The mbabc broker spring 2013 final by Norm Brown

VOLUME 3 • ISSUE 10 • 2013

INSIDE: From Orange Groves in Florida to Syndicated Mortgages in BC The Age of Motor Cars and the Origins of Legal Expense Insurance

PM #41297283

My reason

Garth Ellis

VERICO Ellis Mortgages Canada Member since 2005

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My reason

Kevin Clark

VERICO Complete Mortgage Services Member since 2008

“VERICO, as the number one brokerage network in Canada, provides us an association of mortgage professionals that are recognized by our peers and suppliers as some of the best in the industry. VERICO supports and assists us with unique strategic plans to let each member firm stand on our own while still enjoying the benefits of being an independent part of a National Network.”

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V O L U M E

•

I S S U E

•

2 0 13

c o nten ts

In this issue: EDITOR Jessica Facini jfacini@mbabc.ca 604.408.9989 MAGAZINE CHAIR Deb White 250.545.2202 deb.w@telus.net Publisher Art Director Contributors

Craig N. Brown Donna Szelest Deb White

Jared Dreyer

Cindy Freiman

Kate Ramsay

Samantha Gale Photographers Unless specially credited, all photos were submitted or taken by staff. Advertising & BILLING Debra Hiller accounting@mbabc.ca 604.408.9989

28 features

THE bc mortgage broker is published in conjunction with THE MORTGAGE BROKERS ASSOCIATION OF BRITISH COLUMBIA

20 The Waiting Game

columns

36 The Age of Motor Cars and

VIEWPOINT from the MAGAZINE CHAIR

message from the president

rePORT from the ceo

the Origins of Legal Expense Insurance

articles 16 Catching The Wave The bc mortgage broker ©2013. All rights reserved. The views expressed in The bc mortgage broker are those of the respective contributors and not necessarily those of the publishEr or staff.

31 Forging True Lender Partnerships

24 Insurance, Not Just an Expense 32 From Orange Groves in Florida to Syndicated Mortgages in BC

PUBLICATIONS MAIL AGREEMENT NO. 41297283. RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: Suite 404, 999 Canada Place, Vancouver, BC V6C 3E2

2013 MBABC Charity Golf Tournament

PRINTED IN CANADA.

departments 9

2013 board of directors directory

10 CALENDAR OF EVENTS 10 LETTERS To the editor 12 in the COMMUNITY news, updates and announcements

14 MEMBER PROFILE: broker 28 member profile: LendEr

42 thank you to our advertisers 44 mbabc new members VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 5

vie w

p o i n t

L E T TE R

F R O M

TH E

M A G A Z I N E

C H A I R

TakeTime forYou!

Deb White, Magazine Chair

Remember to award the most important key to a successful business….YOU!

elcome to the spring edition of the BC Mortgage Broker magazine. How has your year been so far? I sincerely hope that you have taken the time to take care of you! Many times I find that we get so wrapped up in our business that we forgot to take care of the most important asset of our business… ourselves! Take that time away in the afternoon to go golfing, have an afternoon with friends,

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

spend time with your children, or in my case grandchildren. I too am guilty of that mindset. You know the one….I can’t be away, what if Mr. Smith calls with an offer, I have to be available. I know many of you right now are shaking your heads in agreement. But you know what, Mr. Smith called you and I bet he will be more than willing to wait an afternoon! This time away from your computer and office will give you a clean start for next day and you will feel so refreshed! This way when the lender calls with a request, you won’t be stressed. Our relationship with our lenders is so important. It is key to a successful business. Our lenders are more than our lenders, they are our partners and in most cases our friends. Have a great summer and I look forward to seeing you at our next event!

me s s a ge

F R O M

TH E

P R E S I D E NT

“I am very proud of the re-commitment of BC brokers, lenders and the Board of MBABC to our association.” Jared Dreyer, MBABC President

s my term as President nears the end, I am very proud of the re-commitment of BC brokers, lenders and the Board of MBABC to our association. This has enabled us to have a stronger and clearer voice as a broker advocate as well to forge sturdy relationships with our provincial and national counterparts for the betterment of our industry locally and across the country. There is no doubt this has been a challenging time. I am deeply proud how hard the MBABC Board and staff has worked this past year on the memberships behalf to manage through the Mortgage Broker Act regulations review, BC Securities Commission discussions, government rule changes and the exploration of becoming a self-regulated industry in BC. These are BIG issues and I could not be more grateful or proud of the support of the membership, diligence of the Board and co-operative nature of all associations and lenders across Canada.

regulation of MICs and syndicators, and many other issues. We opened up our phone lines and email to members – we fully engaged with our industry, in town hall meetings and with surveys. As we speak, the association is putting together position papers on numerous other legislative and regulatory issues which have been brought to our attention by our members. Our CEO, Samantha Gale, an experienced real estate lawyer and former mortgage broker regulator is providing substantial practical knowledge and support to our members. The association continues to provide benefits to members – most notably commencing May 1, we shall be providing our members with legal representation to defend them should they be investigated or subject to regulatory proceedings by FICOM, or subject to a CRA audit – this is an incredible benefit which we now provide included in membership.

The MBABC is a platform for broker advocacy. We continue to work hard in the broker’s best interests by exploring legal and regulatory issues affecting mortgage brokers and putting together some of the best position papers for our government representatives to take action on . We opened up a dialogue with industry members to talk to them about important industry issues such as self-regulation, the

It is critical brokers continue to reinvest in themselves through training, technology and being active in this incredible industry through local and national associations. The MBABC is the voice of the BC mortgage broker. Through transparency, open communication and involvement our voice keeps getting stronger and stronger.

VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 7

repo rt

F R O M

T H E

C E O

NEED a

Lawyer? We have one for you!

Let me ask you a question. What would rattle you more: A CRA tax auditor or a FICOM investigator knocking at your door? Either event is likely to evoke feelings in your typical mortgage broker ranging from mild apprehension to serious heart palpitating trepidation. The MBABC Board, being alive to the critical need to add “value” to membership recently made a bold decision to provide legal representation to members facing these regulatory challenges through Legal Expense Insurance. So why might you need a lawyer if you are undergoing an audit? Most mortgage brokers are commissioned sales people who receive a T4A, and write off business expenses against earnings. This will make them a possible target of a CRA audit. The Tax Executive Institute has recently noted some possible areas of concern arising from CRA audits, which include the following: Auditors sometimes seek opinions from head office without ever explaining the nature of any ambiguous issues to the taxpayer. Auditors are likely to be bound by the opinion while the taxpayer will have provided no input into the framing of the issue which the opinion addresses. Taxpayers can experience vastly different tax treatments of the same item from year to year, without any explanation of the inconsistency from CRA. Sometimes tax adjustments are made by auditors without any explanation, even after a rationale is requested by the taxpayer.

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

Auditors may focus on a taxpayer’s account balances in audited financial statements rather than reviewing the basis for adjustments on tax returns. Auditors can choose not to review sample data, and insist on taxpayers unearthing every document and endless amounts of data in a very short time period. Auditors may accept a favourable change benefitting the taxpayer but can refuse to allow the change to flow through to previous tax years, requiring the taxpayer to file amended returns for previous years. The CRA is a powerful government entity and the Income Tax Act is overwhelmingly complex. We want our members to be equipped with legal representation from a tax lawyer should they encounter a problem with an audit so they do not overpay on taxes, penalties and interest. The Legal Expense Program therefore includes legal representation for CRA tax audits and appeals. We also know that regulators need to enforce standards and ensure a high level of compliance amongst industry members. Recently FSCO announced an intention to focus more attention on compliance enforcement amongst mortgage brokers in Ontario, and cited the goals of the newly formed, Mortgage Broker Regulators’ Council of Canada as being a strong influence on provincial regulators taking action to raise industry standards. Of course, raising the

bar for the industry is necessary and will only help strengthen it. However, we always advise industry members to obtain legal advice or representation if they are subject to a regulatory investigation or proceedings. This protects their interests, and ensures that the disciplinary process is equitable and adheres to the rules of fairness – which is in the interests of both the public and the industry. Unfortunately, the cost of legal representation is exorbitant and can easily add up to many thousands of dollars. This can cripple members, potentially threaten the financial viability of their business, and possibly eat into their personal assets. Legal expense insurance therefore provides members with an important safety net. As an association representing BC’s mortgage brokers in these challenging economic times, we had better be relentless in our commitment to providing benefits and services to members. We know, probably at the time of renewal, that our members are likely to calculate the net value of MBABC membership by evaluating its benefits and cost. Providing legal representation for members during these critical encounters with regulatory authorities creates a tangible value proposition for members. Go to page 36 for an explanation of complete coverage provided by the MBABC legal expense program. Samantha Gale, CEO MBIBC & MBABC

2 0 13

board

directors

di r e ctory

S T A F F Jared Dreyer, President

Bruce Kahkesh, Directory Committee

308 – 15252 32nd Ave Surrey, BC V3S 0R7 604.649.5991 x 201 604.539.3802 fax jared@dreyergroup.ca

2300 – 1066 W. Hastings St. Vancouver, BC V6E 3X2 604.681.7772, 604.889.4349 cell 604.681.7773 fax bk05@shaw.ca

Roger Levesque, Vice President Education Co-Chair

119 – 2745 Veterans Memorial Pkwy Victoria, BC V9B 0H4 250.405.4350, 250.380.8048 cell 866.467.7881 fax roger@rocharfinancial.com

Jason Suttie, Treasurer Education Co-Chair 219 – 6820 188th St Surrey, BC V4N 3G6 604.760.2247, 604.294.9335 fax jsuttie@suttiemortgage.com

Geoff Parkin, Past President

452 Culzean Place Port Moody, BC V3H 1E5 604.630.3625, 778.772.3619 cell holly.macphail@mcap.com

Karl Madsen, Government Relations Chair

200 – 20434 64th Ave Langley, BC V2Y 1N4 604.532.8769, 604.677.5436 fax troyresvick@mortgageadvisors.ca

Deb White, Magazine Chair

1 – 3009 43rd Ave Vernon, BC V1T 3L4 250.545.2202, 250.549.7283 fax deb.w@telus.net

Geoff Willis, Communications Chair

200 – 20434 64th Ave Langley, BC V2Y 1N4 604.290.1219, 604.677.5436 fax karl.madsen@shaw.ca

370 – 2608 Granville St Vancouver, BC V6H 3V3 604.742.3411, 604.657.9195 cell 604.630.7270 fax geoff@origingroup.ca

Megan McDonald, Membership Chair

Ajay Soni, Director At Large

1400 – 1140 W. Pender St Vancouver, BC V6E 4G1 604.630.3653, 604.351.7574 cell Megan.mcdonald@mcap.com

404 – 1688 152nd St Surrey, BC V4A 4N2 604.531.7310, 604.619.5343 cell 866.218.5996 fax geoff.parkin@vericoselect.com

D+H BC ad 7.25x4.71.pdf

Holly MacPhail, Membership Committee

Troy Resvick, Media Chair

902-777 West Broadway, Vancouver, BC V5Z 4J7 604.868.0902 604.676.2663 fax

Samantha Gale

Executive Officer, MBABC & MBIBC

samanthagale@mbabc.ca

Debra Hiller

Accounting / Member Services

accounting@mbabc.ca

Catherine Barry

Education Coordinator

cbarry@mbabc.ca

MORTGAGE BROKERS ASSOCIATION OF BRITISH COLUMBIA Suite 404, 999 Canada Place, Vancouver, BC V6C 3E2 Phone: Direct 604-408-9989 Toll Free 877-371-2916 Fax: Direct 604-608-0977 Toll Free Fax 866-557-0977

Kevyn Oyhenart, Ethics Chair

6431 Dakota Drive, Richmond, BC V7C 4X5 604.272.1784, 604.341.5798 cell 250.549.7283 fax koyhenart@shaw.ca 13-02-19 6:21 PM

CMY

VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 9

TO THE

Editor

A historical account of the creation of MBABC

here were a few brokers in the late 80’s that got together and formed the MBABC, John Ribalkin, Doug Eubank, and a few others that were signed on the original charter. The MBABC idea was actually born in a pub (The Lone Jack) in Sumas Washington, at a lunch where Greg Prenty (North West Trust) popped the idea, based on the OMBA (Ontario) model. A few calls later, and we had a dinner in Vancouver, and each of us threw some money in the pot to fund the incorporation and voila - the MBABC was born. As I recall, Ribalkin paid for dinner, losing the wager by a hair to yours truly. I think he’s still upset..... Eubank used to fly across on Scare West from the Island, (they handed out life vests as you got on the plane... Ok… I’m kidding) and his first feather in his cap as president a couple of years later was a meeting with a FICOM regulator, a first as a matter of fact. Anyway, we sure have come a long way. The main intention was that our industry would have a voice, and that has been realized better than we could have hoped, with the help of many diligent brokers along the way...

Hank Van der Woerd

… I did lose more than once paying “birds in the bush” for the post meeting dinners.

_________

ca l en d a r

events

May 22nd Owner-Broker/D.I. Round Table June 4th MBABC & CAAMP 2013 Spring Conference & Trade Show September 9th 2013 MBABC Annual Charity Golf Tournament October

Education Symposiums

* Please visit www.mbabc.ca for full details 10

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

urther to Hank’s note above I did lose more than once playing “birds in the bush” for the post meeting dinners. For those that know me, I hate to lose! My recall is that the five original signing people to get the MBABC registered under the Society Act were Hank, Doug, Paul Luykx, Rick Jordan (who was working at Nova at that time and Jack LaVan, our initial the corporate lawyer, told us we needed that 5th signature) and myself. It was a scramble to get the association going… basically begging people to apply for membership at $50 apiece. Why they said should they join the MBABC?! Finally it was a great day when we got to 50 members!!! What a milestone! Cash flows were not great to begin with and free support (as well as some extra dollars) were put in by my company (then Nova Financial) and Dave Craigen’s company (Mortgage Source -Dave’s partner was Colin Dreyer) during the first year or so just to keep the finances above water. Also Doug Eubank for all his trips over from Vancouver Island never did get fully reimbursed for all his travelling expenses (just to note). We had no money for board meetings nor for an office and we graciously accepted the use of the Firstline Mortgages board room who had their office on Kingsway. The then Manager of Firstline was the one and only Ron Swift. I remember doing a one-day trip to Victoria with Bob Lindley (who once was the President of the Mortgage Dealers Association.. now that is going way back in time!) to join Doug Eubank and the reason for the trip was to meet with the new Deputy Registrar of Mortgage Brokers being Adrienne Murray – Adrienne of course was eager to jump into her new role, but with no background in mortgage brokering, we spent the day filling her in on what we did to earn a living. It took about a decade of pushing to get the golf tournament going and for many a year my main partner was Brent Morgan …a committee of two. I also remember one day when a prank was played on me at one of the golf tournaments when a certain Mr. Hunt won the KP! I will let Brent and Tom Wollner tell that story. Remember convincing Dave Nichol (who has since has passed on) and Steve Bainbridge (they had an upstart company called “Morty” - and were running on a line of credit. This new

company was trying to get mortgage brokers to send mortgage applications to lenders electronically. What a nouveau idea) to sponsor the golf carts one year. This was at a time when brokers were just getting used to fax machines. All the Boards especially in the first few years worked in overdrive to try to get mortgage brokers to join to try to make one community voice in front of the public and FICOM. Eventually we were successful in increasing the numbers and these new members also contributed their time and expertise. It actually took five years after registering our new Society for the MBABC to become a viable entity. Personally it was great to have contributed at the beginning and assist where now requested. In closing I applaud the other Boards and volunteers that have brought our MBABC to where it is today!

John Ribalkin _________

MBABC recently celebrated our 23rd Anniversary as a Registered Society. The MBABC Board and Staff would like to thank our Founding Fathers, past Board Members and all of our current members, sponsors and advertisers for their continued support.

_________

Industry member speaks out in regards to BCSC & ASC involving MIC exemptions

lberta Securities Commission is probably geared and staffed to do a super job of regulating securities, public companies etc. The challenge that we have in Alberta is that RECA felt that MICs and Syndicated mortgages, were inadequately regulated. The ASC assumed that function, despite clear evidence that there was no public demand for the regulation, plus its cost of registration and compliance is so burdensome that many $1 million to $10 million dollar firms have closed. What a shame!! It is now my understanding that we cannot even broker syndicated mortgages to friends or family members as investors, without being registered with ASC. Rather than take unnecessary risks, most of us have discontinued offering this service. More intrusion in our market enterprise economy. There does not appear to be any turning back at this point.

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News in the

Notice from the Registrar The Registrar of Mortgage Brokers has issued Mortgage Broker Bulletin, MB 13-001, “Mortgage Investment Corporations – Clarifying the Scope of FICOM Regulation”. The Bulletin states:

Opening the Litigation E-Gates:

Mortgage Brokers Look Out!

The tribunal will not decide tribunal matters that affect land, such as: • ordering the sale of a strata lot; • court orders respecting rebuilding damaged real property; • dealing with developers and phased strata plans; • determining each owners’ per cent share in the strata complex (the “Schedule of Unit Entitlement”).

The act provides the Civil Resolution Tribunal authority to handle1: 1. small claims disputes where the parties decide to take the matter to the tribunal instead of the court, up to a maximum value of $25,000 for: • debt or damages; • recovery of personal property; • specific performance of an agreement relating to personal property or services; or • relief from opposing claims to personal property. 2. strata disputes between owners of strata properties and strata corporations for a wide variety of matters such as: • non-payment of monthly strata fees or fines; • unfair actions by the strata corporation or by people owning more than half of the strata lots in a complex; • uneven, arbitrary or non-enforcement of strata bylaws (such as noise, pets, parking, rentals); • issues of financial responsibility for repairs and the choice of bids for services; • irregularities in the conduct of meetings, voting, minutes or other matters;

If the parties are unable to negotiate a resolution of the dispute online, they can ask the tribunal to mediate a settlement, which will also be done over the internet. The mediator can direct parties to produce documents. If they cannot reach a settlement of the issues, then an adjudicator can step in and make a binding ruling on the matters in dispute. It is anticipated that the adjudication process will be electronic, but the adjudicator may conduct hearings over the telephone or by video conference.

1 This List is taken from the Notice issued by the Province of BC – see http://www.ag.gov.bc.ca/legislation/civilresolution-tribunal-act/index.htm

• interpretation of the legislation, regulations or bylaws; and • issues regarding the common property.

From time to time mortgage brokers get ensnarled in disputes with clients, former owner-brokers or even other mortgage brokers which escalate to the point where formal adjudication before a court is required. The Civil Resolution Tribunal Act was given Royal Assent on May 1, 2012. It will create a new adjudication body for resolving simple civil disputes called the Civil Resolution Tribunal, which is expected to be in place sometime in the year 2014. The primary aim of the legislation is to create a formalized internet based system of alternative dispute resolution for strata owners who have disputes with the strata corporation or other owners. However, any small claims matter can potentially be resolved in the new tribunal if the parties consent, including those involving mortgage brokers.

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

What is wholly novel about the new tribunal is that the parties may resolve disputes over the internet by using an “Online Party to Party Negotiation Service”, wherein a party with a dispute can enter the details of a claim online. The opposing party is then notified of the electronically filed dispute and with that opposing party’s consent, the parties are then guided through an internet based structured negotiation process. The process is monitored and the tribunal staff may provide assistance in order to encourage resolution of the dispute.

The new electronic tribunal is likely to provide easy access to complainants wishing to obtain compensation from a mortgage brokers or lenders, as the process can be initiated anywhere and at any time using any personal computer. Mortgage brokers are therefore likely to encounter the new E-proceedings at some point after the tribunal has been established.

_________

The Office of the Registrar of Mortgage Brokers at the Financial Institutions Commission (FICOM) is aware that some Mortgage Investment Corporations (MICs) are making representations in their printed and website materials that they are registered with FICOM. MICs are registered under the Mortgage Brokers Act (Act). The Act regulates the brokering and lending activities of MICs but does not regulate their capital raising and investment marketing activities. Trading on the fact of registration with FICOM, particularly in any written materials that are intended for investors, may create a false impression with the public that the Registrar regulates MIC capital raising and protects the interests of MIC investors. The Registrar requires that representations about a MIC’s registration with FICOM include the following wording to clarify the scope of regulation under the Act: The Office of the Registrar of Mortgage Brokers at the Financial Institutions Commission regulates the mortgage brokering and lending activities of Mortgage Investment Corporations (MICs) under the Mortgage Brokers Act. The Registrar and the Mortgage Brokers Act do not regulate the capital raising and investment marketing activities of MICs which are subject to securities legislation and regulation. The Registrar requests that MICs immediately review and update all written representations, in printed and electronic form, to include the above clarification. This includes representations in advertising and promotional materials, website materials, corporate materials, and disclosure materials for investors including offering memoranda.

_________

MCAP and Brokers Pay It Forward in New Orleans For brokers attending MCAP’s recent Summit trip in New Orleans, it wasn’t all just kicking back and celebrating in the Big Easy, but about paying it forward by raising the walls on a home in a low-income, hurricanedevastated neighbourhood. The build was part of the New Orleans Area Habitat for Humanity day organized by MCAPs Vice President of Sales, Gino Tieri and his leadership team.

Updates

MBABC

&Announcements “We wanted to take a different more holistic approach this year that included celebrating partnership, learning from one another at our business meeting and dedicating time to give back to those in need of help. Habitat for Humanity has been MCAP’s charity of choice for a number of years, and being in New Orleans gave us the opportunity to work together as one, regardless of what brand the brokers work for, to give back to those in need. It was an amazing day!” says Tieri. MCAP’s 40 top-producing brokers from across Canada spent the second day of their well-earned five-day New Orleans broker trip in hard hats and work gloves. Under the tutelage of Habitat’s building specialists, the team devoted eight hours working tape measures, levels, saws, hammers and nails like pros as they laid floors and erected walls at the residential building site located in the Central City Area of New Orleans. {A film crew followed the group throughout the day – you can view the video on our Mobile edition}

_________

Celebrating 25 Years! In 1988 Stuart Gautier relocated to Qualicum Beach with his wife and two children. That same year he opened the doors of Mid-Island Mortgage & Savings (Qualicum) Ltd. At that time, there was only one other broker between North Nanaimo and North Vancouver Island. Perhaps it was the shortage of brokers in the area that has provided Stuart with so many unique clients and files across his desk. He once had a mortgage ready to close, only to discover the owner had built the house in the middle of a road allowance simply because it was the sunniest spot. Of course this deal fell apart and is an example of why the implementation of regional building inspections in rural areas was critical to mortgage lending. Again, when regulations were looser appraisals contained only one or two pictures of the property from the outside. The standard question that Stuart used to judge the

appeal of the property was to ask the appraiser if he “would eat lunch there.” The appraiser’s response guided Stuart on the ‘lendability’ of the property. And of course there are always the deals where it isn’t the property that is the issue. We once had a client that we discovered had two guard dogs, a collection of guns and a grow-op on the property. When we explained that this was an issue, he was confused as to why these were obstacles to obtaining a mortgage. Mortgage regulations have changed significantly since Stuart opened his doors for business, but what remains constant is the excellent service and dedication that MidIsland Mortgage & Savings (Qualicum) Ltd. provides to its clients. In 2009, Stuart’s daughter, Margaret O’Connor joined the team and together they continue to run Mid-Island Mortgage with the same values of efficiency and integrity that Stuart brought with him 25 years ago.

Flexible lending when you need it. At Antrim, being flexible allows us to create the custom mortgage solutions your clients require. We provide a broad range of residential 1st and 2nd mortgages tailored to the needs of your self-employed, stated income, and low beacon clients. Furthermore, a common sense lending approach allows us to approve and fund deals fast. Our friendly and knowledgeable underwriters look forward to helping you. 604.530.2301 · 1.888.550.6039 · applications@antriminvestments.com

VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 13

p ro f i le

B R O K E R

MBABC’s Member Broker Profile presents

Daryl Eyjolfson

Dominion Lending Centers

How long have you been a sub-mortgage broker and what is your background?

If you could see anything change in the industry, what would it be?

What do you think 2013/2014 will bring us in regards to the industry?

I’ve been a mortgage broker for 4 years this coming August. I’ve been in the financial services industry since approximately 2003, working in various lending roles ranging from residential to commercial, with a keen interest in construction lending. I was previously at the local Credit Union. I’ve always loved seeing someone’s plan on paper turn into a reality.

I see mortgage rules continuing to change, and not necessarily in a stricter manner. Policy experts are human, and with each change they will analyze the data and realize that they under-implemented certain changes, overshot others, and will tweak the guidelines accordingly to get the optimal mix of commerce vs. the safety in the banking system.

I see the adapters continuing to succeed, and those resisting change leaving the industry.

What do you think are the biggest obstacles with being a sub-mortgage broker during these times?

Working previously with a Credit union, what are the major differences with lending that you find?

The stricter mortgage qualification guidelines have definitely added some challenge to the industry. But like all challenges, they are accompanied by opportunities, and being a well-educated expert in the field focused on solutions can definitely add value to the end consumer and our Realtor-referral partners. It’s the rough seas that make a good captain. Embrace the challenges, look for solutions, and don’t forget to have fun while you’re doing it.

When I worked with a Credit Union back in the early/mid 2000’s, the lending guidelines were extremely conservative, and their products and policies were quite limited. They definitely served certain niches very well, but as a lender you were handicapped in helping the mass market. That is why I’ve always thought the broker model is the superior lending-solution model. Many, many more options for the client.

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

How do you feel being a member of MBABC has helped you? It’s presented invaluable networking opportunities with masters of the industry. It also has provided the confidence of knowing you are in the loop with major discussions in the industry, and that you have someone representing your interests while you are busy serving clients in the field.

What would you like to see more of from MBABC? I really enjoyed the small scale town hall event that was brought to the Okanagan last year. I would like to see more of those meetings as they provoked some great discussions and brainstorming with like-minded people in the industry.

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $1 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M. Blake Cassidy 800 494 0389 | romspen.com

Weâ&#x20AC;&#x2122;ll have you laughing allthe Way past the bank.

CATCHING THE

Wave

he revision and/or implementation of mortgage licensing requirements which has taken place in several provinces has reached Atlantic Canada. In particular, the Mortgage Regulations Act for Nova Scotia is currently being amended. Bill 22 was passed in the spring of 2012 and the first phase of draft regulations have been circulated to various stakeholders with an opportunity for their comment and feedback. Once all phases are finalized licensing and educational requirements will be more in line with British Columbia, Alberta, Manitoba and Ontario.

It is the first amendment to licensing requirements in over forty five (45) years for the province. Historically the only requirement for obtaining a mortgage license has been an annual licensing fee for the brokerage and the requirement for anyone trading over $30 000 a year to be licensed. Under the new act, there will be five levels of licensing: mortgage lender, mortgage brokerage, mortgage broker, associate mortgage broker and mortgage administrator. Minimal educational requirements will be implemented for the granting and renewal of licenses. As well, minimal proven length of service will be required for the

elevation of licensing from an associate mortgage broker to mortgage broker. Janet McKeough, President of the Mortgage Brokers Association of Atlantic Canada (MBAAC) said “Those qualifications are reflective of the values of the time, but not the industry today. Our board has been working closely with the province to bring these changes forward. We believe they will be good for consumer protection and our industry as a whole.” “The team at MBAAC is a dedicated group consisting primarily of mortgage brokers. We have received great support from our sister associations across the country, and have been said to be a welcomed and coordinated source for feedback the regulators for Nova Scotia. We aim to do the same in the remaining three Atlantic Provinces and hope to assist in moving their respective reviews forward” said McKeough. The Province of New Brunswick is in the early stages of reviewing mortgage licensing requirements. It is expected Newfoundland and Prince Edward Island will also make amendments in the near future.

WHY MORTGAGE ARCHITECTS?

I’m at Mortgage Architects because the company is driven and operated with ethical leadership, integrity and professionalism! MA makes me feel excited about a very promising future in our industry because of the supportive team and culture. There simply is no competition if you want to work with the best and brightest in the industry! That why,

KELLYCURTIS MORTGAGE BROKER

Visit joinma.ca today to learn more.

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

Interactive Mobile Advertising Opportunities Available for iPad, iPhone and Kindle Get the most out of the BC Mortgage Broker by adding a digital component to your ad. These enhancements will bring your ad to life, give clients even more insight to your business and experience what you have to offer.

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the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

Available at the Apple Newsstand, iTunes and the App Store.

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Don’t miss the opportunity to market your company to an engaged & active audience! • Every Sponsor will be recognized by Tournament Chair and/or President at dinner, signage throughout the day, recognized in the magazine following the event • Every Sponsor receives a hole with exception of: Carts, Driving Range & Photographer. • Par, Birdie & Eagle levels receive dinner for two • Photographer Sponsor receives golf for two & sponsor can outfit photographer in company apparel • Cart Sponsor receives golf for two & sponsor has option of cart to drive and greet players • Dinner & Cocktail Sponsor receives golf for four and sponsor gets 5 minutes mic time to thank the crowd Please contact Deb Hiller to book your sponsorship TODAY: accounting@mbabc.ca or Direct: 604-408-9989 / 877-371-2916

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the WAITING

Game

The BCSC’s Anticipated Edict on MICs

was at a meeting with several top BCSC staff in November 2012, accompanied by some local MIC operators. One of them, a senior industry member who is obviously one of our more vocal members, quipped “I feel like I am on death row with a noose around my neck waiting for the floor to drop”. The industry member, a mortgage broker with a small MIC,

was of course referring to the proposal to require MIC managers to obtain exempt market dealer (“EMD”) registration, a proposal which has been under consideration by the BCSC for more than several years – I think if my memory serves me since 2008. There have of course, been numerous extensions of a temporary exemption for MICs to obtain EMD registration in BC, with the latest exemption expiring at the end of June 2013.

It is clear, now that the BCSC has made a specific proposal to adopt the EMD requirement for MICs, that a final decision on this issue will soon be made and the series of temporary exemptions will eventually come to an end. The MBABC made a detailed submission on this issue to the BCSC. In particular, we explained that MIC managers are fundamentally different from securities advisors. MIC managers and employees become experts in mortgages as their business requires that they engage in mortgage arranging, lending and administration activities. Mortgages are fundamentally different from securities, in that they secure debt on real estate, which is tangible, immovable and has a unique value based on its physical characteristics, location, improvements, revenue stream, potential for upgrading and other factors. You can touch and feel real estate – unlike “securities”, which appear to be intangible, untouchable,

20 the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

loaded with hidden rights and restrictions and lacking a value which can be easily derived at through an appraisal. It is fair to say that most MIC managers and employees are not experts on investment products which are sold through financial intermediaries. Try asking a MIC manager to explain a “call feature”, “constrained share”, “debenture”, or a “derivative”. While some well versed MIC managers may readily know this information, you really need to be an expert on mutual funds, investment pools and other securities not only to provide competent advice on securities in general, but also to sell specific investment products to the public. It was our view that the series of prospectus and registration exemptions, such as the Offering Memorandum exemption, which MICs have frequently utilized, worked. These exemptions were available as it was recognized that MICs, who are generally industry members selling their own products, need

to raise capital quickly and efficiently and without unnecessary expense or compromising investor protection. The proposed elimination of these exemptions will force MICs to register as EMDs, which will create insurmountable compliance challenges for MICs – and this is what will endanger the investing public.

INNOVATIVE SINGLE FAMILY LENDING

EMD’s are required to comply with “know your client” rules and dispense suitability advice to investors prior to completing investment transactions. Requiring MICs to become EMD’s would therefore necessitate MIC managers to investigate the financial needs and investment objectives of each potential MIC investor in order to advise him or her on each transaction about the most suitable or appropriate investment product, having regard to all investment and financial products. Consumers do need regulatory oversight over the professionals who provide them with financial services. Registration under the Securities Act and its accompanying know your client rules and suitability requirements are certainly essential for financial intermediaries. However, we believe that these requirements should not be imposed on MICs as MIC managers are not capable of fulfilling the role of financial advisor to the investor. In addition, some investors are people with considerable wealth who may dislike intrusions into their financial status and investing habits. Consumers should ultimately be responsible for looking after their own interests and take responsibility for their own choices. The goal of government should be to ensure that consumers are empowered to make informed, careful investment decisions. Providing consumers with relevant knowledge is actually a much more powerful consumer protection tool than imposing a system of paternalistic “advisor knows best” regulation over them. I also note that the financial intermediary model has its own set of ethical and public protection challenges. The BCSC may wish to better understand the motivation that fees play in the actual advice dispensed by advisors. Distribution fees may include entry loads, exit loads and trail commissions. Compensation issues interfere with any fiduciary role and create conflicts of interest.

For over 25 years our common sense approach has been our hallmark vide o r P We ! tions u l o S

We asked the BCSC to consider other options for regulating MICs. Recognising that MICs are fundamentally different from any other investment vehicle regulated by BCSC by virtue of their extensive current regulation by the Canada Revenue Agency and the Registrar of Mortgage Brokers, we believe that it may be appropriate to bring back the Offering Memorandum exemption for MICs. The Offering Memorandum could be improved, drafted in plain English with better disclosure of the risks and previous returns of mortgage pools, details of mortgage investments and rigorous disclosure of MIC compensation, fees and operating expenses. In addition, there could be conditions attached to the use of the Offering Memorandum exemption which could curb predatory practices against vulnerable sectors of society, such as a condition that the investor have a certain dollar value net worth or that some investors not be permitted to use leverage to acquire shares.

Find out how we solve your mortgage requirements

Give us a call Tom Wollner 604.331.2210 tomw@peoplestrust.com

Our MIC industry members are anxiously waiting for the BCSC to make a decision on their proposal to require EMD registration for MICs in order that they can plan for how they may comply with the new regime. It will be good news for the MIC industry if they consider exemption solutions. However, the MIC industry should rest assured that the MBABC has a backup plan and is collaborating with a strategic partner to provide MICs with a cost effective solution if needed.

www.peoplestrust.com

ATING O BR

RS •

• TW

R VE

CEL E

Samantha Gale

Y- F I V E Y

VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 21

Achieve YOUR TRUe

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the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

The policy and coverage is underwritten by Royal & Sun Alliance Insurance Company (RSA), one of Canada’s leading property RSA and casualty insurance providers. provides a customized and innovative approach to E&O insurance, ensuring you are provided with a business solution that responds to your specific needs. www.rsagroup.ca

Mortgage Brokers Errors & Omissions

YOUR CONTACT KATE RAMSAY Account Executive 604-609-2192 kramsay@jonesbrown.com JONES BROWN INC. #805 - 609 Granville Street Vancouver, BC V7Y 1G5

ADVANTAGES

This program is managed by Jones Brown Inc. We are one of Canada’s largest specialty insurance brokerages with offices and personnel across the country. www.jonesbrown.com

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Up to $10,000,000 in limits available. Continuity from your existing E&O policy. No mortgage syndication exclusion. Defense costs are payable outside of limits (i.e. defense costs won’t erode available limits). No deductible on Defense Costs Broad definition of Insured(s) includes predecessor firms, owners, employees, students, volunteers, and subcontractors. Dishonest Acts (Fraud Coverage) included. Libel and slander coverage included. Satisfies all mortgage industry requirements including FICOM, RECA, FSCO as well as the Saskatchewan and Manitoba provincial governments. An innovative and adaptable program designed to evolve with your industry’s needs.

ERRORS & OMISSIONS LIABILITY Any mortgage professional can make a mistake, and increasingly people are showing a willingness to turn to the courts to settle their disputes. These types of lawsuits can affect your profession and even a simple error or omission can result in exorbitant costs that may financially cripple your firm. Protect your business with Errors & Omissions Liability coverage. COMPETITIVE PREMIUMS For too long, mortgage professionals in Canada have dealt with the perception created by litigious issues of their counterparts in the USA. Our Errors & Omissions (E&O) program recognizes the legislative, regulatory and professional standards that guide Canadian

mortgage brokers’ practices, and rates accordingly.

business the risks

Your business will benefit with more competitive premiums, lower deductibles and fewer coverage shortfalls. COMPLETE – EASY – EFFICIENT This E&O program is designed to be a quick and efficient process for you to get the best possible coverage at the best possible rate. With an electronic application and readily accessible program contacts that have authority to quote on behalf of the Insurer – you can spend more time doing what you do best; running your business.

VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 23

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INSURANCE:

not just an

Expense...

n today’s highly competitive marketplace, we understand that insurance is not necessarily something that you, as a mortgage professional want to think about, much less pay for! We are keenly aware that insurance premiums can be just another expense at a time

when your margins are being squeezed by budget conscious clients and lower mortgage rates.

But we’d like to change your mind about insurance and value. Have you ever thought about insurance as a risk management tool rather than an expense? Insurance is actually a very affordable way to transfer some of your business risks from you to an insurer. So, to think about risk differently, here are a few questions you can ask yourself and some claims examples to make the theoretical real.

Do you give professional advice? Yes of course you do! All mortgage brokers face the risk that a client believes that your services are not delivered as promised, or that your advice is incorrect. Errors & Omissions (E&O) insurance provides coverage when a client claims that you, or one of your employees, are responsible for the advice or service you provided, or failed to provide, that did not meet the expected or promised results. Even when best practices are followed, a small mistake or overlooked piece of information could cost you and your business. Most importantly, the policy can provide protection when allegations of professional negligence are made. Even if those allegations are not true! This protection including defense costs, which in most cases far exceed any damages awarded.

Failure to properly review loan documents A mortgage broker obtained loan documents from a prospective borrower. The documents, including bank statements and tax returns were forged. The borrower defaulted and the bank alleged the mortgage broker was negligent by not validating bank statements and other documents provided. This combined with a drop in real estate market prices has the potential to cost over $300,000 in damages plus legal defense costs. 24

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

Left the firm A client met with a mortgage broker to discuss mortgage options and he agreed to a loan at 4.5% APR. The broker informed the client that she will complete the necessary paperwork and meet with him in a few days to finalize the loan. She assures him that she has locked in the agreed upon rate. A week later he has not heard from the mortgage broker so he calls the brokerage and is informed that the broker quit the day following their initial meeting. Unfortunately, the employee did not complete any of the work prior to leaving and the client is told that he will have to meet with another broker. He does so, but the best rate the client is offered is 6.5%. He successfully sues the brokerage for the difference in the payments due to the difference in rates.

Do you have employees? If yes, then you have an employment practices liability exposure. Employment Practices Liability (EPL) insurance is a human resources malpractice policy. EPL is designed to respond to risks that arise from managing employees, such as allegations of sexual harassment, constructive or wrongful dismissal or employment-related misrepresentation. While good human resources procedures and policies can go a long way to reduce risk, most companies simply do not have the resources to implement formal procedures; even with strong employment practices not all risks can be eliminated. Also, similar to E&O situations, any employee (including candidates for employment!) can make allegations and sue, regardless of there being any wrongdoing. continued...

SOLUTIONS. ADVICE. MOVE.

SMART

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Visit www.RMGmortgages.ca or contact one of our Business Development Managers to learn how RMG Mortgages can help you create homeownership opportunities.

continued from page 22

Wrongful Termination A class action proceeding was filed against a company, its CEO and a number of its directors by 26 laid-off employees seeking damages for wrongful termination and amounts owing for accrued vacation pay. The matter was resolved prior to trial and the EPL policy responded by paying the defense costs for all defendants, along with approximately $80,000 to settle with the employees.

Do you have shareholders or unitholders? If yes, and even if you’re a private company, you have a Directors’ & Officers’ (D&O) liability exposure. While often misunderstood, D&O is quite simply Board malpractice insurance. Directors and officers can make mistakes and no matter how prudently a board acts, decisions can result in losses for the company or a third party, causing the directors and officers who made those decisions to be held personally liable for those losses. Yes, personally liable. Most people aren’t aware that Board members can be held individually and personally liable for their acts whilst providing oversight and governance in the event that the business itself is unable (or unwilling) to do so. Claims can be brought by any stakeholder, from shareholders of publicly traded companies to unitholders of Mortgage Investment

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

Corporations, to employees, to regulatory bodies and even to venders to whom the business may owe money. Like E&O and EPL, even if a claim is not found to be true, the defense of the claim itself may result in lengthy and costly litigation. Note that if you are on a Non-Profit Board, all of the above is true for you too!

Bankruptcy Recently the former CEO is of a privately owned business was deemed personally negligent in her duty to remit dues collected from salaried employees to Canada Revenue Agency (CRA). When the organization was forced into closure due to bank debt, CRA filed a claim for the unpaid dues totaling $38,000. So there you have it – why you may wish to transfer a few of your business risks to an insurer. While most of us like to think “It can’t happen to us!” we have the claims experience evidencing the contrary. Kate Ramsay, CFA, B.Comm, B.Sc.Kin Account Executive Direct: 604.609.2192 Mobile: 604.816.9413 Fax: 604.608.1174 kramsay@jonesbrown.com

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 27

p ro f i le

L E N D E R

MBABC’s Member Lender Profile presents

First National

Marks Their 25th Anniversary with Thanks!

President Stephen Smith and Vice President Moray Tawse

n 1988, Stephen Smith and Moray Tawse made life-altering decisions. They left steady jobs and on March 31, 1988, incorporated First National Financial, now Canada’s largest non-bank originator and underwriter of mortgages. To say they started small would be an understatement. Their first office was over a pub in Toronto and in a fitting irony, they capitalized the business, in part, using funds from a mortgage Moray took on his family home. In their first year, they earned revenues of about $200,000 by originating mortgages and selling them to life insurance companies under what at the time was a new vehicle: National Housing Act Mortgage-Backed Securities. Not content to let others serve the mortgages they originated, they decided to seek CMHC-approved lending status, which at the time required a three-year business history. They waited, applied and received their license in 1991, the same year they opened their Vancouver office. The early years were by no means glamorous. Their head office had limited amenities, forcing Mr. Smith to shovel the snow to keep the sidewalk clear. But what they did have was something far 28

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

more valuable: a keen appreciation for and understanding of the mortgage broker channel. While the banks continued to rely on their own captive channels, First National chose what, at the time, was the path less travelled. That decision proved instrumental in the years that followed. “Back when we started, mortgage brokers had less than 5% market share,” said Mr. Smith who serves as the company’s Chairman and President, “and they were considered by the banks the channel of last resort. Today, they are the first choice for almost a third of Canadian home buyers. Choosing to work with the mortgage broker channel was the best decision First National ever made.” It’s hard to argue with that statement. By supporting the channel with both competitive mortgage products and service, First National created a sound alternative to Canada’s banks and watched its mortgages under administration rise from about $400 million in 1994 to $67 billion at the end of 2012. Those are big numbers, but as Mr. Tawse says, “what really makes us proud is that we’ve helped thousands of Canadian families purchase homes along the way by offering choices that simply did not exist in Canada 25 years ago.” Scott McKenzie, who joined the company 11 months after its founding and now serves as Vice President,

Residential Mortgages, notes that the growth and development of First National has paralleled that of the mortgage broker channel. “Their professionalism, independence, insight and advice make mortgage brokers the trusted choice for Canadians from coast to coast, and we can’t think of a better way to say thank you than by making them a focal point of our 25th anniversary.” To meet mortgage broker expectations for service, First National sets rigorous national standards for submission turnaround time and tracks the performance of each of its offices against these measures and publishes the results internally. This has created friendly competition among the Company’s offices across the country and helps First National consistently achieve its service objectives. The desire to provide mortgage brokers with best-in-class service was also the driving force in First National’s creation of Merlin, the industry’s first online mortgage approval and tracking system. Introduced in 2001, Merlin increases line of sight for mortgage brokers as they deliver rapid-response service to borrowers. Another key reason for the company’s rise in market share is First National’s steadfast refusal to discriminate based on a mortgage broker’s volume. Said Mr. Smith: “First National has always taken the long view in terms of relationships, knowing that a newcomer today can be a Wizard tomorrow. By helping

the new broker to get established, we hope they will remember us when they become a top producer.” And of course no discussion of First National’s progress is complete without acknowledging the Company’s team, now numbering over 600 across branches in in Vancouver, Calgary, Toronto Montreal and Halifax. Mr. Tawse labels them “the industry’s best workforce” and point outs that six employees will celebrate 25 years of service to the company in 2013. These attributes have helped the company establish long-lasting mortgage broker relationships, such as the one it enjoys with Bill Phinney. “Their service is unequivocally the best in the industry,” said Mr. Phinney, a top mortgage broker with Mortgage Intelligence. “That’s why I’ve been doing business with them for 25 years.”

Anniversary Celebration One thing that First National is not is boastful. Mr. Smith readily admits that he “never in a million years” thought the company would become a Canadian leader with the means to compete with the banks.

While these events are ongoing, First National will continue to focus on the fundamentals, including competitive rates and products, turnaround time on submissions, courteous service and technology leadership as it applies to both mortgage brokers (Merlin and the First National Automated Valuation Model) and borrowers through My Mortgage. “When we look ahead this year and in the years to come, we can’t say for sure what will happen with interest rates or real estate prices,” says Mr. Tawse, “but what is certain is that First National will remain very attentive to mortgage brokers and borrowers. Being quick, nimble and service oriented have gotten us through the first 25 years and will allow us to begin building towards the next 25.” For more information on First Nationa l’s celebrations, contact the company at 416 -593-1100 and info@firstnational.ca

From left to right: Sharon MacKenzie, Scott McKenzie, Dru McAuley, Josie Bohren, Peter Cook, Nuala Bourke

It’s perhaps for this reason that they decided to celebrate First National’s 25th anniversary with a campaign entitled Thank You for 25 Years of Shared Successes. “This is a chance to show our sincere appreciation – to say a heartfelt thank you – to those who have helped our company become the leader that it is today,” said Mr. Smith. Fittingly, the celebration will feature a number of customer, employee and mortgage broker events and contests throughout the year. The biggest event will happen when First National names 25 Wizards who, along with a guest, will receive an all-expenses paid trip to the Cayman Islands in February 2014. The winners will include the 17 top Wizards as well as eight others whose names will be chosen randomly. Full details are available at www.firstnational. ca/25contestdetails/. VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 29

banklike. In the world of banking, common sense has become surprisingly uncommon. Rules are piled on top of rules, making life harder than it needs to be for everybody. Well, that’s not how we operate. We strive to do right by our broker partners in a way that simply makes sense, like our new Advantage and Edge programs. We’re Bridgewater Bank, and that’s just how we do things. bwballstarportal.ca

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

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FORGING

TRUE LENDER

Partnerships

s a mortgage broker, you know you have a lot to offer lenders as you send them millions of dollars in volume every year. But, at the same time, it’s important to care about ensuring you’re a profitable broker in their eyes as well. In return, they’ll offer you better service – maybe even a dedicated underwriter – a wider variety of products and even

issue exceptions that could mean the difference between your client getting approved or declined.

Getting to know your key lenders’ product offerings and guidelines has never been more essential – as lenders are increasingly eyeing efficiencies and funding ratios. The industry as a whole totes the fact that brokers have access to dozens of lenders and an endless array of products. That said, no one broker ever uses “dozens” of lenders on an ongoing basis. You research the lenders, and pick and choose your favourites based on different offerings they have available and the guidelines that best meet your business’ needs. Let’s say you have five main lenders that you use on an ongoing basis to meet the needs of all of your clients. The more you pay attention to the lenders’ preferences and needs, the more successful you’ll be able to be because these lenders are more apt to pay attention to your needs in return. It’s definitely becomes a give-and-take win-win relationship.

When in doubt, ask your BDM Before submitting a deal you’re not sure will fit within a particular lenders’ guidelines, give your BDM a call or shoot them an email. They love to act as sounding boards for deals before you actually submit deals you don’t know will work. This pre-emptive step can save both you and your lender a lot of time and energy. Lender BDMs are often more than happy to talk about their offerings and explain what makes them different from all the other lenders out there. And they can also give you a head’s up to any changes and promos coming down the pipeline. It’s a great idea to get them involved in your office meetings by giving them airtime to present their offerings, talk about their guidelines and even offer up some helpful tips and tricks.

Love your underwriters The life of an underwriter can be quite a thankless job. They work long hours and are continually weighing various scenarios to see if they can make deals work – while, at the same time, having to balance making their employer and their brokers happy. And when they can’t find this balance, they often are blamed for not being able to make the deal work. Many times they’re verbally abused and underappreciated. When you find underwriters that you mesh well with, be sure to appreciate them. Show them the love and they’re more likely to look at your deals first, make exceptions where they can and, ultimately, help make you more money. Send them thank you notes and/or gift cards, a book you love or some other personal token that shows they’re appreciated. As much as it’s important for lenders to help brokers grow their businesses and be profitable, the same holds true with what brokers can offer lenders in return. By understanding the needs of your key lenders – and truly partnering with them – by caring about efficiencies and pairing your clients with the right products, you’re doing your part in ensuring the broker channel remains a viable option in the eyes of lenders. In order to ensure your personal future success, as well as the continued growth of the broker channel, you have to choose your partners wisely and do everything you can to remain a profitable part of your lenders’ businesses. After all, your livelihood depends on it. Cindy Freiman is Director of Public Relations & Communications for Dominion Lending Centres (cindy@dominionlending.ca; 289-240-6322). VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 31

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FROM ORANGE GROVES IN to

Florida SYNDICATED Mortgages IN BC

s most industry members know, the BCSC is currently considering whether to implement a proposal to require mortgage syndicators to obtain exempt market dealer registration in order to raise mortgage funds. The MBABC wrote supplemental sub-

missions to the BCSC in April to explain to them the prevailing view of the American courts on the subject of regulating syndicated mortgages. Quite clearly exempt market dealers trade in securities and not commercial products or services. A crucial factor in selecting the appropriate regulatory regime for persons arranging syndicated mortgages would therefore be whether they are a security OR a loan secured against title. Leading American cases determine that syndicated mortgages are not securities but, rather, are mortgage loans which fall outside of the ambit of the securities regulators. The tests employed by the courts in analyzing mortgage syndications are similar to those used to determine whether notes and stocks are securities. The “investment contract” test was originated by the United States Supreme Court in the precedent setting case of SEC v. W J Howey Co., 328 US 293 (1946). In this case, the Defendant, Howey Co. owned Florida land used for orange groves, which it then sold in parcels of one acre or less in conjunction with optional long term service contracts. While no purchaser was required to enter into a service contract, they were strongly encouraged to do so. The contracts provided for a lease of the land from the purchaser back to Howey Co. which would then tend to the land, grow the fruit and market the fruit for sale. Under the service contract, Howey Co. had complete possession of the land leaving the purchaser with no right of access to the land or fruit. The orange grove investment was marketed to business and professional persons throughout the United States, who were promised sizeable profits in various sales pitches. Howey Co. had not complied with any securities requirements, such as by filing registration statements, and the Securities and Exchange Commission sought an injunction to prevent Howey Co. from continuing to sell the investments. The investments were, in essence, “leasebacks” and the 32

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

central issue was whether the leaseback agreements constituted an investment contract within the meaning of the governing securities legislation. The court opined that in examining an investment scheme, the substance of the investment ought to be examined over its form. This would enable a flexible approach that was capable of being applied to potentially any investment scheme “devised by those who seek the use of the money of others on the promise of profits.” (at 299). The test is whether the scheme involves: an investment of money (or money’s worth) in a common enterprise, with the expectation of profit to be made through the management and control of others. Thus there is a distinction between a consumer contract, which is essentially an agreement for the sale of a commodity or service and a security, which is an investment in a common enterprise wherein the investors expect to earn a profit from the management and control of others in a business enterprise. The Court found that the fruit leaseback involved: (i) a common enterprise, which was the growing and selling citrus fruits; (ii) with a reasonable expectation of profits; and (iii) with profits to be derived from the entrepreneurial or managerial effort of others. The investment contract test was satisfied and the land sale, lease back and service contract was a security. In the 1990 decision of Reves v. Ernst & Young, 494 US 56(1990), the US Supreme Court devised an even more detailed test to assist in determining whether an instrument is a consumer contract or a security. The Court found that in circumstances where the investment in question does not bear a strong “family resemblance” to judicially recognized exceptions to the definition of a security, the following four factors can assist in making an evaluation of the subject investment instrument:

1. Motivations of the Buyer and Seller: The court concludes (at 351): “If the seller’s purpose is to raise money for the general use of a business enterprise or to finance substantial investments and the buyer is interested primarily in the profit the note is expected to generate, the instrument is likely to be a security. If [on the other hand] the note is exchanged …..to advance some other commercial or consumer purpose… the note is less sensibly described as a “security”.” 2. Plan of Distribution: If the investment plan is to distribute the opportunity to investors representing the broader common public, then the instrument is more likely to be a security. However, an investment opportunity distributed to a narrowly defined pool of persons will more likely be viewed as a consumer contract. 3. Reasonable Expectations of Investors: The Court, in making its determination, may consider how the investment in question is perceived of by the ultimate investors. That is, do they view their subject investment as the making of a loan or, alternatively, as the investment in a business enterprise? If the latter, then this would dictate in favour of finding the instrument was a security. 4. Existence of Another Regulatory Scheme: If a transaction involving an instrument is governed by a regulator other than a securities regulator, then there is less of a need for the transaction to be protected by securities laws, and the instrument is less likely to be considered a security.

regulators when considering the most appropriate regulatory regime to govern syndicated lending within the Province: 1. An investment of money (or money’s worth) in a common enterprise, with the expectation of profit to be made through the management and control of others: Clearly a group of lenders who are first supplied with specific underwriting materials (including FICOM mandated materials) and who thereafter elect to advance a single mortgage loan against title to an identifiable real estate property have no common enterprise with either the borrower or the mortgage broker (other than their relationship as a lender to the borrower) and clearly their expectation of profit is wholly dependent upon the specific contractual terms of the mortgage loan documentation and not on the management skill and control of others. 2. Motivations of the buyer and seller: Mortgage brokers involved in conventional syndicated mortgage lending act as mere intermediaries who match borrowers with lenders. Their business is arranging mortgage loans. They cannot be considered “sellers” of securities in any fair analyses. Syndicated mortgage lenders are not buyers of securities continued...

These four factors were applied to a syndicated mortgage transaction to determine whether it was a consumer contract or a security in Banco Espanol de Credito v. Security Pacific National Bank, 973 F2d 51 (2nd Cir 1992), which is a leading case on this issue. The court found that the syndicated lenders participated in the mortgage for commercial and not investment purposes. The solicitation for participation in the syndicated mortgage was offered to a limited group of entities and not to members of the public at large. In addition, contractual documents signed by the syndicated lenders confirmed for them that the transaction was a syndicated loan and not an investment in a business enterprise, which guided their expectations of the transaction. And lastly, there was regulatory oversight over the syndicated loan by the Office of the Comptroller of Currency. All of these factors lead to the determination that the syndicated mortgage was a consumer contract. Application of both the “investment contract test” set out in W.J. Howey and the “four pronged test” set out in Reves to standard syndicated mortgage transactions in British Columbia leads to the same conclusion as that arrived at by Second Circuit Court in Banco Espanol. Substantially the same legal reasoning (and common sense business/commercial considerations) utilized by the U.S. Courts in all three cases cited above should be applied by our Provincial VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 33

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Continued from page 33

who pay a price to acquire an investment or business interest. Rather, they are plain and simple mortgage lenders and the “commercial or consumer purpose” being advanced is the simple and ordinary making of a mortgage loan. The motivation of syndicated mortgage lenders to participate in the loan transaction will be to earn contractually agreed upon interest and fees to be paid by the borrower. 3. Plan of distribution: While mortgage brokers may advertise their general brokerage services to the general public, it would be extremely rare for them to advertise specific mortgage opportunities to the world at large. Funding mortgage loans with specific funding deadlines and the need to distribute comprehensive underwriting materials to prospective lenders would be near impossible if mortgage brokers accomplished this by scraping up small sums from a multitude of people. Almost all (if not all) syndicated mortgage loans are funded from a pre-existing, select group of corporations or individuals who are well known to the mortgage broker in question and who, if they become a member of a lending syndicate for a particular mortgage loan, are required to make a sizeable contribution to the funding of the loan. This narrow plan of distribution also leads to the conclusion that syndicated mortgages are consumer contracts. 4. Reasonable expectations of syndicated mortgage lenders: There are plenty of documents required in all syndicated mortgage transactions taking place in B.C. which, assuming any clarification was needed in the first place, make it abundantly clear to any prospective syndicated lenders that: (i) they are lenders of a loan; and (ii) the loan has specific repayment terms and entitlements to compensation (in the form of contractual interest payments and fees). These documents include a Form 9 Lender Disclosure Form or an Offering Memorandum, a Form B Mortgage Instrument, a Lender Risk Acknowledgment and the mortgage loan agreement or commitment letter. There can be no doubt that syndicated mortgage lenders in British Columbia fully understand that they are lending money to a borrower against the security of a mortgage charge and are well aware of the specific terms of that loan and also of any conflicts of interest that might involve the relevant mortgage broker. The foregoing is assured by reason of the existing requirements of the present oversight agency, FICOM. 5. Regulatory oversight by another regulator: The Registrar of Mortgage Brokers regulates the mortgage administration and lending activities of all mortgage syndicators, in addition to the capital raising activities of qualified mortgage syndicators. Accordingly, all syndicated lending activity in B.C. is currently subject to oversight by an existing regulatory agency. The “investment contract test” and the “four pronged test” when applied to the conventional syndicated mortgage business results in the unmistakable conclusion that syndicated mortgages in British Columbia are commercial contracts and loans secured by land - NOT securities. It follows that the proper place for their regulation would be under the Mortgage Brokers Act and not with the BC Securities Commission under the BC Securities Act. Accordingly, the MBABC has urged the BCSC not to require mortgage syndicators to obtain exempt market dealer registration in order to originate syndicated mortgages. Please contact Samantha Gale, CEO with any questions. VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 35

feat ure

THEAGEOF

Motor Cars

and tHEORIGINSOF

LEGAL EXPENSE

INSURANCE

egal Expense Insurance (“LEI”) is fundamentally different from most other kinds of insurance in that its purpose is to provide services, specifically legal services, to insured persons. You might ask what exactly is the risk that LEI insures? It is simply the risk that a person needs to obtain legal advice or representation as a result of a dispute. The LEI contract that a person has purchased will of course, set out

the precise details of the kinds of disputes which will trigger insurance coverage, and how coverage is provided – whether it is the provision of legal advice before or during court or actual representation from a lawyer and whether litigation costs, such as expert reports and court costs are covered. One of the first forms of profession specific LEI had its origins in late 19th century French litigation. A Parisian doctor was sued in 1897 by a grieving husband who had lost his pregnant wife during child delivery, which was at this time in history a very common occurrence. The doctor was found guilty of medical malpractice in the French courts. Following this case, an organization was formed to provide litigation assistance to health professionals, known as Le Sou Médical for a fee of 18 Francs per year. This organization was readily embraced by the doctors of the day who were increasingly becoming fearful of a growing litigious public. It still exists and it currently provides a broad range of LEI to the medical community in France. However, the modern notion of a broadly available LEI for the general public, which went beyond industry specific litigation coverage such as that provided by Le Sou Médical, had its origins with a motor car enthusiast in Le Mans, France by the name of Georges Durand. This impassioned auto man was busy in 1905 organizing one of the world’s first car shows and assisted in creating the largest automobile club in 36

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

France known as the Automobile Club de l’Ouest – which operates the famed annual endurance car race, 24 Hours of Le Mans. While Durand and other early 20th century eccentrics, who were wealthy enough to enjoy motor cars, indulged their passion for car racing, others vilified the motor car for their smelly exhaust fumes, deafening motor noise and constant collisions with other drivers, pedestrians, horses and property. In response to this public sentiment which frequently resulted in motor car enthusiasts defending their driving habits in the courtroom, Durand had a clever idea to provide club members with legal defense services. Unfortunately, the demand for these legal services was so great that it almost threw the club into bankruptcy. Of course, the brilliant Durand had a solution for this problem. The club would only provide legal services to persons who paid a fee into a mutual fund company, which would then fund the provision of legal services. Durand advertised this protection by claiming that “You will also need vigorous active protection to look after your interests if you are the victim of an incident on the

highway for which you are not to blame, and which has only caused loss to your car and yourselves.”1 Durand’s insurance company was aptly named La Defense Automobile et Sportive (“DAS” for short) as it insured other risky and exclusive sporting activities, including, hunting, ballooning, shooting, fishing, aviation, cycling, football and other pursuits. The risky activities of ballooning and piloting aircraft commanded a whopping annual premium of 50 francs, while the tamer activity of hunting cost 5 francs and cycling was only 3 francs per year for LEI coverage. Prior to World War I DAS grew by ten fold and many other competitor LEI companies entered the European market. Following the rapid reconstruction and industrial growth in the post World War II era, LEI exploded in popularity throughout Europe. LEI is relatively new to Canada, and in particular, to British Columbia. In this regard, MBABC is at the forefront of providing an innovative program to its members. Commencing on May 1, 2013, the MBABC will provide its members with LEI coverage from DAS Canada2 as follows: 1 See Legal expense insurance: origins and development. Carla Isola, page 5 2 DAS Canada is a separate entity from DAS continued...

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VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 37

Continued from page 37

MBABC Legal Expense Coverage “This service is unique in that it gives you access to a lawyer and, if there is a claim, all the expenses are covered by the insurance policy” Barbara Haynes, DAS Canada

Individual Membership

Corporate Membership

An Individual member is defined in the MBABC bylaws as “an active Sub-Mortgage Broker registered in accordance with the Mortgage Brokers Act including a Designated Individual”. LEI Coverage for Individual members:

A Corporate member is defined in the MBABC bylaws as “a corporation or a person who is a sole proprietor, registered to practice as a Mortgage Broker in accordance with the Mortgage Broker Act.”

»»

FICOM Hearings & Investigations Legal Defense for Submortgage Brokers Coverage for FICOM related hearings and investigations in BC relating to the Individual member in his or her capacity as a SUBMORTGAGE BROKER. The insurer will pay an Individual member’s legal costs in respect of an investigation or hearing brought against that insured person by FICOM provided the investigation or hearing relates to the activities of that insured person carried out in his or her professional capacity.

Coverage for FICOM related hearings and investigations in BC relating to the Corporate member in its capacity as a MORTGAGE BROKER. The insurer will pay an insured member’s legal costs in respect of an investigation or hearing brought against the mortgage broker by FICOM provided the investigation or hearing relates to the activities of that the mortgage broker carried out in its professional capacity.

Maximum annual coverage amount: $100,000. There is no deductible applied.

Personal Tax Protection

»»

a. Liability for income tax, GST, PST or HST arising from the Corporate member’s business.

Maximum annual coverage amount: $25,000. A $500 deductible is applied.

Maximum annual coverage amount: $100,000. There is no deductible applied. 38

b. Payroll deductions compliance by the Corporate member; or

Legal Defense of Highway Traffic Act & Motor Vehicle Offences Coverage for an Individual member’s legal costs to defend his or her legal rights in relation to being prosecuted for a highway traffic or motor vehicle offence in connection with the ownership, use or operation of an automobile. This would include defense of most traffic tickets and defense against license suspension. The policy does not cover alcohol, drug or street racing charges. The policy will cover a member who wishes to pursue or defend auto-related contract disputes. We feel that this coverage will be particularly valuable to mortgage brokers who spend a significant time in their automobiles meeting with customers.

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

Business Tax Protection The insurer will pay a Corporate member’s legal costs in respect of a tax appeal or a tax audit from the Canada Revenue Agency relating to:

Coverage for an Individual member’s legal costs in respect of a Canada Revenue Agency tax appeal or a tax audit relating to their personal tax affairs.

»»

FICOM Hearings & Investigations Legal Defense for Mortgage Brokers

c. Corporate member’s legal costs in respect of a tax appeal or a tax audit relating to its business tax affairs. Maximum annual coverage amount: $25,000. A $500 deductible is applied. In addition, both Corporate (mortgage brokers) and Individual (submortgage brokers) members will have: »»

Telephone Legal Advice Insured members will have access to a legal advice helpline through which they can receive confidential general legal advice and information over the phone relating to any legal or tax problem to help determine legal rights and options under the provincial laws of the applicable province and the federal laws of Canada. The

advice lawyer cannot provide case specific research or review documents. The insurer will provide this service between the hours of 8 am and midnight, local time, 7 days a week. In addition, the insurer will facilitate access to a lawyer twenty-four hours a day, 7 days a week, in emergency situations.

“We find that the biggest use so far from the mortgage brokers has been calls to the legal advice hotline,” says Haynes. “The great thing about the legal advice hotline is that people can call in about any matter. So even though the policies don’t cover family law, for example, or estates, people can call in and receive professional advice. There have been calls about taxation, highway traffic disputes, parking tickets, contract law, employment – a wide variety of calls. We’re happy to encourage extensive use of the hotline because that could mitigate a situation before it turns into litigation.” Barbara Haynes, DAS Canada

What are legal costs? The DAS policy covers the following “Legal costs” as defined under the MBABC Legal Expense Insurance policy: In respect of the insured events described in the policy: 1. all reasonable and necessary costs incurred by the appointed representative, including any additional expenses and disbursements such as court fees, experts’ fees, police reports and medical reports; 2. the costs awarded by a court in Canada to opponents in civil cases if the insured person has been ordered to pay them, or pays them with our agreement; and 3. the insured person’s net salary or wages, that are not otherwise payable or recoverable, for the time that they are off work to attend any court proceeding, tribunal, arbitration, mediation or other hearing at the request of the appointed representative, up to a maximum of $500 per insured person per day, and $10,000 in total in respect of all claims resulting from any one court or tribunal proceeding, arbitration, mediation or other hearing.” continued...

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Continued from page 39

Why MBABC Legal Expense Insurance is Important for you and your business Regulators need to enforce standards and ensure a high level of compliance amongst industry members. Recently FSCO announced an intention to focus more attention on compliance enforcement amongst mortgage brokers in Ontario, and cited the goals of the newly formed, Mortgage Broker Regulators’ Council of Canada as being a strong influence on provincial regulators taking action to raise industry standards. Of course, raising the bar for the industry is necessary and will only help strengthen it. However, we always advise industry members to obtain legal advice or representation if they are subject to a regulatory investigation or proceedings. This protects their interests, and ensures that the disciplinary process is fair and adheres to the rules of fairness – which is in the interests of both the public and the industry. Unfortunately, the cost of legal representation is exorbitant and can easily add up to $50,000, and in some cases well over that. This can cripple an industry member, potentially ruin their business, and in some cases, eat into their personal assets, for example by forcing them to mortgage their house to pay for legal costs. MBABC corporate membership provides legal defense for FICOM investigations and hearings for the registered

mortgage broker entity. Potentially any registered mortgage broker may be on the hook for failing to supervise its submortgage brokers if they have been found to be non-compliant by FICOM. The Canada Revenue Agency has announced that it intends to focus audits on what they consider to be high risk tax payers. Most mortgage brokers earn commissions and not salaries. They receive a T4A, and then write off their business expenses against their earnings – they are therefore at high risk of being audited by CRA. Mortgage broker businesses also remit payroll expenses and GST or HST payments to the CRA. The CRA is a powerful government entity and the Income Tax Act is overwhelmingly complex. Industry members facing a CRA audit need an advocate to ensure that the audit result is fair and they do not overpay on taxes, penalties and interest. LEI can alleviate these concerns for MBABC members. The DAS LEI program brings significant value to your MBABC membership!! Ensure that you have LEI coverage by keeping your membership current or becoming a new member. If you have questions about the program, please contact the MBABC office at 604-408-9989.

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MBABC Thanks Our Sponsors for the Following Events • • • •

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VOLUME 3 • ISSUE 10 • 2013 | the bc mortgage broker 41

Thank You TO OUR

ADVERTISERS

Antrim Investments Appraisal Institute of Canada - British Columbia Armada Mortgage Corporation Bridgewater Bank Canada Guaranty Canadian Western Trust Caplink Financial Corporation Central City Law Cove Mortgage Ltd. D+H Dominion Lending Centres Equitable Trust

the bc mortgage broker | VOLUME 3 • ISSUE 10 • 2013

First National Financial LP Fisgard Financial Corporation Granville West Group Home Trust Company Instafund Financial Services (2000) Jones Brown Inc. Lanyard Financial Corporation Lawrenson Walker Realty Advisors Mandate National Mortgage Corporation MCAP Service Corporation Mortgage Architects

Paradigm Mortgage Corporation Peoples Trust Company Radius Financial REIBC RMG Mortgages Romspen Investment Street Capital Financial Corporation TD Canada Trust Vector Pacific Mortgage Corporation Verico Financial Group V.W.R. Capital Corp. West Key Graphics Ltd.

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taken care of.” “First National services clients exceptionally well. That makes us look better than the competition.” At First National we’ve spent the last 25 years focused on delivering outstanding service to you and homeowners. And we will continue that commitment towards the next 25.

Behind the scenes

Thank you mortgage brokers for 25 years of shared success.

New MEMBERS welcome WELCOME

FIRST NAME

COMPANY

apps Hank

verico select Corp. 0819583 BC LMortgage td.

gurjinder Tokash

athwal Carey

aK Mortgage Plus inc. Arch Title

Hanny

Bao Ying (Christina)

Macquarie Financial ltd. Augustin Financial

gordon

Beynon

Dominion lending Centres vic City Mortgage group

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Brown

invis inc.

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Quan

Augustin Financial

alliance Meridiandba Mortgage services Bankers MMortgage ortgage Corporation InstaFund Financial (Commercial)

shashi

Chander

verico Paragon Mortgage group inc

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northern savings Credit Union

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Ecom appraisals inc.

McPatrick Gregor

Jim Cheng

Coast Capital Savings Mortgage Centre - Mortgage Evolution

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Kristopher Coelho-Fedoriw

DLC Canadian Mortgage ECorp. xperts verico select Mortgage

Kirk Koopmans

Colman Marcy

invis Mary Ellen Colman DLC C-anadian Mortgage Experts

steven

Corcoran

invis inc.

Peter

Daniel

verico select Mortgage Corp.

Janine

Davies

g & F Financial group

McPaul Clean

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DLC Producers West Financial scotia Mortgage authority

Derek Weimer

Diener Julie

invis DLC The Mortgage Hub

Richard Levesque

Earles Roger

Dominion lending Centres | valley Financial specialists DLC West Isle Mortgages

Giandomenico Gander

Lees-Buckley Parsons

Hankey Candice

alvin

Dukanovic

Tim

Caroline

Lewis Lee

Graeme Delorme

Farmer

Biliana

Bayfield Mortgage Professionals Centum Mortgage Store Ltd.

DLC Canadian Mortgage Experts DLC Canadian Mortgage Experts

DLC Pinc. roducers West Financial invis

Dominion lending Centres Drake Entrust Mortgage services Dominion Lending Centres-Aegis Mortgage Services Ltd.

tara

Burko

Fels

MCaP service Corp.

sannie

Fisher

Bayfield Mortgage Professionals ltd.

Wong Jillanne

Joshua Ford

Invis Inc. Dominion lending Centres

Gene

Edgewood Mortgage Investments Limited

Paul Zamprogno

gillElio

Bayfield Professionals ltd. Invis Inc. Mortgage - Resvick and Associates

lisa Buchin

glasper Robert

invis inc. Invis Inc . - Resvick and Associates

Michelle

Johnson

Haddad Ray

lendingmax

MCAP Financial Corporation

Brett

Hall

Mortgage alliance

Michael

Hayward

verico select Mortgage Corp.

Robert Hendricks

Mortgage Approval HomEquity BankCorp.

Palmer

Hensel Kees

Iain

Mortgage Alliance Company

Canada

De saba Paoli

Brooke Hessamian

Mortgage Professional Designers at MMortgage ortgage Architects strategic inc.

DiepElizabeth

Howatson Bao Van (Patrick)

scotiabank MortgagesLab Financial

Joyce

Hubenig

Dominion Macklem Mortgages

Ryan

iannone

Macquarie Financial ltd.

Chris

Jimenez

the Mortgage group

Dhillon Jennifer

Tarlochan Jollymour

Real Time Mortgages . Dominion lendingInc Centres Duet Financial

Henny Williams

Karbowiak Craig

tMg Mortgage Canada inc. Sierra the Mortgage Fund group Ltd.

Pooley Foti

Lawson amarjit

Ruhi

Balakshin

teisha

Foulds

Mark

Crystal

Richard Johal

Kaur Michael

Keith

Doug

the bc mortgage broker | WINTER 2011 Mahon Kenneth Aaltonen

LAST NAME

Vannicole der Woerd

Liu

new members

Billie

the bc mortgage broker | VOLUME 3 â&#x20AC;˘ ISSUE 10 â&#x20AC;˘ 2013

MBABC Feb 2011.indd 38

NEXSYS Financial Inc. Northwest Mortgage

Pursuit Capital Corp. group Canada inc. tMg the Mortgage

vERiCO superior Mortgage Statesman Capital Corporation

Exclusive Mortgage Professionals ltd. Swiftsure Real-Estate Services

Terrapin Mortgage Investment Corp. The Lending Outlet Mortgage Architects

11-01-28 12:33 PM

welcome

new members

FIRST NAME

COMPANY

Michaela apps

The Mortgage Centre verico select Mortgage Corp.

gurjinder Brinkworth

athwal Teague

aK Plus inc. TheMortgage Mortgage C entre - Dico Holdings

Hanny

gordon

Beynon

Dominion lending Centres vic City Mortgage group

Owen

Brown

invis inc.

Peckford alfredo

Scott Carrete

Verico IntelliMlending ortgage Impact Mortgages Dominion Centres Casa Mortgage inc.

De Vuyst Clark

GARG Brian

James Ryan

RAJESH Buchanan

Macquarie Financial ltd.

TMG The Mortgage Group Paul Sobieski Mortgage Team Trinity Mortgage (1996) Corporation

Verico -inc. A.K. Mortgage Plus invis

Erin Rosdal

Chadwick Kristin

alliance Mortgage Meridian Mortgage services Verico Kelowna Home Mortgages

shashi Balaberde

Chander Trish

verico Paragon Mortgage group inc Verico Kelowna Home Mortgages

Jason

Lyseng

Marion

Chapman

Sandra (Sandy)

northern savings Credit Union Verico Lighthouse Mortgage Corp.

Chekaluk

Ecom appraisals inc.

Miranda Coelho-Fedoriw

Verico Premium ortgage Corp.Corp. verico selectMMortgage

WuKirk

Colman James

invis MaryMEllen Verico R-iverside ortgageColman Group

steven Biggs

Corcoran Robert John

invis Verico Sinc. elect Mortgage Corp.

Lavergne

Patrick

Russell Dulce

Peter

Charach

Claude Cheng

Daniel

Chana

Verico McCollom Mortgage Centre - Mortgage Evolution

verico select Mortgage Corp. Verico Synergy Mortgage Corp.

Janine

Davies

g & F Financial group

Candice

Delorme

invis inc.

Kam Devine

Verico Yespros Mortgages scotia Mortgage authority

Derek

Diener

invis

Richard

Earles

Dominion lending Centres | valley Financial specialists

alvin

Farmer

Dominion lending Centres Drake Entrust Mortgage services

Mahinsa Paul

LAST NAME

Ross nicole

David

VERICO Vivid Mortgage Inc.

tara

Fels

MCaP service Corp.

sannie

Fisher

Bayfield Mortgage Professionals ltd.

Jillanne

Ford

Dominion lending Centres

Paul

gill

Bayfield Mortgage Professionals ltd.

lisa

glasper

invis inc.

Michelle

Haddad

lendingmax

Brett

Hall

Mortgage alliance

Michael

Hayward

verico select Mortgage Corp.

Kees

Hendricks

HomEquity Bank

saba

Hessamian

strategic Professional Mortgage inc.

Elizabeth

Howatson

scotiabank

Joyce

Hubenig

Dominion Macklem Mortgages

Ryan

iannone

Macquarie Financial ltd.

Chris

Jimenez

the Mortgage group

amarjit

Johal

tMg the Mortgage group Canada inc. Dominion lending Centres Duet Financial

Jennifer

Jollymour

Henny

Karbowiak

tMg the Mortgage group Canada inc.

Ruhi

Kaur

vERiCO superior Mortgage

teisha

Keith

Exclusive Mortgage Professionals ltd.

the bc mortgage broker | WINTER 2011

MBABC Feb 2011.indd 38

11-01-28 12:33 PM

VOLUME 3 â&#x20AC;˘ ISSUE 10 â&#x20AC;˘ 2013 | the bc mortgage broker 45

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Call us today to learn more. 1.877.369.6398 sales@radiusfinancial.ca www.radiusfinancial.ca/contact

PLEASE NOTE: Contact number is no longer in use... neither are pagers for that matter.

Rate Wars? My, how times have changed...

As we forge aheadâ&#x20AC;Ś A moment from the pastâ&#x20AC;Ś

Good thing! With these interest rates, who can afford a realtor!

Fast & Prompt Service as soon as we locate a pay phone.