rewarding customer experience. The reality is that we have 16,000 different brokers doing things 16,000 different ways. We need to find unity and create a consistent, positive experience for our mortgage customers while simultaneously spreading the message that a broker is the right choice for Canadians. The reason Axiom has invested heavily in technology and a process-based business model is simple. We believe that consistent, congruent service delivery will help our brokers perform, regardless of market conditions. It really doesn’t matter how much you throw at advertising and promotion for a national brand if that brand has no consistency. If you buy a Coke at Safeway and it tastes different than the one you buy at 7-11, then that brand will not take root, ultimately having no impact on individual production. Producing a high level of professional, well-trained and process-driven brokers is the key to achieving the penultimate goal of creating a true mortgage broker brand. At Axiom, our primary focus is to simplify the process, automate where we can and ultimately create an optimal environment where agents can continue to help Canadians realize the dream of homeownership. Michael Cameron President and CEO Axiom Mortgage

AXIOM Compensation 100% of finder’s fees paid directly by lender 100% volume bonus paid directly by lender 100% funding ratio/efficiency bonus paid directly by lender 100% trailer and renewal fees paid directly by lender 100% of insurance fees paid directly by supplier No franchise fees No marketing/advertising fees No royalties or hidden costs No binding contracts

Broker model Each brokerage is independently owned and operated Each brokerage has 100% autonomy in how they run their business Each brokerage retains and directs 100% of all revenues Axiom boasts the highest production per agent of any national network Brokerages build and promote their own brand and identity Extensive technology focus – Axiom builds proprietary technology in-house that increases volume and efficiencies

Ancillary services Automated proprietary workflow engine and customizable CRM SmartWorks Suite of technology tools Turnkey customizable websites (fully integrated content management system), no technical ability required Interactive client portal Fully customizable rate sheets, feature sheets, marketing and educational materials Two-way communication with Expert and Morweb Axiom On Demand national lender access hub Full underwriting and deal placement services Commercial desk, corporate leasing and property management services Resource and marketing centre Training seminars and webinars

In-house programmers and custom technology Corporate benefits and group health plan Automated reporting Automated drip campaigns, both hard copy and e-broadcast Data backup and document storage

Lead generation Lead generation is achieved through a series of scripted marketing campaigns incorporating hard-copy advertising, e-broadcast communication and timely personal follow-up via phone and SMS

Compliance and payroll Self-serve payroll, compliance and pipeline features are available within the Axiom software dashboard Full-service payroll, compliance and underwriting services are also available with a fee for service Back-end office allows brokers to automate and control splits, expenses, desk fees, etc. Payments are made via EFT direct to each individual agent’s account on a weekly basis

ABOUT AXIOM Axiom believes in building strong, one-to-one relationships with clients and referral sources alike. These relationships develop and mature through meaningful, consistent communication with a focus on value-added information and educational advice. Our approach continues to be multiple forms of timely, targeted connections, guided through a program we call The Personalized Mortgage Plan. The process is fully scripted and specific to where a client is in terms of the transaction. Marketing and communication are divided into before, during and long after the mortgage has been placed. This has helped our network not only maintain our volumes, but actually increase overall volumes in a down market without adding bodies. As always, Axiom has invested heavily in technology and continues to build proprietary in-house tools and system upgrades. Our philosophy is that the system must make sense and be easy to use. It is no secret that those who use technology to its fullest are in the top 5% of producers in the industry.

www.mortgagebrokernews.ca

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HELPING YOU DELIVER. The HomeOpeners® App is now available. This web-based App helps you close the deal with better mobile resources than ever. Genworth Canada recognizes that busy mortgage professionals need access to resources that will help their clients through the homeownership journey when they are on the move. With features like the ability to send customized emails from mortgage calculators, product videos, business updates and geolocation-driven account manager contacts, this App will help support your business wherever you are. Visit www.Genworthmobile.ca or scan the QR code.

Watch the HomeOpeners® video series and learn more about Genworth Canada’s mortgage insurance products: www.Genworth.ca/HOV 800.511.8888 | Genworth.ca | Homeownership.ca |

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Genworthsmartshopper.ca | Genworthmobile.ca

4/11/2015 8:58:28 AM

FEATURES

COVER STORY: SUPERBROKERS Today’s mortgage industry is constantly changing. From an agent’s perspective, it is becoming more difficult to get clients approved for traditional mortgages. This is a direct result of the additional scrutiny by lenders and regulatory bodies (B-20 and B-21, for example). Many times, agents are put in a position where they run out of options for their clients. Broker Financial Group has created our own white label with in-house underwriting for private first and second mortgages. These mortgages offer quick turnaround at competitive and reasonable rates. This allows our agents the opportunity to provide their clients with additional options and get the deal closed. Through our team (made up of highly experienced compliance managers, business development managers and underwriting managers), we are providing all of our agents the right mentorship and tools to allow them to find the right lenders and products for their clients. This extensive training and guidance will, more importantly, allow our agents to be fully accountable for their own files. We believe that with extensive industry and lender/product knowledge, our agents can grow to the best of their potential and continue to improve Broker Financial Group’s market share. Jason Singh Owner Broker Financial Group

BROKER FINANCIAL GROUP Compensation Transparency is key – all independent owners will have full disclosure on all compensation that is negotiated or collected by head office, including upfront comp, volume bonus, efficiency bonus, trailer fees, rewards and any corporate agreements 95/5 split on commission with full back-end support provided by head office, including compliance, payroll and branding

Broker model No franchise costs $1,200/month fee (excludes compliance and payroll). Team lead model available for high-producing agents

Ancillary services Insurance referral program (car, auto, life, disability, etc.) offers referral fees to brokers

Investment products offer clients 8% return on products using RRSPs, GICs, TFSA (if eligible) with referral fees paid up to 400 bps Access to your own private first and second mortgages, underwritten by head office

Lead generation Full broker platform will empower agents and brokers with the tools necessary for new and repeat business

Compliance and payroll Experienced in-house compliance officers available for all brokers All compliance matters and audits supervised by our in-house compliance manager Weekly automated payroll deposit with detailed statements Full broker platform encompasses compliance, payroll and reporting at your fingertips Full compliance deployment and continuous training available to all independent owners

It is becoming more difficult to get clients approved for traditional mortgages. Many times, agents are put in a position where they run out of options for their clients for commission and renewals Underwriting Hub provides end-to-end support for an 80/20 No VB Flat fee of $300 per file for approval only Training and support provided by head office business development and operation staff via bi-weekly meetings/webinars Full SEO broker websites with updated rates, news, graphic design services, blogs and social media, mobile calculators, marketing tools, and an intranet site for updated lender rate sheets, product guidelines and training tools Full broker platform with ability to push and pull data from Filogix, customer portal access, direct communication with underwriters, tick sheet capabilities, and customer life cycle management, among others

ABOUT BROKER FINANCIAL GROUP Through the variety of ancillary products offered at Broker Financial Group, brokers have the option to capitalize on multiple revenue streams. Insurance products alone will give us, as brokers, an opportunity to create additional revenue streams and allow us to compete with the banks in order to keep the client coming back. This will open other opportunities for client referrals and additional relationship-building. Broker Financial Group’s state-of-the-art mortgage platform will make our brokers more efficient, organized and able to farm their existing book and cross-sell with greater success.

www.mortgagebrokernews.ca

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4/11/2015 8:58:51 AM

CMP_

WHAT A GREAT YEAR IT’S BEEN AT TMG! We have much to celebrate. This year marked a milestone for TMG The Mortgage Group – 25 years in an industry that continues to grow and thrive and we continue to grow alongside it. TMG’s President, Mark Kerzner, has been named as Vice-Chair of CAAMP’s Board of Directors. “I am extremely proud to count myself among such a committed and passionate group of fellow CAAMP Board members. I am confident that our Board will represent the voices of our members,” Mark said.

Dan Pultr, VicePresident for B.C region continues to advocate for the industry in his role as a Director on CAAMP’s Board.

We also congratulate our three CAAMP Awards of Excellence winners!

RICHARD MOXLEY AMP FINANCIAL LITERACY LEADER OF THE YEAR

We are so proud of the calibre and quality of all people within TMG and feel this is a small testament to an incredible company we are building together. The passion, commitment and dedication to your customers, your peers and the brokerage industry is not going unnoticed. We are fortunate to work each day in a great industry! By working together we can make a real difference as we continue to grow a strong broker channel. We are an award-winning Canadian mortgage company with a national team of over 800 qualified and accredited mortgage brokers, agents and associates providing residential and commercial mortgage services. Since 1990, TMG has helped a quarter million Canadians get the best financing solutions and mortgage rates through Canadian mortgage lenders from coast to coast. mortgagegroup.com

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2015-10-29 12:02 4/11/2015 8:58:57 AMPM

FEATURES

COVER STORY: SUPERBROKERS At Dominion Lending Centres, we never stop learning. We are number one because we act like we’re number two – so while we celebrate our successes, we never rest on our laurels. This is the attitude we have had over the last 10 years, which have seen us grow from one mortgage broker to a leading network of more than 2,400 mortgage professionals from coast to coast. This is why 13 of CMP’s top 20 small-market mortgage brokers are from DLC and 43% of CMP’s Top 75 Brokers are Team Blue. These honours prove that we are always striving to be better. At DLC, we are innovative, we are thriving, and we are always seeking excellence. Our commitment to our families, clients, community, peers and building our businesses is unwavering. Dominion Lending Centres is stronger than ever. We continue to add tools, technologies, products and services that are better than any other mortgage company in Canada and, in some cases, are exclusive to DLC. We want our people to be the best, so we provide the best in all areas. Business should not be an ordeal. Business should be a relentless pursuit towards excellence – an adventure. Join our great adventure! Gary Mauris President Dominion Lending Centres

DOMINION LENDING CENTRES Compensation All franchise owners receive a 95/5 split (on volume bonus as well). How they choose to pay their agents is completely up to their own business plans. Our average agent is doing $78,000 in annual commission, the highest it’s been in our nearly 10-year history

Broker model We are a 100% franchise model

Ancillary services The DLC Visa Program consists of a line of six DLC-branded Visa cards: Classic, No-Fee Gold, Low-Rate Gold, Student, Travel Gold and Platinum. This is another DLC first EnRICHed Academy is a financial literacy training program for young adults (13–23 years old) developed by DLC that teaches the fundamentals of finance in a fun and interactive manner through a web-based learning system and a workbook that students complete with their parents

Business should not be an ordeal. Business should be a relentless pursuit towards excellence – an adventure DLC is first mortgage brokerage to also offer equipment leasing through our mortgage professionals via DLC Leasing. We purchased a successful leasing company in 2008 and rolled it out across the country. We even have our own internal credit department to handle the leasing side of our business and help agents with their deals Plan B Mortgage Services is a fully licensed mortgage brokerage specializing in Alt-A, B and private deals. Exclusive line of white-label products through The Dominion Mortgage suite. This offering provides among the most competitive rates and commission payout

– including both upfront and trailer commissions – in the industry Mortgage Protection Plan allows our agents offer creditor life insurance to their clients. This is another excellent opportunity for our agents to receive both upfront and residual income as long as a plan remains in place We offer an abundance of free ready-touse templates, including articles, adver tisements, client and referral partner letters and forms, website banners, and PowerPoint presentations that we’re always updating to serve the needs of our network, as well as live weekly webinars on a variety of new topics. We also offer free custom work for advertising and communications Over the past year, the use of our Property Valuation System tool, which runs off of Teranet’s Purview, has exploded. This incredible technology enables DLCers to search property addresses or a client name and pull a full property evaluation report based on the specific address before spinning tires with a client that may not be qualified. DLC head office is covering the costs and offering it free to the DLC Network. No other superbroker in Canada

has this relationship/deal with Teranet We introduced major upgrades and enhancements to our free DLC Client Manager (CRM) tool, including a new ‘Clean Up Data’ wizard that enables agents to easily clean and manage their contact and application records that sync over from D+H Expert; a new Dashboard Screen that now organizes all file statuses from Expert in sequential order from ‘in progress’ when a file is added in Expert, all the way through to ‘paid’ once they’ve been paid out on a file by a lender; and an improved ‘info centre’ that enables agents to quickly see key action items, including important client dates. It also includes

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year-to-date tracking so agents can see their results for the current year based on what they’ve entered into Expert and funded, as well as new marketing plans that allow agents to automatically keep in touch with clients on critical days with a variety of professionally written campaigns

Lead generation We are building on our previous awardwinning national advertising campaign featuring Don Cherry with exciting new campaigns designed to entertain and engage the public. Our new #ThanksDLC commercials will begin appearing on TV, radio, movie theatres, web and social media in November 2015, including the Grey Cup and Super Bowl. These commercials feature our clients sharing their positive DLC experiences using footage they submitted for our contest For the past few years, we have had a DLC Family Day sponsorship of home shows in Vancouver, Calgary, Toronto and Ottawa. During one day of each home show, DLC Family Day provided a number of perks to attendees, such as goodie bags, daycare and family-friendly activities such as face painting, as well as a cash giveaway through our money machine guessing contest The DLC Learning Academy – a step-by-

step mentorship program for newcomers to the industry as well as those with two years or less of industry experience – has helped bring in more deals for industry newcomers than any other program of its kind The DLC Marketing Support Desk is a one-stop email system for the entire network when they need assistance with everything from ad creation to help with DLC tools to everyday questions that require a quick response. The emails are assigned a number for tracking purposes to ensure they’re opened and resolved in a timely manner

Compliance and payroll Our constant focus on compliance ensures every mortgage professional in every region of the country has access to ongoing education and up-to-date compliance information from regulators and industry associations. We communicate this information via various means, including network-wide and province-wide communications We have a complete payroll reporting system set up for franchise owners and offer very detailed compliance procedure training. All of this is, of course, overseen by head office. Typically within 48 hours of head office receiving payment from lenders, agents receive their commission

ABOUT DOMINION LENDING CENTRES It hasn’t been a slow market this year for DLC or our 2,400 mortgage professionals across Canada. We know, based on D+H expert numbers, that the industry is up 17.2% year-to-date, whereas DLC is up 23%. Also, DLC went from 49,000 mortgages and $14.5 billion in 2014 to be on pace for 60,000+ mortgages and $18 billion in 2015. We continue to provide ongoing education opportunities for our network with more than 150 live training webinars, two Owners Universities – where 200 owners attended an intensive two-day training event – and our our National Sales Conference, which saw 600-plus attendees and high-calibre speakers. DLC is the only mortgage company in Canada with a chief economist. Adding Dr. Sherry Cooper to Team Blue has led to $12 million (and counting!) in additional media exposure. Finally, our Property Valuation System is provided free to your agents. This tool has all land registry data in the country and is helping our brokers qualify and connect with clients better.

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4/11/2015 8:59:10 AM

FEATURES

COVER STORY: SUPERBROKERS The one constant we can undoubtedly count on is the annual forecast that mortgage brokers are on the cusp of many challenges. Yet, as brokers, we have proven ourselves to be resilient, viable and invaluable to Canadians. Certainly this doesn’t discount the changes we have seen over the last number of years, whether it be B-20, B-21, federal changes to mortgage regulations/rules, reduction in supply, etc. But whatever the change or perceived impediments, there has been no evidence that mortgage brokers haven’t been up to the task of meeting those challenges at every pass. Mortgage brokers will always be faced with challenges, as are most businesses. The key is to proactively manoeuvre and plan through those external forces. Mortgage brokers should look to work with mortgage companies that they feel will provide them the best counsel and support through the turbulence. Too often, our industry puts too much emphasis on tangibles such as websites and CRM systems. And while those are important, we need to put equal emphasis on the intangibles of a company, such as the leadership and culture to support brokers on strategic levels. Organizations with solid group leadership will be voices and beacons for their mortgage brokers to guide and mentor them toward individual success. That said, the largest challenge we have faced and will continue to face is the education of Canadian consumers. Mortgage brokers across the country should remember that regardless of what brand we carry, we are all united in the most important of initiatives: to put mortgage brokers on the map with Canadian consumers. That’s an endeavour we can all share as partners, regardless of what company we stand for. Albert Collu President Mortgage Architects

MORTGAGE ARCHITECTS

mortgage, including maturity notices Access to customer prospecting campaigns at no charge

Compensation

Compliance and payroll

Splits available for franchise and licensed agents Four unparallelled compensation models

Compliance is made easy and seamless with a document management system that is integrated with internal intranet resources. This way, all docs reside within the application for future use while empowering our compliance officers to review the documents quickly and process payroll efficiently Complete compliance management platform for franchises

Broker model The MA broker models cater to all business types. Whether you are an independently owned and operated franchise or a broker who would like to be directly licensed under Mortgage

Regardless of the brand we carry, we are all united in the most important of initiatives: to put mortgage brokers on the map with Canadian consumers Architects, MA has a solution for you Franchise programs for independently owned and operated brokerages – no franchise costs

Ancillary services Central underwriting unit GIC strategy Equipment leasing and accounts receivables purchasing Commercial mortgages Alternative Mortgage Solutions strategies Consumer financial services programs Strong focus on training and support

Lead generation Our broker websites help brokers generate and convert leads Search-engine-optimized, industryleading websites and mobile websites at no charge Auto triggered e-CRM for pre-, during and post-origination communications at no charge Auto-triggered e-CRM to keep in touch with referral partners at no charge Exclusive print CRM program to keep in touch with your clients throughout their

ABOUT MORTGAGE ARCHITECTS Mortgage Architects has attracted much attention from the marketplace this year because it has demonstrated itself to be a formidable provider of the necessary tools, support and leadership required to insulate brokers from the peaks and valleys of the Canadian market. Ignited by proprietary systems, our brokers are able to maintain high touchpoints with their clients and leads, and also have the vital performance measures required to understand their businesses in terms of renewal cycles, client trends, etc., to effectively manage volume and revenue drivers to work proactively against any dips in the market. The nimbleness of the MA systems allows all marketing pieces to be personalized and sent on behalf of the broker to create constant contact with prospects, clients and referral partners. Personalized marketing pieces take the form of ad-hoc campaigns, greetings, rate sheets, features sheets, renewal letters, newsletters and more. Being able to leverage marketing and technology platforms allows brokers to focus on their core strengths and growing their businesses.

www.mortgagebrokernews.ca

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CMP

Years celebrating excellence in the canadian mortgage industry

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

NOMINATIONS NOW OPEN! Friday 13th May 2016 The Liberty Grand | Toronto

We would like to thank our Partners:

Media

Organised By

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SPECIAL PROMOTIONAL FEATURE

BROKER-LENDER RELATIONSHIPS

The broker experience Four years ago, one lender sought feedback from its broker network. That discussion has culminated in not only a better relationship, but a higher quality of service LENDERS ARE listening, and brokers who are sharing their experiences – both good and bad – are reaping the benefits in greater product offerings and improved underwriting. When MCAP reached out to brokers for feedback, one of the things the company

heard repeatedly was how critical the relationship between broker and underwriter is. “[The] number-one [takeaway] was the communication and relationship,” says Megan McDonald, vice president of sales for MCAP Western Canada. In response, MCAP has worked hard

“One of the greatest value propositions that a mortgage broker brings to any Canadian consumer is variety and choice” Elaine Taylor, MCAP Eastern Canada 48

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to ensure that every broker who deals with them in a significant way has a dedicated underwriter. The strength in that relationship benefits both parties – the broker has someone they can trust that they can send their deals to, and MCAP can cement relationships with the broker and client.

Enhanced product line “The second piece that became very clear [from the feedback] – especially over the past year – was [brokers’] need for a greater suite of products,” McDonald says. “One of the greatest value propos-

investing in technology so that lenders have the best online platforms for brokers. And it means investing in the product suite so brokers can offer clients more choices when they are deciding who they want to work with in a challenging market.

Building relationships Ensuring that lenders and brokers are on the same page is important, especially given the differing regulatory requirements from province to province, and how those rules continue to evolve. Whether they’re federal, FSCO or provincial requirements, the rules governing

“We as lenders need to communicate changes to the broker so they know what they need to do to make that deal close” Megan McDonald, MCAP Western Canada itions a mortgage broker brings to any Canadian consumer is variety and choice,” adds Elaine Taylor, vice president sales for MCAP Eastern Canada. “That is not just the mortgage rate itself, but the product.” That combination of products has become crucial to helping Canadians manage cash flow and debt, Taylor points out – thus, the impetus for the MCAP Fusion mortgage. Launched earlier this year, the Fusion mortgage was a response to brokers’ desire for a product designed for homebuyers who are trying to take advantage of their home equity while retaining the greatest flexibility possible. Another important element in developing the broker experience is to continually be investing. For MCAP, that means always having underwriters in place to answer a broker’s call, because there are deals that need to be talked through. That means

the way business is done in the mortgage industry are ever-changing – and often things are missed. Even when mortgage brokers have an excellent understanding of the regulations, individual lenders may choose to add their own nuances to those changes. “Sometimes brokers don’t get all the information they need,” McDonald says. “We as lenders need to communicate those changes to the broker so they know what they need to do to make that deal close.” While MCAP communicates regularly to the broker community, they believe the best way to make sure everyone is on the same page is by maintaining those close relationships between broker and underwriter on a day-to-day basis. By having both BDMs and underwriters available to talk through any deal, MCAP continues to keep the human touch in their business.

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PEOPLE

BROKER PROFILE

The doctor is in Omid Jalili – better known as Doctor Finance – entered the mortgage industry by way of an entrepreneurial challenge, but he’s stayed because of his excellent service OMID JALILI entered the mortgage industry in 1999 as a frustrated real estate investor. Frustration, it turns out, can make for a wildly successful mortgage broker. “I had always been an entrepreneur, [but] finding the right mortgage was always challenging for me,” Jalili says. “My thirst for the right mortgage brought me to this industry.” Like most brokers, Jalili began on the residential side of the business, helping clients finance their home purchases. As those clients began buying commercial properties, Jalili shifted his focus to accom modate their new mortgage needs – a move that complemented his penchant for numbers and financial analysis. “Commercial is more chal lenging for me,” he says. “It requires that deep analysis of tenants, cash flow and financial segments, regardless of the size of the deal.” In essence, Jalili says he took everything he loved about being a business owner and real estate investor, and applied it to his budding business as a commercial mortgage broker.

tying the knot, they opened OMJ Mortgage Capital. Working through their boutique brokerage, Jalili prioritizes providing his growing client base with a high level of service. “[Quality of service] is very important; that’s our main focus,” he says. “Even though we are constantly active in marketing, referral sources and [repeat business from] our existing clients are our main business. Because of our good service, they come back and refer their family and friends.” Those clients and their referrals have helped OMJ Mortgage Capital enjoy year-over-year volume growth, which has, in turn, boosted the company’s roster to a team of three brokers and five agents, all of whom boast plenty of industry knowledge. “We always focus on hiring experienced agents, and the few that I have are ex-bankers or have been in the industry for a long time,” Jalili says. “The clients that we deal with are long-term clients, and most of them are very sophisticated entrepreneurs and business owners themselves.” In fact, many of those clients followed Jalili from his old brokerage: “They wanted to deal directly with me and my own firm,” he says. Thus, he felt the pressure to maintain an excep tional level of service for all of his clients and among the brokers and agents who work under the OMJ brand. “The reason we wanted to have a boutique firm was so we can control the service we provide our clients,” he says.

“The clients we deal with are long-term clients, and most of them are very sophisticated entrepreneurs and business owners themselves”

Love and business Jalili spent five years working at established mortgage brokerages, but he couldn’t keep his entrepreneurial spirit at bay for long. In the early 2000s, two events took place that would forever change his life. “In 2003, I got married,” he says. “My wife was a commercial lender at the bank.” Together, Jalili and his wife, Masoum, decided to become partners in business as well. A year after

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A FAMILY AFFAIR Most couples wouldn’t dare start a company together. But many who decide to also tie the knot in business say they couldn’t be happier. In fact, it’s estimated that more than 1.4 million businesses in the US are owned and operated by a husband-and-wife team. Omid and Masoum Jalili count themselves among those married couple-business partner hyphenates, and Omid says making it work is easy. “It’s amazing,” he says of working with his wife of 12 years. “There are a lot of people who don’t find it amazing, but we [work together] fine.” Financial healing OMJ Capital’s emphasis on quality has hardly gone unnoticed. Earlier this year, Jalili was named one of CMP’s Top 10 Commercial Brokers, having funded more than $90 million in deals during the previous year. “It’s amazing to have people recognize my hard work,” he says. “It’s a real honour, and it’s beyond rewarding.” He’s quick to point out, however, that his own success was largely determined by that of his clients. “I was fortunate that there were a few large deals that contributed to the large volume,” he says. “These deals were very difficult; there were many roadblocks and challenges along the way, [but] the feeling of completing a large deal is amazing.” Whether those roadblocks are related to cash flow issues, lease terms, billing problems or environmental issues, Jalili tackles them by working closely with his clients and the different lenders on his roster. His dedication to getting a deal funded – even if it takes close to a year – has earned him a fitting nickname: Doctor Finance. A client actually bestowed that title on Jalili during a difficult transaction that had the client losing money and sleep. After a lot of hard work, Jalili was able to solve the issue, and the financing went through – and his client was able to enjoy a good night’s sleep. “He said, ‘You cured me; you’re my doctor,’” Jalili says. “That’s how I became Doctor Finance.”

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SPECIAL PROMOTIONAL FEATURE

BROKER TOOLS

Home Trust delivers new HIP+ broker tools Home Trust will be launching three new tools designed with brokers in mind at this year’s CAAMP Forum. Pino Decina, the company’s EVP of residential mortgage lending, offers a sneak preview EARLIER THIS year, I had the great pleasure of meeting many of our broker partners during the coast-to-coast roadshows hosted by Home Trust as part of our HIP+ launch. HIP+ is our own ‘Home Improvement Plan,’ resulting from a comprehensive review of our core operations. It remains one of the most important strategic initiatives in Home Trust’s 29-year history, and I’m pleased to tell you that the next phase of HIP+ will be on display at this year’s CAAMP Mortgage Forum in Toronto. For those of you unable to attend the CAAMP event later this month, allow me to give you a sneak preview of what we have planned. When we first launched HIP+, we concentrated initially on three distinct but highly connected areas of our business – people, processes and technology. We already know that we have some of the industry’s most knowledgeable and dedicated professionals at Home Trust; however, it was clear that in some areas, we needed to update our internal procedures and provide more efficient tools to ensure our teams could continue to meet the needs of our brokers now and long into

the future. With that in mind, the first two projects under the HIP+ banner were very much process- and technology-focused. We launched SAM – our Standardized Adjudication Model for Residential Mortgages – to take our technology to the next level. We also realigned our internal teams to ensure we had the right people concentrating on the right tasks at the right time. I am very excited about the progress we have made to date, and with these major improvements to our internal processes well in hand, we have now turned our attention to improving service delivery to the broker community. To this end, we will be debuting three new broker-centric programs at the CAAMP Forum.

their Home Trust files. With Loft, you will be able to quickly view status updates for your deals; you also will be able to upload the documents required to support each deal, as well as access commitment letters once deals have been approved. It is our intention to simplify the tasks required on your end when dealing with Home Trust so you can spend more time on what really matters for your business – serving your clients.

Loft broker portal

Concierge online marketing collateral

With the release of the Loft broker portal, the way brokers interact with Home Trust is about to get a whole lot more convenient. Loft is the first of our new service improvement enhancements and will bring a new level of service access to help brokers manage all

I am equally delighted to announce that our new online repository of Home Trustapproved marketing content will soon be in full production. As your dedicated mortgage partner, Home Trust recognized that there was more we could do to help you promote the

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benefits of working with a mortgage broker by providing relevant promotional materials you could use to build your business. Concierge gives you access to content you can use to promote your business and educate your clients on our extensive line of prime and alternative mortgage products, as well as our credit card and deposit-taking services. Once downloaded, the materials can be customized as necessary and included as part of your own marketing outreach.

Spire partnership program Finally, it is with great enthusiasm that I introduce the Spire partnership program. Before I go any further, let me say that we understand that as a broker, you take great pride in helping Canadians achieve their financial goals. We get that, and we are

It was clear that in some areas, we needed to update our internal procedures and provide more efficient tools to ensure our teams could continue to meet the needs of our brokers ... likewise motivated. But the reality is that this is also your livelihood â&#x20AC;&#x201C; and, letâ&#x20AC;&#x2122;s face it, for those who consistently perform at the highest levels, it is only fair that additional considerations should be available. Spire provides access to special features, including enhanced finderâ&#x20AC;&#x2122;s fees, dedicated bonuses based on volume and renewal rates, and other performance awards. Full details will be available closer to

the official launch date in January.

Visit us at the CAAMP Forum For those attending the 2015 CAAMP Mortgage Forum in Toronto, please accept this invitation to visit us in the exhibition hall at booth #33. We will be pleased to provide you with more information on these latest HIP+ initiatives, including demos of both Loft and Concierge.

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FEATURES

LEADERSHIP

How Gen Y is changing the way we lead Gabrielle Dolan provides tips for leading what will soon become the dominant generation in the workforce – and busts some myths in the process LIKE IT or not, Generation Y is changing the way we lead. By 2020, the majority of the workforce will be composed of Generation Y. Consequently, current leaders need to adapt, or they run the risk of becoming outmoded. Many senior leaders I work with tell me that one of their biggest challenges is to manage and lead Generation Y. Generation Y encompasses people born between 1980 and 1995 (although some ranges include people born as late as the early 2000s). The label followed on from the previous generation’s label of Gen X, and while it is commonly used, this group is often also referred to as millennials or the ‘dot-com generation.’ If you’re wondering why the classification for generations went from ‘Baby Boomers’ to ‘X,’ it’s due to Canadian author Douglas Coupland and his book Generation X: Tales for an Accelerated Culture. The book was, ironically, about a generation that defied labels by stating, “Just call us X.” Seeing that Generation Y isn’t going away, judging them will not help. We need to understand them and adjust the way we lead them accordingly, in order to guide organizations that flourish.

They have great expectations Generation Y wants to be challenged, they want to be inspired, and they will not accept the status quo. It’s this innate sense of curiosity and their ability to question tradition that has given them the moniker ‘Generation Why’. With so many options available to this generation, if leaders are not providing a workplace that challenges and inspires them, they will seek to work somewhere that does. This generation has different expectations and beliefs about what they want out of work from their employers. Yes, they want to achieve and be rewarded financially, but it is not just about that. They are looking for greater fulfilment, more personal development and opportunities to cultivate a well-rounded life. More important, they genuinely want to make a difference and therefore take corporate responsibility very seriously. Aaron is an example of this. He is a lawyer who worked for a global consulting firm for five years. The incentive for the long hours that came with the role was the possibility of a very highly paid job. But he told me that he came to realize that nothing about the senior partners’ life was

attractive to him. Yes, they earned a lot of money, but he decided he wanted more than that. He is still a lawyer, but he now works for a company that has a purpose that he fully believes in. Companies and leaders need to find ways to meet the demands of this generation’s expectations, or they will risk losing them.

They are loyal Due to their tendency to change companies at a much faster rate than previous generations, Generation Y has at times been unfairly labelled as disloyal. However, they are simply responding to the environment they were raised in. Many members of Generation Y saw their parents lose their jobs, after decades of service, in the recession of the late 1980s and early 1990s. After witnessing the fallout from these job

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ations, who see the value in people who lead with authenticity and transparency.

They want to have fun

A mindset of ‘If you’re having fun, you can’t be working’ will not serve you well if you are leading this generation losses, they are not inclined to provide the same level of loyalty to companies that their parents did. When their earliest exposure to the business environment has taught them that the world offers little job security, can you blame them for changing roles more frequently than previous generations? However, just because they are more likely to change employers (the average employee tenure in 1960 was 15 years; today it is four), this should not be seen as a sign of disloyalty. Gen Ys are loyal. They are loyal to friends, and they are loyal to brands. You only have to be outside an

Apple store the day before a new iPhone is released to see evidence of this loyalty in the queues that snake down the street and around the block. Leaders need to make Generation Y employees feel valued. They need to be more inclusive and transparent in the way they communicate and lead. They need to provide more regular feedback to this generation than they provided to previous generations. And they need to be more real. This generation is screaming out for leaders to be more real – and they are getting a lot of support from the members of other gener-

Generation Y employees expect to enjoy their jobs. The thought of staying in jobs they hate is absurd to them, and you really can’t blame them. A mindset of ‘If you’re having fun, you can’t be working’ will not serve you well if you are leading this generation. When it comes to having fun at work, I think we can learn some important lessons from the Danes. Many words exist in one language and not in another language. One such word exists in the Danish language but not in English – arbejdsglæde. Arbejde means ‘work’ and glæde means ‘happiness’, so arbejdsglæde is ‘happiness at work’. This word also exists in the other Nordic languages but does not exist in any other language group. As a leader, you don’t have to turn into a stand-up comic, but thinking that you can’t have fun at work is misguided and, I would argue, not realistic. This approach normally comes from a leader who is perhaps trying to be the serious boss they think they are expected to be. Being a strict, staid boss is an outdated concept. Being more relaxed and open to the concept of fun is more real and gives you a greater chance of connecting and engaging the hearts and minds of the people that work for you. Generation Y is changing the leadership game. They are looking for leaders who are more collaborative, flexible and inclusive. They are looking for leaders who are more real. Leaders need to adapt to this style or die.

Gabrielle Dolan works to help corporate leaders humanize the way they lead by being more ‘real.’ Her latest book, Ignite: Real Leadership, Real Talk, Real Results, is available online at all major retailers.

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FEATURES

PRESENTATIONS

Be less boring: Presenting financial content on stage Avoid being the speaker who makes the audience’s eyes glaze over and inspires the compilation of mental shopping lists. Communications expert Jane Anderson reveals how

HAVE YOU watched someone speak at a conference and struggled to watch past the first 10 seconds? Maybe they just have slide after slide of graphs and tiny numbers that you can’t even see. (Most often, they will say, “I’m not sure if you can see this on the slide, but …”) Dale Carnegie, author of 19 books, once said, “For every presentation you give, there are three. The one you prepared, the one you gave and the one you wish you gave.” A 2013 Gallup poll found that 70% of people listening to presentations are disengaged. That’s right – 70% of your audience may actually be sitting there thinking, “I need to organize the kids, pick up milk, finish that report,” etc. Joe McCormack, a communications expert, recently wrote that the average person can absorb 750 words per minute, but we can only speak 150 words per minute. Therefore, it may be fair to say that your audience could be completely distracted and bored, and it’s up to you as the speaker to WAKE THEM UP! So, what are you going to do? You’ve spent all last night pulling your slide show together because you haven’t had time. The problem is that you can’t just email the presentation to your audience to read.

You actually need to breathe life into the content for someone to hear it. The truth is that if you don’t get your audience’s attention within 30 seconds, you have lost the opportunity to connect, influence and inspire. So, what can you do to grab attention and present data, numbers, graphs and