CMP 11.02 by Key Media

BC BROUHAHA Brokers weigh in on cancellation fees and compensation disclosure MORTGAGEBROKERNEWS.CA ISSUE 11.02 | $12.95

SPEAKING OUT Ron Butler on why buy-downs are the future of the industry ECONOMIC OUTLOOK Where are the trouble spots in the 2016 housing market?

THE DIVERSIFIERS Adding new revenue streams can boost your business â&#x20AC;&#x201C; but should you do it? Find out what the experts have to say

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YOU GO THE EXTRA MILE FOR YOUR CLIENTS.

WE GO THE EXTRA MILE FOR YOU. Get Informed about your options. www.verico.ca 1.866.983.7426 | info@verico.ca | www.verico.ca 速 & tm : Trademark of Verico Financial Group Inc. Each VERICO Broker is an independent owner and operator.

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ISSUE 11.02

CONTENTS

THE DIVERSIFIERS COVER STORY

More and more brokers are offering ancillary products in an attempt to remain competitive. But is diversification a good fit for every broker?

License # 10172

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

DATE:

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ISSUE 11.02

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CONTENTS

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

UPFRONT 04 Editorial

Change is coming to the mortgage industry

06 Statistics

Where the housing market could suffer in 2016

08 Head to head

PEOPLE

Brokers weigh in on FICOM’s proposed disclosure rule

BROKER INSIGHT

For Broker Financial Group’s Jeff Ames, it’s all about building trust with clients

10 News analysis

Is British Columbia set to reverse its stance on cancellation fees?

12 Alternative lending update

There’s no end in sight for growth in the alternative lending sector

14 Private lending update FEATURES

THE LAWS OF ATTRACTION

The owner of one diversified brokerage outlines what he’s looking for when recruiting new brokers

Regulators are taking a closer look at real estate crowdfunding – are syndicated mortgages the next target?

16 Opinion

Why it’s time for the industry to find a united voice

FEATURES PEOPLE

INDUSTRY ICON

Veteran broker Ron Butler speaks out about his controversial buydown business model

MARKETING VIDEOS

Ready to dive into creating videos? These 6 strategies are guaranteed to grab customers’ attention

47 Career path

Giving back to the community is a cornerstone of Graeme Moss’s business

48 Other life

Inside broker Wojtek Kaszowski’s Toronto speakeasy

FEATURES

MONOTASKING IS THE NEW BLACK If you’re still placing a high priority on multitasking, you’re doing your productivity a major disservice

PEOPLE

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

www.mortgagebrokernews.ca

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UPFRONT

EDITORIAL

www.mortgagebrokernews.ca ISSUE 11.02 EDITORIAL

The times, they are a-changin’

hen the great Bob Dylan first warbled these famous words, it was a defiant ditty penned in a bid to inspire and encourage social change. It’s a universal message that holds true today – even in the mortgage broker industry. Things certainly are a-changin’ for mortgage brokers and the channel as a whole. Just last month, we covered Dominion Lending Centres’ acquisition of Mortgage Architects, a move that further bolstered the broker behemoth as the largest player in the space while simultaneously shrinking network options for brokers.

Those changes certainly sparked a great deal of discussion among brokers, who likely now have change on the mind And, of course, how can we forget the formerly named Canadian Association of Accredited Mortgage Professionals, which recently rebranded itself as Mortgage Professionals Canada? With that change came a new logo and a name that’s a bit less of a mouthful. It remains to be seen whether the change is purely cosmetic or philosophical as well. Those changes certainly sparked a great deal of discussion among brokers, who likely now have change on the mind. It’s been on ours as well, which is why we chose Ron Butler for our monthly Industry Icon feature. He’s certainly a controversial figure – and a massively successful one. He shared his unbridled opinions on how the channel might evolve over the coming years and what brokers can do to keep up. Speaking of keeping up, you also won’t want to miss our cover feature on diversification – yet another massive change that has swept the industry over the past few years.

SALES & MARKETING

Editor Justin da Rosa

Associate Publisher Trevor Biggs

Writers Olivia D’Orazio Donald Horne

General Manager, Sales John Mackenzie

Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Paul Therien Marcus Seeger Jenny Brockis

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

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

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

EDITORIAL INQUIRIES

justin.darosa@kmimedia.ca

SUBSCRIPTION INQUIRIES

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

ADVERTISING INQUIRIES trevor.biggs@kmimedia.ca

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

The team at Canadian Mortgage Professional

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

25/02/2016 6:35:01 AM

A Division of

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UPFRONT

STATISTICS

Going too far CMHC’s latest housing market report identifies several markets at risk for overbuilding and overvaluation THERE ARE two factors that indicate overbuilding in a market: the rental market vacancy rate and the inventory of completed, unsold units per 10,000 people. According CMHC’s first quarter Housing Market Assessment, seven population centres in Canada are showing signs of overbuilding. “The evidence of overbuilding has increased since the previous assessment in Calgary, Saskatoon, Regina and Ottawa due to either higher vacancy rates, high inventory

of new and unsold units, or a combination of both,” says Bob Dugan, CMHC’s chief economist. CMHC also is keeping a close eye on Toronto, where it expects that signs of overbuilding could begin to emerge in the condo market. Toronto is also leading the charge on overvaluation, along with Quebec City. In total, CMHC identified eight markets that are either moderately or strongly overvalued.

WHERE THE PROBLEMS ARE The most problematic areas overall are in Alberta and Saskatchewan, where oil woes have weakened economic fundamentals and led to an oversupply of housing stock. Toronto is also on the CMHC’s danger list due to overvaluation. Not problematic Moderately problematic Very problematic Calgary Oct. 2015

Jan. 2016

Number of Census Metropolitan Areas [CMAs] with evidence of problematic conditions

7.4%

Vacancy rate in Moncton, NB, one of the highest in the areas surveyed by CMHC

43%

The growth rate of new condo starts in Toronto between 2014 and 2015

31%

The rate of decline in housing starts in Calgary between 2014 and 2015

Source: CMHC 2016 Q1 Housing Market Assessment; CMHC Housing Market Outlook Greater Toronto Area Fall 2015; CMHC Housing Market Outlook Calgary Fall 2015

VANCOUVER HOLDING STEADY Despite a slew of headlines in recent months calling attention to soaring prices in Vancouver, CMHC found only moderate levels of overvaluation; price growth is expected to slow considerably in the coming years.

MLS average house price

$1,000,000 $800,000

$812,653

$887,600

$914,100

$933,200

Multi-family housing starts 37,406

2012

2014

$400,000

24,126

2015*

20,099 28,750

$200,000 0

2014

2015*

2016*

2017* *Forecast

Source: CMHC 2015 Q4 Housing Market Outlook

Condos should continue to dominate the market for new housing in Toronto, although CMHC expects new condo starts to slowly ease over the next few years.

2013

$600,000

THE TORONTO CONDO MARKET

2016*

26,950

2017*

26,000

*Forecast

Source: CMHC Housing Market Outlook Greater Toronto Area Fall 2015

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Edmonton Oct. 2015

Saskatoon Oct. 2015

Jan. 2016

Winnipeg Montreal

Oct. 2015

Jan. 2016 Jan. 2016

Ottawa

Jan. 2016

Oct. 2015 Quebec City Jan. 2016 Regina

Toronto

Oct. 2015

Jan. 2016

Oct. 2015

Jan. 2016

Source: CMHC 2016 Q1 Housing Market Assessment

ALBERTA’S TROUBLES CONTINUE Housing starts in Calgary are expected to decline even further from the record highs reached in 2014, before the bottom fell out of the oil market. And while Edmonton managed to hang on in 2015, housing starts in the provincial capital are also expected to dip dramatically this year. Calgary 25,000

Edmonton

WHAT ABOUT RATES? It looks like low mortgage rates are here to stay – at least for now. However, based on the Bank of Canada’s Monetary Policy Report, CMHC forecasts that rates will rise moderately starting in late 2016 and continue trending upward in 2017. 7 6

One-year rate

6.5% 6%

Five-year rate 5.2%

20,000

4.8%

5.1%

4.7% 4

15,000

3.3% 3

10,000

2012

2013

2014

2015*

2016*

2017* *Forecast

Source: CMHC Housing Market Outlook Calgary, Edmonton Fall 2015

2.6% 2

2015*

4.1%

3.8%

3.9%

3% 2016*

2017*

*Forecast

Source: CMHC 2015 Q4 Housing Market Outlook

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UPFRONT

HEAD TO HEAD

Are you worried about FICOM’s disclosure rule? BC’s regulating body put out a new interpretation of regulation Form 10, requiring brokers to state how much they’re paid

Walid Hammami

Tony Piattelli

Audrey Wamboldt

Broker Dominion Lending Centres

Mortgage associate Quantus Mortgage Solutions

Broker/owner Approved Mortgage Professionals

“FICOM never disclosed the real reasons behind their actions. If they want to protect the consumer, then they should be unbiased. FICOM is afraid that the broker is redirecting the deal to the lender who pays most, and that could be to the disadvantage of the client. But what do banks do when they sell you a Visa or an investment? Do they direct you to the product where they make the least money? Do they sell you the Visa with fees or without fees? Do they sell GICs or mutual funds? I remember one VP in a bank I worked for threatening to downgrade financial planners to regular account managers if they don’t sell more mutual funds.”

“Our ability to provide advice to clients as to which mortgage option to take has been negatively impacted by the changes in mortgage rules, which effectively put most of our clients into five-year fixed-rate mortgages, given the myth that variablerate mortgages are more risky. FICOM would do better to fight against the rule changes that create this imbalance and influence real change. Since this objective has been in the works, I’ve asked my new clients whether they would want to know how much I make on their deal, and none of them care as they aren’t paying it. Focus on real change that actually has implications for moving the industry forward instead of building barriers.”

“I fail to understand why disclosing a broker’s compensation reflects better advice to the consumer. By simply saying I am earning X amount of dollars, it doesn’t put it in any context. How does the consumer know if there are lenders who pay less of a finder’s fee but offer more benefits or a lower rate? If we are charging a fee over and above the lender’s comp, then we should have to always acknowledge that and get the agreement in writing. If we are paid by the lender only, then we acknowledge we are being compensated by their choice of lender in writing to our clients. Any fee over and above that should be spelled out completely and disclosed to the borrower.”

WHAT FICOM HAS TO SAY In a letter shared with MortgageBrokerNews.ca, FICOM explained its decision on the disclosure rule by saying, “The broker industry understands that lender compensation can influence a mortgage broker’s advice to a consumer. That can result in advice that does not align with the consumer’s best interests. Conflict-ofinterest disclosure reinforces the relationship of trust between consumers and mortgage brokers, and reduces the risk that consumers receive compromised advice. However, for disclosure to be effective, it must be clear and easy for consumers to understand.”

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UPFRONT

NEWS ANALYSIS

Renewed interest in cancellation fee rules New rules may be coming – which means brokers are focused on cancellation fees once again

UNDER CURRENT regulations, many mortgage brokers are prohibited from charging cancellation fees on deals. However, that could soon change. “The opportunity to seek legislative change on the subject of permitted fees that can be charged by mortgage brokers will arise when the government proceeds with its review of the Mortgage Brokers Act,” says Samantha Gale, CEO of the Mortgage Brokers Association of British Columbia. “In December, we received advice that the review was likely to commence sometime in early 2016.”

“The MBABC is continuing its efforts to seek legislative change to an outdated mortgage broker licensing statute in BC [that prohibits advance fees],” Gale told CMP late last year. “The Mortgage Brokers Act is still on the BC legislative agenda.” The association also shared with CMP a letter previously sent to the Financial and Corporate Sector Policy Branch of the Ministry of Finance, arguing in favour of reforming Section 5 of the Business Practices and Consumer Protection Act, which prohibits the use of advance fees.

“The MBABC is continuing its efforts to seek legislative change to an outdated mortgage broker licensing statute in BC” Samantha Gale, Mortgage Brokers Association of British Columbia Brokers in British Columbia are prohibited from charging advance fees, including cancellation fees. As the discussion – and debate – around cancellation fees has grown, the MBABC has renewed its effort to lobby the provincial government to update its policy on these and other advance fees.

In it, the MBABC argues that brokers could be reluctant to take on difficult residential mortgage clients when their fee is contingent on the application actually being approved and funded. “Often mortgage files require many hours of preparation, document management and

negotiation,” the association writes. “Sometimes mortgage commitments are obtained by mortgage brokers after they have invested significant amounts of time into the file, but the client will eventually opt for alternative financing or decline the offered financing – this can happen even at the last minute, just prior to closing.” Under the current legislation, the MBABC argues, brokers have no way of collecting compensation for work already done. But, of course, there are two sides to the debate. Many brokers refuse to charge cancellation fees because they believe in acting in the client’s best interest, which is something many players point to the fee-free model currently in use throughout the country as evidence of – clients should be free to choose the broker or lending specialist of their choice.

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WHAT PERCENTAGE OF BROKERS CHARGE CANCELLATION FEES? MortgageBrokerNews.ca polled readers to find out how many charge cancellation fees; the overwhelming majority reported that they do not.

Do not

Do 9%

Sometimes do 9%

82%

“After a few clients flee, the broker will have a bad taste in his mouth and will not act to his best when he meets a client” Walid Hammami, Dominion Lending Centres However, there are many who agree with the MBABC that cancellation fees are a way to ensure that brokers receive payment for work they’ve already done – even if a mortgage isn’t originated. “Imagine a prospect who shops around and calls you on weekends and nights – because he works during the day – and you give him all the best advice in the world,” says Walid Hammami, a broker with Dominion Lending Centres in Quebec. “This prospect takes most of your time

and detracts you from certain activities that could benefit your business and health, like business development activities, going to the gym, etc. He calls you after you got his deal approved and thanks you for your efforts but says that unfortunately, he had to go with another broker/bank because they gave him a $50 gift card with the same rate. Multiply that by another 30 to 40 prospects, and then tell me how you feel about charging a penalty.” The debate around cancellation fees also has

garnered mainstream coverage lately. A large Toronto-based broker was featured in a Toronto Star article for levying a hefty cancellation fee in late 2015. The article claimed a Toronto couple was charged a $10,000 fee for choosing to stay with their existing lender once they learned they would be hit with an even more sizable prepayment penalty of $43,000. However, the broker told CMP at the time that the penalty amount wasn’t properly reported and that the practice of charging a cancellation fee was explained to the client. These penalties can often come as a surprise to clients who – as is shown in this example – aren’t afraid to turn to the media to plead their case. That could lead to negative publicity – however unfair – that could put the entire industry in a bad light. Still, many brokers argue the fees are necessary. “After a few clients [flee], the broker will have a bad taste in his mouth and will not act to his best when he meets a client, because he is fearful of the outcome,” Hammami says. “But once he knows he is protected, he will do his best and will definitely help better his clients.”

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UPFRONT

ALTERNATIVE LENDING UPDATE NEWS BRIEFS Education key to helping the BFS client Stricter lending guidelines have thrown up obstacles for business-for-self clients looking for a loan from prime lenders, and brokers are being asked to step up their game to not only facilitate these loans, but also educate the client on the role of the alternative lending sector. “BFS clients need to appreciate the current environment and be realistic in terms of their rate expectations,” said Gleb Ioussoufovitch, director of sales and marketing at XCEED Mortgage Corp. “This is a great opportunity for mortgage brokers to fill in the void and approach self-employed consumers with solutions offered by alternative lenders.”

Home Capital doubles down on CFF Bank investment

Home Capital has specified how much capital it has injected into CFF Bank, and what it plans to do with the newly acquired Schedule I bank. The leading lender said during its quarterly conference call in November that it has invested an additional $35 million into the newly acquired bank to “stabilize CFF Bank and to have sufficient capital for future profitable growth,” according to Gerald Soloway, CEO of Home Trust. Home Capital completed its $18.2 million acquisition of CFF Bank on October 1, 2015.

Alternative lender launches new savings account

Alternative mortgage provider Equitable Bank is jumping into the online banking business with a savings account that pays more than triple the interest rate of other branchless rivals. Equitable started signing up customers in January for its EQ Bank, offering 3% interest on savings

with no fees or minimum-balance requirements. The account allows daily transactions, including bill payments and transfers, via computer or mobile phone. “We’re certainly seeking to shake up the marketplace a bit,” said Equitable CEO Andrew Moor. “This is a digital bank built from the ground up.”

New requirement could push firsttime buyers into alt space

With the implementation of new mortgage rules, first-time buyers are set to encounter yet another roadblock in a purchasing environment already characterized by a weak loonie and ever-growing real estate prices, analysts say. The regulatory change compels mortgage providers across Canada to require a 10% deposit on properties worth more than $500,000. “Firsttime buyers ... who don’t quite meet the new down payment requirements could be forced to move down the price spectrum, defer purchases or find alternative financing for the bigger down payment,” said BMO economist Robert Kavcic.

Alternative lenders look at whole picture Lenders who are willing to look at the whole picture – not just personal income – have provided a welcome source of lending for business-forself clients. However, says one lender, BFS clients need to be realistic when providing their numbers. “They need to be prepared to provide paperwork to back up the income of their business if this is what is used to qualify the deal,” said XCEED Mortgage Corp.’s Gleb Ioussoufovitch. “In situations when alternative lenders ask BFS borrowers to provide their income estimates, such borrowers have to be realistic in terms of numbers that they put in the applications.”

Renewed interest in the alternative segment It’s a lucrative segment for brokers – and one that more will turn to, experts say “Everybody wants to get into the alternative side,” says Shawn Allen, broker and owner of Matrix Mortgage Global, which specializes in alternative financing. And that may be for good reason. Last year alone, Allen was able to more than double the amount of loans he funded, mostly in the alternative space. “In 2014, we did 263 total transactions, and in 2015, we did 557,” he says. And there will certainly be a plethora of clients to be shared among brokers. According to Ron Butler of Verico Butler Mortgage, players should expect more regulations going forward, which will push more clients into the alternative space. He points to CMHC’s recent move to require a 10% down payment for mortgages over $500,000 that it insures as an indication that the tide of regulations in the prime lending space is far from ebbing. “That was a very tiny change, but that may be phase one,” he says. “Let’s face it: They changed it once; they could change it again.” Regulation will lead to more opportunity for brokers, who have the complete arsenal of lending options at their disposal. But is that something brokers should bank on? Butler thinks so. “[There will be] more opportunity for alternative deals,” he says. However, he adds, it’s important to keep in mind that for

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consumers, finding themselves pushed into the alternative segment by tighter lending guidelines isn’t exactly a welcome change. “If we have any respect for consumers, we have to ask why people with great credit and great businesses have to pay higher interest rates,” Butler says. “I think it’s important that brokers who are, in some cases, very happy to talk about these options realize that at the end of the day, the consumer rules us. Openly

“If we have any respect for consumers, we have to ask why people with great credit and great businesses have to pay higher interest rates” wishing that people have to pay higher rates and have to use us is not being very nice to our audience. If we spent more time thinking about what is good for the consumer and not what is good for us, we would be much better brokers.” Still, if alternative mortgages are the only option for clients, brokers will likely happily help them achieve the dream of homeownership without thinking twice.

Q&A

Pino Decina Executive vice president of residential mortgage lending

Alternative lending’s turn to shine

HOME TRUST

Years in the industry 26 Favourite thing about working in the mortgage industry “The people, be it the team you get to interact with on a daily basis or the customers you’re finding solutions for. It gives you a lot of gratitude to be able to put Canadians into homes each and every day”

What’s the current situation in the alternative space? It’s a good time to be in the space. The alternative market, from our perspective, has never performed as well as it has today. The quality of the borrower that we’re seeing, the performance of the alternative portfolio – all the metrics are stronger than they ever have been in the 28 years we’ve been operating in the sector. What’s the biggest challenge facing alternative lenders right now? I think throughout the entire residential marketplace, there are ever-changing economic conditions. There are ever-changing regulatory requirements. Those impact every space, and in the alternative space, it’s no different. Borrowers need to be better educated as to how they qualify, not only in the prime space, but also the alternative space, because the requirements are different. This is really where our broker partners can add value to the marketplace. Individuals looking for mortgages may not get the right level of expertise at their main bank. If they don’t qualify at the bank, then what is the solution? This is where broker partners of ours can really look for that solution, be it in the prime space, the alternative space, the private sector – they can really find solutions for the borrowers out there. Right now, probably about one in four Canadians is falling into the alternative space. There’s obviously a lot of due diligence involved, but as we go through that due diligence, we’re finding that the majority of them do qualify. They just need more time in underwriting these deals. But at the end of the day, you do what you can to find a solution, and there is a solution somewhere. There’s a lot of opportunity for mortgage brokers to fill that void. Are there any greater economic trends particularly affecting the space right now? There’s a lot of noise in the marketplace about the housing market and the potential bubble. I talked about the performance of the portfolio having never been better. That also speaks to the ability of our borrowers to maintain their monthly payment obligations, which is important. There’s a lot of noise right now that maybe Canadians are overextended. What we’re finding – and this may not be the same for every lender – but based on the due diligence that we perform, we’re comfortable that borrowers understand their obligations. They know what the resources are to meet those obligations. And they’re also prepared for any payment shocks; they’re prepared for slightly higher interest rates. I think that’s important, because there’s a lot of noise in the marketplace now around affordability. It just tells you that individuals are thinking through their transactions before they sign on the dotted line. And it also speaks to the fact that they’re getting good advice from their mortgage brokers.

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UPFRONT

PRIVATE LENDING UPDATE

More oversight for syndicated mortgages? Two crowdfunding real estate firms have come under fire by securities regulators. Could syndicated mortgages be next?

According to May-Anderson, rules pertaining to syndicated mortgages were changed last year. “Improvements to the governance of traditional private mortgages and syndicates for development and construction mortgages were implemented by FSCO last year with the introduction of the revised Investor/ Lender Disclosure Statement for Brokered Transactions and the new Addendum for Construction and Development Loans,” he says. “We gladly provided direct feedback to the regulator during the creation of these forms, and fully support the increased disclosure provided to potential investors by both.”

“Private lending via syndicate is not new, even for development and construction financing” Canadian securities regulators have set their sights on two firms that specialize in crowdfunding real estate ventures in British Columbia. British Columbia Securities Commission spokesman Richard Gilhooley recently told the South China Morning Post that the commission is examining Suncrowdfunding and Canada Luxmore Crowdfunding. Real estate crowdfunding is regulated by the BCSC in British Columbia and limits firms from raising over $250,000 per project and limits individual investments to $1,500 per project.

NEWS BRIEFS

Now that regulators have set their sights on investment syndicates, could syndicated mortgages be next? One of the leading players in the space doesn’t think so. “Private mortgages, syndicated or not, and rules governing disclosure, suitability, etc., are, in my opinion, all adequately addressed in Ontario via the Mortgage Brokerages, Lenders, and Administrators Act and subsequent regulations,” says Glenn May-Anderson of FDS Broker Services. “The Financial Services Commission of Ontario ensures brokerages follow these rules.”

Private lending expected to pick up steam in 2016

Tightened underwriting guidelines over the past few years have increased the need for private mortgages, and that trend is expected to continue in 2016, according to one industry veteran. “There is no question that [the unregulated private] part of the market is growing … with the introduction of B20 clients,” said Optimum Mortgage’s Lester Shore. “[Clients that] might have been an A before, they no longer meet the requirements of the A lender, so they get pushed to the Alt-A side or the private side.”

When it comes to syndicated mortgages, the key is proper education and supervision of mortgage brokers who want to specialize in the segment, May-Anderson adds. “Private lending via syndicate is not new, even for development and construction financing,” he says. “We feel current laws and regulations properly protect investors, and will continue to work with FSCO constructively on any future enhancements that increase agent/ broker training, ensure proper disclosure or help determine the suitability of these investments for consumers.”

OSFI change should provide boost to private lending

Mortgage growth is projected to slow after the OSFI announced its intention to increase the capital requirements for lenders who back residential mortgages. In addition, CMHC is contemplating a raise on the cost to securitize home loans. Analysts warned that these steps will make it more difficult and expensive for Canadian banks to operate in the housing market. “It encourages the private market by bringing the cost of doing business … more in line with the market,” said Paul Bretzlaff of DBRS Ltd. “This is one step to making the private market more attractive.”

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Q&A

Adam Farber

Private lending continues to grow

Private equity lender and director of US operations CORWIN MORTGAGE CAPITAL

Years in the industry 15 Favourite part of working in the mortgage industry “It allows me the opportunity to assist people, often in times of need. We are able to service a segment of the market that is overlooked by traditional institutions”

How are things in the private lending space right now? The space has been extremely robust over the last 12 months. As banks are tightening their lending criteria, it has created a large segment for private lenders. We are continuing to see a steady increase in demand from borrowers.

Are any challenges presenting themselves right now? I would have to say the biggest challenge facing the industry is the amount of competition and, as a result, the massive inflows of capital into the space. It is quite logical – in a low-interest-rate environment, investors are starving for yield. Investors are unable to find yield in the bond market; therefore, it attracts ‘mom-and-pop capital.’ Investors see value in high-single-digit returns secured by quality real estate.

So how do you compete in an increasingly crowded field? At Corwin, we pride ourselves on having competitive rates with the lowest lender fees. Our ability to fund a deal on an expedited basis also sets us apart.

What’s the outlook for the future of private lending? We believe there will be continued expansion in the market. The federal government continues to implement

Toronto MIC appoints a new board member

The Mortgage Company of Canada [MCC], a leading investment corporation that offers single-family residential mortgages for clients in the Greater Toronto Area, has announced the appointment of James Garcelon to its board of directors. Garcelon, a chartered financial analyst, brings with him 20 years of experience in capital markets. He is currently a portfolio manager with Shaunessy Investment Counsel, and he previously held senior positions at National Bank Financial and HSBC Securities.

additional mortgage rules, which potentially distance people further from institutional lenders. The Canadian real estate market has strong fundamentals, and we are extremely optimistic about future growth in the space.

Are there any greater economic trends particularly affecting the space right now? Further to my point on challenges presented to us, with the low-interest-rate environment causing massive inflows of investment capital, it would be important to note, with less regulation than your traditional investment vehicles – stocks, bonds, mutual funds, etc. – investors’ due diligence has never been more important. At Corwin, we pride ourselves on being able to present our investors with deals that have been fairly priced. We’re also seeing a little bit of a rise in Canadian borrowing for vacation properties in the United States, particularly South Florida. We had a lot of Canadians purchase property during the economic downturn in the United States, and they’ve seen their properties, in some cases, double in value. As well, the Canadian currency has been devalued. So just on the currency alone, people are making 40% or 50%. Say you bought your property in South Florida in 2011, and the Canadian dollar was worth six cents more than the American dollar. Now the Canadian dollar is worth about 45 cents less than the American dollar, so just on the exchange alone, there’s a lot of equity. So a lot of people, we find, are cashing out or extracting equity.

Shadow banking on the rise in the US

Stanford University professor Arvind Krishnamurthy told the American Economic Association’s annual conference that some lending activity in the US already has migrated to less-regulated sectors as the Fed and other authorities have made it more expensive for banks to do business by requiring them to hold more capital. Williams noted, however, that banks have backed away from more speculative leveraged deals after the regulators introduced guidelines in 2013 to curb excessive risk-taking in the market.

Real estate investors confident for 2016

According to a recent Colliers International survey of more than 600 investors, including REITs, private equity firms and institutions with a collective US$1.5 trillion in real estate assets, sentiment remains optimistic; more than half of those polled expect property assets to increase in 2016. The US is the favoured market, but global gateway cities are also on the shopping list. The most popular investment types were offices, followed by industrial space, developments and shopping centres.

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UPFRONT

OPINION

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

Can’t we all just get along? It’s time for the mortgage industry to put aside its differences and find its voice, writes Paul Therien

CO-OPERATION. We often talk about it as an industry, and try to discover the different things that we can do to promote our value and services to the Canadian consumer. However, we don’t really expect the different brands to suddenly start working hand-in-hand. Competition is healthy; it is the driving force behind innovation. We need that consistent transformative and futureforward thinking to maintain our industry as a viable alternative for consumers. Instead we look to the associations in Canada to bring us together as an industry. It doesn’t matter whether they’re regional or national; industry associations provide us all with a valuable service. They enhance the professionalism of our industry and provide us with a forum through which we can collaborate, share best practices and overcome hurdles that impact our futures. They are, in theory, there to represent us all and provide us the means to speak with a united voice. In Canada, we have Mortgage Professionals Canada, the Canadian Mortgage Brokers Association and WIMI at the national level. Then we have IMBA, MBABC, AMBA, etc. at the regional level. All are working to accomplish the same goals, all are trying to demonstrate value to their membership, and all are looking for a piece of the same pie. For the most part, we are a fairly small industry – roughly 15,000 people across the country. For a lot of people, being a part of more than one association gets complicated

because each association is eager to get your attention and your support. But we have a limited pool of fish and a lot of lines in the water; we need to decide which lure is the most appetizing. In the frenzied drive for membership and dues, we are starting to see fractures appear. Discourse between associations is not something new. The real estate industry struggled for years to find alignment. It is only recently that the various accounting

ization is the best model. Other industries have regional associations with national ones that are separate. What we, mortgage brokers, need to figure out is simple: What works best for us? As a national brand leader, I am asked to support, endorse and sponsor all of the associations. It doesn’t matter the size of your company, the challenge is determining where your dollar is best spent. Is there true value to our people? If we are all looking at a common issue that needs to be addressed, who is best suited to lobby on our behalf ? If I support one organization over another, am I doing my network – or our industry – a disservice? Who is the most effective? How do I know that? I believe that these questions are asked by all in our industry. I don’t think it particularly matters if you are a brand leader or run a successful independent boutique office. Before we spend our money, we need to assess the return. I don’t pretend to have all the answers; as I said before, this is complicated stuff. I do believe, however, that we as an industry

“This has to be a coming together of minds for the betterment of not just us, but all Canadian homeowners. They are the most important part of this equation, after all” associations put to bed their differences for the betterment of all and created a single, unified association. Insurance brokers are another excellent example of a group that figured it out. There are other industries across the country that continue to come up emptyhanded when they attempt to bridge the divide between different segments of the same profession. It does not mean the death knell of that industry is imminent; it only means they don’t have a clear direction. For some industries, like accountants and insurance, one large national voice makes sense. For real estate, having regional boards that feed into a large national organ-

need to have the dialogue; we have to do what’s best for all. Before any conversation can start or be effective, everyone needs to check their ego at the door. This can’t be about one brand or another, and it can’t be about just one or two people. This has to be a coming together of minds for the betterment of not just us, but all Canadian homeowners. They are the most important part of this equation, after all.

Paul Therien is the vice president of operations at Centum Financial Group.

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PEOPLE

INDUSTRY ICON

THE INDUSTRY’S MOST OUTSPOKEN VETERAN Ron Butler has some controversial opinions about the challenges currently facing the industry – and he doesn’t care what you think about them

RON BUTLER, founder of Verico Butler Mortgage, is one of the country’s highestfunding brokers. He relies on a controversial low-rate, high turnaround, commissionbased model that has drawn the ire of his compatriots across the country. And he’s perfectly fine going against the grain. “I enjoy pissing people off,” he says, “and I enjoy being right.”

Market outlook Butler has worked in sales positions since he was in his early 20s and founded Butler Mortgage in 1997, so he’s lived through various evolutions – and devolutions – of the mortgage industry. Because of this, he recognizes that the industry today is facing its fair share of challenges, despite years of consistent growth. “We’ve experienced 20 years of straight increases in property values, with a tiny dip in ’08 that lasted about six months,” he says. “People in their 30s and 40s today don’t know a market that isn’t on the up. That may change in the next 24 months. If you’re used to the idea that your house will go up 5% to 10% a year, what are you going to do if it goes up 0%? Or even goes down?”

It’s a situation that many homeowners – and, indeed, brokers – have never had to face. “For mortgage brokers, we’re all here for activity,” Butler says. “There is virtually no renewal system in this business – people say

“The two things brokers should be thinking about are the possibility that prices won’t continue their continuous ramp up and the possibility that underwriting standards will continue to get tighter and tighter in this business. Those two things happening at once won’t be too pleasant” there is, but it is really 1%. If we rely on day-in, day-out activity, what happens when sales fall?” That’s a lot of doom and gloom to consider, but Butler believes all brokers should look toward the future with eyes wide open.

things happening at once won’t be too pleasant.” Those changes would likely make it tougher to do non-income-verified deals at every major lending institution, Butler says. “There will be pressure to do less rental business; there will be higher standards;

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PROFILE Name: Ron Butler PROFILE Company: Verico Butler Name: Steve Ranson Mortgage Company: HomEquity Title: Mortgage broker Bank Title: President and CEO19 Years in the industry: Careerhighlight: lowlight: “Heading Career “Having my into sons the credit we relied two as mycrisis, partners in the pretty much on the business withexclusively me. They had an securitization When interest … andmarket. they have done the market really seized 99.9% on their own. ” up, our access to money dried up.” Career lowlight: “The Career highlight: real difficulty today“Becoming is the a bank reallyinhelped us get real change the lending access to thethat retailwe deposit environment exist in. market and lowered cost Our workloads haveour increased of funds, is a benefit 300% onwhich the average file. we passed on toofcustomers. It’s The amount documents, had a significant impact the questions, reporting weon have business we’ e been toamount do hasofincreased by vabout able toindo.the ” last three years.” 300%

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PEOPLE

INDUSTRY ICON

there will be continuing pressure on [debt ratio guidelines], continuing pressure on down payment requirements.” And these changes, Butler says, could force many brokers out of the industry. “Even though the people who are doing not much business now will simply quit, people who are doing a lot of business now will be doing much less,” he says. “It’s not a welcome thing.”

The benefit of buy-downs However, with every challenge comes a new opportunity, Butler points out.

cated on making just 35 basis points per transaction. “If you spend time with tech people and the people who are changing the world, what they talk about endlessly is re-engineering from the consumer – starting with the consumer and working out, instead of starting from profit and hoping it touches the consumer.” It’s a controversial stance, but Butler believes this business structure will become even more prevalent in the future as more and more clients embrace technology and the ease provided by operating digitally.

“Wouldn’t it be nicer if the client just got the best possible deal and didn’t have to meet anybody to do it? Someone online or on the phone could meet with them – something that is efficient and easy to do”

RATE BUY-DOWNS Ron Butler makes no apologies when it comes to buying down rate – it allows him to offer the absolute lowest possible rate, but admittedly eats into his own commissions. It’s a controversial practice that many brokers vehemently shun, claiming that it decimates the industry by creating an arms race between brokers to offer the lowest rate. But just how prevalent are buydowns? CMP’s 2015 broker sentiment poll asked brokers to reveal what percentage of their deals they bought down over the prior year. (Check back next month for an update glimpse in this year’s broker sentiment poll.) What percentage of your deals did you buy down? 8%

“The reality of life, as indicated by the FICOM proposition, is that people being paid 115-125 basis points to complete a document and fund a mortgage with somebody else’s money does not make sense,” he says. “That’s the future. What is Uber? Uber is something that was simply a better idea, more convenient. All the talk of no licensing, no insurance, is just clutter. If you like the system better, and if it’s more convenient for you, you don’t care.” For his part, Butler has gotten ahead of the game by relying on a rate buy-down model that results in lower commissions but higher volumes. That business is predi-

“Wouldn’t it be nicer if the client just got the best possible deal and didn’t have to meet anybody to do it?” he says. “Someone online or on the phone could meet with them – something that is efficient and easy to do.” However, he remains skeptical about the average broker’s willingness to adapt to this way of doing business. “Nine out of 10 brokers are so wedded to their model of earning 125 basis points on every file,” he says. “How is anybody going to function on 35? If you want to give better rates than broker ABC is offering, you can’t cling to legacy models.”

83%

Bought down 0-25% Bought down 26-50% Bought down 51-75%

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FEATURES

COVER STORY: DIVERSIFIERS

THE DIVERSIFIERS Mortgages may be their focus, but many brokers are finding room for a host of other products. CMP sheds some light on those alternative revenue streams

DIVERSIFICATION IS one of those corporate buzzwords that seems to pop up in just about every industry. For mortgage brokerages, adding more product lines can mean more revenue streams – but also extra work. In addition, because nearly all branches of the financial services industry are seeing increased regulation these days, there’s a limited number of additional products brokers can offer before needing additional, extensive training. So are the potential benefits of diversification worth the effort?

The answer, according to many mortgage pros, is a resounding yes. And the benefits aren’t just limited to adding alternate revenue streams to your business. Paul Therien, vice president of operations for Centum Financial Group, says diversification offers brokers multiple choices to help their clients. And that pays dividends in customer goodwill. “Ultimately, any mortgage professional needs to look at not just what’s best for them, but what’s best for the consumer,” Therien says. “If you look out for your customer

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DIVERSIFICATION BY THE NUMBERS How important is revenue diversification to brokers, and how many of them have diversified their businesses? To find out, CMP surveyed 100 mortgage brokers, asking them if theyâ&#x20AC;&#x2122;d diversified, which alternative products they focused on, which products they thought had the best revenue potential and whether diversification was becoming more or less important. Hereâ&#x20AC;&#x2122;s what they had to say. Has your brokerage diversified outside mortgage originations?

What products are you focused on?

YES

22%

Consumer loans/ credit cards

40%

53%

Insurance

18%

Syndicated mortgage referral

47%

NO Is the need for revenue diversification growing or declining?

87%

Growing

What alternative revenue stream is the best fit for brokers?

Syndicated mortgage referral Financial advice Insurance

Declining 13%

20%

Financial advice

Consumer loans/credit cards

13.3%

16.9%

27.7%

42.2%

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FEATURES

COVER STORY: DIVERSIFIERS

AREAS OF DIVERSIFICATION There are plenty of alternative revenue streams available to brokers. But which one is right for you? Here are a few of the most common: SYNDICATED MORTGAGES Allow several investors to pool their money for one mortgage instrument FINANCIAL ADVICE INSURANCE CONSUMER LOANS Some brokerages can offer loans to consumers whose past credit problems may make it difficult for them to find loans elsewhere CREDIT CARDS

today, the consumer is going to remember that you helped them, and they’re going to refer other people. I think that by providing more tools to the broker, they can provide better financial solutions to the consumer when it comes to credit. And as our industry continues to evolve, that’s going to become

pitfalls – of diversification. They agreed that while diversification may not be the right choice for all brokers, it can offer its own unique rewards to those who are ready for the challenge. “We started diversifying so we could make recommendations on the mortgage plan that

“Our core business will always be mortgages. That’s what drives our industry, and that’s what should continue to drive our industry. But by providing additional tools, you become more valuable to the consumer” more important. Our core business will always be mortgages. That’s what drives our industry, and that’s what should continue to drive our industry. But by providing additional tools, you become more valuable to the consumer.” But what do brokers think? CMP talked to brokers about the advantages – and

would fit in with their overall financial plan and retirement plan,” says Andre Semeniuk, a mortgage planner at Mortgage Architects in Toronto. “Not only can we make recommendations on their largest investment, but we can make recommendations on balancing out repayments on the mortgage versus investments, and show them how that’s

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WHAT TO ASK YOURSELF BEFORE DIVERSIFYING Centum’s Paul Therien has a set of rules that govern every decision he makes for the company. Those rules, he says, also apply when you’re deciding whether to diversify your business. “I think anyone who’s in business needs to ask themselves these things,” Therien says. “When you’re looking at a partnership, those are the things you need to ask yourself.”

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FEATURES

COVER STORY: DIVERSIFIERS

PRODUCT: CONSUMER LOANS Among other ancillary products, Centum Financial Services offers consumer loans through partnerships with two companies, Progressa and Grow. CMP chatted with Centum’s vice president of operations, Paul Therien, about the advantages of the product. CMP: First of all, why two partnerships? Paul Therien: Progressa is consumer lending, and they’ll do up to [around] $10,000. Their interest rate is more attractive, and it slides. So as the customer repays the loan, the interest rate actually drops. We felt that was better, because if the customer has credit issues, it improves their situation – and they also get the benefit of a reducing interest rate. Progressa is for people who have challenged credit and are looking to get back on their feet, and Grow is for people who have A credit. They provide three-year personal loans, and they’ll go up to $30,000 and as low as 5.9% with their rate. Their rates are typically better than what you would get if you walked into a bank to do a $30,000 personal loan. CMP: So how does this product benefit the customer? PT: We partnered with Grow because we felt that customers need to have options when they’re looking at borrowing. Sometimes advancing your mortgage just doesn’t make sense, especially if you have to pay a penalty. Let’s say, for example, you want to take out $20,000 because you need to do some renovations. If you have to pay a penalty to break your mortgage – let’s say that penalty is $5,000 – the actual rate of interest you’re paying is huge. Yes, the overall rate is going to be lower – a mortgage rate is typically lower than a personal loan – but when you factor in things like penalties

and closing costs, sometimes it just doesn’t make sense. So if we can provide the consumer with an option that doesn’t involve incurring penalties, I think we’re better off doing that. Any time you’re looking at an ancillary product, you have to make sure there’s a balance. Any relationship has to be mutually beneficial. You need to benefit the consumer while also benefiting your partner. We think it provides a true benefit. It’s not meant to replace the mortgage business, but it’s an added benefit for the consumer.

compounding. Really, having the in-house financial planning services and insurance has been great for cross-sales and great for product offerings.”

Areas of diversification There are plenty of alternative revenue streams available to brokers: financial advice, syndicated mortgage referrals, insurance, even credit cards and consumer loans. Of the brokers surveyed by CMP, more chose insurance as their main alternate revenue stream than any other product. But

“If I were a broker, I would certainly want the biggest arsenal of products and services that I could have. The more solutions you’re able to offer, the better you’ll do for the customer” the way a broker chooses to diversify – or whether a broker should diversify at all – depends on what works best for his or her business. For instance, Semeniuk’s firm provides a variety of banking services to its clients in addition to traditional mortgages. Through partnerships with CFF Bank and Home Trust, Mortgage Architects customers can get everything from mortgages and insurance to financial advice under one roof. “One of the big products that was great for us was an easy one – an unsecured line of credit that was also running as a high-interest account,” Semeniuk says. “Having the ability to provide a client with an unsecured line of credit – rather than having to refer them back to a bank branch for that – has limited

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FEATURES

COVER STORY: DIVERSIFIERS

PRODUCT: TERM INSURANCE Many brokers find that selling insurance can be a profitable way to diversify their businesses. And one insurance company, Manulife, has recently expanded the ways mortgage brokers can help their clients find coverage. Rich Spence, Manulife’s vice president of Canadian sales, explains. CMP: How does Manulife help brokers diversify their businesses? Rich Spence: We equip mortgage brokers with mortgage creditor insurance. We’ve done that for a very long time. Seventy-five per cent of the mortgage brokers in Canada distribute our product alongside their mortgage loans. We’re the number-one player in the space of creditor insurance, which is now supplemented with term insurance for mortgage brokers. CMP: And you’ve recently added another way for brokers to do that? RS: We have added a second product offering: Manulife Term Life Plus, which makes it easier for mortgage brokers to offer customers access to term insurance coverage in addition to – or instead of – mortgage insurance, for a referral fee. The mortgage broker simply meets with the customer, as he or she usually does, and presents the offer of creditor insurance, as well as the opportunity for advice on term insurance. This provides the opportunity for the customer to say, ‘Oh, I’d like to talk to an insurance professional about additional term insurance,’ then they just need to tick the little check-box on the application. And when we process that application, we’ll contact the customer to do a full needs analysis. If they want to have term insurance instead of creditor insurance, a licensed representative would sell the policy, and the mortgage broker is compensated for that referral. It’s a way for brokers to diversify into term insurance using licensed Manulife agents, and it’s ridiculously easy for them to take advantage of that.

CMP: How have brokers responded to the program so far? RS: We started with a pilot in 2015, and it was very successful. It helps mortgage brokers have an additional product. Consumers are aware of different insurance products, and they want advice. We’ve gone into a full launch this year, and both mortgage brokers and consumers are loving the service. It’s been great.

“Consumers are aware of different insurance products, and they want advice”

the competition. We’re not forced to send the client directly into the lion’s den, so to speak; we’re able to provide those products. And having those products has eventually led to a number of new mortgages. One of our agents provided almost 50 unsecured lines of credit, which led him to 10 new mortgage leads and some rather significant volumes. It’s a cross-sale tool that just continues to keep the relationship open.” That cross-selling ability is the key to deciding how to diversify, Therien adds. “If your primary business is offering mortgages, the tools and additional products you offer – how are they going to expand your core business?” he says. “Mortgages will always be the breadwinner, so you never want to take away from that core business. You want to have products that assist in driving it.”

Is diversification right for you? So the big question is: If you haven’t diversified yet, should you? Rich Spence, vice president of Canadian sales at Manulife – which provides insurance products to mortgage brokers – says yes. “If I were a broker, I would certainly want the biggest arsenal of products and services that I could have,” he says. “Every person’s situation is unique, so the more solutions you’re able to offer, the better you’ll do for the customer.” Semeniuk is also a big believer in the power of ancillary products to expand a brokerage’s business. “Having the ability to recommend insurance, to have properly licensed individuals to do the investments and especially the unsecured lines of credit – it’s really opened up the door to a great number of new leads and new mortgages that we would never have realized if we’d had to refer them to a bank and then re-compete to get that client back,” he says. But Therien recommends exercising caution. Diversification is a good thing, he says – but only if the company is well prepared for it.

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FEATURES

COVER STORY: DIVERSIFIERS

“I think you need to go into it with your eyes open,” he says. “If you don’t plan effectively and really take the time to know what direction you want your business to go in, arbitrarily adding ancillary products can really hurt you in the long run, because you end up losing your focus. It’s the same with any business – sometimes diversification isn’t good. We’ve seen examples all around the

“It’s really opened up the door to a great number of new leads and new mortgages that we would never have realized if we’d had to refer them to a bank and then re-compete to get that client back” world in many industries where companies are heavily diversified, and they end up selling off all these secondary things because they want to focus on their core business. So it can be good, or it can be bad. It really depends on how you structure your business.”

Potential pitfalls That preparation is undeniably important. Brokers who add ancillary products without considering the ramifications could be buying trouble they don’t need. “The biggest pitfall is losing your focus,” Therien says. “There’s an old saying: ‘jack of all trades and master of none.’ I think we need to be careful that what we provide the consumer with is choice. If you become so focused on trying to sell credit cards or consumer loans or other products, then you take away from that core business.” There might also be a few regulatory hoops to jump through when deciding to offer ancillary products. Before adding a new product line, brokers need to do their research. “As an example, with consumer loans and credit cards, you don’t need to be separately licensed,” Therien says. “That being said, you want to make sure you’re doing what’s best for the customer, because the

regulators will look at that. When you’re offering ancillary products to your customer, you need to be sure that a) it doesn’t conflict with your licence, and b) make sure you do the legwork. If you’re going to offer ancillary products, it’s up to you to make sure you’re compliant with all the regulations. My advice has always been: Do the legwork yourself. We’ve got this wonderful thing called the Internet, and you can find all kinds of things on it. It’s important that anybody who’s entering into selling any sort of ancillary product really understands it and makes sure it doesn’t conflict with the core business.” Brokers also should avoid reaching beyond their expertise, Therien adds. “Brokers also need to make sure that they don’t try to take on a role that isn’t theirs,” he says. “For instance, brokers aren’t financial advisors. When you’re selling an ancillary product, don’t try to assume the role of something that you’re not. I have heard stories of mortgage brokers who have provided investment advice. That’s a grey area, because you should never be seen to be soliciting the customer to do an investment. You want to be careful that you’re not putting yourself out there as an investment specialist or a financial planner. That’s why you have partnerships.” Semeniuk agrees. Especially when you’re diversifying into other financial products and services, the roles need to be very clearly defined, he says. “I’m not recommending the investments; I’m not recommending the insurance,” he says. “My financial planner, who is a partner of ours, is under the CFF Bank licence. They have their own regulatory bodies; they have their own compliance. So CFF Bank is providing the compliance for our financial planners. At Mortgage Architects, we have our compliance for the mortgage side. So we’re very, very clear. Instead of selling insurance myself – which I’m not licensed to do – I recommend that our clients talk to our financial planner, because he’s properly licensed to recommend a hundred different

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FEATURES

COVER STORY: DIVERSIFIERS

PRODUCT: SECURED CREDIT CARDS Many mortgage brokers are diversifying by offering their clients secured credit cards. Chloe Gagnon, manager of the secured card program at Peoples Trust, and Bill Moffatt, president and COO of Peoples Trust, took time to chat with CMP about how their program can help build customer loyalty – and give brokers a tool to help rebuild their customers’ credit. CMP: What’s the concept behind your secured credit card program? Chloe Gagnon: The secure card is a program that has been created to help build or rebuild credit. It’s targeted to people who’ve had difficulty in the past financially, or people who’ve been through bankruptcy, as well as newer immigrants to Canada and students. Basically, what we do is provide a Mastercard. It’s a regular Mastercard that can be used anywhere Mastercard is accepted. We ask for a security deposit from the customer, and the card we issue is in the same amount as the security deposit. We place the deposit into a GIC account – which is a guaranteed investment fund certificate – and it’s frozen as long as the customer has the card. Once the customer closes down the card, we return the funds to the customer. Most of our customers build or rebuild their credit rating within about two years. Of course, when you’re first building your credit, it’s much faster. Within about six months, you should start seeing a good credit file built up. When you’ve gone through bankruptcy or consumer proposal, I would say it’s about two or three years. CMP: So where do mortgage brokers come in? CG: We’re offering a referral program for people who are working in the financial industry and affiliate industries. This program allows professionals to receive a commission every time they refer an approved customer. Every time they send us an application, if it’s approved, we pay a commission of $35 to the financial

professional. That can help them build loyalty in their customers. [When they help] the customer rebuild their credit, that customer is very thankful and becomes a loyal customer. I know mortgage brokers like to use the program, because rebuilding credit lets them offer a better rate later on for their mortgage customers. We do have a lot of mortgage brokers who like to offer this product, because eventually these people return to them for a better rate on their mortgage. We’ve always had such great feedback from both customers and mortgage brokers. It’s a program for helping people, and that’s what Peoples Trust has been focused on. For instance, last year we cut down our rates to offer one of the best rates on the card. It’s now 12.99%, which is the lowest interest rate for a secured card in Canada. Bill Moffatt: That’s remarkable in terms of interest rates for a credit card – particularly one that’s rebuilding credit. I think it’s indicative of the point Chloe raised about actually trying to help people with this product.

the day. If the credit impairment is such that the customer is unable to obtain a mortgage, then at least by going with a product like this, they may be in a position after nine or 12 months – after they’ve established a pattern of repayment – to be able to get a mortgage. A lot of times, people fall into disparate circumstances because of events beyond their control, like a job loss or a divorce. It’s not always just blatant delinquency. It’s hard for people to recover from such a life event from a credit perspective, because the credit reporting agencies are rather unforgiving. This gives the mortgage broker a tool to give people something that allows them to reconstruct their credit so they can find themselves in the position of being able to obtain prime credit in the not-toodistant future.

CMP: Chloe touched on the idea of mortgage brokers using the program to build customer loyalty. Could you expand on that? BM: It gives them another tool in their toolbox. I don’t think any mortgage broker really wants to say no at the end of

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The bottom line

“I would say for any mortgage broker, if you’ve got a plan in place and the structure to manage it, diversification is absolutely a good thing to do”

Diversification can be a great thing for brokers ready to take on the challenge. It allows brokerages to expand their business and gives clients more options – and more reasons to keep coming back. “I would say for any mortgage broker, if you’ve got a plan in place and the structure to manage it, it’s absolutely a good thing to do,” Therien says. “If you don’t have that skill set or a plan in place, it’s like throwing something at a wall coated with Teflon; it’s not going to stick.”

But for those who are willing to do the work and make the plan, diversifying can be very rewarding. Semeniuk says that offering an array of services has allowed Mortgage Architects to become many clients’ one-stop shop for their financial needs. “It’s not that they’re going to the bank, going to a financial planner, going to the accountant and going to us,” he says. “They’ve come to think of us as a trusted source for their financial decisions.”

products. We’re very clear on the actual lines of business and who is controlling the discussion, because the compliance issue is very delicate, and you can’t cross those lines.”

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FEATURES

COVER STORY: DIVERSIFIERS

FORGING RELATIONSHIPS Diversifying isn’t just about adding revenue streams – it’s also about strengthening client relationships. Agostino Tuzi, senior vice president of mortgage lending for Home Trust, talks about how adding ancillary products can build better relationships with existing clients – and attract new ones. CMP: From your perspective, what’s the biggest advantage to diversification? Agostino Tuzi: As a general statement, as the Class A banks tighten up, the opportunity for the broker community to forge relationships with borrowers is expanding. For a broker to diversify will just strengthen the relationship. Instead of mortgage brokers being looked at as the one who helped you with the mortgage and then you never see them again, it’s giving mortgage brokers in Canada the opportunity to forge long-lasting relationships. Instead of just coming for a mortgage, maybe [a borrower] needs a home equity line of credit. Maybe it’s a secured Visa or mortgage life insurance. More and more, brokers are expanding their offerings and their toolkits to the borrowers they come in contact with. A borrower goes to a broker for a purchase or a refinance, and it’s a real opportunity to talk about not just how you’re financing them for that purchase or refinance – it’s an opportunity to sit down and get to know the client, and open up the tool chest and see what else you can offer. So instead of just the one transaction, it’s a relationship moving forward. CMP: And creating that relationship probably helps a broker get referrals down the line, yes? AT: That’s an excellent point. The broker of the past was the source for funding when a bank couldn’t help you – really tough deals, someone who may have had bruised credit in the past. But more and more, as the banks tighten, there’s

that opportunity for the broker to forge relationships. If a client sits down with a broker and they’re not only able to help them with the purchase of a home, but set them up with a nice deposit rate or a home equity line of credit to help consolidate some debt – whatever the case may be, it’s not just about forging that relationship. [Customers] are going to leave feeling really good about themselves, and when someone asks them where they got their financing, they’re going to be more than happy to share their broker’s name. Good brokers, professional long-term brokers, take care of their clients. It’s not just about selling a product; it’s providing a service. CMP: So is diversification something all brokers should be getting into, or is it not right for everyone? AT: I really think you should have your eyes open with anything you’re getting into, but I strongly feel that as the industry changes, the role of the mortgage broker is evolving. It’s not just about making it profitable – it’s about survival. If a client is going to a mortgage broker, are they going to the guy who can help them one time and doesn’t have anything else to offer, or to somebody who’s going to sit down with them, walk them through their finances and say, “Not only can I help you with this, let’s talk about how we bring your debts down.”? To really thrive in the changing industry, there is a need to diversify and to ensure that you offer as much as you can to your clients.

“It’s an opportunity to sit down and get to know the client, and open up the tool chest and see what else you can offer. So instead of just the one transaction, it’s a relationship moving forward”

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SPECIAL PROMOTIONAL FEATURE

DIVERSIFICATION

The laws of attraction When it comes to recruiting new employees, what are diversified brokerages looking for?

COMPETING IN the mortgage space demands that companies grow or risk losing market share and talented employees. That’s why Canadian Mortgages Inc. [CMI] has spent the last couple of years focusing on its lending division, which has seen a lot of growth. “We have repositioned what we’ve been doing,” says Bryan Jaskolka, CMI’s vice president of business development, “and we are already having great success in doing that, in a large part because of our ability to service clients on a diversified basis across all types of credit. We do commercial; we do residential, institution and trust company mortgages; we do private mortgages – our agents have access to in-house private money. It really helps them compete for whatever their client is looking for.” At the end of the day, it’s a large marketplace, Jaskolka says, and although various market segments shrink or grow at different times, “I don’t think you’re going to see any particular part of the market completely disappear.” By diversifying, CMI has the flexibility to cater to a range of clients, from those with bad credit to those who qualify for A lender status. Not only that, but the company can offer multiple services to the same client as their circumstances change. “You may have someone come to you with bad credit,” Jaskolka says. “They need a private loan, and after you fix their credit, they are able to migrate – maybe not to an A lender just yet, but you can get them to a B lender and help reduce their overall cost of borrowing even

further. You have to be able to work with the client over a long period of time.”

Agent recruitment In 2016, CMI is focusing on growing its agent team – but they’re not taking on just anyone. “Being a mortgage agent is a very challenging role that a lot of people underestimate,” Jaskolka says. “In order to do well, you have to understand the product you are selling, and have some level of experience in sales and marketing, because you have to generate business as well as be able to service your clientele. Somebody who has both areas of expertise would be the perfect agent.” Support and training are crucial to setting up an agent for success, Jaskolka adds. “We have a supportive relationship with our agents,” he says. “Typically when agents join our team, we connect them right away with our brokerage manager, and we set them up with her for one-on-one training as they are submitting deals to make sure they understand how to input them properly, how to package them, how to select the correct lender and how to run their business efficiently.” Being able to train agents in all the segments of the business is what can make or break a good parent company, he says, as brokers can’t control what type of client is going to land on their doorstep. “If you put out an ad for yourself as a mortgage agent, and you have somebody calling you back [about] a commercial building, and you don’t know anything about financing a commercial building, you need a brokerage behind you that can help service

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that client,” Jaskolka says. “Otherwise, it is a wasted revenue opportunity.” Where a lot of agents stumble is properly packaging a deal for the lender to approve. “We’re very big on showing them how to package it properly,” Jaskolka says. “And once you’ve done that, the rest of the process is relatively easy.” Having been in the online space since its inception, CMI is also well positioned to guide its agents through the ins and outs of online marketing.

“You have to understand the product you are selling, and have some level of experience in sales and marketing, because you have to generate business as well as be able to service your clientele” Bryan Jaskolka, Canadian Mortgages Inc. “The one thing I do caution prospective agents about when looking at online marketing,” Jaskolka says, “is that they need to understand there is a capital contribution that they should be prepared to make and sustain for a couple of months until that payback comes.” The online market has become fairly crowded already, he adds, so it can be difficult to succeed online without a significant budget allocated. “But those agents who have done that have been quite successful,” Jaskolka says. “We’re able to give them tools to help them construct their websites, and access to our blog media and content that we custom-generate, enhancing their offering to their clients.”

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PEOPLE

BROKER INSIGHT

A foundation of trust Broker Financial Group’s Jeff Ames started out as an insurance broker, but wanted more. He found his true calling in the mortgage business, where his client-centric approach has netted big dividends

CMP: How did you get into the mortgage brokering business? Jeff Ames: I was an insurance broker, and my previous brokerage also had a mortgage division. I wasn’t passionate about insurance and wasn’t as successful as I would have liked, and was interested in a change. I figured why not try the other side of the business, and I knew instantly it was for me. I gave up my life licence and focused solely on mortgages. In all honesty, it was more about trying to make a living at that point. Since then, I’ve continued to grow year over year.

CMP: Something has obviously kept you coming back. What about the mortgage business appeals to you? JA: From a personal perspective, it gives you freedom to be your own boss – which is what I’ve always enjoyed doing. I previously worked in sales at BMW and owned a catering company overseas. I’ve always been employed in service-oriented fields and truly want to help people. I also enjoy knowledge sharing; it’s a powerful tool. From the business side, the earnings potential in this business is limitless. This is attractive and motivating.

CMP: We’ve talked about the most appealing parts of the business. What’s the most challenging part of the business, in your opinion? JA: Starting out, it was definitely sourcing clients and connecting with the right referral partners. Now I would say my biggest

challenge is time management – allocating the right amount of time to each aspect of the business. This is where being wellorganized and having the right systems in place really help. We know which activities are most profitable, but you can’t neglect the day-to-day running of the business as well.

CMP: What are the secrets to your success? JA: Understanding competitors’ products inside and out, and sharing this information with bank customers. Once you can intelligently inform the client about mortgage fine print and explain to them common bank pitfalls they may fall into, you’re on the right path to success. I think empathy also goes a long way; clients trust you when they know you genuinely care.

CMP: What keeps your clients coming back? JA: Great question – I’m going to ask more clients this. I believe it’s the trust factor in knowing I’m truly looking out for their best interest and providing proven strategies and guidance. Actively managing my

clients’ mortgages and keeping in touch, in a nutshell. I know people who have a $25,000 RRSP and want to speak to their financial planner every quarter – but when it comes to their $400,000 mortgage, they take a ‘set it and forget it’ approach. I think they appreciate the fact that I reach out to them and have a rapport, and they know I will always be there when they need me.

CMP: Do you feel that there’s anything that more brokers should be doing? JA: Overall I think we do a good job as a whole industry. But I see a lot of brokers just waiting for the next deal to come across their desk instead of nurturing and growing their database. At Broker Financial, we have a state-of-the-art CRM platform that allows seamless client monitoring and relevant touch points. It’s no secret that clients want to and expect to hear from their mortgage advisor. Repeat business and servicing existing clients should be a top priority. Number two – stop competing solely on

CANADA’S NEWEST NETWORK Broker Financial Group was established just last year. Within its first six months of operations, it had already become one of the fastest-growing mortgage broker networks in Canada, rapidly closing in on more than 400 agents. While it’s still a young company, BFG intends to take the industry by storm, according to owner Jason Singh. “Basically, we’re coming out with a lot of auxiliary products,” Singh says. “We’re trying to revolutionize the mortgage industry in a lot of ways.”

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FAST FACTS

“With market conditions and mortgage regulations changing rapidly, it’s a great opportunity for us to shift our mindset away from being merely salespeople”

EXPERIENCE Residential mortgages Commercial mortgages Construction Reverse mortgages Investment properties First-time homebuyers

CAREER TIMELINE

1994 Attends George Brown College in Toronto, majoring in business and captaining the hockey team

2007 Becomes an advisor for financial services firm Sun Life Financial. Finding his work as an insurance broker unrewarding, he jumps ship to mortgage brokering rate. It’s a game you aren’t going to win and a race to the bottom. It’s about strategy and educating clients about how to achieve the lowest cost of homeownership. If you can produce a sound game plan and articulate the potential risk of some of the products on the market, you are now an advisor and not an order-taker, and rate is now just another piece of the puzzle.

CMP: If you had a business philosophy, what would it be? JA: Treat others as I would expect to be

you feel it’s a good time to be in the mortgage industry right now? JA: I do. There are many opportunities out there for us to be successful. With market conditions and mortgage regulations changing rapidly, it’s a great opportunity for us to shift our mindset away from being merely salespeople, into being advisors and business owners who offer value to our referral partners.

treated if our roles were reversed.

CMP: So when you’re not at work, what are you likely to be doing? JA: I’m an avid golfer, yogi and news junkie.

CMP: Given current conditions, do

I have a young son and beautiful wife that I’m lucky to go home to every night.

2007 Joins Safebridge Financial Group, where, over the next eight years, he builds a reputation as a top mortgage agent. Safebridge founder Chris Karram calls Ames “one of the fastest-growing stars in our firm, and the mortgage industry as a whole”

2015 Joins the newly created Broker Financial Group as a mortgage agent

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FEATURES

MARKETING

6 powerful marketing videos to grow your business If a picture tells a thousand words, then video is … priceless! Marcus Seeger presents six of the most powerful and effective marketing video concepts that have been proven to create a steady stream of leads and profitable sales for businesses just like yours

Promotional video

The promotional video is the most common and powerful video and is typically on the homepage of your website. If you only make one video, then this is the one most people will make. A promotional video is a fantastic opportunity to present your unique selling proposition, or USP. Often, the first contact a customer has with your business is your website’s homepage. Ninety per cent of customers who land on your site will prefer to watch your video rather than read text. The key to making your promotional video successful is to engage your audience, and this can be done with a story. Let them know who you are and how you best serve your customers. Consider this message as coming from a customer’s perspective, and avoid the

words ‘me,’ ‘mine,’ ‘I’ and ‘we’ – it’s not about you! By simply focusing on how your customers can benefit from your product or service, you will increase your promotional video’s effectiveness. The promotional video can be quite broad; it gives your customers a general overview.

Products and services video

In this video, it’s important to start to drill down and provide more specific information about the benefits of your products and services. The success of this video is largely determined by how well you can communicate the ‘what’s in it for me’ information. Again, approach this video from your customer’s perspective. It is very common for us, as experts in our field, to over-complicate information. Keep your video as simple as

possible, and focus on the benefits rather than what your products or services are.

About us video

Testimonial video

Typically, a website will have an ‘about us’ page that is full of text and only talks about themselves – what a waste of time! If your competitors are doing this, then you are in luck, and I encourage you to start working on your ‘about us’ video right away. The ‘about us’ video is actually not about you at all, but is about the customer. The trick with a successful ‘about us’ video is to focus 100% on reinforcing and clearly demonstrating your USP. It is important to move as far away as possible from talking about yourself and focus instead on the benefits your valued customers receive when they do business with you.

We all know that testimonials are valuable, and they do help potential buyers arrive at the decision that you’re a safe,

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reliable and trusted business. However, what we’ve seen to date is mainly text-based testimonials, sometimes with a photograph, which makes them a little bit more believable, but most people these days are quite skeptical about the authenticity of these testimonials. If you replace these with video testimonials of live people, then it’s going to be extremely powerful for you. Your customers are far more likely to believe these testimonials and see them as valued sources of information, and they will positively impact their buying decision.

Social video

Have you noticed a steady increase in video content on popular social media sites? This is considered by many to be the year of social video, so it’s a good time to take advantage of this trend. For example, Facebook is rapidly growing its video capabilities. According to the company, since June 2014, there have been more than 1 billion video views on Facebook every day, on average.

Your customers are far more likely to believe video testimonials and see them as valued sources of information, and they will positively impact their buying decision With the auto play feature, videos are now even more engaging. You could consider posting Facebook video ads, publishing videos to engage your fans or perhaps even creating user-generated content by running online competitions.

Video email

The statistics around video emails are compelling. For example, simply using the word ‘video’ in an email subject line can boost open rates by 18.5%, click-through rates by 65% and reduce unsubscribes by 26%. Instead of sending a lengthy sales email in response to an inquiry, you can send a single video or a series of informative videos that add value and position you as

somebody your new lead would like to do business with. It is quite likely that very few of your competitors are investing in video emails, and by doing so yourself, you will stand out from the crowd, and your customers will see you as being innovative. Of course, I would encourage you to try to create all six types of videos for accelerated results.

Marcus Seeger is the number-one Amazon bestselling author of Video Marketing for Profit: 14 Proven Strategies for Accelerated Business Growth. Seeger is managing director of the video marketing and production agency Video Experts.

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FEATURES

PRODUCTIVITY

Why monotasking is the new black

Forget multitasking – we need to narrow our focus to become more efficient and stay mentally fit, according to brain expert Dr. Jenny Brockis

SURVIVING IN the crazy, busy modern workplace has resulted in our adoption of some new strategies designed to save us time. The problem is that no one appears to have done the necessary checks to see that these actually work. The one strategy most widely adopted has turned out to be the worst performance-enhancing strategy ever, because it requires us to use our brain in ways it wasn’t designed for. Yes, multitasking is the biggest new brain myth on the block. It’s time to get rid of it and replace it with a far more efficient method of getting more done – monotasking. Multitasking is trying to focus on more than one thing at a time. Sure, you can drink a coffee while walking along and talking to a colleague, crossing the road and taking a selfie, but you‘re not paying focused attention to any one of those things, including your colleague.

One of the reasons multitasking has become so pervasive is because everyone’s doing it, and ticking off items on our to-do lists makes us feel good – which adds to the delusion. We know using our mobile phones while driving is dangerous, yet more than 70% of us admit to doing it. We ignore the risk because multitasking has become the ‘norm’; it’s considered a basic work requirement. We even post job listings that say that multitasking skills are desired. Multitasking fragments our attention – a quick email response here, a two-minute conversation there. We skim information and only grab the headlines. The outcome? The cognitive cost includes poorer memory, mental fatigue, and reduced efficiency, effectiveness– and innovation. We make more mistakes, and we miss opportunities. Overall, multitasking puts us at increased risk of burnout, damaged relationships and

WHY MULTITASKING FAILS When we attempt to multitask, our obliging brain attempts to help by giving one task to each hemisphere. The trouble is, the brain can still only pay attention to one at a time, so the brain task switches very, very fast, giving us the illusion that we are paying attention to two things simultaneously. This can be made more obvious when we look at optical illusions. What do you see in this picture, a native chief or an Inuit?

poorer performance; it’s hardly the time- and energy-saving solution we thought it would be.

What’s going on in the brain when we multitask? One of our brain’s primary functions is to keep us safe; we scan our environment every one-fifth of a second on the lookout for changes. The brain loves patterns and things that are familiar, because the implication is that this is a safe place. Our selective focus has developed so we pay attention to what is most important to us at any given moment while being alert to other things happening on the periphery. When we direct our focused attention, we use part of our prefrontal cortex, the highly specialized part of our frontal lobes used for higher-order executive thoughts such as planning, organizing and regulating emotion. This area has what can only be considered a couple of design flaws: It’s small, highly demanding of energy and can only handle a small amount of information at any one time. That’s why the number of thoughts we can hold ‘front of mind’ at any given time is around seven. As the ideas get more complex, the space available reduces. When it comes to focused attention, there is only room for one. Multitasking is the one brain function that the more we practice, the worse we get. It has been shown that chronic media multitaskers fragment their attention so much that they perform worse even when trying to monotask. It has been estimated that multitasking causes us to make up to 50% more mistakes and take 50% longer to complete our work, equivalent to roughly a 25% drop in

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individual productivity over the course of the day. An innocuous two-minute interruption can translate into 24 minutes before you get back to where you were before your train of thought was broken. No wonder some days we can feel we’ve gotten nothing done, yet are exhausted. Multitasking in an organization reduces performance further – for example, when we are kept waiting for a piece of work by a multitasking colleague or need a decision to be made to move forward on a new project, so we end up starting something else. We cannot multitask even if we are young, if we are female, if we are Clark Kent or if we like wearing our underpants over our trousers. Multitasking is multi-failing unless you happen to be one of the 2% on the planet who are supertaskers and whose performance gets better the more they multitask. (If you haven’t undergone the cognitive tests to prove it, your belief in your ability to multitask is most likely delusional – research has shown that those who believe they are really good at multitasking perform the worst overall.) The way to get rid of multitasking is to stop doing it. But just like giving up any habit, such as smoking, it’s not always easy, especially if we are under pressure; the temptation for

the brain is to default to the survival route it thinks works best. Here are four ways to move away from multitasking:

Introduce monotasking into the workplace

While we can all try to limit our multitasking tendencies individually, the need is to reduce organizational multitasking, which has to come from the top. Making monotasking the preferred way of doing things gives everyone permission to follow suit.

Prioritize your priorities

Communicate your priorities

Take 10 minutes at the end of the working day to determine your top three most important and urgent tasks for the next day, and list them in order of priority. Shove everything else into a holding pen – those items can wait. The next day, start on your top priority first and don’t move to the second item until the first is completed.

In the office, make sure everyone is on the same page and knows which priorities have been agreed on so that there is no temptation to start on something else. This will boost completion rates.

Practice monotasking

Choose one activity, close the office door, switch your phone to silent, avoid all interruptions and work on just that one activity for a specified amount of time. Monotasking leads to more work being completed more quickly and to a higher standard. Completing our work well feels rewarding, resulting in the brain secreting more dopamine, making us feel good and motivating us to repeat that rewarding activity. Emotions are contagious, so when we are feeling good, others will too, and the working atmosphere becomes more positive and vibrant. Being in a more positive mood opens our mind to more innovative and creative thinking – making it easier to solve more problems and make good decisions. Working with our brain in the way it was intended is not just a better way of working; it also leads toward creating a high-performance workplace.

Dr. Jenny Brockis is a medical practitioner, specialist in the science of high-performance thinking and author of Future Brain: The 12 Keys to Create Your High-Performance Brain.

www.mortgagebrokernews.ca

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Years celebrating excellence in the canadian mortgage industry

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

NOMINATIONS NOW OPEN! BROUGHT TO YOU BY:

Friday 13th May 2016 The Liberty Grand | Toronto

We would like to thank our Partners:

ORGANISED BY

MEDIA

速

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PEOPLE

CAREER PATH

COMMUNITY COMES FIRST For Graeme Moss, success isn’t just measured by how many mortgages he funds, but also by how much he can help those in need 2015

RECEIVES NOMINATION FOR COMMUNITY SERVICE AWARD Moss’s passion for helping others continues to earn him accolades; last year, he was nominated for the CMA Community Service Award “I’ve been working hard and innovating – not just in mortgages, but by fusing my mortgage business with other passions such as social justice and volunteer work”

2013

2014

WINS ALTERNATIVE BROKER OF THE YEAR In 2014, Moss won his first CMA award for Alternative Lending Broker of the Year (Complex Work) – an event that was especially momentous because his daughter was able to attend the awards ceremony with him

2012

BECOMES AN ADVISOR TO FOOD BANK CLIENTS

STARTS MADDY’S ROADMAP

Moss continued to help those in need by starting a pilot project with Mission Services designed to give financial, life, technical and legal advice to people using their food banks. The project proved to be a real eye-opener for Moss

“We all have ups and down at work, but volunteering here clarified how much I had to be grateful for; I’ve got no reason to complain. I was surprised by clients who said that they were surprised to be treated with respect and dignity” 2000

MOVES TO INVIS

After more than a decade in the industry, Moss founded Maddy’s Roadmap in order to bring his expertise to those who normally couldn’t afford it. The nonprofit is designed to provide the general public with financial recommendations and solutions – specifically for difficult situations that require strong focus and a nonjudgmental attitude “Roadmap is majority owned by its employees, and believes strongly in advocating for families and providing solutions to every situation imaginable”

2005

OPENS VERICO FAIR MORTGAGE SOLUTIONS After several years at Invis, Moss heard the siren song of independence and decided to open his own brokerage, where he sought to create a better working environment. Despite plenty of naysayers, Moss managed to do just that “I was told many times that I would not do well, that it was too competitive and I would fail. In fact, I was told hundreds of times I was a nice guy, but would fail. I think this is a great place to work, and if you could measure happiness and job satisfaction, we have to be pretty high”

A couple of years later, Moss moved over to Invis, which marked his first real stepping stone to the mortgage stream. At Invis, he worked as a mortgage agent and took the Canadian Securities Course “I enjoyed my time there and learned a GETS FIRST MORTGAGE JOB lot as an agent”

1998

Graeme Moss’s first foray into the mortgage world was at CIBC. He started in investments, but soon moved over to mortgages, even though he had to take a pay cut to do so “I was salary, then went to commission, so it was a big change. In a short time I did very well, even though I was totally green to financing; I had many people who helped me”

www.mortgagebrokernews.ca

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25/02/2016 9:23:00 AM

PEOPLE

OTHER LIFE

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

RAISING A GLASS What started as a passion for whiskey has turned into a way for Wojtek Kaszowski to win new mortgage business FINDING NEW clients isn’t easy, but Wojtek Kaszowski, the managing partner at MMA Mortgages in Toronto, has found a way to meet thousands of potential clients every week. In December 2014, Kaszowski and his mortgage partner, Adis Greco, opened the doors to CC Lounge, a prohibition-themed whiskey bar in Toronto. “Being an owner and being at the Lounge, people do call and refer friends and ask mortgage questions,” Kaszowski says. “One does work well with the other; where else can you meet 1,000 people a weekend?” While CC Lounge might steal the spotlight, MMA Mortgages remains Kaszowski’s baby. After a nearly decade-long career as a professional MMA fighter, Kaszowski decided to enter the mortgage industry with Greco, just as the market was heading into a recession. “We’re very determined people,” Kaszowski says. “We said, ‘Everybody’s getting out; let’s get in.’ We gave it a shot, and we’re still here.”

200

$700

The minimum number The cost of the most of whiskeys available expensive bottle of at CC Lounge champagne on the menu

The number of specialty cocktails listed on the menu

48 www.mortgagebrokernews.ca

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25/02/2016 7:46:08 AM

ATTENTION TOP TEAMS ARE YOU READY FOR A CHANGE? Our industry is changing; it’s becoming more competitive than ever before. The way you have done business in the past won’t cut it in the future. Unless you have a clear, decisive plan with a detailed roadmap on how to get you there, the most difficult years may lie ahead. We are actively looking for the very best teams in Canada with exceptional reputations with the lenders. If you are currently operating a team with volumes above $50 million, then we should talk. We will make you a very compelling offer and demonstrate that we are investing in this industry and in your future. You deserve to have the very best!

At Dominion Lending Centres we guarantee in 2016 your business will:  Fund more volume than last year  Attract top producers to your growing team  Be more profitable  Have more enterprise value  Cement you as a community and socially conscious leader

 Benefit from more than $15 million each year in media placements  Develop new and profitable income streams through vehicles such as DLC Leasing, Insureline home and auto insurance and Exclusive Lender products

We will cover ALL changeover costs. Plus, you will now have access to our national media campaigns; our Chief Economist, Dr. Sherry Cooper; specialized training from experts like Darren Hardy; concierge service; media training; and the peace-of-mind that you are now part of the #1 mortgage brokerage company in Canada.

Call or email me personally for a confidential discussion. LET’S MAKE THE NEXT 5 YEARS YOUR BEST 5 YEARS!

GARY MAURIS President Dominion Lending Centres 604.939.8777 Ext. 307 gary@dlc.ca

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

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25/02/2016 7:46:22 AM

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25/02/2016 7:46:27 AM