CMP 9.11 by Key Media

MORTGAGEBROKERNEWS.CA ISSUE 9.11 | $6.95

er s? k o r b da’s r busines a n a C n u a o c y p w l o e H sh k r o w net

TALKING HEADS INDUSTRY LEADER FORECASTS FOR 2015

4 1 20

10 ESSENTIAL LESSONS FOR BUILDING YOUR BROKING BUSINESS

REVERSE MORTGAGES 3 WAYS THEY CAN EXPAND YOUR REVENUES

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ISSUE 9.11

Contents MARKET MATTERS 6 | Editorial The condo market heats back up 8 | News analysis How brokers can win over repeat homebuyers 12 | Head to head Are independent brokers a dying breed?

November 2014

26 COVER STORY

Superbrokers

14 | Statistics Who’s hot and who’s not in September sales 16 | Reverse mortgage update Three ways brokers can take advantage of reverse mortgages 18 | Technology update The latest technology that will make your job easier

Canada’s top broker networks reveal their offerings on everything from commissions and lead generation to new technology

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ISSUE 9.11

FEATURES 20 | Network heads The heads of Canadaâ&#x20AC;&#x2122;s largest broker networks unveil their predictions for the coming year 50 | Producer profile Verico founder Graeme Moss on the power of giving back 54 | Industry icon A light-hearted approach translates into a winning formula for Dominion Lending Centresâ&#x20AC;&#x2122; Dale Bilton

STRATEGY 60 | 10 secrets of a small business owner After 15 years in business, Blaise van Hecke reveals her hard-won lessons

REGULARS 62 | Favourite things John Panagakos of Dominion Lending Centres Home Financial

2 | NOVEMBER 2014

58 STRATEGY

Lifelong learning Want to grow your business? Be prepared to never stop learning

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EDITORS LETTER

MORTGAGEBROKERNEWS.CA ISSUE 9.11 | $6.95

EDITORIAL

oker ss? da’s br ne n Canalp your busi How ca ks he networ

2014

GUN-SHY LENDERS RETURN TO THE BATTLEFIELD What a difference 18 months make. In January 2013, lenders both in and outside the broker channel were ducking for cover, fearful that the once indomitable condo market would collapse all around them. That, of course, didn’t happen, although their apprehension was understandable given the 53% dive in new condo sales across the GTA in December 2012. Prices were also under pressure, having slipped anywhere from 3% to 8% compared to where they stood a scant six months earlier. There was more to fret about: The unrelenting buzz of condo construction in Toronto, Calgary and Vancouver continued unabated, but slumping migrant numbers threatened to further slash demand in the face of increasing supply. None of that bolstered confidence in condos for gun-shy Canadian lenders, who retreated from funding development projects but also began to balk at funding individual condo purchases. Their fears meant broker condo deals were under growing scrutiny by underwriters, with a handful of smaller lenders directly or indirectly adding condos to their do-not-call lists.

“The unrelenting buzz of condo construction in Toronto, Calgary and Vancouver continued unabated, but slumping migrant numbers threatened to further slash demand in the face of increasing supply”

TALKING HEADS INDUSTRY LEADER FORECASTS FOR 2015

10 ESSENTIAL LESSONS FOR BUILDING YOUR BROKING BUSINESS

REVERSE MORTGAGES 3 WAYS THEY CAN EXPAND YOUR REVENUES

COPY & FEATURES MANAGING EDITOR Vernon Jones SENIOR WRITER Justin da Rosa JOURNALISTS Ryan Smith, Sam Richardson CONTRIBUTORS Ron De Silva, Gary Mauris, Eddy Cocciollo, John Kelly, Paul Therien, Cameron Strong, Mark Kerzner, Michael Beckette, Albert Collu, John Bargis, James Shinners, David Smith, Vawn Himmelsbach, Samo Ayoub COPY EDITOR Clare Alexander

ART & PRODUCTION ART DIRECTOR Daniel Williams GRAPHIC DESIGNERS David Calderon, Joenel Salvador, Marla Morelos

SALES & MARKETING ASSOCIATE PUBLISHER Trevor Biggs GENERAL MANAGER, SALES John Mackenzie MARKETING AND COMMUNICATIONS Claudine Ting PROJECT COORDINATOR Jessica Duce

CORPORATE PRESIDENT & CEO Tim Duce OFFICE/TRAFFIC MANAGERS Marni Parker, Kay Valdez EVENTS AND CONFERENCE MANAGER Chris Davis Editorial inquiries vernon.jones@kmimedia.ca Advertising inquiries trevor.biggs@kmimedia.ca

But they’re back – lenders, that is. ICICI is the most recent prodigal player to announce its return. The monoline, less than eight years in the channel, said last month that it would begin lending on high-rise condo units immediately. The decision comes on the heels of similar moves by four other broker lenders. Their return has everything to do with a soft landing for Canada’s condo market – September sales in Toronto actually rose 20% year-over-year, and prices ticked up seven points over the same period. Key centres across the country are mounting similar comeback stories, driven by demand that remains strong. The fact is, demand may actually get even stronger in the medium term as buyers find their dreams of owning a detached house, semi or even a stacked townhouse scuttled by soaring prices. The return of broker lenders to the condo sector promises to position brokers to claim a large chunk of the coming uptick in sales. Vernon Clement Jones Editor

6 | NOVEMBER 2014

Subscriptions tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca KMI Media 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 Canadian Mortgage Professional is part of a international family of B2B publications and websites for the mortgage industry Mortgage Professional Australia sam.richardson@keymedia.com.au T +61 2 8437 4787 Mortgage Professional America ryan.smith@keymedia.com T +1 720 316 0154 Offices in Toronto, Sydney, Auckland, Manila, Denver mortgagebrokernews.ca 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 IB magazine can accept no responsibility for loss

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MARKET MATTERS / NEWS ANALYSIS

FIRST-TIME BUYERS’ EXPERIENCE WITH LENDERS AND BROKERS Lender

54%

of first-time buyers arranged their mortgage with the financial institution they dealt with the most 67% for repeat buyers

First-time buyers are more loyal to their lenders than their brokers Lender users

Broker users

71%

44%

Stayed

27%

50%

Switched

80%

70%

of first-time buyers were satisfied with their lender 3 in 10 lender clients “totally agreed“ they should use them again

of first-time buyers were satisfied with their broker

BUT

48%

4 in 10 broker clients “totally agreed“ they should use them again

of first-time buyers arranged their mortgage with a mortgage broker 40% for repeat buyers Source: CMHC

8 | NOVEMBER 2014

WHO OWNS THE FUTURE OF MORTGAGE ORIGINATION THE SECOND TIME AROUND? As the housing market cools, the market for second- and third-time homebuyers is becoming increasingly important for brokers and banks Mortgage brokers have been fighting to make inroads with homebuyers who are buying second or third homes. While brokers tend to excel with first-time homebuyers, banks still lead in mortgage origination with second-time buyers. Broker share is, however, on the rise in most segments. Mortgage brokers accounted for 48% of all mortgage originations among first-time buyers, 40% among repeat buyers, 32% among refinancers, and 23% among renewers, according to recent statistics from the Canada Mortgage and Housing Corp. But those numbers may hide how dominant the banks have been with established buyers – those firmly entrenched in their institutions with savings accounts, RSPs, investments and insurance. Those established relationships have traditionally allowed them to win the kind of mortgage support from the big banks that many firsttime buyers struggle to secure. That’s unlikely to change, say analysts, with mortgage volumes across Canada shrinking some 5% this year relative to a more booming 2013. Indeed, the latest housing starts numbers suggest developers have already moved to anticipate dwindling numbers of first-time buyers, with CMHC projecting a drop-off of more than a thousand housing starts in 2015. At the same time, they are projecting resale transaction numbers to climb, as first-time buyers become repeat buyers. The slowdown suggests banks will fight even harder to retain existing clients as they move to buy second or third homes, leveraging the equity they currently hold in existing properties. That isn’t to say there isn’t opportunity there; recent CMHC research suggests brokers continue to win in their follow-up with clients after origination, with an

“[Mortgage brokers] are the experts in the business, but unfortunately we don’t have the market share; we don’t have that critical mass yet”

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MARKET MATTERS / NEWS ANALYSIS

BROKERS’ MARKET SHARE: GETTING THERE...

50 40 30

“With their bank, [borrowers] have limitations. We have several different lenders with different appetites”

20 10 0%

48%

40%

32%

23%

First-time homebuyers

Repeat homebuyers

Refinancers

Renewals

average of 49% of brokers checking in with clients after they have placed them in a mortgage. That’s consistently better than the follow-up provided by banks, with only some 41% of clients pointing to adequate lender attention once they’ve signed on the dotted line. Compounding the problem for brokers is the omnipresence of the banks and the brand reputation they enjoy in small-town Canada. “[Mortgage brokers] are the experts in the business, but unfortunately we don’t have the market share; we don’t have that critical mass yet,” says John Panagakos, principal broker with Dominion Lending Centres Home Financial. “The banks do, with their bricks-and-mortar and thousands of branches across the country.” Brokers who are already entrenched in the business are starting to make inroads through their existing client base, as well as their clients’ friends, family and associates. Building a database of satisfied firsttime homebuyers will help brokers get a piece of the market for second- or third-time buyers – sometimes indirectly. Panagakos has built his business on first-time homebuyers and their referrals. But he says he’s “very good at converting people” who are entrenched with the banks over to the broker channel, including those who are buying a second or third home or a cottage property. He also tries to encourage clients who’ve built up equity to refinance, to take some money out and buy an investment property. Sometimes brokers benefit from people’s bad experiences with the banks. “To be honest, sometimes there’s disenchantment with the banks,” Panagakos says. “We are mortgage brokers, specialized in mortgages 12 months of the year. We don’t have RSP season 10 | NOVEMBER 2014

Source: CMHC

… we focus on this 12 months of the year.” If homeowners are disenchanted with their existing lender, he counsels them to weave through the bank’s policies, because they’ll likely be hit with a big penalty if they move. “There’s no way I’m going to move that client to another lender, and they get a big penalty so I get a commission,” he says. Even though he might lose out with this strategy in the short-term, he believes in the end it works out — those people will come back a few years later, or they’ll recommend his firm to their friends and family. There are other reasons, too, why a borrower might consider a broker instead of a bank. Some banks won’t lend money for investment properties. “The banks are not ahead of the game in this area,” Panagakos says. He has clients come to him who want to buy a third or fourth home, but their bank won’t lend to them because there’s a critical mass with one lender. “There may be a niche for that customer,” he says. A homeowner’s employment history plays a role, too: The longer a client has worked with one employer, the easier it is to qualify for a second mortgage. Brokers, however, tend to be more willing to take on self-employed contractors, whereas ‘selfemployed’ has become a dirty word with bankers, Panagakos says. Ultimately, though, it comes down to choice. On average, brokers present 2.4 offers from different lenders, according to the CMHC. “With their bank, they have limitations,” Panagakos says. “We have several different lenders with different appetites.” And that, in the end, might win over a client who wants to find the best deal the second time around.

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HEAD TO HEAD

Are independent brokers becoming extinct? Superbrokers may boast about their individual value propositions, but there’s still a niche group of brokers who choose to do things their own way. We asked three leaders in the independent space if they think independent brokers are a dying breed

JOHN BARGIS

DAVID SMITH

JAMES SHINNERS

Vice President MORTGAGE EDGE

Director ORIANA FINANCIAL

President THE MORTGAGE MANAGERS

“Not a chance. The broker industry was built on independence, and this will become more apparent to the masses as time goes on. There are many examples of independents who do a great job on a local level by concentrating on building real value, as opposed to perceived value. My suggestion to independents and those considering independence is to stay tuned for the introduction of several tools and programs that will give them a refreshing outlook. Brokers and agents need to concentrate on developing their own independent brand for best results.“

“I don’t think we’re a dying breed. Oriana Financial has grown, and it continues to grow. We’re managing to do almost $1 billion in the Toronto area. We are far more productive than the average broker at any of the super brokerages. We think our culture is one of support and familiarity, and it engenders a sense of belonging that translates into the kind of well-being that makes for a very productive agent. And our numbers speak for themselves. We’re too busy to look around to see what the future holds for both independents and superbrokers.“

“I think more brokers should go independent. We not only have all the same mortgage products that superbrokers have, but we also have a broader range of mortgage-related services that offer improved cash flow. Our particular brokerage has a unique residual-income-based commission structure that none of the superbrokers have, which provides our team with an additional income stream. At the end of the day, it’s not about being part of a big team; it’s about being the best broker you can be for your clients.“

Got an opinion that counts? Email mortgagebrokernews@kmimedia.com, or join the discussion at www.mortgagebrokernews.ca/forum

12 | NOVEMBER 2014

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STATISTICS / RESIDENTIAL SALES ACTIVITY

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Business has boomed for brokers in four areas, but not all industry players fared as well in September September saw significant sales spikes in a number of disparate housing markets, each of which contributed to a bounce-back for fall’s first month. In terms of year-over-year sales activity change, Prince Edward Island (+24.8%), New Brunswick (+23.5%), Saskatchewan (+18.3%) and British Columbia (+17.5%) led the way in September. Meanwhile, four other markets didn’t perform as well. Northwest Territories (-57.1%), Yukon (+5.0%), and Newfoundland and Labrador (+4.4%) distantly trailed the month’s leaders. “Affordably priced single-family homes are in short supply in some of Canada’s hottest housing markets, which contributed to the monthly decline in national sales activity in September,” said CREA president Beth Crosbie. “That said, there are other markets with ample supply, but sellers there are holding firm on price. There is a lot of variation in housing-market trends, depending on the type of housing, neighbourhood and price segment. Meanwhile, Canada as a whole saw a yearover-year sales change of +10.6%. “Sales activity and prices in the third quarter were up compared to the second quarter, although momentum going into the fourth quarter is showing tentative signs of waning,” said Gregory Klump, CREA’s chief economist. “The continuation of extraordinarily low mortgage rates has been and will continue to be the key support for home sales activity amid continuing price increases in some of Canada’s most active and expensive urban centres.” 14 | NOVEMBER 2014

33.1% 34.3%

200% Grande Prairie

29%

Okanagan-Mainline

Thompson Saskatoon

TOP CITIES

Sales Activity

(year-over-year percentage change)

MORTGAGEBROKERNEWS.CA

HOT TO COLD: SALES ACTIVITY BY PROVINCE (year-over-year monthly percentage change) Source: CREA

Prince Edward Island: +24.8

+10.6%

New Brunswick: +23.5 British Columbia: +17.5 Saskatchewan: +18.3 Nova Scotia: +12.7 Alberta: +10.3

Overall Canadian sales activity

Quebec: +9.6 Manitoba: +7.8 Ontario: +7.6 Yukon: +5.0

36.7% Northern New Brunswick

Newfoundland and Labrador: +4.4

162.5%

Northwest Territories: -57.1

60.8% Yarmouth Chatham-Kent

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REVERSE MORTGAGE UPDATE

NEWS BRIEFS

>> HOMEQUITY BANK’S CHIP HOME INCOME PLAN Brokers are adding HomEquity Bank’s recently launched reverse mortgage plan specifically for Canadian senior citizens to their list of go-to products. The product allows clients to access 50% of the value of their home, and allows them to maintain ownership while freeing up capital that will allow them to avoid having to sell. The cash is tax-free and paid in monthly installments or as one lump sum. >> SHANGRILOAN LAUNCHES ONLINE REVERSE MORTGAGE GUIDE ShangriLoan Ventures announced its recently launched ReverseMortgageGuide.ca, a resource dedicated to educating Canadians about the merits of reverse mortgages. “With more older Canadians becoming interested in ways of tapping the equity in their homes, we are excited to launch ReverseMortgageGuide.ca as a way of answering all of the most common questions,” said ShangriLoan Ventures representative Kam Brar. According to a recent study by McKinsey & Company, some 40% of Canadians will face significant financial difficulties during retirement age. And with many brokers extolling the benefits of reverse mortgages, they can now direct clients to this new educational website.

“Ninety-one per cent of Canadians don’t want to move out of their neighbourhood or even sell their home during retirement” Jeff Spencer, HomEquity Bank

16 | NOVEMBER 2014

News and analysis on Canada’s

THREE TOOLS IN ONE

Brokers should look further than their own clients to use reverse mortgages to their fullest, says Jeff Spencer of HomEquity Bank Jeff Spencer wants brokers to think of reverse mortgages as a product that can serve three different purposes. The first, and most obvious, is to place clients in a reverse mortgage to free up cash in retirement. Savvy brokers will take it one step further, however. “The second tool for mortgage brokers is to use it as an education tool for Realtors,” says Spencer. “What many people don’t know is that you can get a reverse mortgage on purchase.” The benefit of using reverse mortgages at the time of purchase is that clients know they will qualify, says Spencer. As long as the client has a quote on the property and the loan-to-value they are eligible for, it puts them into a position to make a cash offer. “Ninety-one per cent of Canadians don’t want to move out of their neighbourhood or even sell their home during retirement,” Spencer says. “So they consider downsizing when it’s not what they want to do. What we tell brokers to do is suggest a rightsizing instead of downsizing. Rightsizing is an exercise in being able to deliver what the client wants: a slightly smaller property, more affordable, but in the same neighbourhood.” The third target area for brokers is to use reverse mortgages to strengthen relationships with financial planners. “We suggest brokers get out and talk to their financial planning partners and educate them about reverse mortgages as a retirement tool,” Spencer says. “It’s a way for financial planning clients to diversify. They are also a great bridging tool when preparing for retirement.” To illustrate the effectiveness of reverse mortgages for Canadians at retirement age, Spencer cites a case study HomEquity Bank assembled: • A client couple (both 63) with a net worth of $2.8 million • Home worth $1.3 million • $1 million in their RSP • $500,000 in non-registered assets • Target $100,000 income per year for the rest of their lives “At a conference with financial planners, we asked if they thought this couple would be a good candidate for a reverse mortgage, and not one hand went up,” Spencer says. However, with the couple projected to live until 90, their investments will run dry at age 84 if they don’t utilize their home. “Taking out a reverse mortgage would also result in $140,000 higher net worth,” Spencer says. “They take less out of their portfolios, and the savings in tax will more than make up for the interest of the mortgage.”

MORTGAGEBROKERNEWS.CA

reverse mortgage market

BROKER Q&A

Two brokers share their thoughts on the necessity of reverse mortgages MARK INGRAM DOMINION LENDING CENTRES DRAKE ENTRUST MORTGAGE

CMP: What is the main benefit of suggesting a reverse mortgage? Mark Ingram: The primary benefit to me is knowing that I have offered a solution to my clients that they likely have not considered. The average couple doesn’t realize that there are options available other than selling their home.

CMP: Why did you first decide to suggest reverse mortgages to your clients? MI: I remember the older version of the STEVEN BROUWER DOMINION LENDING CENTRES DRAKE ENTRUST MORTGAGE

reverse mortgage that wasn’t well received. Most people, myself included, believed that taking a reverse mortgage was no different than signing away your equity. When a good friend, Chris Hoeppner, went to work at HomEquity Bank, he introduced me to the world of reverse mortgages. Steven Brouwer: I had a couple who had significant equity but limited monthly income, and they needed a new roof and furnace. CHIP was there, and it helped them stay in their home.

CMP: What are some of the reasons you offer reverse mortgages to your clients? MI: There are several reasons I look to reverse mortgages as a solution for my clients. First and foremost is debt consolidation. Next would be assisting them in the preservation of their investments while creating additional cash flow. Finally, helping clients purchase the dream home in the dream location they have always wanted for their ‘golden years.’ SB: There are so many reasons: Clients see the benefit of not having payments, or taking equity out on a monthly basis and not getting taxed on it, or tax planning with their children on how to best plan for the future.

CMP: What feedback have you been receiving from your clients who have used a reverse mortgage? MI: I get more positive feedback from clients after they have used a reverse mortgage than any other product I have. I believe it is because generally I have helped them satisfy a ‘need’ rather than a ‘want.’ SB: It’s a great solution that has some significant upsides.

CMP: Why do you think some mortgage brokers still don’t offer reverse mortgages? MI: Most brokers don’t spend the time to learn about the benefits of a reverse mortgage. If you don’t know what you’re talking about, how can you expect anyone to trust you? I think my gray hair helps when I’m speaking with someone, too! SB: Lack of education.

CMP: What type of client would you recommend a reverse mortgage to? MI: Any clients who own their home and are now faced with financial questions. Selling the family home or a secured line of credit are no longer the only answers. SB: Anyone over 60 (or 55) who needs a mortgage solution but has a limited ability to pay.

CMP: How has offering reverse mortgages helped your business? MI: It’s one more tool in the belt. As the baby boomer generation moves into their 60s and 70s, we need to be able to provide solutions that are designed for them and the lifestyle they have worked so hard to attain. SB: It rounds off a full selection of mortgage options for all of our clients. NOVEMBER 2014 | 17

The latest from the world of mortgage

TECHNOLOGY UPDATE

ECLOSINGS: THE

BITS & BYTES tellers, they’ll be “financial service associates” who will be equipped to help clients navigate the various technologies. >> CMP POLL CMP asked brokers which of this year’s hottest pieces of mortgage technology are the most important to them. This is what they said. >> NETWORK PARTNERS WITH TERANET One leading network has entered into an exclusive partnership with Teranet’s Purview system to offer a free valuation tool to its brokers across the country. “This DLC-exclusive PVS tool is just one more way we’re investing in technology to ensure our network is always equipped with the very best means to get deals done quickly and efficiently,” DLC President Gary Mauris said in an official release. “Dominion Lending Centres’ head office has covered the costs of this advanced valuation tool to provide access to this technology to our mortgage professionals, no matter where they’re doing business from coast to coast.” The system went live for DLC in October; it gives brokers access to the same info lenders use to determine housing valuations.

13%

20%

Social media

Canada Post

Online faxes

Revodoc

53%

E-newsletters and e-cards

>> THREE MOBILE APPS THAT SHOULD BE IN EVERY BROKER’S REPERTOIRE Assuming you have a smartphone – and you should – we’ve rounded up three apps to help you work smarter in 2015. >> REP-LESS BANK BRANCHES One big bank is opening completely tech-based branches – devoid of any human employees – at various locations in Canada and the U.S. Could similar technology someday be used to replace mortgage brokers? TD Bank’s teller-less branches will be equipped with new technology that will allow customers to carry out various bank-related needs, from depositing cheques to inquiring about mortgages. However, the bank will still employ actual people within the branches – instead of 18 | NOVEMBER 2014

Brewster: Like an instant Rolodex, Brewster draws from Facebook, Twitter, LinkedIn and your email to develop full-fledged contact information. Here on Biz: This app brings those contacts (or your LinkedIn contacts, at least) to life, informing you whenever one is close by. The app even allows you to facilitate a meeting. HootSuite: It combines your social media accounts, making it easy to post updates and messages to multiple accounts from wherever you are.

“You must attend.” It’s the familiar mantra of old-school brokers pointing to the need for their presence at the closing table. That process is part ceremonial signing, but it’s just as much about ensuring the final mortgage documents mesh with the commitment letter, increasingly hard-won by the broker. Still, for newer brokers, the closing process is one they are more and more prepared to skip, leaving the client and their lawyer to oversee the process. But if new developments in the U.S. are transferred over to the Canadian market, closings could be expedited, effectively bringing brokers back to the table. The Consumer Financial Protection Bureau in the U.S. has launched an eClosings pilot program to explore how bringing more technology to the closing process will affect customer understanding and engagement, and whether it will save time and money for consumers and lenders. The program was announced following a CFPB report on “pain points” borrowers experienced during closing. Many borrowers echoed the complaints of brokers on this side of the border, suggesting the process simply doesn’t allow enough time to review closing documents; many said they hadn’t seen the paperwork until they arrived at the closing table. “Consumers reported feeling pressure to rush through the paperwork and sign – even when they did not understand the terms,” the report found. Borrowers also said they faced overwhelming stacks of paperwork during the closing process. Some of those forms were intended to help the consumer understand the costs and risks of getting a mortgage – but others were included by the lenders to cover their own legal risks, and still others fulfilled various state, local and federal requirements. And most of those forms were “full of legalese and technical jargon,” according to the CFPB. Consumers also complained that frequent errors in closing documents led to delays in closing as agents had to redo the entire package.

MORTGAGEBROKERNEWS.CA

technology

NEXT FRONTIER? CFPB Director Richard Cordray says he hopes the eClosing program would mitigate some of those headaches. “We believe that eClosings have the potential to create a better process for everyone involved,” Cordray says. “This eClosing pilot project will provide valuable insight as we work to improve the closing experience for consumers.” “Paperless lending is the future for our industry,” says Chris Ayoub, COO for pilot program participant DocMagic. “We can drive costs out of the equation for lenders and give borrowers the experience they’ve been seeking in the home finance process.” Sharon Matthews, president and CEO of program participant eLynx, says eClosings are another step toward a loan process where all the documentation is created, filled out and stored electronically. “The CFPB’s focus on closings will accelerate

“Paperless lending is the future for our industry” the industry’s progress towards eMortgage,” she says. Canadian lenders are already closely following the developing pilot program south of the border, with an eye on implementing a similar online system in Canada. It would likely fall to monolines to follow suit with brokers primed to embrace the new technology. And for their part, brokers believe such technology would be immensely beneficial in organizing files and expediting deals. “It can be difficult for clients to manage all the paperwork … and we’re trending toward eClosings,” says Luke Wile of Redkey Mortgage. “We started out printing all the documents and now we use PDFs to maintain everything but we haven’t gone fully digital with eClosings yet.”

Q&A: TECHNOLOGY AS A BRIDGE BETWEEN PEOPLE Philip Slen is CEO and designer of the Revo Mortgage Collaboration System CMP: Is there an emerging tech trend that brokers and their lenders can’t afford to ignore right now? Phillip Slen: Brokers need a more secured and efficient way to gather customer data and protect them once in their custody. Emailing documents or storing them on local PCs or foreign servers puts that data at an inherently higher risk level. Lenders need make it easier for brokers and help them maintain that chain of custody when documents are transmitted back and forth. With data theft and security breaches getting more coverage, such an event in the mortgage industry would have a tremendous negative impact.

CMP: Brokers have been pressing for technological revolution at the originations level. What are the major technological changes that need to take place in this regard? PS: The first technological change needed is more technology competition in the mortgage industry. Healthy competition invariably leads to better technology advancements and innovations. Lenders need to invest and adapt to web technology for document exchange and fulfillment. If online banking transactions are secured, then mortgage documents and transmission process can be secured as well. Second is adopting a mortgage workflow platform brokers and lenders use for application underwriting, broker interaction and communication, documents, and due diligence checklists. This would eliminate the use of disparate systems on both sides and foster a much more interactive and closer working relationship.

CMP: What else should networks be doing to improve CRM portals for both brokers and existing clients? PS: Broker network portals need to help brokers institutionalize their customer data more. Their systems must be designed and function with what a mortgage broker does. The entire life cycle of a mortgage application must be captured, all the way to funding and after-sale service. The disconnect right now is that brokers are left to seek out their own workflow and document management tools. Many of these tools were not designed for mortgage brokers. Client interaction with the mortgage process, from a technology perspective, is limited. Clients need to get their information and documents to and from the broker in a more efficient and secure way. Keeping clients in the loop and providing regular and relevant application status updates would go a long way in building trust and confidence that brokers operate in a highly professional manner is managing their customers’ files. NOVEMBER 2014 | 19

FEATURE / NETWORK HEADS

WHAT’S NEXT IN

2015?

The leaders of Canada’s superbroker networks make their forecasts on what’s ahead for the mortgage industry

RON DE SILVA

CEO RMAI Financial Group

fter a slower than expected start to 2014 summer and autumn sales have made up for the shortfall (and more) with great activity and volumes. In the next 24 months I see a softening of the market with pressure from changing legislation and rising rates. Having said that, the Pareto principle will still prevail: 20% of the brokers will still do 80% of the business, in boom times or bust. The brokers who will thrive are the ones who continue to focus on relentless prospecting, delivering superlative customer service, focusing on relationship building, stopping time-wasting and paper-pushing. Many brokers are still shying away from using technology and tools that could help them build their businesses into recurring lead-generating machines. Instead they are opting to ‘chase deals.’ I always maintain that if I had to build my personal mortgage business all over again, I would do many of the very same things I did back in ‘96. I would use all the technology tools available to create a system to maximize my available time. Then I would make proactive phone calls, send out ‘hello’ emails and network with my contacts daily. At the end of the day, regardless of market conditions, there will always be mortgage opportunities. So get yourself a comfortable pair of shoes and get out there and ‘press the flesh.’ You’ll be glad you did.

20 | NOVEMBER 2014

EDDY COCCIOLLO

GARY MAURIS

President Dominion Lending Centres

s an industry, we really need to ensure our forward focus is on providing unbelievable value and support to borrowers instead of getting caught up in ongoing price wars. In order to continue growing our market share, we collectively need to increase our exposure and impact. We can’t do this with rate buy-down models. We’ve been trying to ensure Canadians are educated on the value mortgage agents have to offer, but if we’re continually buying down rates, we’re focusing on interest rates as the most important aspect of a mortgage, which, in turn, continues to direct borrower attention to rates as well. Battles between brokerages over commission splits are a race to the bottom. This is a low-margin business, so brokerages that continually lower their profit margins are also decreasing the value they can offer their members. Much like mortgages aren’t only about interest rates, making money as a successful agent should not be based solely on commission splits. If you can make more money per deal by offering ancillary services, then you’re already giving yourself a raise worth much more than an added percentage or two to your commission per deal. If you have free tools and services available to you through your brokerage that enable you to stay in touch with your database, you’ve also given yourself a raise.

President The Mortgage Centre Canada

ust last week, at one of my son’s hockey games, a parent asked me what I do for a living, which is my favourite question. Proudly, I explained in detail what I do and what mortgage brokers do. She immediately said, “Oh, like that Gold Guy on TV?” I really felt offended, and this got me to ask myself: Can we as an industry say we are as professional as we claim to be? When we see commercials on TV that involve pawn shops that also deal in mortgages, is that the right message to send to the consumer? I’m saying that if those of us who believe we, the mortgage brokers, should be the mortgage provider of choice for Canadians – all Canadians – do we need to better our reputation? Look closer at how we govern the industry? Make this profession one to be proud of? Like our cousins in FP, insurance and banking, should our industry make changes, or is that the responsibility of individual businesses? We strive to be professional at The Mortgage Centre. We believe our people are the best in the industry and that our brand represents a professional, honest and trustworthy message to the public. We have guidelines that our franchises must adhere to in advertising, social media and client-facing collateral. We do this because we want Canadians to feel comfortable when receiving advice on the biggest financial decision that most of them will make in their lifetime. I hope you do, too.

MORTGAGEBROKERNEWS.CA

PAUL THERIEN

JOHN KELLY

COO VERICO Canada

ur market has had its challenges. The flip-side of these challenges is recognizing and leveraging the inevitable opportunities that arise. Canadian borrowers have never been more informed. But this glut of information has led to even more confusion as consumers try to boil down competing alternatives into direct comparables – namely the mortgage rate. It’s hard to fault Canadians for attempting to manage their finances as best they can. As mortgage brokers, it’s our purpose to help them make sense of this data, and then apply the information in a way that meaningfully informs their decisions. Building long-term relationships with customers and demonstrating the role sound advice can play in the management of their household finances is the key to success. We’ve made a decided investment in expanding the scope of our brokers’ product offering to their customers. We believe this isn’t just about cross-selling, but is more critically a re-definition of the scope and depth of our profession that will ultimately result in more points of relevant customer interaction – and transaction.

CAMERON STRONG

CEO Invis/Mortgage Intelligence

ur industry goal shouldn’t be measured by number of brokers, but by the number of quality, well-trained brokers. We need to turn mortgage brokering into a sought-after profession and bring in bank/insurance reps, graduates and MBAs who have fresh ideas and new perspectives. Our focus on quality vs. quantity has given us higher than average production per broker. Our access desk acts as a product knowledge centre and provides deal

VP of Operations Centum Financial Group

hange. We don’t like it, and most will fight it or choose to ignore it, hoping things will go back the way they were. That’s just human nature ty in this industry is that change is inevitable and constant. The pendulum swings. Always. Major regulatory or market changes create confusion and uncertainty for Canadians as they attempt to grasp how their future is impacted. We are not financial advisers, but we can work with our customers to ensure they make informed choices when reviewing homeownership options. Change is an opening for mortgage brokers to shine as trusted professionals whose first priority is what is best for the consumer. Canadians will always need housing; they will always need mortgages. It is up to us to provide the high-quality service and advice that keeps brokers as a viable option for home financing. At Centum, it’s not just the colour of our logo that makes us different; it’s our deep-rooted sense of family and commitment to provide solutions for Canadians that create a sustainable tomorrow.

“[Canadians] will always need mortgages. It’s up to us to provide the high-quality service and advice that keeps brokers as a viable option for home financing” Paul Terien Centum Financial Group

coaching, resulting in incredible efficiencies. We offer free professional development days, and our regional managers focus on continual broker improvement. We ensure new brokers are supported by their team lead, mentors and their regional manager. We believe brokers should be mortgage consultants for life. Our top-of-the-line marketing support is helping brokers target niches like self-employed borrowers and millennials. We are leaders in social media marketing, providing a full suite of animated videos and a continual supply of social and blog posts. Brokers must focus on creating long-term annuity income to create stronger futures and navigate uncertain economic times. Our brokers embrace this concept with iprotect mortgage insurance and private-label mortgages that pay automatically at renewal.

NOVEMBER 2014 | 21

FEATURE / NETWORK HEADS

News

InternatIonaL

u.s.

90.6% 52.1%

inspectors have found problems; appraisals showed a home was worth less than the bid; a buyer lost a job before the closing. U.S. housing market worse than thought More than two years after the recession The number of Americans who bought previously officially ended, many people can’t qualify for occupied homes rose in October. But the National loans or meet higher down payment Association of Realtors says it overstated more than requirements. Even those with excellent credit three million sales during and after the Great Recession, and stable jobs are holding off because they fear showing the housing market was weaker than Percentage of President and COO that home prices will keep falling. Sales are also previously thought. TMGhomeownership The President being hurt by a decline in first-time buyers, who The private trade group says sales rose four per costs, including Mortgage Group Mortgage Architects are critical to reviving the housing market. cent in October to a seasonally adjusted annual rate of mortgage payments, SalesArchitects have fallen in four ofwith the incredible five years 4.42 million. That’s below the roughly six he million homes broker channel has always been and ortgage enters 2015 utilities and property since the housing boomofwent bust instrategies, 2006. a year that economists say are consistentcontinues with a healthy to be resilient. Regardless of the momentum. As a result our growth MA taxes that take up a Decliningmuch prices and record-low mortgage rates housing market. But it’s ahead of 2008’s revised sales, hands we are dealt with respect to credit has attracted attention from brokers this year. The typical household’s haven’t beenatenough to boost sales.of business now considered the worst in 13 years. guidelines, mortgage restrictions and intense diverse structure MA caters to a variety monthly pre-tax Atenable the same time, home construction has The trade group revised its sales from 2007 to 2010 competition from banks, brokers work for the models to brokers from across the country to select income in Vancouver begun gradual comeback down 14 per cent, from more than 20.6 million to nearly best interests of clients and offer the best a model thataworks best for them.and should add to the Toronto, economy’s growthisinthe 2011 forbrokerage the first that yearissince 17.7 million. Among the reasons for thesolutions lower figures, to consumers lookingand for mortgage Mortgage Architects only respectively (RBC the Great Recession 2007.(not Lasta month, the Realtors group says: changes in the way theWe Census financing. continue to lead market share with strategically positioned withbegan its owninlender white label); Housing this yields builders ground on an annual rate of Bureau collects data, population shiftsfirst-time and some sales homebuyers andEconomics have increased bothbroke shortand long-term revenue opportunities 685,000 theArchitects government said being counted twice. share with both refinancers and Trends renewingand for MA brokers.homes, Mortgage offers fourrecently. compensaAffordability Report) tion models That was a 9.3brokers per cent from October and The Realtors consulted with government and customers. where canjump earn up to 100% commission, the fastest pace since April 2010. private housing experts, including the Federal Reserve, At TMG, we continually look for ways to and earn points and ownership at no additional cost. No other economists say home prices will keep the Department of Housing and Urbanenhance Development, a broker’s value with the end consumer. mortgageMost brokerage in the country enables brokers to earn falling,without by at least five per through 2012.or of our success is based on the relationownership the burden of cent, financial investment the Mortgage Bankers Association, theMuch National ships we’veFannie developed with lenders and industry otherMany risks associated with ownership. forecasts don’t foresee a rebound in prices Association of Home Builders, mortgage giants Our regional sales leaders and vice Mortgage Architects until at least 2013. is strongly committed to empowMae and Freddie Mac and CoreLogic, aproviders. California-based presidents are experienced and well-respected ering its brokers toward lead maximization assisting The high rate of foreclosures hasand made data firm that first raised doubts about the annual individuals who work directly with brokers in their with resold the growth of their businesses. This commitment has homes cheaper than new ones. The numbers earlier this year. help them exceed their mortgage beenmedian made quite in the organizational focus priceevident of a new home is roughly 30 peron CoreLogic has estimated that the regions Realtorstogroup creating end-consumer marketing centeffective above the price of one advertising. that’s beenAll occupied overstated sales in 2010 by at least 15 business per cent.goals. TMG’s key value proposition is integrity and pieces are personalized sentmarkup. on behalfInvestors of the broker before – twice the and normal are to The changing numbers could affect how economists support we offer our brokers. Education create constant contactof with taking advantage theprospects, discounts.clients and referral view the trade group’s data. It could alsothe affect companies has become partners.The Being able tomarket leverage technology housing ismarketing strugglingand even that use the figures for hiring and expansion plans. one of our pillars, and we are recognized as one of the market leaders in platforms brokers to focus their coreinstrengths as theallows broader economy hason improved Sales are measured when buyers close on homes. Mark Kerzner training. As a company, TMG constantly and growing their businesses. Mortgage Architects also recent months. But many deals are collapsing before that point. TMG Theof Mortgage Group to use technology to help prides itself its commitment andofgrowing Theon economy grew at to ansupporting annual pace two One-third Realtors said they had at explores least oneways contract brokers be more efficient and effective. our network through education, training, best per centofinbrokers the July-September quarter. Many scuttled in October, up from 18 per cent in September. Trainingreasons: and support tools are vital for our practices and knowledge sharing better amongst brokers economists expect slightly growth in the Contracts are being cancelled for several continued success. throughout Canada. October-December quarter. CMP Banks have declined mortgage applications; home

“Regardless of the hands we are dealt with respect to credit guidelines, mortgage restrictions and intense competition from banks, brokers work for the best interests of clients”

MARK KERZNER

ALBERT COLLU

THE BEST APPRAISERS IN CANADA ARE CERTIFIED AND REGULATED BY

LOOK FOR THE PROFESSIONAL DESIGNATIONS

DAR & DAC

22 | NOVEMBER 2014

mortgagebrokernews.ca

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Strength in numbers. firstnational.ca

FEATURE / NETWORK HEADS

“As brokers, we don’t make the rules; however, we need to accept them, understand them and then provide the best counsel possible within the current environment” Michael Beckette Mortgage Alliance

24 | NOVEMBER 2014

MICHAEL BECKETTE

President and CEO Mortgage Alliance

hings change... we adapt, get used to it. I love that about our business! This has been an interesting year. The traditional challenges of acquiring, serving and retaining customers still exist; however, a new obstacle has risen to test entrepreneurs, problem solvers and advice givers in financial services sectors. Have the new mortgage regulations made it more difficult to do business? They sure have! The additional paper, the questions and the fact that we can’t do some traditional deals we were able to a few years ago can frustrate us, our customers and our referral sources. As brokers, we don’t make the rules; however, we need to accept them, understand them and then provide the best counsel possible within the current environment. That’s what makes us good entrepreneurs. We need to accept the fact that our lender partners do not have the flexibility they once did. We need to understand how important it is to educate our prospects, referral sources and customers that the environment has changed. We must set a new expectation that we can meet or exceed. I’m pleased to see that, despite the added frustrations, our business is up overall. I’m pleased to see that surveys are indicating that broker market share is on the rise. I’m pleased to see the tremendous success of our automatic lead-generating systems, and I’m pleased to see how many Mortgage Alliance brokers are adopting a philosophy that focuses on customers in my database versus deals I’ve done, since a customer is worth much more than a deal.

MICHAEL CAMERON

President and CEO Axiom Mortgage

he landscape of the Canadian mortgage broker channel continues to evolve. We are seeing unprecedented challenges and opportunities. It’s important that mortgage agents are prepared to face these challenges and take advantage of the opportunities. As the head of a national organization, I believe that we have an obligation not only to provide tools for our agents, but also to provide opportunity to cultivate the future leaders of our channel. We have long maintained that it was not our intent to become the biggest, but rather to focus on providing our broker/ owners, and their agents and staff, the resources required to stand out in a noisy world. As a self-professed process and technology geek, I have been passionate about having our team develop in-house, proprietary software, processes and systems to enhance the consumer experience when dealing with an Axiom agent. You can spend as much money as you want advertising and trying to create a brand, but unless there is a consistency of the product, that money is wasted. Imagine if you purchased a Coke at Safeway, and it tasted different than the one you bought at 7-11. There would be no brand there regardless of the amount of promotion. We recognize that the brand is the individual mortgage agent and the quality of the experience they provide their consumer. Therefore, our focus is on developing customer-centric tools and simplified processes scientifically designed to generate more referrals, cultivate leads and nurture prospective referral sources by assisting them in their business growth.

MORTGAGEBROKERNEWS.CA

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NOVEMBER 2014 | 25

COVER STORY / SUPERBROKERS

S R E K O R B R E P D SU N A Y

A D TO O R RO W M TO

Broker networks lay all their cards on the table and share just what sets them apart. What can you expect from your superbrokers today, and what do they have planned for growth in the future?

26 | NOVEMBER 2014

MORTGAGEBROKERNEWS.CA

ome of you may be too loyal to your current network partners to even think about joining a competitor, but here we’ve assembled the definitive source of comparison. You may not be tempted to jump ship, but go ahead and have a guilt-free look to see what your competitors have to offer. We promise we won’t tell.

2014’S SUPERBROKERS Axiom p. 44 Centum p.27 Dominion Lending Centres p.28 Invis/Mortgage Intelligence p.30 The Mortgage Centre p.32 Mortgage Alliance p.36 Mortgage Architects p.40 RMAI p.38 TMG The Mortgage Group p.40 Verico p.46

CENTUM COMPENSATION • Centum Standard Royalty program of 5% for franchises; each franchise determines agent splits

BROKER MODEL • 100% franchise organization • Each office independently owned and operated

ANCILLARY SERVICES • • • • • •

Centum PRIMO Options is the single largest network of private and commercial lenders in Canada; no additional split on the commissions payable to network members Industry-exclusive consumer lending program that offers solutions to customers who have had credit challenges Other products to enable a stronger and enhanced customer experience: leasing, investments, GICs, RRSPs, TFSAs Centum Primo white label mortgage offering with the lowest rates in Canada Fully integrated back office systems that include website management, training resources, office management, reporting, lead management systems, communications, franchise administration, social media integration and more Fully proprietary intuitive CRM system with

hundreds of regularly updated marketing pieces; fully integrated with Expert and your customer’s social media platforms, allowing for continual multi-point communications

•

Industry-exclusive corporate partnerships with service providers for discounts on items like furniture, household goods, renovations, vehicles, travel, real estate services, auto services, moving services, computers and more

LEAD GENERATION • • •

Aggressive marketing strategy provides brokers with vital qualified leads directly through our website Exclusive partnerships with industry-leading companies to deliver bottom-line results for our brokers (example: marketing partnership with Century 21 Canada Ltd. to benefit from their 8,000+ Realtors and more than 2.1 million visits they receive on their website per month) Customized marketing pieces for brokers and agents

COMPLIANCE & PAYROLL • •

Centralized accounting services to handle collection, reporting of and distribution of lender payments Efficient same-day direct deposit to franchisees NOVEMBER 2014 | 27

COVER STORY / SUPERBROKERS

DOMINION LENDING CENTRES COMPENSATION •

All franchise owners receive a 95/5 split (on volume bonus as well). How they choose to pay their agents is completely up to their own business plans

BROKER MODEL • 100% franchise model

ANCILLARY SERVICES • • • • • 28 | NOVEMBER 2014

New property valuation system (PVS) tool, which enables agents to search property addresses or a client name and pull a full property evaluation report Newly updated DLC Client Manager (CRM) tool with new “Clean Up Data” wizard to manage contact and application records that synced over from D+H Expert, new Dashboard Screen that organizes all file statuses, an improved “info centre” that enables agents to quickly see key action items, plus year-to-date tracking and new marketing plans DLC Visa program – consists of a line of six DLC-branded Visa cards: Classic, No-Fee Gold, Low-Rate Gold, Student, Travel Gold and Platinum. This product enables our brokers/ agents to offer an unsecured DLC-branded Visa to all their clients, both current and past. On top of offering another great service to their clients, they’ll get paid on the total yearly client spend in perpetuity EnRICHed Academy – a financial literacy training program for youths (13-23 years old) that teaches the fundamentals of finance fun and interactive manner through a DVD series and workbook that they complete with their parents DLC Leasing – first mortgage brokerage to also offer equipment leasing through our mortgage professionals; we even have our own

• • • • • •

internal credit department to handle the leasing side of our business, and help agents with their deals. Leasing referral program offers a referral fee to our agents simply for providing a name and contact details for a leasing deal that successfully funds. Plan B Mortgage Services – created to offer Dominion Lending Centres franchise owners and brokers/agents exclusive access to expert Alt-A, B and private underwriters, and a sales team with access to exclusive lender terms from more than 200 institutional and private lenders across Canada Exclusive line of white-label products through The Dominion Mortgage suite – provides among the most competitive rates and commission payout in the industry, including both upfront and trailer commissions Mortgage Protection Plan (MPP) – ability to offer creditor life insurance to clients; another opportunity for agents to receive both upfront and residual income Free ready-to-use templates, including articles, advertisements, client and referral partner letters and forms, website banners and PowerPoint presentations Dominion University, a one-day intensive networking and educational program for mortgage agents and brokers

LEAD GENERATION • • •

Robust corporate website that distributes leads to agents on a rotational basis free of charge Annual free DLC Hockey Pool that allows agents to reach out to their databases and communities in a fun and interactive way that isn’t mortgage-related System that tracks website leads and provides a contact spreadsheet to each agent

MORTGAGEBROKERNEWS.CA

• DLC Family Day sponsorship of home shows in Vancouver, Calgary and Toronto (with the addition of Ottawa in 2014) • DLC Learning Academy – a step-by-step mentorship program for newcomers to the industry, as well as those with two years or less experience in the industry • DLC Marketing Support Desk – a one-stop email system for the entire network for assistance with everything from ad creation to help with DLC tools to everyday questions that require a quick response

COMPLIANCE & PAYROLL • Access to ongoing education and up-to-date compliance information from regulators and • industry associations Complete reporting system for franchise owners • Detailed compliance procedure training

“They made great promises, and all the promises were kept. They just keep coming up with better stuff. Nobody spends what Dominion does per year to get the name out, and we’ve noticed a huge amount of leads generated by that” Scott Westlake DLC Denova Group

Mortgage Protection Plan® (MPP) is better with

Straightforward underwriting MPP pays in more ways than one by providing upfront Life Insurance and Total Disability coverage, so your clients are covered immediately. It’s just one way that MPP is even better. To learn more, visit us at the 2014 Mortgage Forum in Montreal – booth #12

The insurer is The Manufacturers Life Insurance Company Conditions, limitations and exclusions apply. Please see the policy for details. Mortgage Protection Plan (“MPP”) is underwritten by The Manufacturers Life Insurance Company and administered by Benesure Canada Inc. Credit Security Insurance Agency Inc. (CSIA) is a wholly-owned subsidiary of Manulife, and its appointed agents provide insurance sales services. ®Registered trademark of Benesure Canada Inc.: used under license. Manulife and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license. Manulife, PO Box 4213, Stn A, Toronto, ON M5W 5M3.

Now an even better choice NOVEMBER 2014 | 29

COVER STORY / SUPERBROKERS

“I chose them for a couple of reasons. I was a TD specialist and I went to a smaller brokerage, but I chose Invis because it’s a large professional brokerage. I do a lot of financial planning and I wanted to be able to gain access to a large national network. I was also impressed with the back end that you get. The marketing department is incredible and the support teams are incredible”

INVIS/MORTGAGE INTELLIGENCE COMPENSATION • • • • • • • •

Full-service brokerage with highly competitive compensation model; different commission splits for those new to the industry up to the very seasoned high-volume broker Personal branding flexibility Network partner model gives the ability to work under own brand/license at top commission split No monthly fees No royalty fees No lock-in contracts Opportunity to become a shareholder Commitment to no long-term contracts, no monthly fees; clients always belong to their broker

ANCILLARY SERVICES • • • • • • • • • 30 | NOVEMBER 2014

Experienced regional support for training, business and marketing planning, team- building; feet on the street Placement desks so all brokers can enjoy top lender status, assist with their interprovincial deals and get access to product specialists to help with tough deals at no cost Broker websites with global feeds so rates, content and news are continuously updated along with easy management of SEO Mobile web sites with updated rates, news and excellent mobile calculators CRM options to fit each broker’s business model Graphic design services Content library for email and mail, blogs and social media Video library for TV, websites, digital display, emailing and social sharing, and seven new short educational animated videos Automated weekly rate mail Daily lender rate sheet with an economic update with articles for reposting, Tweeting and blogging

Kelli Pardo Invis • • • • • • • • • • • •

Automated monthly newsletter Intranet site with branded materials for marketing and relationship management Realtor feature sheets with demographic and neighbourhood information Free HTML email program to customize and target messages Reporting for business monitoring, including a breakdown by lender and team member, and a comprehensive renewal report IT support Free PD days with AMP credits Forums to discuss deals and other business issues with peers Corporate benefits program Discounted and best E&O rates and coverage Tradeshow support with free use of booths and banners Award-winning community and culture through national charity Angels in the Night Access Desk offers all brokers status rates, status service levels, full finder’s fees and a designated underwriter – brokers keep their clients; it’s business as usual with status rates

LEAD GENERATION • •

Easy-to-offer and competitively priced iprotect mortgage insurance builds a fantastic annuity income Home and auto insurance referral fee program – just four referrals a month can give brokers

MORTGAGEBROKERNEWS.CA

• • • • •

$3,360 in additional income each year Private label WealthLine and Partner Mortgage with excellent rates, features and ability to earn annuity income with automatic payment at renewal – with no retention team, brokers are always in control Robust and compliant lead-generation programs through several established financial planner networks Industry-leading corporate websites getting traffic and leads Small business loan referral programs Access to private and commercial lending experts experts

COMPLIANCE & PAYROLL • E-compliance process through expert exchange • Compliance required for all brokers, regardless of the model they are working under with the company • Excellent compliance protects broker reputations and helps them stay ahead of changing rules

“If it ain’t broke, don’t fix it; that’s my simple methodology for most things. Most people in this industry are motivated by money, but our focus is customer service. Whether it’s our client or our referral source, we want to give the best information every time” Ken Lankin Mortgage Intelligence • •

Weekly automated payroll by direct deposit with detailed statements and customized team setups Payroll and compliance for those at the highest splits – not available at other brokerages

Mortgage Protection Plan® (MPP) is better with

24-month disability coverage Now you can provide your clients with extended coverage of up to $10,000/month for up to 24 months. It’s just one way that MPP is even better. To learn more, visit us at the 2014 Mortgage Forum in Montreal – booth #12.

Now an even better choice NOVEMBER 2014 | 31

COVER STORY / SUPERBROKERS

THE MORTGAGE CENTRE The core success of The Mortgage Centre revolves around a consistent philosophy of “growth through quality acquisition.” This strategy keeps the integrity of our network high and presents opportunities to members that aren’t available through other brokerages. The strength of our brand with ties to our 25-year history in the Canadian mortgage space. By leveraging this sound infrastructure, our independent franchise owners have the ability to market and co-brand The Mortgage Centre, creating greater visibility and flexibility. In June 2013, we partnered with the biggest mortgage broker in the country (DLC), and together, our volume of more than $20 billion allows us to use our economies of scale to provide our network with the best-in-class tools, products and technology. It is our core belief that innovation comes with investment, and we are investing in the best people and resources in order to give our brokers and agents a competitive advantage in the marketplace. With the MCCbranded CRM platform and state of the art websites free to all our agents and brokers, our unique white label that pays our agents on renewal and a trailer fee, our access to leasing and commercial, our unsecured PLC, our SIT program, a personalized email newsletter, branded templates, new creative advertisements and much more, we arm our brokers and agents to be as successful as they are willing to be in this competitive environment. These tools were developed in conjunction with an existing platform on our intranet to create greater awareness and efficiencies for our franchise business model. This support will further enhance our position as one of the most efficient brokerage networks in Canada.

32 | NOVEMBER 2014

“As franchise owners, we have an unsung yet extremely valuable resource that is just a phone call away, and that is each other. The reputation of the brokers and agents is second to none” Rob Boyd The Mortgage Centre Durham Mortgage COMPENSATION • • • •

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

BROKER MODEL • • • •

New franchise cost is $16,500 plus HST Head office provides onsite and/or webinar support during initial setup along with ongoing training to ensure successful franchise launch Contracts with franchise owners based on a five-year mutual commitment Presence coast to coast, except in Quebec, with approximately 95 franchises and more than 1,200 agents

ANCILLARY SERVICES • •

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

MORTGAGEBROKERNEWS.CA

• • • • • •

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

• Annual conference for the entire network focused on sharing of best practices and personal development

LEAD GENERATION • •

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

COMPLIANCE & PAYROLL • • • •

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

Mortgage Protection Plan® (MPP) is better with

Full portability

Give your clients more flexibility from property to property and lender to lender, so they don’t have to re-apply for coverage when or if they move. It’s just one way that MPP is even better. To learn more, visit us at the 2014 Mortgage Forum in Montreal – booth #12.

Now an even better choice NOVEMBER 2014 | 33

MARCEY

ADAM

BATTAGLIA

LUKE

BARRIE

BAZUK

THORNTON

BAZUK

SCOTT

ROSA

COLLIN

ADELA

RED DEER

WINNIPEG

EDMONTON

RED DEER

TRENT

LAUREN

KELOWNA

BOURKE

You will recognize some as top mortgage brokers, but now they are doing even MORE!

DARICK

BARBER

JOE

CZEMPOYESH CAMBRIDGE

BOVINO

KRIS

BRUCE

THORNTON

CLEMENT-ALLEN

GIBBS

GLOVER REGINA

EDMONTON

DAVID

PETER

CAMBRIDGE

BELLEVILLE

CAMBRIDGE

ANDRE

MEL

P E TA W A W A

RED DEER

KELOWNA

HILLS

HOW? As Canadian First Financial Centre Owners, they have gained exclusive access to CFF Bank retail banking products allowing them to offer...

MORE THAN MORTGAGES.

TOM

HOGG

OAKVILLE

HOOD

HOUSE

JOHNSON

CFF Centre Owners and their teams are now doing MORE BUSINESS and are KEEPING MORE CLIENTS with additional banking product offerings. The products include: the CFF Bank EASYONE Account

COREY

KLASSEN

REGINA

WES

KOSTEROSKI

L’ECUYER

ANDREW

PETER

REGINA

LEWIS

(a no-fee unsecured line of credit, combined with a high-interest rate savings account) and Tax-Free Savings Accounts in addition to the great mortgage products they’ve always had access to.

DOUG

DAN

LIOT

MACRAE

KELOWNA

TORONTO

MAJTHENYI

MASS

STACEY

BRIAN

BEN

ANDREJ

CALGARY

KINGSTON

W AT E R L O O

WINDSOR

P E TA W A W A

CALGARY

Join us in welcoming our first:

37 CFF CENTRE OWNERS, 18 LOCATIONS AND 300+ MORTGAGE AGENTS

THIS IS JUST THE BEGINNING...

MASS

ALAN

MATTHEY

PAM

MELICK

JOHN

PATERSON

PIKKERT

RICHARDSON

IAN

DAVE

SEAN

KINGSTON

EDMONTON

KINGSTON

RUNDLE

RED DEER

TRITHART

UNIONVILLE

TRITHART

MILETIC

AL & PAULA

ROBERTS

UNIONVILLE

JEAN-GUY

TURCOTTE RED DEER

NOW MEET

HELPING YOU DO MORE, OWN MORE & KEEP MORE At CFF Bank we know the value of great Mortgage Brokers. We also know how hard it is to keep your client relationships. That’s why we are offering exclusive access to retail banking products.

CFF CENTRES ARE CURRENTLY OFFERING:

With GICs, RSPs, RSP Loans and HISAs COMING SOON! It’s an exciting time for the Canadian First Financial Group of companies. We are changing the way Canadians think about banking.

IF YOU’RE A TOP PRODUCING BROKER READY TO DO MORE THAN MORTGAGES,CONTACT US TODAY!

DOMORE@CFFBANK.CA ABOUT OUR BANK CFFBANK.CA ABOUT OUR CFF CENTRES CANADIANFIRST.COM CFF Bank is a member of CDIC

COVER STORY / SUPERBROKERS

MORTGAGE ALLIANCE COMPENSATION • Choice of relationships, services, opportunities and fees

BROKER MODEL • •

One of the country’s largest full-service brokerages, operating in all provinces Prosperous franchisee community, as well as a booming network of affiliated brokerages that share our technology

ANCILLARY SERVICES • • • • • • • • • • • • •

Three unique branded mortgage products Guaranteed Issue Creditor Life Insurance Program Term insurance Home and auto insurance Registered, non-registered and TFSA GICs Investment products In-office closing centre services Leasing Commercial lending services Unique rest assured program Non-traditional lending unit PLS VIP lender hub (top level access to the top broker lenders) Wealth algorithm integrated technology – database is automatically tagged for additional revenue opportunities

LEAD GENERATION • • 36 | NOVEMBER 2014

National advertising campaigns on radio, television and social media to build awareness and feature the quality of Mortgage Alliance professionals Minimize Your Mortgage Sweepstakes – since 2007, Mortgage Alliance has awarded more than $700,000 in prize money to our brokers’ customers

• • • • • • • • •

Personalized marketing consulting Automated email-based lead-generating communications within MortgageBOSS (Broker Originator Software Solution), an integrated dashboard that is 100% CASL compliant Fully customizable weekly adviser e-newsletter Professionally written and relevant monthly C.C. IMPACT – hard-copy customer follow-up program Industry renowned Lion’s Share Client Communication Program Social media management services for our brokers Sales training, education and networking through Mortgage Alliance University MortgageBOSS provides pre-transaction communication, transaction steps, when to send updates and conditions, as well as post- transaction follow-up to keep in touch and gain repeat / referral business

COMPLIANCE & PAYROLL • • • • • •

Experienced and dedicated in-house compliance officers that offer guidance and support to agents, brokers and franchise owners Secure online compliance process for all Mortgage Alliance professionals with documents attached and stored right with the customer’s actual mortgage file on their contact record Daily, integrated direct-deposit payroll Receipt of commission notices, reports and real-time balance statements Ability to view deal pipeline, deal status and paid or pending commissions in real time using MortgageBOSS

MORTGAGEBROKERNEWS.CA

PARTNERSHIP. EXPERTISE. TRUST.

OUR

SINGULAR To assist YOU in aquiring

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a NEW client with the RIGHT lending solution.

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GET TO KNOW US BETTER. CALL TODAY. 1-877-672-7219

info@canadianafinancial.com

Sweets for the Geeks, follow us at:

www.canadianafinancial.com NOVEMBER 2014 | 37

COVER STORY / SUPERBROKERS

RMAI COMPENSATION • • • • • • • •

All franchises, senior brokers and affiliates receive 100% of the commissions (finder fees and volume bonuses) No splits Cost of association is $750 per month or a pay-per-deal program 90 / 10 split program introduced in 2014; programs capped at $9,000 – once RMA collects $9,000 from the 90/10 or the pay-per- deal of the flat fees, no more is deducted from the agents/brokers Corporate volume bonus paying lenders qualifies brokers for an added 23 bps on average automatically as part of network membership No charge for advertising or origination software Trailer commissions and fees follow the agent wherever they choose to go Access to in-house commission advance program

BROKER MODEL • • • • •

No cost to purchase a franchise – licensed affiliates are not expected to carry and promote our brand; their businesses operate under their own brand names Standard termination clause of 30 days Agents/brokers without their own licensed broker firm can join corporate store, Real Mortgage Associates, under the same compensation model Manager/trainer for agents new to the industry – the manager/trainer’s compensation is tied directly to funding of mortgages by the new agents, ensuring the highest level of support for new entrants New optional paid training program ($1,500) that covers all aspects of sales, marketing, underwriting and brokering a mortgage – reduces ramp-up time for new recruits

ANCILLARY SERVICES • Access to CRM software through inContact’s

38 | NOVEMBER 2014

• • • • •

Nexa program, which is fully integrated in real time with D&H’s Expert Fully functional extranet managed by head office with up-to-date rates, lender guidelines, lender BDO contacts, and an auto-underwriting system that helps select the best lender for a deal and CRM online Piloting a full mortgage life cycle software program, from lead capture to mortgage application processing to post-funding client engagement; uses a direct workflow engine that manages the client life cycle Lender Access Desk opens a door to all lenders including some with preferred/unpublished rates and compensation Lendervault web-based, automated underwriting software to find lenders for deals with unique qualifications Semi-monthly webinars with the latest industry changes, new lender offerings and other ancillary products

LEAD GENERATION • •

Commercial division handles commercial mortgage leads on agent’s behalf; referring agent gets 50% of the fee when the deal funds Consumer-targeted websites for marketing

COMPLIANCE & PAYROLL • •

File auditing and compliance services provided for franchisees, affiliates and RMA brokers in Ontario Direct-deposit payroll conducted weekly for RMA and twice a week for franchisees and affiliates

“It’s just a great company with a great support network; they’ve got great connections and all the right tools to help you succeed” Bernie Klacer Real Mortage Associates

COVER STORY / SUPERBROKERS

“They take a look at providing the most up-todate tools to make our jobs easier. And that provides us with the focus to make sure the customer is well served. At the end of the day it’s all about the customers” Denis Brunet Mortgage Architects

MORTGAGE ARCHITECTS COMPENSATION • • • • •

Splits available for franchise and licensed agents Earn back commissions up to 100% through MA’s unique lender relationship Four unparalleled compensation models Brokers can earn up to 100% commission Earn points and ownership at no additional cost

BROKER MODEL • •

Cater to all business types, whether an independently owned and operated franchise or a broker who would like to be directly licensed under Mortgage Architects Franchise programs for independently owned and operated brokerages – no franchise costs

ANCILLARY SERVICES • • • • •

Central underwriting unit GIC strategy Equipment leasing and accounts receivables purchasing Commercial mortgages Alternative mortgage solutions strategies

TMG THE MORTGAGE GROUP Since 1990, TMG has steadily grown its presence in the Canadian market with a culture of promoting professionalism in a family-oriented environment. The driving principle has always been and continues to be supporting brokers and the clients they serve. All of TMG’s programs, systems, training and technologies are tested against that principle: Does it support brokers in their business, and does it assist the client? TMG has developed some of the best lender relationships in the industry – including prime, sub40 | NOVEMBER 2014

• Consumer financial services programs • Strong focus on training and support

LEAD GENERATION • • • • •

Broker websites to help brokers generate and convert leads Search engine optimized, industry-leading websites and mobile websites Auto triggered E-CRM for both pre-, during and post-origination communications Exclusive print CRM program to keep in touch with clients throughout their mortgage, including maturity notices Access to customer prospecting campaigns

COMPLIANCE & PAYROLL • • • •

Paperless compliance platform, which has been tested and passed regulatory audits in all provinces Notification when commissions are received by lenders Weekly commission statements that summarizes unpaid commissions Management of complex split arrangements to ensure all parties have detailed commission statements

prime, private and commercial lending – which stems from a corporate philosophy that lenders should be treated like customers. The company’s contribution has not gone unrecognized in the industry. In 2011, TMG was honoured with the Canadian Mortgage Award’s top award for Network Brokerage of the Year. In 2012, the company was named one of the best companies to work for in B.C. TMG was awarded with CAAMP’s Partners Excellence Award as well as MBABC’s Pioneer Award for Lifetime Achievement. In 2013, the company won Employer of Choice at the Canadian Mortgage Awards and cofounders Grant and Debbie Thomas were inducted into CAAMP’s Canadian Mortgage Hall of Fame.

COVER STORY / SUPERBROKERS

TMG THE MORTGAGE GROUP

“They have integrity. There was a group of us looking for a different brokerage years ago; we interviewed three different superbrokers at the time, and the integrity of TMG is just incredible. Their support is probably much like the rest of the superbrokers’, but it really came down to the people who are in charge and the people who provide dayto-day support”

COMPENSATION • TMG’s philosophy is to develop partnerships that reward production; the more business, the larger share of revenue • Commission splits determined by an established percentage of revenue generated on an annual basis • No franchise fees • Market-leading reporting • Central compliance monitoring • Payroll services

BROKER MODEL • • • •

Since 1990, TMG The Mortgage Group has operated as a full-service, national brokerage company Unlike franchise models where each individual franchise has to be licensed as a brokerage, the 800+ brokers, associates and agents in TMG’s network operate under TMG provincial licenses across the country Strong national relationships with regulators, mortgage associations and lenders, ensuring consistency across the country For independent brokerage companies looking to expand while continuing to operate under their current brand, Powered by TMG The Mortgage Group™ provides the infrastructure to reduce operating costs, accelerate growth, and enjoy all the benefits of a full-service brokerage

ANCILLARY SERVICES • An industry leader in broker support and training, TMG TV offers leading-edge webinars and webcasts • BrokerNET provides brokers with a secure intranet with daily interest rates, industry news, marketing tools, resources and more • DOC Central covers regulatory compliance

42 | NOVEMBER 2014

Phil Larue TMG The Mortgage Group

• • •

Deal Centre provides broker assistance with applications and exclusive promotions Customer Relationship Management Program offers an easy way for brokers to manage client communications Additional revenue-generating solutions such as TMG Leasing, insurance programs and merchant cash advance programs

LEAD GENERATION • Focused on delivering four fundamentals to its mortgage team: Leadership, Culture, Innovation and Support • Direct access to experienced executive and regional management • Open, progressive, entrepreneurial environment • Progressive, proprietary technological solutions Extensive training, tools and marketing systems

YOU SEE A COMMERCIAL OPPORTUNITY

WE SEE THE NEED TO MANAGE YOUR RISK

Appraisal Institute of Canada designated appraisers–AACI and CRA–are Canada’s professional real estate appraisers of choice. Our on-site appraisals, extensive research and detailed analysis provide reliable, in-depth and independent valuations on all property types–helping you make informed real estate decisions. When property is involved, involve us.

VALUATIONS APPRAISAL REVIEW CONSULTING FEASIBILITY STUDIES DUE DILIGENCE

Learn more about AIC-designated appraisers by visiting

AICanada.ca

COVER STORY / SUPERBROKERS

“It turned out to be a great fit – I got exactly what I wanted. Everything they told us they’d do they under-promised and overdelivered” John Thompson TMG The Mortgage Group

COMPLIANCE & PAYROLL • • •

Simplified compliance and payroll Proprietary DOC Central system provides paperless document imaging – regulatory compliance and privacy standards are met, policies and procedures are monitored, and all data is secured and held in a sophisticated internal and external back-up storage system Automated reporting and payroll system is centrally managed by TMG employees at no cost to brokers

• • • • • •

friendly online application Flexible branding for licensees working their independent broker brand Corporate benefits program Realtor/property feature sheets with mortgage options Automated weekly task-oriented email Automated reporting including volume, volume by lender, source of business tracking and much more Personalized professionally branded materials for relationship building and consumer marketing

AXIOM COMPENSATION • • •

Network members paid directly from lenders allowing broker owners to customize their agent compensation program We offer top of the line compensation from lenders We negotiate competitive rates for our network

BROKER MODEL • Axiom’s membership consists of independently owned and operated broker houses across Canada • Monthly flat fee • Axiom Mortgage Partners was founded in 2007 • Axiom model enables brokerages to work under their own brand while being paid top commissions from our lender partners

ANCILLARY SERVICES • • • • • • • • 44 | NOVEMBER 2014

Access to Axiom’s proprietary touch-of-a- button technology One-on-one learning for agents and brokers Powerful CRM system proven to increase bottom line for agents and brokerage Full service lender hub including access to full underwriting services Industry first consumer facing mortgage portal Automated consumer facing marketing campaigns Fully automated deal processing campaigns so that no step in the process is missed Free agent-controlled website templates featuring up-to-date news, rates, and mobile

LEAD GENERATION • • • •

Axiom’s SmartTouch system is proven to increase repeat and referral business Axiom’s SmartWeb online presence feeds leads directly into the MyAxiom SmartCRM system Axiom’s proprietary Path to Home Ownership system is proven to generate future leads and increase customer loyalty Axiom’s Path to a Debt Free Future ensures that agents are kept top of mind while addressing what is important to the mortgage consumer

COMPLIANCE & PAYROLL • •

Fully functional compliance and payroll systems are integrated within our proprietary software Payroll is done at the licensee level with head office support

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COVER STORY / SUPERBROKERS

“Just in the last 6 months, I have been able to increase my revenue by well over 20% per deal. I first joined Verico because of its reputation, but I’ve stayed in the network and have been a proud member of Verico for nine years because, at the end of the day, I see results” Garth Ellis Verico Ellis Mortgages

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

BROKERING MODEL

VERICO It is our firm belief that Verico only succeeds when our owners and members succeed. Helping owners achieve their business goals is the single focus of Verico Canada. This unwavering dedication to supporting your success is evident in the distinct way Verico operates. Even in the absence of long-term contracts, large organizations and individual brokers alike continue to remain in the Verico network. Year after year, we consistently attract large independent organizations such as Verico Premiere Mortgage Centre and Verico Northwood Mortgage. Top-producing originators such as previous CMP Award winners Calum Ross , Gord Pipkey and Jim Tourloukis, continually see real value from being a part of the Verico network. BrokerBase is Verico’s proprietary and flagship platform that helps drive more leads, more repeats, more referrals and more renewals. By providing robust support materials and rich educational consumer content, BrokerBase helps mortgage brokers become trusted advisors and captures opportunities for more deals. In our ninth year of operation, Verico continues to deliver results to the bottom line and support the growth and goals of each individual firm. We do this by constantly creating new revenue opportunities. As a result, Verico has exclusive and confidential opportunities exclusive to our members.

46 | NOVEMBER 2014

COMPENSATION • • • • • • •

• •

First and largest true network model in Canada Stringent application process that ensures that our members reflect the high standard of Verico’s reputation

ANCILLARY SERVICES • • • • • • • • • • • • • • • • • • •

BrokerBase automated marketing program – includes Mobile App, Website Builder, Brocher Builder and Banner Ad Builder Customizable client tip sheets Customizable feature sheets Automatic newsletter D+H online and offline application that feeds directly into Expert account Exclusive lender relationships with financial benefits Private-label mortgage products with financial benefits Trailer fees Deposit brokering profit centre opportunities Verico Insurance for mortgage life protection and critical illness Wealth management Client builder program Training support from Verico’s member services team Full resource centre Branding, marketing and advertising support PR and media outreach Verico white label products In-house preferred suppliers, including Rogers Wireless, The Brick, Petro Canada Corporate leasing

COVER STORY / SUPERBROKERS

• • • • •

Verico Academy Verico Professional Success Series – bi-weekly webinars with world-renowned sales coach Brian Tracy Hear from the Pros – one-hour webinar sessions featuring top Verico members sharing best mortgage brokering practices Lender Learn Series – working with our lender partners to better inform our members of products, underwriting guidelines and support that our partners offer National and local events where members from across the country network and take advantage of our collective expertise

LEAD GENERATION • BrokerBase – cutting-edge CRM system that delivers more leads, repeats, referrals and renewals

COMPLIANCE & PAYROLL • • • •

Members operate their businesses using best practices and comply with regulations to the highest degree. Licensees retain full control of revenue streams and lender relationships Lenders pay directly to licensees – no middleman Verico payroll system

Paula Hutton BDM - Prairies

paula@vwrcapital.com 1- 866 - 907- 5407

Experience you trust Lending Areas: · · · · ·

British Columbia Alberta Saskatchewan Manitoba Ontario

· · · · ·

Complete focus on residential lending Broker-centric processes to make your life easier Flexibility to tailor solutions to your clients needs Diverse range of residential mortgage options Choose your own broker fee

As one of Canada's most diversified residential private lenders, everything we do is aimed at ensuring you can present your clients with the right mortgage at the right time. For more information on our lending guidelines and rates, contact Paula Hutton today!

www.vwrcapital.com 48 | NOVEMBER 2014

PROFILE / GRAEME MOSS

PRODUCER PROFILE

GROWING THROUGH GIVING BACK Brokers looking to plant deeper roots in their community can certainly grow their business to new levels by following one charitable – and award-winning – broker’s advice Anyone who has ever doubted that “charity is its own reward” should take a few moments to listen to Graeme Moss. Founder and partner at Verico Fair Mortgage Solutions in Hamilton, Ont., Moss offers clients a wide menu of services, from A-list purchases and private-money seconds to commercial deals. Two decades of experience in the industry, some of it with CIBC and Invis, have led to more than a handful of award nominations and awards, including the 2014 Canadian Mortgage Award for Alternative Broker of the Year. Despite his pedigree, Moss’s strongest competitive advantage in an increasingly originator-eatoriginator mortgage marketplace is his emphasis on placing his professional and personal values ahead of simply closing a deal. He hopes other

GRAEME MOSS: A ROLLING STONE

50 | NOVEMBER 2014 50 | NOVEMBER 2014

1998

Joined CIBC and learned both mortgages and investments

2000

Started working for CIBC Mortgages and Invis Financial

brokers will take the same approach to better positioning themselves for professional growth, even through charitable deeds involving segments of the community most unlikely to become future clients. “The kind of positive energy, or if you want to call it karma, you get by making an effort to help out people who need it makes you a better person and a better professional,” Moss says. “My focus has always been not so much on money, but on happiness and feeling good.”

WHERE CHARITY STARTED His impressive dedication to charitable causes began when Moss suffered a medical setback early on in his career. Doctors told him the problem could be fatal, and the challenges he had to over-

2005

Founded Fair Mortgage Solutions

2007

Joined the Verico superbroker network Earned the first of five National Mortgage awards

MORTGAGEBROKERNEWS.CA

come as a result forced him to pause and reassess. By the time Moss’s career began rolling again, he found he could understand the problems of his clients on another level. “What I thought was an absolute curse turned out to be an absolute blessing,” he says. “I started to look at every day as a bonus day, and I started to look at my clients’ problems differently. I could relate to them better, advise them better and make more of a positive impact in their lives.” Moss built a solid reputation for, among other things, being a non-judgmental listener, and referral work began to pour in. The success sparked a desire to give back, so he began donating his time. At first he began working with Citykidz, a youthoriented charity, before founding Maddy’s Road-

“I started to look at every day as a bonus day, and I started to look at my clients’ problems differently. I could relate to them better, advise them better and make more of a positive impact on their lives” 2011

Began working with Citykidz charity

2012

Founded Maddy’s Roadmap, a triage for people to get financial help

2013

Started pilot project with Mission Services Food Bank in Hamilton

2013

Graduated from McMaster University’s Commerce Program

2014

Won CMP Broker of the Year for alternative lending (complex work)

NOVEMBER 2014 | 51

PROFILE / GRAEME MOSS

“It was unbelievable. The goal on the lender’s side was obviously that the couple lose their home and sign all this equity over. It was a Godawful situation” map, a triage service for financial advice. It was then that someone affiliated with Mission Services Food Bank in Hamilton approached him about donating his expertise to a pilot project. It was simple at first – Moss was asked to show up and give advice to down-and-out community members waiting for food. “When they first suggested I go to help out, I had no idea what to expect. Everyone was sure I’d probably leave after a couple of weeks,” he laughs. “I always believed in giving back, but I thought, ‘How could I, as a mortgage broker, help these people?’” The answer came quickly. Armed with the financial perspective of a seasoned broker, he found he could answer a variety of questions – everything from housing issues, leases and rebuilding credit to legal or, in some cases, marital situations. Irrespective of the issue, it was important for Moss to treat everyone with dignity and respect. “The first thing I learned was, when a person is hit with financial issues, they are treated badly by the legal and financial profession. You know, there are so many reasons for someone ending up in a situation like that. I met a lot of smart people who were either downsized or divorced, or had other issues like illness, mental illness or housing issues. The list of reasons is long. I saw the reaction they had when I just spoke to them with respect, and the gratitude I felt as a result was tremendous.” Besides gratitude, Moss was fascinated by the life stories of his new charity clients, and in a few cases, he was able to offer substantial value for their mortgage-related issues. In one case, he met a disheveled man who was living out of a pickup truck 52 | NOVEMBER 2014

at the time. At first, the man said he was moving from place to place and asked if Moss could help him find housing. After Moss recommended he speak with a social worker, the man thanked him and turned to leave. “Right before he left, he asked, ‘Well, what do you do?’ I explained to him that this was a pilot project, and that I was a mortgage broker here to provide life, legal or financial advice. That’s when he told me he had a mortgage problem at a house where his ex-wife lived.” As Moss listened to the man’s case, he felt they had been charged exorbitant broker fees. The second issue was that there was a substantial amount of equity on the house. The ex-wife was attached to the mortgage for this large home, despite her having no income and suffering from a stroke. The homeless man also had no income to speak of. In Moss’s opinion, they had been set up to fail. “It was unbelievable. The goal on the lender’s side was obviously that the couple lose their home and sign all this equity over. It was a God-awful situation.” Eventually, he was able to help the couple, and they are now selling the home. But it struck Moss how poor professional practices can impact people’s lives. He was elated at the chance to use the skills he had learned in his career to help those who needed it most. “It’s amazing the effect it has on you when you can directly change someone’s life. I can’t describe the amount of positive energy I receive from experiences like that. It’s good for the soul.”

GOING FORWARD Moss continues his work with Mission Services Food Bank in Hamilton, and with Citykidz and Maddy’s Roadmap. Juggling all of this while running a thriving brokerage makes for a busy schedule. But still, he finds himself advocating the personal and professional benefits of charity to anyone within earshot. “You can get started on your journey of giving back by starting small,” he says. “Donating time at a food bank, youth groups – there are programs everywhere. The amount of energy and positivity, the general sense of happiness you can accumulate by pursuing these activities will enrich every aspect of your career and life. If you’re a better, happier person, you will create momentum in every area.”

INDUSTRY ICON / DALE BILTON

To make deals happen, you have to be ready for whatever is going to happen

54 | NOVEMBER 2014

MORTGAGEBROKERNEWS.CA

INDUSTRY ICON

COMMERCIAL VENTURES Award-winning commercial broker Dale Bilton reflects on his long career and offers predictions of things to come They say never to take business too seriously. Spend a few minutes with easygoing broker Dale Bilton, and you quickly realize how much he embodies that idea. A Kitchener-based commercial broker and president of commercial and residential mortgages at Dominion Lending Centres, Bilton has built his career on some fundamental values. He’s a big believer in qualities like earnestness, humility, sincere dedication and a genuine commitment to the needs of a client. A light-hearted sense of humour doesn’t hurt, either. “I won’t tell you exactly how long I’ve been in the industry – I’d hate for you to call me grandpa,” he jokes. Despite the modesty, Bilton’s pedigree is far from humble. Given that he’s funded more than half a billion dollars in his 20+ years of service and has a handful of awards under his belt – twice winning CMP’s Canadian Commercial Mortgage Broker of the Year award – it’s hard to argue with his casual approach.

WHAT IT TAKES Today, from his position as president at one of Canada’s fastest-growing mortgage companies, Bilton is in a contemplative mood. Experience and a lofty vantage point do have advantages – one of which is the ability to know and understand the industry with the sufficient confidence necessary to make educated predictions. “You have to be able to adjust,” he says. “In the

commercial world, the rules continue to change with our lenders and the economy. You need to be willing to adjust to the changes as they happen. When institutions are aggressive, it’s great. But when the economy tightens up, the institutions slow down. That’s when I need to be able to go to my secondary lenders, the private sources. To make deals happen, you have to be ready for whatever is going to happen.” By many accounts, the current economic climate is in good shape, leaving commercial interest rates relatively low. As a result, banking institutions are free to loosen their grip on traditional lending practices with a reasonable amount of risk acceptability. “One trend I have noticed is that the institutions are more open to working with experienced commercial brokers – and I emphasize the word ‘experienced,’” Bilton explains. “Banks don’t want to train a residential guy how to do a commercial mortgage. The guys that know how to present a deal to them in the right way get meetings.”

GROWING THE NICHE In both his personal and professional experience, Bilton has met people that have no idea that commercial specialists even exist. The result has been a plethora of what he calls “horror story” deals by brokers with a lack of experience in the commercial niche. Bilton believes this is the result of a lack of market awareness. “The industry has huge potential, but there needs to be more awareness that commercial brokers actually exist,” he says. He was struck by another example of the phenomenon recently, when he invited a commercial contractor to do some work on the building he owns and works out of. “We talked about the work he had to do; then the conversation turned to a $7 million commercial NOVEMBER 2014 | 55

INDUSTRY ICON / DALE BILTON

As a commercial broker, or a mortgage broker in general, you’re there to help people – not only to provide simple deals, but difficult deals. I think that distinguishes a real broker building he was developing. He said the bank told him he needed 50% of the cash upfront before they’d help him. He had no idea commercial help was available for professional people. This guy was totally beat up by his bank, and he didn’t know what to do except re-mortgage and come up with half the money. I could’ve taken care of his request very simply and more economically than what he had with the bank.” The general assumption that commercial work can only be handled by large institutions couldn’t be further from the truth, Bilton says, since the knowledge and experience required to qualify a broker as a commercial specialist can be extensive. In other words, if you are a legitimate commercial mortgage specialist, your perspective on client issues is much broader and likely more helpful. “As a commercial broker, or a mortgage broker in general, you’re there to help people – not only to provide simple deals, but difficult deals,” he says. “I think that distinguishes a real broker.” In regard to the approximately 27,000 residential brokers across Canada, Bilton holds firm to the idea

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that each one should have an ongoing relationship with a commercial broker. “Any residential broker working on a big or complicated deal would benefit from bringing in a commercial specialist as a co-broker on the deal. That way the client comes out better, and the principal broker comes out looking more professional and is in a better position to a receive that referral – maybe even a referral commission, depending on whatever the arrangement between the two brokers is.”

ADVICE FOR UPSTARTS No matter what industry you’re in, hard work is inevitable. For Bilton, staying humble so he can continue to learn is a key factor for success. He believes any young broker should always partner with a veteran to watch, listen and learn – particularly in the complex arena of commercial mortgages, where the stakes can reach extreme heights. Another factor for Bilton is being realistic. At DLC, all junior brokers are reminded to approach each and every deal with a realistic sense of expectation. “DLC has 2,300 brokers across Canada,” Bilton says. “Our president, Gary Mauris, is always preaching against going after the big deals that you will never make happen or don’t know how to do. That’s definitely something we advise here, that every broker should let their clients know that commercial specialists exist if they need them.” For everyone from clients to junior brokers, Dale Bilton’s easygoing and professionally relaxed approach to an otherwise complex business is a source of inspiration and reassurance.

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BUSINESS STRATEGY / SECRET #21

LIFELONG LEARNING

Even when you think you’ve got it all figured out, you’ve still got much to learn. Here, in the last of his 21 secrets of superstar mortgage brokers, Doren Aldana explains why true experts have to be lifelong learners SECRET #21: THEY ARE AVID LEARNERS AND IMPLEMENTERS The most successful NCAA basketball coach of all time, the late John Wooden, once said: “It’s what you learn after you know it all that counts.” Similarly, superstar mortgage professionals know that their education never ends. They understand how important it is to continue to feed their minds with positive, uplifting and useful ideas, especially new marketing ideas they can use to take their business to the next level. The superstar mortgage pros that I know invest thousands of dollars every year in books, home study courses, audio programs, seminars and conferences. They all have an insatiable appetite for learning. They can’t even go to the gym or drive in their vehicle without listening to an audio training program. They turn their car into a “university on wheels” because they know that just one good idea put into practice can unlock a breakthrough in their health, wealth and happiness. This certainly has been true in my own life. I have found that the more I learn, the more I earn. The more I grow, the more my business grows. And the more my business grows, the more it reinforces my desire to learn. It becomes a powerful upward spiral of learning, growing and achieving. And it all starts with a thirst for knowledge, wisdom and understanding. Perhaps this is why the Bible says, “wisdom is the principal thing; therefore get wisdom. And in all your getting, get understanding.” Superstar mortgage professionals don’t just learn for the sake of learning. They have formed the habit of taking newfound knowledge and implementing it – they have a strong bias toward action. You see, superstars would rather have a marketing strategy that is 85% correct and execute it with 58 | NOVEMBER 2014

100% accuracy than have a marketing strategy that is 100% correct and execute it with only 85% accuracy. It’s not what we know that counts – it’s what we do with what we know that really makes the difference. A few years ago, I read a powerful little e-book called The Common Denominator of Success. After studying the habits of successful people all over the world, the author concluded that the number-one common denominator of success is that they have made a “habit of doing the things that failures don’t like to do.” It went on to say, “Failures are influenced by the desire for pleasing methods, while successful people are influenced by the desire for pleasing results.” Those words really impacted me. What I came to realize is that the only thing separating the achievers from the dreamers, the superstars from the mediocre majority, is action. It’s not enough to just know what to do. You must take action on what you know and keep taking action until you achieve your desired result. But it can’t be just any action. It must be the correct action. Consistent, persistent correct action is the key to success. So what exactly is success? Is it measured by your bank balance, the kind of car you drive or how beautiful you are? I think not. If that were the case, why are there so many celebrities in Hollywood who seem to have it all – wealth, fame and beauty – struggling to find true purpose, meaning and fulfillment in their lives? How could that be? I believe it’s because they have a faulty definition of what true success actually is. The best definition of success I’ve ever seen is from Coach John Wooden: “Success is peace of mind, which is a direct result of self-satisfaction in knowing you did your best to become the best you are capable of becoming.” I couldn’t agree more.

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If success is truly about becoming the best you are capable of becoming, then developing an insatiable thirst for wisdom, knowledge, skill and understanding is the first and most critical step to unlocking your full potential. It doesn’t matter how much action you take and how persistent you are, if you’re taking the wrong action, you’re destined for frustration and failure. And that’s why I decided to create my Mortgage Superstar Inner Circle – so you can tip the scales of fortune in your favour. As a Mortgage Superstar Inner Circle member, you’ll be part of an extraordinary community of progressive, top-notch mortgage professionals who understand the importance of being a lifelong learner. Not only that, you’ll have access to all the coaching, training, tools and systems you need to take your business – and your life – to the next level, year after year. Remember, success is a journey, not a destination. I’d like to thank you for taking the time to read this series of 21 articles. I trust you’ve gleaned some valuable insights that you can put to practice. What I’ve just given you truly has the power to transform your life and your business forever. You now have a

“Success is peace of mind, which is a direct result of selfsatisfaction in knowing you did your best to become the best you are capable of becoming” proven roadmap to success. If you will commit to implementing each one of these 21 secrets in your business, it’s just a matter of time until you too become a superstar mortgage professional in your own right. It’s within your reach and ability. Just follow the steps I’ve outlined in these articles, and you’ll be well on your way.

Doren Aldana is considered by many to be Canada’s leading mortgage marketing coach. He has won the Canadian Mortgage Awards; “Best Industry Service Provider” award three years in a row. Since 2005, he has been dedicated to helping mortgage professionals attract more clients with less effort, regardless of market conditions. For a free copy of Doren’s new CD, “21 Secrets of Superstar Mortgage Brokers,” visit www. superstarmortgage broker.com.

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BUSINESS STRATEGY / 10 LESSONS

10 LESSONS FROM A SMALL BUSINESS OWNER Most people go into business for themselves because they want to be their own boss and believe they can make more money. While this can be true, it doesn’t happen without hard work. Blaise van Hecke reveals 10 lessons she has learned Many people like the idea of being a business owner, but they end up just buying themselves a job. Ask yourself why you want to be in business. Being good at something doesn’t mean you’ll be good at running a business … but if you work out how to run it effectively, you can create the lifestyle you desire, and none of it will feel like work. After more than 15 years owning and running a small business, these are some of the many things I have learned:

Find your niche Be specific about what you do – it makes it much easier to sell it to the target buyer. For instance, we are in the business of helping people self-publish their books. There are many people doing the same thing; our point of difference is that we customize the publishing services to suit the customer, while offering top face-to-face service..

Have a clear purpose for your business Once you know what you’ll do, you can then make a strategic plan for how you’re going to move forward. Think ahead to 12 months, two years and beyond. If you don’t have some kind of plan, how will you know where you’re going? 60 | NOVEMBER 2014

Invest in yourself It’s a great idea to get some advice and training in how to run a business. You can get advice through your local council, and there are many short courses available, too. Never stop learning. Whether you have been in your industry for five or 50 years, there is always something to learn, so invest in yourself.

Take calculated risks Playing it safe might be a good way to exist in the business world, but you need to be careful of being superseded by your competition or by new technologies. For this reason, you need to aim to be at the forefront of your industry. Taking risks is very important. They may not always pay off, but if you don’t try, you may be left behind.

5 6

Learn from your mistakes You may take a calculated risk that doesn’t pay off. Don’t beat yourself up about this. Learn from it. Surround yourself with experts As a business owner, you should be spending the majority of your time working on your

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business. If you don’t like doing your bookkeeping, why waste time doing it? Delegate tasks that stop you from going out there and gaining more business.

Attend to marketing every day Many people think that marketing is making a few pretty brochures and doing a letter drop or creating a website, but these are merely ways to promote your business. Marketing is something that you should live and breathe every day – it’s about how you and your staff answer the phone and the presence you have in all avenues of media, online or in print, as well as in your local community.

Engage your market through your story People like to deal with people. How many times have you bemoaned the fact that you can’t get a real person to talk to on the phone? You should be accessible and engage people through your story, whether it’s your actual business or you as the

face of your business. An ideal way to do this is to write a book about what you do. This is a great way to leverage your story and your business by positioning yourself as an expert.

Take action Nothing happens unless you take action. You can’t start up a business and expect the customers to flow in. You need to work on it every day, especially in the first few years when you need to position your business in an already existing market.

Work hard but have fun Anyone who tells you that running a business is easy and that you will make your fortune overnight is delusional. It will get easier, and it can be very fulfilling. If it gets to the point of no longer being fun, get advice on how to improve. Otherwise you may as well go back to working for someone else.

Blaise van Hecke is the publisher and co-owner of Busybird Publishing. She is also the author of The Book Book: 12 Steps to Successful Publishing. For more information, visit www.busybird.com.au

The FiNANce cOMPANY ThAT TAkeS A “cOMMON SeNSe APPrOAch” TO LeNdiNg.

YOur PArTNer FOr • Personal loans • 2 nd Mortgages • ConstruCtion Mortgages

www.tribecca.ca 261 Sheppard Avenue West | Toronto, Ontario | M2N 1N4 Tel: 416.225.6900 | Fax: 416.225.6905 | Licence # 12225

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PROFILE / FAVOURITE THINGS

Favourite things

John Panagakos, principal broker with Dominion Lending Centres Home Financial

Favourite mortgage product ARM products I think, in the last 10 years, anyone taking out an ARM has been better off. Favourite place to be Greece I love going every year. Favourite book Napoleon Hill’s “Think and Grow Rich” It saved my life in 1990 after the financial crisis. It’s one of the best inspirational books made in this last century. It’s a great mentoring book.

Favourite celebrity Al Pacino I saw his movie Serpico and thought it was absolutely amazing. I’ve been drawn to him ever since.

Favourite food Souv Like It’s a Greek restaurant across the street – I go there every single day.

Favourite music Pitbull My kids will hate me for this, but it’s lighthearted music that makes you want to party. Working in this business, it’s kind of inspirational. Favourite movie The Jason Bourne series I’ve seen every single one about ten times. Espionage, secret agents, CIA – it’s got everything. They did a really did a good job adapting from the books.

Favourite drink Crown Royal It’s a poor man’s scotch. I get so many bottles for Christmas; I drink it straight, on the rocks.

Favourite sport Golf and tennis They’re both easy to pick up and play whenever.

62 | NOVEMBER 2014

Favourite Vacation Spot Halkidiki, Greece It’s like a paradise island without going to an island. I’ve had a lot of fun with family and friends there.

Favourite thing about working in the mortgage industry The joy you see in a first-time buyer when they close on their first home

O w ne rs h ip

Prop erty Valu e

Equ ity Esti mate

M or tg ag es on Title

Sa le s Hi stor y

Com para ble Sale s

ood N e ig h b o u r h P r o f ile

Impress them with what you know. Seal the deal with what the others didnâ&#x20AC;&#x2122;t.

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SERVICE DIRECTORY

Banks

CFF Bank www.cffbank.ca Toll free: 1-866-601-7632 Page 34 & 35 National Bank www.nbc.ca Ph: 1 888 483 5628 Page 13

The Mortgage Centre www.mortgagecentre.com Ph: 1 800 423 0107 Page 49

Tribecca Finance Corporation www.tribecca.ca Ph: 416 225 6900 Page 61

B2B Bank b2bbank.com/mortgages Ph: 1 800 263 8349 Inside back cover

Sherwood Mortgage Group sherwoodmortgagegroup.com Ph: 1 877 241 6001 Page 53

V.W.R. Capital Corp. www.vwrcapital.com Ph: 1 866 907 5407 Page 48 Insurance

Commercial Lenders

ROMSPEN Investment Corporation www.romspen.com Ph: 1 800 494 0389 Page 1

First Canadian Title www.fct.ca Ph: 1 800 307 0370 Page 57

Non-Bank Lenders

Genworth Financial Canada www.genworth.ca Ph: 1 800 511 8888 Outside back cover

Canadiana Financial Corp. www.canadianafinancial.com Ph: 1 877 672 7219 Page 37 Broker Networks

Vector Financial Services www.vectorfinancialservices.com Ph: 1 866 483 8018 Page 59 Technology & Softwares

First National Financial LP www.firstnational.ca Ph: 416 593 1100 Page 23

Axiom Mortgage Partners axiommortgagepartners.ca Ph: 1 866 504 0516 Page 7

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Page 25

D+H Limited Partnership www.dhltd.com Ph: 1 866 345 6449 Page 15

Centum Financial Group www.centum.ca Ph: 1 604 257 3940 Page 4 & 5

Marlborough Stirling Canada www.morweb.ca Ph: 1 877 626 2022 Page 2 Real Estate

Dominion Lending Centres www.dominionlending.ca Ph: 1 888 806 8080 Page 9 & 45

INVIS Mortgage Intelligence www.invis.ca • Ph: 1 866 854 6847 Pages 39 MCAP www.mcap.com/brokers Page 47

Dominion Lending Centres YBM Group www.dominionlending.ca Ph: 1 888 806 8080 Page 41

Canadian National Association of Real Estate Appraisers www.cnarea.ca Ph: 1 888 399 3366 Page 22

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Page 56

Mortgage Architects www.mortgagearchitects.ca Ph: 1 877 802 9100 Page 11

Teranet www.teranet.ca Ph: 1 866 237 5937 Page 63

Radius Financial www.radiusfinancial.ca Ph: 1 877 369 6398 Inside front cover

64 | NOVEMBER 2014

Appraisal Institute of Canada www.aicanada.ca Ph: 613 234 6533 Page 43

VERICO www.verico.ca Ph: 1 866 983 7426 Page 3

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