Canadian Mortgage Professional magazine by Nestor Arellano

The Ultimate Guide to Broker Networks page 30

November 2012 / issue 7.11 / $6.95

LENDERS ON

BROKERS

2012

Brokers,

You've GOT MAIL and this year's message from lenders is a must-read! page 20

Money maker Witness for the prosecution

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contents / issue 7.11 market matters 10 | Reading between the Lines Brokers always want the last word and this time it goes to Gord McCallum, sharing his take on the Lenders on Brokers results

12 | Stats You’re either hot or you’re not, and this CMP infograph on real estate markets across Canada sums it up nicely 14 | Master Class Appearing for the prosecution or the defense is increasingly in the job description of mortgage brokers, writes Lloyd Manning. The pay ain’t bad either

NEWS 20 | Product Roundup This month’s product and industry announcements, even before they come out of the proverbial box 21 | Scotia Reaction You can’t cut commissions without expecting brokers to react, and, indeed, they have

issue

7.11

FEATURES

Cover Story

30 | Broker Networks If you’re looking to switch from one network to the next, you’ve got to do your research. Well, actually, CMP has got to do your research 46 | At a crossroads More and more, brokers are positioning themselves as experts on real estate investment, writes Josh Will, but that means they’ve got to know what they’re talking about

20 | 2012 CMP Lenders on Brokers With last issue’s Brokers on Lenders survey, you selected your top partners. Now read their responses to your ranking, rewarding and rousting. The comments may surprise you

50 | Co-brokering compensation Brokers new to co-brokering commercial deals may be just as new to what exactly they can and should expect in the way of a split. One of the industry’s leading commercial brokers provides a compensation tip sheet MARKETING 46 | Employee mortgage benefits program: In his latest series, Doren Aldana explains how to hunt down company decision-makers. Get your notepad

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contents / issue 7.11

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profiles

columnS

58 | GIC gift Home Trust is putting GICs in the hands of brokers who can help put them in the hands of consumers

63 | Guest Credit card for clients, branded with a broker name and unsecured. Recipe for disaster? Not at all, writes John Dearin

60 | Reversing for Revenue Brokers are now looking closer at CHIP reserve mortgages and the rising demand from consumers

regulars 62 | Favourite Things 64 | CMP Service Directory

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contents / Editor’s letter

Not for the faint of heart This month’s issue is not for the faint of heart -- or more, specifically, the faint of reading. With both our “Lenders on Brokers” feature and the annual “Broker Network Guide” (Pg. 30), the November magazine is a must-read. Actually, it’s a long read. But don’t be put off. The time investment is worth it. The first of those two features is all about the lenders and their response to CMP’s sixth-annual Brokers on Lender survey. In October, more than 450 of you ranked, rewarded and rousted your lenders, focusing on what they’re doing right and what, in some cases, they’re doing wrong. Starting on Pg. 20, the lenders thank brokers and also defend themselves. That information is key for mortgage professionals facing a sea-change in compensation. There may be some foreshadowing in their answers. You decide. If you’re thinking about making a change, I’m afraid our Broker Networks guide will demand the same level of commitment from you the reader. You’ll want to pore over every paragraph, sentence and word of the 10 broker organizations that participated this year. Their number makes this year’s comprehensive feature the biggest-ever. An added element of that comparison index are first-person testimonials from other brokers explaining why they’re with the network they are and why you should join them. And in keeping with CMP’s mandate to help you up your brokering game, read this issue’s Master Class, all about landing gigs as an expert witness in mortgage-related court-cases (Pg. 14). You’ve probably already started to see ads for the 2013 Canadian Mortgage Awards and there’s a good reason for that. CMP has revamped many of the categories for the CMAs and invited PwC to take on an expanded role as ballot accountants for the event. It’s all with an eye to better representing the diversity of the industry. Please include yourself in that by going to www.CanadianMortgageAwards.com. Warning: It does involve more reading.

Vernon Clement Jones

connect

Contact the editor: vernon.jones@kmimedia.ca

4 | mortgagebrokernews.ca

COPY & FEATURES Editor Vernon Clement Jones SUB-EDITOR Rachel Naud staff writer Nestor Arellano Jemima Codrington contributors Doren Aldana Josh Will Steve Fabian John Dearin Mark David

ART & PRODUCTION gRAPHIC dESIGNER

Alicia Chin

SALES & MARKETING

NATIONAL SALES MANAGER Trevor Biggs Marketing and Communications Julia Comitale PROJECT COORDINATOR Jessica Duce

CORPORATE PRESIDENT & CEO Tim Duce OFFICE/TRAFFIC MANAGER Marni Parker Events and Conference Manager Chris Davis

Editorial enquiries vernon.jones@kmimedia.ca Advertising enquiries trevor.biggs@kmimedia.ca Subscriptions tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca KMI Publishing 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 mortgagebrokernews.ca Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as CMP magazine can accept no responsibility for loss.

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conversations / Letters to the Editor

Letters to the Editor Re: Brokers on Lenders (CMP 7.10) Is your money where your mouth is? Will Steinman I think that the industry has to take a good hard look at where the lenders want to take their relationship with brokers. What the survey results highlight for me is that brokers aren’t really putting their money where their mouth is and they are sending deals to banks that they are not really happy with. That’s a problem.

Re: Digging deeper… (CMP 7.10)

Classy Colin

Alan Wynn-Davies

I’ve always thought that Mr. Dreyer does a good job of taking the discussion to a higher level. I am not part of Verico, but I do respect his views and analysis of our industry. I do think that he’s right about lenders decreasing commissions. What is he doing about it?

MortgageBrokerNews.ca Reader Poll Are you likely to send fewer deals to Scotia because of that 5-basis-point chop to commission on some deals?

Yes

60%

40%

Re: Seeing red or revenue? (CMP 7.9) Still riled

Maher Ahmeed

Rate sites are the problem and Scotia’s decision to reduce finder’s fees shows what the damage is these sites have created for brokers. The lenders see us brokers whoring ourselves for rateshoppers and they think that all of us are desperate enought to do it. I think that Ron Butler and other older brokers in the industry are kidding themselves if they think that this business will be around in ten years offering the same living he enjoys.

Re: The Broker/Realtor Roundabout (CMP 7.9) Really, Realtors, really?

Ken Ebers

Realtor referrals are getting to be more important and I find that the Realtors I deal with are just as keen to hold onto the partnership. They are referring clients more because they know it is harder to get them approved at the bank. So it’s not all about brotherhood.

Re: The Broker/Realtor Roundabout (CMP 7.10) Keeping it real

Phillip Meyer

I get none of my referrals from Realtors and I think that more brokers should look at building a book of business that way.

Letters to the editor are welcome! Due to space considerations, priority is given to those 300 words or less. We reserve the right to edit, condense or reject submissions for accuracy, brevity, clarity, good taste and legal reasons. Writers must provide their full name, address and telephone number to verify authenticity. Please reference the article.

6 | mortgagebrokernews.ca

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BrokerS oN Reading Between Market First UpMatters / Read between / Realtor the rejoinder lines

LeNDerS the lines:

take on the performance of leading monolines and banks, ranked, rated and rousted by brokers from one end of the country to the next. Like all of them, he’s not pulling any punches.

More than 450 brokers had their collective say with last issue’s Brokers on Lenders survey. In this issue, channel lenders respond to those assessments. Still, we thought it only fair to throw a broker’s reaction into the mix. Edmonton’s Gord McCallum, president of First Foundation Residential Mortgages, offers his

Gord Mof P’s biggest-ever look inside the heads cCallumbrokers

ette of nearly 500 responses to work with, the the ual Brokers on Lenders survey gs aboautvivid inpaints h t g in t s re the tere the factorsnedriving decisions. he infunding not suAt O of t lts is that I’m are h s rket their hat canvas y resu brokers e mataking thare surisvewhere in d e n t o c le g yin e to the ref lenders d why, butthalso e samoving is iswhich s arare r e k o veys, r b .so hese sur h t n o as others recede background. results..into hthe e t o te wit t ey v they vothe ing whento that whengroup, and Merixthbelong first two g in h t r e anoth sions. is d n m a b u s s advancing their poverall plicationratings and sharing the their a Their umber of medals. feat bucks last year`s n broker ratings slipped, registering increased Merix MCAPfrom have turnaround definitely beentimes bout a slew of and factors, hustling to improve and it shows in st rates to BDM and underwriter support. these standings. erall standings for other leading lenders is year, including those for TD and First Foryear’s BWB to in the No. and 3 slot New to this listbeare RMG they must be ecstatic and it shows ter Bank, each garnering the kind of overall a scrappiness on their part to isfaction the channel’s big banks were left to bounce back from difficult markets over the past few years. s registered individual concerns online as Nicetheir to see. MP`s largest lenders survey, spanning two nd, ultimately collecting just short of 500 Surprised that First Nat didn’t . Mortgage professionals took the time to take home any gold medals but when estions and provide candid feedback on you’re the big dog you might have to 10 categories: loan turnaround work aapproval/ little harder to continue to derwriterget support, BDM support, broker votes. ransparency of commission structure, IT/ y, interest rates, product range, overall service No surprise to see big banks taking overall credit policy. up three of the bottom five spots. were given a scale one (very poor) Whenonyou’ve got of multiple sources of to five d). The overall response was so strong business, maybe you don’t have tofor many ut to be included in this final tally try as hard - andyear’s the results seemeach to at demonstrate that lack of e received least 50 votes. effort.

10 | mortgagebrokernews.ca

agebrokernews.ca

2012 Total Medal Standings Lender

! ?

2012

2011

Total

Merix

MCAP

Bridgewater Bank

First National

RMG

Scotia Mortgage Authority

Street Capital

Home Trust

National Bank of Canada

TD Broker Services

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Market Matters / Vital Statistics

Sales Activity

(year-over-year percentage change) Source: CREA

Newfoundland & Labrador -11.5

British Columbia -24.3

Prince Edward Island -11.4

Jaw ose .9 o M 57

Quebec -15.5

Saskatchewan -12.7

Alberta 7.7

Manitoba -15.0

Grande Prairie 33.9

Ontario -18.4

rn the Nor 8.2 6

New Brunswick -8.1 uth mo Yar 60.0

National picture

Nova Scotia -10.3

at-a-glance Are you hot or not? 12 | mortgagebrokernews.ca

Home sales in Canada fell into the deep freeze this September, dropping 15 per cent from the same month in 2011. But there remain hot pockets scattered across the country, waiting for enterprising brokers. So is your market hot or not?

Market Matters / Master class

Broker

-to-

Broker

advice More and more mortgage brokers are promising â&#x20AC;&#x153;to tell the truth, the whole truth and nothing but the truthâ&#x20AC;? as expert witnesses, writes Lloyd Manning, a 30-year veteran of the commercial real estate and appraisal industry.

14 | mortgagebrokernews.ca

News

Industry Market Matters / master Class

Your trusted news source

Part I – The Basics As our society becomes more litigious and civil court cases more frequent, the need for expert witnesses to assist the court in rendering sound have expanded their unsecured lending products. decisions and making proper awards is a growing What our government fails to realize is that demand. Those experts unsecured lending has awould largerinclude impactmortgage on cash brokers, who are more knowledgeable in lending flow than mortgage lending. Particularly when matters than lawyers judges. Notproven knowing home ownership has or already been to the be moreof affordable than renting in most areas rules court or what is expected of you as an (Vancouver is currently rarebeexception). What expert witness, however,acan disquieting, and they (government) do think see isit’s thelike most powerful you’re mistaken if you a television lobby group in the country saying “it’s mortgage production. Still, court is a lot like a stage play lending that is the issue.” where all of the characters – lawyers, –judges, court Paul Therien reporters, juries and watchdogs – recite their lines and their part adversarial system until one Theyact just don’t getinit,ando they? Economics 101, says cool off hotother market by making it more difficult to wins andathe loses. borrow, heat up a cooling economy by loosening Expert witnesses for trials, hearings or up lending. We cooling many markets, arbitrations areare called uponoff to in recite facts and give that were never as hot as Toronto and Vancouver. testimony pertaining to the dispute or criminal Canadian institutional (read bank) mortgage action. are validated by the court becauseon a lendingThey has been on a 10-year roll, like drunks they have relevant credentials or professional bender, abetted by their “drinking buddy” CMHC. I expertise. is different than “fact agree thatThis a 30-year amortization is witnesses,” too long a time in general, maybe witnessed it should be individuals who but personally orallowed for participated in the cause at trial and whose

Court is a lot like a stage play where all first-time buyers, or mortgages that start under a of the characters – specific price (remember restrictions in 1992 when the first-time buyer program was implemented? Should we look at somethinglawyers, similar?) When “Red judges, court Ed” Clark at TD was screaming for more government controls on mortgage lending, what juries and reporters, he was really saying was that lenders can’t police themselves. If bank A will dowatchdogs the deal why can’t – recite bank B? If Johnny jumps off the bridge, would you jump off a bridge? What kind of people do we have their lines running our banking system? The real culprit in and act this whole mess is the least regulated and that is their part credit card debt. Put some sense back in the system, put the boots to the credit card lenders, understanding that it will impact the economy STATS significantly, especially retail goods. Gradually tighten the mortgage underwriting “standards” that Greater have been perverted over the last 10 years. Will there be pain? No doubt about it. But an Vancouver, B.C. uncomfortable YOY sales pain now, beats an agonizing pain later.(September) – GTA Broker Source: CREA

-22.3%

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mortgagebrokernews.ca mortgagebrokernews.ca | 15

Market Matters / Master class testimony is derived from firsthand knowledge. As an expert witness you are expected to evaluate the facts of the case and render an opinion based thereon and in a way that is understandable to the judge. For this, you must be credible, compelling, and have the ability to respond without prejudice when your opinions and conclusions are challenged, which they will be. Expert witnesses deliver objectivity while lawyers are rewarded for subjectivity. Experts present the facts. Lawyers argue for their client, and the judge interprets the law, weighs the evidence and then renders a verdict. Mortgage brokers as expert witnesses must recognize their responsibility to provide testimony that is truthful, impartial, scientifically correct and in accordance with the merits of the case.

You Swear to: • Provide evidence or testify only in matters in which he/she has relevant experience in the areas being litigated. • Give straightforward evidence rather than testify to mislead, confuse or bias. • Be as objective as possible, and not omit material or information that does not support the opinions expressed or conclusions reached. • Be properly and fully prepared. 16 | mortgagebrokernews.ca

The role of the expert witness normally commences with him/her receiving from the lawyer, for whom he/she will act, all preliminary data pertaining to the case at hand. From this the witness undertakes a detailed examination of all facts and extenuating circumstances to be presented at trial. Accordingly, you will perform a detailed analysis and develop an opinion as to the merits of the case, keeping in mind the forthcoming play in court and contemplating the questions to be asked by the lawyers for both sides. You will be questioned in three specific areas, the factual evidence you have reviewed, your interpretation, evaluation and opinions, and the basis for those opinions. Part II will discuss what happens when you get to court.

Mortgage brokers as expert witnesses must recognize their responsibility to provide testimony that is truthful

STATS

-13.8% Fort McMurray, Alta. YOY sales (September) Source: CREA

News / Product RoundUP

PRODUCT

NEWS

A bite-sized guide to the industry’s newest products as they come down the channel Who: Home Trust What: GIC Referral Program The facts: The GIC Referral Program enabled brokers to expand their service offering by providing them access to Home Trust’s wide range of guaranteed investment certificates. GIC investment in Canada amounts to more than $900 million annually. The Home Trust program helps brokers tap into this additional revenue stream and earn more fees. Here’s rundown of some important details: • Ideal for borrowers with solid credit ratings, a good job and low consumer debt • The lender estimates that a broker who sells two $50K GICs per week (based on a three-year term) could earn $30K in additional fees per year • No formal certification is required to sell GICs • Home Trust provides brokers in the program with sales and technical training • Brokers also get ongoing support from the lender

What they say: “The GIC Referral Program may not be for everyone,” says

18 | mortgagebrokernews.ca

Gerald Soloway, CEO of Home Trust. “But it is well-suited for brokers who are committed to growing their business by providing clients with financial planning solutions for the future. “It’s important for brokers to stay connected to their clients and do more than just sell them a mortgage. It’s about building those relationships over time and offering them a range of products.”

Who: Radius Financial What: RateWise Mortgage The facts: The RateWise Mortgage is an option for clients willing to forego higher mortgage privileges for lower rates. This mortgage product is specifically designed for homebuyers who want greater savings while keeping some flexibility in their mortgage. Radius points to a recent survey conducted by CAAMP as proof of market demand. It suggests 81 per cent of borrowers do not take advantage of their lump-sum privileges and 77 per cent don’t utilize increased payment privileges. The Radius RateWise mortgage recognizes this sizeable market and rewards with the following privileges: • five year term @ 2.94% (2.99 in

• • • •

Quebec) 10% annual prepayment privileges 10% increase in payments 60-day rate guarantee Portable and assumable upon qualification

Broker Compensation: • Broker compensation: 100 bps finder’s fee • Broker Benefits; up to 1,500 reward points

What they say: “This mortgage product is specifically designed for homebuyers who want greater savings while keeping some flexibility in their mortgage,” says Suzanna Stefanec, VP of national sales and products at Radius Financial. “This product offers brokers the ability to service different markets and compete on rate while still rewarding customers with mortgage privileges. “The marketability of this product is a competitive advantage for our broker partners and will help them achieve greater success!”

LAUNCHING A NEW PRODUCT?

Want to be considered for inclusion on this page, send the details to the editor: vernon.jones@kmimedia.ca

News / Announcements

Scotia slash riles brokers It’s not the announcement brokers wanted to hear, but recently Scotia Mortgage Authority moved to cut finder’s fees on five-year deals by five basis points. The move follows similar steps by another one of the channel’s biggest players and signals an industry trend that could take hold by Jan. 1, 2013, say brokers. Here’s a sampling of broker thoughts on the Scotia move and implications for the industry.

Cam

Paolo Di Petta

Another one off my list. Not that I sent deals to I’m surprised it didn’t happen sooner. them anyways. Brokers and agents shouldn’t even send deals to any branch-fulfillment DA lenders unless it’s the last resort. They just say It is a trend that will likely continue, so it is up things to degrade our profession like “if you to us to prove to our clients why they need us. came directly to me you could have received a better rate,” then make it impossible for us to remove our client from their grasp. Peter Paul Mangion Banks that don’t appreciate This is an open market so if you are brokers’ business will lose out in upset with Scotia, then you have other JM long run. As with any business, options. But I agree with Ron You got to love it. We are the lender, you take Joe partners are needed and without Butler when he says it is vile to what we offer now, end of conversation. We Great. So them profitability suffers. Good see so-called professionals don’t care in the slightest at all the great with slowing luck, Scotia, if we send you any attack someone in the work and the enormous amount of good originations, more business, and FN too. business. business you all as brokers and agents tighter rules, more have done for us in the past. Here is declines and basically a your reward, let’s pay them even less. whole mortgage The only way for anyone with any business slowing self-respect is to return the option. down, we get That would be to go with the lender paid less. who still appreciates the hard work that the mortgage broker or mortgage agent still does.

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COVER / LENDERS ON BROKERS

LENDERS ON

BROKERS

2012

Brokers, You've GOT MAIL

Last monthâ&#x20AC;&#x2122;s issue saw brokers rank and roust their lenders as part of the sixth CMP Brokers on Lenders survey. This month, lenders review and revel in the results

hen 450 brokers sit down to rank, reward and roust their lenders, those lenders take notice. CMPâ&#x20AC;&#x2122;s sixth-annual Broker on Lenders survey garnered the same reaction, with both monolines and banks queuing up to thank and reassure broker-partners. This year, those responses are varied, but all involve identifying successes and areas to improve. Generally, those areas align with those of the survey: approval/ loan turnaround times, underwriter support, overall service level, interest rates, BDM support, product range, satisfaction with credit policy, broker support, IT/technology and transparency of commission structure.

450 brokers sit down to rank, reward and roust their lenders, and you can be sure those lenders take notice 20 | mortgagebrokernews.ca

2012 Total Medal Standings Lender

2012

2011

Total

Merix

MCAP

Bridgewater Bank

First National

RMG

Scotia Mortgage Authority

Street Capital

Home Trust

National Bank of Canada

TD Broker Services

News

aPPoIntments

We care about you, to give you the very best! • 100% finder fees & 100% volume bonus paid to you • Virtual office on RmaNet.ca

Everyone at Merix Financial is immensely proud of the results of the Brokers on Lenders survey. Our dedication to meeting industry needs has been acknowledged by way of the results. Merix has finished in the top three for a number of years now and our goal is to appointments always finish first. By every measure we accomplished that in 2012.

Approval/loan turnaround times Mortgage Intelligence announced that Steve Heimbecker, business Marg Green, It’s my belief that one of the most irresponsible Donna Ramsay and Concierge expectations introduced to the industry was the notion Mortgage Group are joining of a four-hour turnaround. Given mortgage balances, the company. and the risk that is associated withGreen any mortgage, the Ramsay in in Mississauga, standard delivery response time shouldn’t be just Orangeville and Heimbecker in Waterloo, equaltoowners slightly higher than the time we expectare a pizza be in Concierge Mortgage delivered. Turnaround times should be the time itGroup. takes a new boutique to undertake a comprehensiveConcierge review ofisthe application, brokerage firm that will focus on while keeping in mind the competitive nature of the elite and experienced brokers, industry. I’m delighted that our supporters recognized offering exceptional needs-based that we have struck the right balance between customer service. the Thetime goal is for required to make the responsible credit Mortgage decision and to to have Concierge Group respond to the timeline needsoffices of our throughout customers,Ontario. Concierge will operate as a mortgage brokers.

• Centralized Placement Unit gives you access to status & lenders • Dividend-paying share ownership in Real Mortgage Associates Inc. • Annuity paying share ownership in RMA Properties Ltd Own shares in RMA that pay annual dividends and own shares in a commercial real estate portfolio with a target value of $10 million.

network partner with Mortgage Intelligence, developing its own brand while taking advantage of Winning the gold medal in thisMortgage categoryIntelligence’s is due in large key part to our strategic partners at Paradigm A payroll, resources likeQuest. compliance, willingness to work with customers relative to deal exclusive mortgage products, andapart marketing. structure is what sets one lender from another, Intelligence and we’ve made significant strides“Mortgage in this category over offers us competitive compensation the last few years. We have every intention of building and the support that Concierge upon that success. needs to be successful,” said Heimbecker.

Underwriter Support

Overall Service Levels

promoting from within. Effective Jan.1, 2012, Bud Jorgenson BDM Support assumed the position of VP for the This has been our trademark since TheAppel, VP, Prairieinception. Region; Gord Alberta and Gerald people we have in the field have been Region; consistently rated Krahn, Region. as being in the upper echelon.Ontario The reason for“These the three have already made positive success of our BDMs is not overly complicated: theychanges in their respective regions,” said Mark genuinely care about the success of our customers’ Kerzner, president of TMG. “Their business. Our BDMs are authentic and that manifests dedication to TMG agents and itself by Top: putting the business needs of the customer first. Steve Heimbecker brokers is very important for the Middle: Marg Green Middle: Donna Ramsay company’s long-term success. They Broker Support Middle: Gord Appel are a great asset to the TMG Bottom: Gerald Krahn family.” CMP The gold medal in this category is probably the most

l a e Ownership that makes R sense.

Winning the gold medal in this category is like winning TMG The Mortgage Group a triathlon. Excellence in many different disciplines is is moving three of itsYou regional leaders required to finish first in this category. cannot win up the corporate ladder,broker billing the the gold medal unless you treat the mortgage likemove as in keeping with its philosophy of a customer.

Call Ron De Silva at 877-677-7778 ext: 5 for more information

www.rmabroker.ca

COVER / LENDERS ON BROKERS for new and improved ways to help your business flourish. Choice, service, advice and savings – that’s our Broker Advantage. - Gino Tieri

rewarding of all the medals we received. To win the gold medal in this category you have to be viewed as excelling in a number of areas that brokers deem very important. The fact that we were the gold medalists in this category means we can say, with legitimacy, we’re the brokers’ advocate. - Boris Bozic

Overall standings First and foremost I’d like to take this opportunity to thank all of you for your continued confidence in MCAP and taking the time to participate in this very important survey. Getting your feedback helps us focus our energies where you need us to and ensures that we provide you the services and support required to grow your business. If you asked me what I thought were the most important components to doing business with brokers today, I would say great people and great technology. You could have the best products and the best rates in the country, but if support is lacking, rates and products become irrelevant. In no way am I saying that these aspects of the business aren’t important – of course, they are. But if a company doesn’t take the time to make sure everything is at peak performance, no interest rate, no matter how attractive, will matter if no one likes doing business with you. I’m really proud of our MCAP Professor site and was encouraged you voted us tops in technology. I firmly believe that technology is a key difference in how we do business with brokers compared to the other lenders you have to choose from. By optimizing the broker experience with a fast, efficient online system, we ultimately provide the optimal borrower experience that makes you look good. Speaking of great experience, I’d like to thank each and every person who works at MCAP. The only way we continue to offer superb customer service – including quick approval and turnaround times – is through an experienced, professional team of dedicated employees. There is no one person who is more important; a coordinated team effort is what it takes to provide a seamless, positive broker experience. So where do we go from here? Our industry has been on a roller-coaster ride with housing trends all over the map and the unfortunate exit of a longstanding lender from the industry. MCAP plans to stay focused in 2013 and continue to drive support of the broker channel as we have done for many years and plan to for many more. We will continue to invest in our people and technology systems, always looking

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We are humbled by our third place finish and we are thankful to brokers for also awarding us a top six placing in all categories. We have listened to what brokers said they needed to be successful, we have made many changes and there will be more. It’s vital to not only listen to brokers, but to really understand what they need to be successful.

Approval / loan turnaround times Your deal is important to you and your customer, so it should be important to your lender. We believe all deals require prompt, two-way communication. Our new streamlined process helps you communicate with fewer people and lets you know exactly who to call when you need support. This increases knowledge of each deal and improves overall productivity so you’re closing more.

Underwriter support Bridgewater Bank employs the one-to-two ratio. We empower our underwriting team so that one underwriter can approve a deal, but it takes two to say “no.” We’re not cookie-cutter, either. We make sure you have choice in getting your deals done. Having choice gives you more options to close deals and keep your customers happy.

Overall service levels We thank the broker community for this recognition, but that’s where the celebrating stops. We’re not resting on our laurels. We’re continuing to improve and your feedback is important. Help us make our relationship stronger. Tweet us, call us and communicate with us through the BwB All-Star Broker portal.

BDM Support STATS

-27.4% Thompson, Man. YOY sales (September) Source: CREA

You’re unique, so are the needs of your customers. Our BDMs understand they need to provide you with tailored, regional knowledge and support. We are constantly working with our BDMs and our broker partners to evolve our support and solutions to respond to your regionally specific needs. Our BDMs are there to support you, whether we’re collaborating on structuring a deal, sharing tips, holding face-to-face meetings, facilitating presentations or holding

COVER / LENDERS ON BROKERS conference calls.

Product Range In a year that has seen many lenders specialize in one area or another, Bridgewater Bank remains competitive by offering brokers choices. You can’t control the types of deals that come in your door so we have created a whole range of products to meet your customers’ needs. Draw mortgages are just one example. Having an excellent product range, backed up by a knowledgable underwriting team, is proof we’re looking out for you.

Satisfaction with credit policy Our industry faces challenging times. With new government regulations and changes within the industry, Bridgewater Bank is trying hard to soften the impact to our partners. We have worked hard to anticipate market changes and have created policies that are clear and easy to follow. And we are backing it up with increased communication through many channels, including with underwriters and through our broker portal. We appreciate that brokers have continued to work with us through these times.

MORTGAGE SOLUTIONS THAT ARE AS SMART FOR YOUR CLIENT AS THEY ARE FOR YOU

Broker support Bridgewater Bank knows support is key to your success. That’s why we have reviewed all of our operations to find ways we can improve our service and support levels, from the moment a deal is submitted to when it goes to servicing. We’ll continue to work hand-in-hand with our broker partners on these improvements.

IT / Technology As part of our continuing growth, in March 2011, we launched the BwB All-Star Portal. It’s 100 per cent broker-focused, helping you track and manage your deals with us. The portal is a user-friendly location that brings together information and two-way communication with our dedicated underwriters, making dealing with Bridgewater Bank uncomplicated. It also improves efficiency through live status updates, condition and document management, compensation reports and volume tracking, all reducing the need for multiple phone calls, emails and faxes. The feedback on the portal has been excellent and we are proud to say brokers approve of this innovation.

What’s in it for you? > A unique product portfolio including our award winning All-In-One Banking™. > Niche product lending allowing you to meet a variety of your client needs; including mortgage solutions for ﬁrst time homebuyers, rental properties, new immigrants, non-residents and more 1. > An incentive program built on your feedback, including reward options such as: $2,0002 towards marketing, $15,0003 travel voucher towards a trip of lifetime, rate discounts up to 15 BPS, free appraisals, great cashback offers, and more!

Contact your local BDM or email mortgagebroker@nbc.ca

TM National Bank All-In-One is a trademark of National Bank of Canada. 1 Financing shall be subject to the credit approval by National Bank. 2 $2,000 marketing fee is a one-time reward for the first 65 deals or $20M funded in the fiscal year. 3 $15,000 trip paid for every 125 deals or $40M funded in the fiscal year. The fiscal year is from November 1, 2011 to October 31, 2012.

mortgagebrokernews.ca | 23

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COVER / LENDERS ON BROKERS will have the assistance of our broker portal, which we’re excited in launching for 2013. As much as we’re proud of our fourth-place finish, for overall service levels, we are striving and investing in improving on these results and growing our customer satisfaction and market share for 2013.

RMG mortgages The RMG Mortgages team would like to thank our broker partners for their support in the CMP Brokers on Lenders Survey.

Overall Standings

From outside of the top 10 to fifth place is something we Your confidence in our new brand at RMG are very proud of. Being in the top five won us gold medals in Transparency of Commission positions RMG as successful in many categories. Last Structure and Best Interest Rates categories. year we did not score in the top 10 in any category and this year we scored top 10 in every category. This is a Even more exciting, a gold medal for tribute to the hard work and dedication of ourourstaff Business Development Managers. glad to know you appreciate during the transition. We never lost focus on We’re servicing how we help your business! the mortgage broker industry in Canada and look forward to next year and improving on our results! RMG Mortgages is all about keeping

Interest rates RMG is proud that brokers consider us to be competitive on interest rates. We allow brokers to use their commission to buy down rates in competitive situations and many brokers utilize this feature to capture deals from their competitors. A reduced commission is always better than no commission if a deal is lost! Realizing that interest rates for insured “A” deals are important, RMG is investing in launching some products for 2013 that will help brokers compete against the bank branches for business and win the deal!

New The RMG staff worked hard to get into the top 10 this Brand year.+ Our volumes are 40 per cent higher this year versus last year, so this is a great accomplishment. With Experienced the launch of our broker portal in December and Professionals technological improvements in communication to our Approval/Turnaround Time

it simple... personal support, a clear compensation program and competitive market rates to benefit you and your clients.

BDM Support

Our “back to basics” approach means personal service with a mortgage lender who believes in being straight forward and honest. It’s how we do business now, and it’s how we’ll do business in the future. broker partners, we’re confident that our approval and

RMG is very proud of the work and dedication of our BDMs during the transition and re-branding in 2012. RMG BDMs have a rich history of working with mortgage brokers and many, including our director of sales, worked as mortgage brokers in the past. To achieve a gold medal during this time of change is a huge accomplishment. We greatly appreciate brokers recognizing our BDMs as the best in the business. We look forward to 2013 when BDMs will be given state-ofthe-art technology and leading sales tools that will assist them in maintaining this gold-medal position and growing their market share in the future!

turnaround times will improve in 2013. Brokers will have access to an online portal giving them vital Find out more by information, up-to-date deal status on their submissions contacting your local GOLD MEDAL WINNING and conditions outstanding. Business Development Manager.

Underwriting Support

You can find them all RMG is investing heavily in technology and a broker at www.RMGmortgages.ca portal that will assist in providing additional support for our broker partners. We look forward to the imminent launch of the portal and believe this tool will assist us in 2013 to improve on our results for underwriting support. RMG Mortgages is a division of MCAP Financial Corporation Ontario Mortgage Broker licence no 10600 & 10515 Ontario Mortgage Administrator licence no 11692 & 11790

Product range RMG is looking forward to launching some competitive products in 2013 that we will position to help brokers navigate the ever-changing mortgage rules. We recognize that in 2013, purchase business and transfer business will be a primary source of business for brokers, and RMG looks forward to positioning our products in a way that helps mortgage brokers grow their

Overall Service Levels RMG is investing in technology and sales tools for 2013 that will give the staff an advantage in providing exceptional service levels going forward. BDMs will be given modern programs and tools to assist them in communicating with their brokers, and underwriters

Over 600 Million Lent since 1997

80% Member of CAAMP, AMBA, MBABC, BBB.

26 | mortgagebrokernews.ca

5.25%

7.25%

OFFICES IN VANCOUVER, CALGARY, EDMONTON, TORONTO & ATLANTIC PROVINCES

Donna Adams

780.686.2911

877.926.2122

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905.299.6951

905 824.7095

hdoggett@capitaldirect.ca

› Overall Service Levels › Broker Support › Underwriter Support › Satisfaction with Credit Policy

› BDM Support › Turnaround Time

On behalf of the entire team at MERIX Financial we want to thank you, our partner. With your loyalty, feedback and continued support we were awarded

Top Lender of choice at the CMP Brokers on Lenders Annual Survey.

› Transparency of Commission Structure › Interest Rates

We are proud of achievements we have created together and will continue to work hard to provide originators with the tools they need to succeed. To see what other lenders will do tomorrow, find out what MERIX is doing today.

www.merixfinancial.com

COVER / LENDERS ON BROKERS market share in these important business segments.

Our

Satisfaction with credit policy

commission

Rising from outside the top 10 to seventh in 2012 is a big accomplishment and we’re proud of it. We will continue to communicate our credit policies and any changes moving forward to ensure that brokers are educated in what RMG can do and what our policies are moving forward.

structure is

Broker Support

and brokers

With 100 per cent of our business coming from mortgage brokers, we appreciate the fourth-place finish in broker support. Keep an eye out for RMG during the 2012 National CAAMP Conference where we’ll be delivering some exciting news on broker support and what our plans are for assisting brokers in growing the amount of business they do in Canada. With all the mortgage rule changes, RMG believes that the tougher it is to get a mortgage, the more valuable mortgage brokers will be in assisting Canadians in their dream of homeownership. As mortgage broker market share grows, RMG will be there assisting you every step of the way!

always know

IT/Technology At RMG, we believe this is a category that we can improve greatly on for 2013. We have two major changes coming in 2013. Key among them are a broker online portal, which is being launched at the CAAMP Conference, and an innovative new sales tool for BDMs to assist brokers in growing their business with RMG. With these two new features, we expect to move up the standings significantly in 2013.

Transparency of commission structure RMG is very proud of the gold medal here. As mortgages become more difficult and rate competitiveness with branches grows, a transparent commission structure is invaluable. Our commission structure is very straightforward and brokers always know how much they can make on a deal, even when they buy the rate down in competitive situations to win a deal. RMG will continue to keep its commission structure straightforward as many of our broker partners appreciate its simplicity.

We at Home Trust appreciate and thank the brokers who took the time to complete this survey and CMP for providing the opportunity. We acknowledge our industry colleagues and congratulate them on their achievements and success. Given

28 | mortgagebrokernews.ca

very straightforward

how much they can make on a deal, even when they buy the rate

the changes all of us in this industry have experienced over the past year, we are all deserving of an award. We are honoured to have been awarded a medal, especially a medal in Overall Service Levels. This indicates to us that we are providing service and support to our broker partners in all aspects of our business – before, during, and after our business transactions. During the past year, we have added staff to our broker relations team, which supports the broker network, responding to calls and emails. Clearly this has been well received by our broker partners. We are proud to see that our scores year-over-year remain continuously in the area of “good” to “very good.” Our broker partners have expressed a need for lenders to be consistent and predictable in their business. We feel we are providing them with this in spite of the turmoil in our industry. We can always improve and we have noted areas on which we can focus on finding solutions to continue to elevate our valued relationship with our broker partners in the upcoming year.

down in competitive situations National Bank is excited to be recognized again in the top 10 of CMP’s Brokers on Lenders survey standings. The industry has experienced significant changes in the past year and, with that being said, National Bank is grateful for the support and loyalty that brokers have shown during this past year. For the second year in a row, we have medalled in the category of product range; this year we earned a silver ranking. National Bank is extremely proud of this recognition, and we have all of you to thank for this. We continuously strive to offer innovative and leading market products for all of our clients. Our signature product, the National Bank All-In-One continues to be recognized as one of the best credit solutions, which offers our clients significant flexibility for daily transactional banking. It gives our clients the opportunity to fully integrate their financing solutions that can be customized to their specific needs. It is important to us at National Bank to receive this feedback from the broker community so that we may continue to evolve and support the needs of our brokers in the coming years. National Bank is committed to the broker channel; our growth over the past five years is due to the support of the brokerage community and our partners. All of us at National Bank thank you for your loyalty and we look forward to working with all of you for many years to come.

Feature / Broker Networks

Your

Broker Network awaits... 30 | mortgagebrokernews.ca

Feature / Broker Networks

Picking a broker network to take you to the next level isn’t just for newbies. Seasoned brokers are increasingly forced to decide whether to stay put or find a new superbroker. That’s why ten of them are are queueing up to sell themselves

slowing real estate market means many broker networks are finding the bulk of their growth opportunities are from within the industry. “It’s not by design – I mean we’re not out there poaching each other’s people,” one network head tells CMP. “But the truth is high-producing brokers and their teams are aware of their options and they’re actively exploring them. We’re trying to make sure that we’re the one they come to if they make a change.” Ten of the industry’s biggest “superbrokers” are putting their best foot forward in an effort to do the same. For CMP’s fifth annual survey of Canada’s national networks, each outlines what exactly sets it apart from the competition – from its compensation and brokering model to strides made in 2012. This year’s guide also includes the testimonials of veteran and new members to those respective teams.

Invis/Mortgage Intelligence At Invis-Mortgage Intelligence, significant strides have been made to help our brokers turn their “jobs” into businesses through diversified income streams and long-term annuity income. In a tightening market, we have also responded with new proprietary products that are a competitive advantage. And we provide training on new customer marketing methods like social media, blogging and SEO. Key differentiators for Invis Mortgage Intelligence include: • Iprotect mortgage life, disability and critical illness insurance that builds fantastic long-term annuity income • Unitas – Home & Auto insurance program that pays referral fees (select provinces) and provides the best E&O insurance in the industry • Private Label Partner Mortgage with no retention team, automatic payments at renewal and competitive pricing and features. Partner Mortgage matched BMO’s rate specials right from the beginning so our brokers always had an answer. • Private Label WealthLine – flexible underwriting, payment at renewal, a broad selection of programs • New private label SureLine with unique protection features for today’s tough economy • New lead generation through, financial planning networks, and an online SEO expert that has been receiving mortgage leads but hasn’t been able to fulfill on them until now • New industry-leading corporate websites generate traffic and leads In a slower market, a broker’s database becomes everything. We have CRM options to fit every broker model, from those that just need persuasive copy for their own programs to those that need a full system and support. We have an extensive focus on content so our brokers can work their databases for key opportunities like extricating FirstLine clients, refinance opportunities, identifying what other mortgages clients have, generating referrals, and making sure clients contact their broker if they receive any contact from their lender. In a tougher market, we stand by our commitment of no long-term contracts, and that clients always belong to their broker. Respect and recognition from national lenders and our tough compliance standards are also critical in today’s environment.

mortgagebrokernews.ca | 31

Feature / Broker Networks Invis/Mortgage Intelligence Brokering Model/ Comp

Ancillary Services

Lead Generation & Ways to Earn More

* full-service brokerage with highly competitive compensation model with different commission splits for those new to the industry up to the very seasoned high-volume broker * personal branding flexibility * NEW in Ontario, ability to work under own brand/licence at top commission split

*experienced regional support; feet on the street! * placements desks so all brokers can enjoy access to all lenders and receive top-tier commissions * broker websites with global feeds so rates, content and news are continuously updated * NEW mobile websites * CRM options to fit each broker’s business model * graphic design services * content library for blogs and social media * automated rate mail and daily lender rate sheet * intranet site with branded materials for marketing and relationship management * realtor feature sheets with demographic & neighbourhood information * national conference and roadshows with AMP credits * corporate benefits * discounted and best E&O insurance rates * preferred pricing on credit bureaus * national contest for SeaDream Yacht Club where all brokers have a chance to win * community and culture through national charity Angels in the Night

* easy to offer & competitively priced iprotect mortgage insurance builds a fantastic annuity income * NEW home and auto insurance referral fee program. Just four referrals a month can give brokers $3,360 in additional income each year. * WealthLine (private label) and Partner Mortgage (private label) with excellent rates, features and ability to earn annuity income with automatic payment at renewal * NEW private label SureLine with unique protection features for today’s economy * NEW lead generation programs through Dundee Wealth and other financial planner networks * NEW lead generation program with a proven SEO expert that will allow customers to pre-qualify and get pre-approved online or referred to broker network * NEW industry-leading corporate websites getting traffic and leads *leasing and small business loans referral programs * access to private and commercial lending experts

Compliance/Payroll *e-compliance process through expert exchange * compliance required for all brokers, regardless of the model they are working under with the company * excellent compliance protects brokers’ reputations! *weekly payroll with detailed statements and customized team setups * NEW and a key differentiator is payroll and compliance for those at the highest splits, not available at other brokerages

Real Mortgage Associates/RMAI 2012 was a monumental year for our network. We developed a CRM program that is fully integrated with Expert. This program was bundled up with an extranet and offered to our group at no cost to them. The “business-in-a-box” bundle of services in effect provided our franchisees, affiliates, brokers and agents the ability to customize the tools to develop their own business. 2012 also saw the launch of our ambitious project to share the ownership of our organization with our broker base. Two years in the making, this project took flight in August. Participating brokers were offered share ownership and the capital that was raised was invested in commercial real estate projects in Ontario. This offering is unique in our industry and demonstrates our commitment to programs that enhance the longevity of brokers in the industry.

Broker: Bernie

“After more than a decade running my own business I decided to find out for myself what a super brokerage could offer. Invis has very good products like their branded Partner Mortgage, which offers good rates and competitive fees. Brokers can also get extra income by selling Invis life and home insurance products. I’ve been pretty happy with Invis these past 10 months and I don’t think I’m moving out anytime soon”

Broker: Alyson Thiessen Broker Network: Mortgage Intelligence Time there: 3 months “It’s great to be home. We are returning to Mortgage Intelligence because of its strong leadership under Bob Ord. I firmly believe that we are in shark-infested waters and we want someone leading our business that can anticipate and navigate for the best possible outcome. Bob Ord gets the business; he knows its ins and outs.”

In this economy, the numbers of consumers unable to meet their consumer debt obligations are rising Broker Network: sharply. This segment of consumers is unaware of some Real Mortgage of the programs available to help them. Shortly, we will Associates be launching an affiliation with an organization that Time there: 2 years implements debt-reduction programs for consumers. Broker for: 7 years Our brokers will soon be able to refer those clients that do not qualify for mortgaging and are currently behind “I’ve been a broker on their obligations to a mediator that negotiates for seven years. I’ve worked with another settlements with creditors. These grateful clients will represent great prospects for mortgaging in the next outfit before and 12-24 months. know about other We are excited about all of the opportunities that are brokerages. RMA on their way in 2013 for the RMA group of companies. provides you with all We anticipate that our organization will organically the back-end tools grow its partner base by 30 per cent. Additionally, we you need and then may also acquire some brokerages in strategic markets allows you to run across Canada. your businesses the

Klacer

way you see fit.

32 | mortgagebrokernews.ca

Broker: Lance Cook Broker Network: Invis Time there: 10 months Broker for: 12 years

Feature / Broker Networks Real Mortgage Associates/RMAI Compensation

•

• •

Brokering Model

•

Compensation * All franchises, senior brokers & affiliates receive 100% of the commissions (finder fees & volume bonuses). No Splits. The cost of association is $750 per month OR a Pay Per Deal program. Our model has remained constant since we opened in 2006. We operate our corporate head office on the fees we get. We don’t charge for advertising or origination software. Trailer commissions and fees follow the agent where ever they choose to go. There is no cost to purchase a franchise. Our licensed franchisees/affiliates are not expected to carry and promote our brand. Their businesses operate under their own brand names. Standard termination clause is 30 days. Agents/brokers that don’t have their own licensed broker firm can join our corporate store, Real Mortgage Associates (RMA under the same compensation model. On average, over 65% of the RMA agents/brokers have been in the industry for over 12 years. New agents to the industry joining our firm must work with a manager/trainer. The manager/trainer’s compensation is tied directly to funding of mortgages by the new agents ensuring the highest level of support for new entrants.

Ancillary Services

•

Lead Generation

•

Lead Generation: RMA markets 40 localized mortgage websites. (eg: HamiltonMortgages.com). All the RMA brokers/agents are promoted. This service is free.

CRM Program

•

All franchisees, affiliates, agents & brokers have access to CRM software through inContact’s Nexa program and is fully integrated in real time with D&H’s Expert. This service is free.

Commission Advances Intranet/ Extranet

•

RMA agents/brokers have access to an in-house commission advance program. An administration fee applies.

•

All franchisees & affiliates have a fully functional Extranet with up-to-date rates, lender guidelines, lender BDO contacts, Lendervault Online and CRM Online. The extranets are branded with the franchisee’s own logos. Head office manages the updating and maintenance of the Extranet on behalf of the franchisees and affiliates. This service is free.

Lender Access Desk

•

Some franchisees, affiliates, agents and brokers that fund smaller volumes and don’t have access to all the lenders. For these originators the Access desk opens a door to all lenders including some with preferred/unpublished rates and compensation. A nominal fee applies on funded files only.

Commercial lead fulfillment Lendervault

•

Our commercial division handles commercial mortgage leads on the agent’s behalf. Simply provide a name and phone number and the referring agent gets 50% of the fee when the deal funds.

•

Don’t know where to place a deal with unique qualifications? Enter the application information into Lendervault and the system finds a lender that will do that deal. This web-based, automated underwriting software is available to all franchisees, affiliates and agents/brokers. This service is free.

Free Websites

•

Consumer targeted websites are available to RMA agents to market them selves. The back end has an easy-to-use content management system to update the site. This service is free.

Lender/ product education

•

Lender / product education. Semi-monthly webinars are conducted to keep franchisees, affiliates and brokers up-to-date on the latest industry changes, new lender offerings and other ancillary products. This service is free.

Ownership / Wealth creation

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A unique structure allows brokers/agents to own a piece of the organization with a guaranteed rate of return. The investment is placed into ownership of commercial real estate thereby creating tangible value for the ownership.

•

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

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Feature / Broker Networks Centum At Centum our focus is to provide our network of mortgage professionals with tools, techniques and direct-toconsumer events that produce leads thereby having an immediate impact on our mortgage professionals’ productivity. Our aggressive marketing targets and captures leads from the sophisticated online customer. In addition we create extensive customized marketing materials for our agents and brokers to prospect and close these leads. This has resulted in over 13 per cent growth in our funded volume as a network this year. Using the expertise of the Charlwood Pacific Group in brand-building and business operation for our franchisees and their agents, we continue to look for ways to capture the new generation of mortgage consumer.

Compensation

• • •

•

Brokering Model

• • • • • •

Ancillary Services

•

• • • •

Lead Generation

• •

“I have owned my own independent brokerage since 1998, but I liked the idea of forming an association with a big company with a nationwide network. With Centum and its partnership with Century 21, I was able to reach out to clients outside Vancouver.”

Centum has a 5% royalty plan with no additional fees – period Franchise owners have 100% control in determining their agents’ compensation The following services worth $40,000/year are provided at no further charge: • Day-to-day detailed accounting management • A powerful, results-oriented CRM system • Training from experts in the field • A fully staffed service department offering one-on-one help and advice to our brokers Upfront and residual revenue generation opportunities include commissions from: • Equipment leasing • Mortgage protection plans • Deposit product offerings (GIC, RRSP) Centum has over 2,300 mortgage agents and over 250 locations So far, in the first nine months of 2012 we have grown our funded mortgage volume by over 13% and in 2013 we expect to exceed that growth by 15% A large number of our franchises produce mortgage volumes from $50 million to $380 million Centum was founded in 2002 and has been present in every province throughout Canada since inception All of our franchises are independently owned and operated. Centum is owned by the world-recognized Charlwood Pacific Group of companies which includes Uniglobe Travel International, Century 21 Canada, Century 21 Asia Pacific, and Real Canadian Property Management Group Our products target specific consumer needs thereby allowing our agents to close more deals: • Our white-label product, Centum Primo, consistently has the lowest mortgage rates in Canada • Our exclusive partnership with 4 Pillars Debt Consulting enables us to offer products for consumers who are credit challenged We take care of our brokers so they can focus on building their business. We provide the following services at no further charge: • Consumer marketing plans, collateral and tools • Commission advancements • An aggressive national advertising campaign that produces leads • Underwriting administration and compliance services • A fully integrated back office that provides: Training, website management, social media, payroll, compliance, franchise administration, marketing and communication Our productivity enhancement tools and education have proven to increase an agent’s production by four times their normal level. Our tools include: Broker and agent financial planning tools Our PEP education process provides specific and timely knowledge for our agents that produce immediate results

•

Our aggressive marketing strategy provides brokers with vital qualified leads directly through our website Our website traffic alone has doubled to over 50,000 unique visitors/month, well on its way to our goal of 400,000 unique visitors/ month in 2013 We develop exclusive partnerships with industry leading companies to deliver bottom line results for our brokers. • For example, we have a marketing partnership with Century 21 Canada Ltd. to benefit from their over 8,000 Realtors and over 1.3million unique visits they receive on their website/month We are continuously developing customized marketing pieces for our brokers and agents that help them secure new business

•

Centum works closely with our franchisees to ensure they are compliant with all provincial and federal regulatory bodies.

•

Centum has centralized accounting services relieving the franchisee of the burden and time required for collection, reporting of, and distribution of lender payments. Efficient same-day direct deposit to franchisees.

•

Compliance Payroll

Broker: Brent Francis Broker Network: Centum Time there: 2 months Broker for: 14 years

•

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Feature / Broker Networks The Mortgage Centre The core success of The Mortgage Centre revolves around a consistent philosophy of “growth through quality acquisition.” This strategy keeps the integrity of our network high and presents opportunities to members that aren’t available through other brokerages. The strength of our brand with ties to a major financial institution afford our network the flexibility to grow deeper relationships with referral partners and provide a calming influence with the majority of prospective clients. By leveraging this sound infrastructure, our independent franchise owners have the ability to market and co-brand The Mortgage Centre, creating greater visibility and flexibility. In 2012, we gained considerable traction offering a full suite of innovative business tools aimed at increased interaction with clients and referral sources. With the MCC-branded CRM platform, a personalized email newsletter, branded templates, new creative advertisements and access to a portal that aides and supports instant feedback on marketable deals, we believe our franchise communication strategy has achieved discernible results already this year. These tools were developed in conjunction with an

Broker: Bob McDonald

Broker Network: Mortgage Centre Time there: 21 years Broker for: 22 years “Many brokerages have come calling over the years. No one can match what Mortgage Centre offers. The brand name “Mortgage Centre” completely defines what we do.”

existing platform on our intranet (Mymortgagecentre. com) to create greater awareness and efficiencies for our franchisee business model. This support will further enhance our position as one of the most efficient brokerage networks in Canada. Coming soon our new public portal (Mortgagecentre.com) will provide refreshed content for agents and owners at The Mortgage Centre. This will increase our ability to direct a larger number of client and agent referral leads to our franchise network. The Mortgage Centre continues to offer exclusive access to CIBC and PCF products not available throughout the general broker network. This provides a competitive advantage, which results in potential increased revenues. We have enhanced our on going agent training with qualified and certified Buffini Mentors. This improves the value proposition for owners allowing them to recruit qualified candidates knowing there is a training support mechanism in place. We believe the training support leads to a higher quality mortgage agent with a greater propensity to succeed. The Mortgage Centre continued to sustain growth year over year by leveraging our relationship with business partners, market lenders and CIBC.

mortgagebrokernews.ca | 35

Feature / Broker Networks The Mortgage Centre Compensation

• • • • • • • • • •

The Mortgage Centre collects a nominal royalty fee based on the dollar volume funded by the lender. Our typical royalty fee is less than the average competitor, allowing our franchises to use the additional revenue the way they want to grow their business. With our unique and exclusive royalty model; additional revenue earned but not limited to; volume bonus, efficiency bonus, trailer fees or other objective targets are directed to the franchises. As described in our business model, franchises retain 100% of trailer fees which stay with them in perpetuity. The Mortgage Centre does not apply a royalty fee or commission split on private lending. All revenue earned through private lender placement fees are exempt from royalties. Our independently owned franchises negotiate competitive commission splits directly with their respective agents based on experience, quality and volume. Each Mortgage Centre office is independently owned and operated within our franchise network.

Brokering Model

•

New franchise cost is $16,500 plus HST for a defined territory to protect from over saturation. The defined territory provides a tangible value for future succession planning. The Mortgage Centre Head Office provides on site and/or webinar support during initial setup along with on going training to ensure a success launch of a new franchise. Our contracts with franchise owners are based on a five-year mutual commitment. We have presence coast to coast, except in the province of Quebec with approx 100 franchises and over 1000 agents.

• •

Ancillary Services

•

• •

• • •

The Mortgage Centre (MCC) is a division of CIBC Mortgages and Lending, allowing our network to offer exclusive, niche products through CIBC and PCF that are not available through other broker networks. Leveraging this relationship our members enjoy a significant discount on credit bureau costs. Members of our network offer creditor life insurance via MPP (Mortgage Protection Plan). This offers another avenue for our network agents to create an ancillary revenue stream with multiple methods of payment (upfront and/or residual fees offered). The Mortgage Centre created a unique mail campaign (Stay In Touch) for its members allowing them to offer clients or referral sources a personally branded hard copy output every other month. A cost-effective approach to active and ongoing communication with their database. In addition, each member of our network has access to communicate a personal branded email newsletter to their database on a monthly basis via our MCC Communicator Tool. The Mortgage Centre Head Office provides ongoing training, support and development via monthly webinars throughout the year. In addition, on-site sales training and mentoring programs are available for new and existing agents of our network. This has been instrumental in creating greater efficiencies and higher agent retention within the network. In addition, we have a secure intranet site with a host of business tools, advertisements and templates that support our network in growing their business. Other programs available include MCC Client Connect (CRM Solution), MCC Lender Connect (Deal placement assistance), MCC Media (a hub for MCC to access advertising and other materials), MCC Mentor (assisting in training needs) and several other tools to help in managing a business. The Mortgage Centre hosts an Annual Conference for the entire network focused on sharing of Best Practices and personal development.

Lead Generation Compliance

•

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

• • •

Franchise licensee is responsible for provincial compliance requirements. Ongoing training and support is provided by Head Office, in accordance to provincial legislation franchises have access to a policy and procedures Manual, which was developed to govern franchises and assist in the compliance process.

Payroll

• •

Franchises are provided detailed reporting in addition to weekly payment thru The Mortgage Centre Head Office via EFT. In addition, we have established partnerships with payroll providers who offer The Mortgage Centre a member discount for using their services.

Argentum Mortgage and Finance Our organization recognizes that the industry has experienced a number of changes the past few years, with more expected. These changes have all been derivatives of federal policy changes as they relate to mortgage rule revisions, B20 implications on underwriting criteria, anti-money laundering policies and “Know Your Client” legislation, to name but a few. These are coupled with some notable changes on the supply side that has seen some lenders withdraw from the mortgage broker channel while others are placing stronger emphasis on efficiencies and quality benchmarks. These changes have left a number of mortgage professionals and organizations to take an

36 | mortgagebrokernews.ca

Broker: Christine Xu alarmist view while we have maintained a positive Broker Network: attitude and proactive position for our mortgage Argentum

professionals. What are we doing about this for our

Time there: 12 years people? We have empowered them by implementing Broker for: 3 years strategies and tools to increase their touch points with “I love their philosophy. They strive to learn from the best practices of others and avidly support broker training. That’s ideal for brokers who have new agents.”

prospects and existing clients while maximizing their income potential. We are acutely aware of how other institutions outside the mortgage broker channel maximize their client relationships and we are putting those approaches into the hands of our people. With the industry data before us, it is clear that our fresh approach is hopefully what the industry will embrace.

Feature / Broker Networks Argentum Mortgage and Finance Compensation

•

Brokering Model

Our model enables a mortgage professional to escalate and evolve internally through our various programs. Brokers have referred to us as the home with two doors: • Corporate models for mortgage agents and mortgage brokers • Licensing network programs for independently owned and operated brokerages looking to maintain their brand – available in all provinces • There are no fees associated with joining our organization • Organization is predicated on core philosophies of creating efficiencies and revenue diversification • A fresh and nimble organization with a strong focus on training and support to adapt to the fluidity of our industry

Ancillary Services

• • • • • • •

Private label mortgage products GIC strategy Equipment Leasing & Accounts Receivables purchasing Commercial Mortgages Alternative Mortgage Solutions Strategies Consumer financial services programs Other financial products to wrap yourself around your clients to maximize retention

Lead Generation

•

AT NO CHARGE - Proprietary CRM product integrated with origination software and marketing software to increase touch points with your clients and leads. The marketing software enables email campaigning and snail mail campaigns with an incredible selection of predesigned letters and forms AT NO CHARGE - Each mortgage professional is given a true stand-alone website (not a landing page) with their own administrative panel allowing them to personalize their website in accordance with their business plan. The website is fully integrated with the CRM Completing an initiative that will provide “quality” leads to our mortgage professionals across Canada

• •

Versatile and aggressive compensation programs to match the most appropriate model for the broker and or brokerage. These include commission splits and/or monthly flat fees

Compliance

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Compliance is made easy and seamless with a document management system that is integrated with the CRM so that all docs reside within the application for future use while empowering our compliance officers to review the documents quickly in order to process payroll as quick as possible

Payroll

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As a result of the CRM and doc management system aforementioned our organization is proud of its ability to pay twice per week

Canadiana Financial offers a renewal-based compensation plan option, which just became more valuable to your lender portfolio. Are you preparing for the road ahead? Contact a Director of Business Development in your area today for information about our valuable Freshly Brewed Renewal Compensation plan option.

We focus on you.

FSCO Licence #12012

www.canadianafinancial.com/renewal-comp mortgagebrokernews.ca | 37

Be Educated

www. BoldResources .ca

Feature / Broker Networks Mortgage Architects

Broker: Mario

This year Mortgage Architects has made significant advances to help brokers maximize leads and grow their business. Mortgage Architects introduced a new professional marketing team in early 2012 to re-define and re-brand the company. Focusing on creating effective end-consumer advertising to increase brokers’ lead generation and client retention has been a significant value add. All marketing pieces are personalized and, wherever possible, sent on behalf of the broker to create constant contact with prospects, clients and referral partners. Brokers also have the ability to send ad-hoc campaigns, greetings, rate and features sheets. Being able to leverage marketing and technology platforms allows brokers to focus on their strengths of maximizing deals - not administration. One of the key benefits of joining Mortgage Architects

is the opportunity to be a part of the only brokerage that has its own lender. Through their unique company Broker Network: structure, they are able to offer numerous additional Mortgage revenue generation opportunities, including a top-tier Architects commission structure, trailer fees, points programs and Time there: 1.5 years ownership opportunities. MA brokers have also gained a “I love the technology competitive edge through cross-selling of life insurance products and financial planning products. and social media MA Mortgage Architects prides itself on supporting and provides to support growing their network of brokers through education, us, so we can have training and best practices knowledge-sharing among the best relationship brokers throughout the network. This year they with the customer in conducted annual conferences, monthly webinars, local the future. This is meetings and professional development calls to provide everything from the their brokers with opportunities to learn new sales skills, website to Twitter, enhance product knowledge, systems training and share Facebook and lead generation techniques. LinkedIn.

LePage

Model

Our License No Term

Our License 3 Year Term

Franchise No Term

Franchise 3 Year Term

Compensation

90/10

93/7

1st Year 93 2nd Year 95 3rd Year 97

1st Year 95 2nd Year 97 3rd Year 97

Additional Compensation*

• • •

Top Tier Volume Bonus Ownership Units Trailer Fees

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Top Tier Volume Bonus Ownership Units Trailer Fees

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Top Tier Volume Bonus Ownership Units Trailer Fees

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Top Tier Volume Bonus Ownership Units Trailer Fees

Ancillary Services

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Marketing Support Technology Business Coach Training

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eMarketing Technology Centralized Training & Support

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eMarketing Technology Centralized Training & Support

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eMarketing Technology Centralized Training & Support

Lead Generation

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No cost leads Monthly client campaigns Automatic CRM

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No cost leads Monthly client campaigns Automatic CRM

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No cost leads Monthly client campaigns Automatic CRM

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No cost leads Monthly client campaigns Automatic CRM

Full Service Electronic document storage

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Full Service Electronic document storage

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Compliance management platform Electronic document storage

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Compliance management platform Electronic document storage

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Compliance

Payroll

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Full Service

•

Full Service

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ePayroll

•

ePayroll

*Through our lender we are able to offer some of the highest paying compensation models.

Mortgage Alliance/MPH Mortgage Alliance promotes a targeted brand strategy that successfully positions MAC Professionals as mortgage advocates and the preferred choice for consumers. The result is a recognized and trusted brand that thrives in any economy. Winning the customer first by offering added value pre-and post-transaction leads to sustainable growth. No one has done more to raise the profile and credibility of the industry. Our development of MortgageBOSS™ technology has transformed the way our agents, team leaders and

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Broker: Zelia Leme Broker Network: Mortgage Alliance Time there: 5 months Broker for: 5 months “I signed up with Mortgage Alliance because their business structure was similar to banks but they offered agents better branding and support. They also helped me expand my revenues stream by allowing me to offer clients insurance products and GIC.”

Feature / Broker Networks franchises conduct business. It reinforces our position as knowledgeable and trusted professionals. Accesses to integrated resources allow us to directly compete and succeed in a tightening market. Our advancement in customer communication through systems automation drives leads to agents by delivering timely, relevant, trust-building correspondence to customers, prospects and referral sources. We’ve revolutionized the way mortgage professionals offer creditor life insurance with our unique guaranteed issue insurance product. We have simplified processes so agents can offer more insurance products to create new revenue streams and greater profitability. We were the first brokerage to offer GIC investments, complementing our already powerful suite of ancillary services like Home, Auto and Term Life insurance, leasing and

commercial lending services. This adds more value to existing client relationships, increases customer retention and builds consumer loyalty. Our community expects leadership when it comes to innovation of products, services and systems. They are also aware of our steadfast commitment to build the credibility of MAC professionals and the brokerage industry. Mortgage Alliance is only successful because our people are successful. Our mission: We help entrepreneurs by providing them with the optimum environment - so they can deliver unparalleled choice, convenience and great counsel to Canadian mortgage consumers. Bottom Line: We offer resources and prestige like a bank, with the entrepreneurial attitude of a broker.

Mortgage Alliance/MPH Compensation

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The organization offers a choice of relationship based compensation models available for new brokers, top agents, team leaders, Mortgage Alliance franchisees and flat fee affiliates. The network is comprised of a large trained and supported national sales team, a thriving coast-to-coast franchise community and a growing affiliate network. Mortgage entrepreneurs within the organization appreciate the many services and compensation choices available.

Ancillary Services Lead Generation

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Three unique Branded Mortgage products, Guaranteed Issue Creditor Life Insurance program, Term, Home or Auto Insurance, Registered, Non-Registered and TFSA GIC’s, Investment Products, Closing Centre Services, Leasing, Commercial lending services.

•

Mortgage Alliance offers a unique bank of systems and strategies including a National Branding campaign that raises the profile of its brokers, the company and the mortgage industry while directly generating consumer leads to our brokers’ phones and websites. The organization provides custom-designed ads versus ad templates and promotes a dynamic roster of hard-copy and email-based lead-generating communications for customers, prospects and referral sources that are integrated within MortgageBOSS to make it easy. Weekly marketing emails, monthly lead-generating customer communications; five-year hard copy client follow-up programs to generate leads and database referrals are integrated in the actual business process of the mortgage professionals using MortgageBOSS technology. Mortgage Alliance provides resources like a bank and delivers the necessary sales training, education and networking through Mac-U circa 2007. The company has never wavered in its belief that education empowers and enables mortgage professionals to create opportunities for their customers. The organization is the leader in social media and continues to assist our community in getting to the customer first.

•

Compliance

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Completely paperless online compliance process for agents and franchisees; with access to dedicated In-house Compliance Officers with licenses in BC, Alberta, Saskatchewan, Manitoba, Ontario and Quebec.

Payroll

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Integrated with the compliance systems with receipt of commission notices and direct deposit of commissions every business day. Brokers can view their deal status and paid or pending commissions in real-time using MortgageBOSS. Payroll services can be performed on the behalf of the franchise companies at their option.

TMG The Mortgage Group Since 1990, TMG has steadily grown its presence in the Canadian market with a culture of promoting professionalism in a family-oriented environment. The driving principle has always been and continues to be supporting brokers and the clients they serve. All of TMG’s programs, systems, training and technologies are tested against that principle: Does it support brokers in their business and does it assist the client? TMG has developed some of the best lender relationships in the industry, which stems from a corporate philosophy that lenders ought to be treated like customers.

Broker: Sheila Bianchi Time there: 2 years

National Brokerage: The Mortgage Group Broker for: 10 years

“The leadership and the family feel were the main reasons I chose to stay with the group.Everybody gives you the support you need to help you get your job done. When I need help, I can call any TMG broker across the country and it feels like they’re just sitting in the desk next to me. ”

“We are a special company,” says Mark Kerzner, President of TMG. “So much of our success is based on the relationships we have developed, and we continually look for new, innovative ways to enhance a broker’s value with the end consumer.”

mortgagebrokernews.ca | 41

Feature / Broker Networks As a full-service brokerage, TMG also encourages its brokers and agents to develop their business in a way that will help them grow. TMG attracts high-calibre professionals and offers strong, quality management in every region. “Our management teams are proactive industry advocates and thought leaders,” says Kerzner. Consequently, TMG has earned a reputation among lenders and industry partners as a company committed to exceptional customer service. In the wake of TMG’s impressive growth over the past

few years, the brokerage has been able to maintain and reinforce its corporate family culture. TMG is not a big, faceless company. In a year with much uncertainly in the market with respect to competition, lending guideline changes, and restricting products, TMG has strengthened its position as the go-to resource for industry participants, associations and the media. TMG’s ability to grow and thrive when faced with an industry in flux, is a testament to its strength, its value to brokers, its value to lenders and the consumers it serves.

TMG The Mortgage Group Compensation

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TMG’s philosophy is to develop partnerships that reward production; the more business, the larger share of revenue. Commission splits are determined by an established percentage of revenue generated on an annual basis. There are no franchise fees. TMG centrally manages the brand, monitors compliance issues and takes care of payroll.

Broker Model

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Since 1990, TMG The Mortgage Group has operated as a full-service, national brokerage company. Unlike franchise models where each individual franchise has to be licensed as a brokerage, the 700+ brokers, associates and agents in TMG’s network operate under provincial licenses across the country. This allows TMG to foster strong national relationships with regulators, mortgage associations as well as lenders, ensuring consistency across the country. For independent brokerage companies looking to expand while continuing to operate under their current brand, Powered by TMG The Mortgage Group™ provides the infrastructure to reduce operating costs, accelerate growth, and enjoy all the benefits of a full-service brokerage.

•

Ancillary Services

•

An industry leader in broker support and training, TMG TV offers leading-edge webinars and webcasts while BrokerNET provides brokers with a secure intranet with daily interest rates, industry news, marketing tools, resources and more. While DOC Central has regulatory compliance covered, TMG’s dedicated Deal Centre provides broker assistance with applications and exclusive promotions, and a Customer Relationship Management Program offers an easy way for brokers to manage client communications. TMG has also developed a variety of client solutions that generate additional revenue for brokers. From TMG Branded Mortgage products and insurance programs, to merchant cash advance programs and exclusive car purchase discounts, the company continually looks for new opportunities to provide value to its broker team.

Lead Generation

•

TMG is focused on delivering four fundamentals to its mortgage team: Leadership, Culture, Innovation and Support. As such, TMG provides direct access to experienced executive and regional management; an open, progressive, entrepreneurial environment; progressive, proprietary technological solutions; and extensive training, tools, and marketing systems to help brokers generate and cultivate leads.

Compliance & Payroll

•

TMG’s broker model simplifies compliance and payroll. The proprietary DOC Central system provides paperless document imaging. Regulatory compliance and privacy standards are met, policies and procedures are monitored, and all data is secured and held in a sophisticated internal and external back-up storage system. TMG’s automated accounting and payroll system is centrally managed by TMG employees, at no cost to brokers.

VERICO Recognizing the changing market, in 2012, VERICO Canada executed several strategies giving VERICO members the support to continually excel in their businesses. Most recently, VERICO signed an agreement with one of the country’s major alternative lenders, to make a new profit centre available to the network. VERICO brokers will now not only have the opportunity to offer clients registered and nonregistered GICs but also access to the most comprehensive training program, complete with tutorials, tools and resources to support all points of their expansion into this new and exciting product line. The result is a new cross-sell opportunity and profit centre that is the equal to any stand-alone Deposit Brokering business.

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Broker: Steve Rogerson Broker Network: Verico- Paragon Mortgage Group Time there: 7 years Broker for: 7 years “Verico is the super broker with the right reputation for our business. They have the respect of lenders and that’s very important to brokers. Verico provides us with the latest technology and great support to help us grow our business.”

At VERICO, we take pride in our expertise and ability to better serve clients. This expertise is refined and furthered with ongoing opportunity for education, discussion and sharing of best practices. This year, we saw the successful launch of a number of additions to VERICO Academy – the place for higher learning. We have tapped into the best resource in the industry – our own VERICO members – in “Hear from

Feature / Broker Networks automatic client touch points. VERICO is excited to further expand this program to help members stay top of mind with their clients and gain leads and referrals. With the integration of credit report providers and direct data import processes, Verico Dynamics is the premiere and industry-leading mortgage business management system that will help VERICO members outcompete the competition.

the Pros” and also formed an alliance with FocalPoint, the Brian Tracy Group, to provide the practical sales and business training that Brain Tracy is renowned for. To help our members take advantage of renewal opportunities and turn their computer into at 24/7 marketing machine, VERICO Canada also launched a corporate program within Verico Dynamics that facilitates

Verico Compensation

• • •

Commission splits - 100% commissions; 100% volume bonus; each licensee determines agents splits Volume bonus splits –100% commissions; 100% volume bonus; each licensee determines agents splits Proprietary loan products with trailer fees

Broker Model

• • •

VERICO conceptualized the Mortgage Broker Network model and continues to be the first and largest Mortgage Broker Network in Canada Stringent application process that ensures the calibre of our members reflect the high standard of VERICO’s reputation. Your Brand. Your Business. Your Way. VERICO supports members in all aspects of their business and fosters the entrepreneurial spirit.

Ancillary Services

• • • • • • • •

Exclusive Lender Relationships Private label mortgage product Deposit brokering profit centre opportunities Trailer Fees VERICO Insurance for mortgage life protection and critical illness In-house preferred suppliers Corporate leasing Wealth Management

Lead Generation

• • •

Corporate Referral Programs Generate leads through referral partners, which comprise of large national companies Verico Dynamics, a mortgage business management system with lead generation and management

Compliance

• •

Individual licensee audits his/ her own business’ transactions VERICO members operate their businesses using best practices and comply to regulations to the highest degree.

Payroll

• • •

Verico Dynamics Payroll system ADP payroll Lone Wolf

Dominion Lending Centres New launches over the past year a) Dominion Lending Centres unsecured Visa program (official launch at CAAMP Mortgage Forum; first program of its kind from a Canadian mortgage brokerage). b) Partnered nationally with Breakfast for Learning. In Canada, 31 per cent of elementary and 62 per cent of secondary students don’t eat breakfast daily, and almost 60 per cent of children and youth consume fewer than the daily recommended servings of fruits and vegetables. Last school year, the program funded 4,431 meal programs operating within more than 2,400 school/community sites, supporting more than 430,000 children and youth with over 67 million meals and snacks. c) Launched new fully customizable agent website templates including the following features: enhanced social media experience; live one-on-one chat integration; contemporary designs; enhanced navigation menu; and all templates are bilingual (as

Broker: Darick Battaglia Broker Network: Dominion Lending Centres Time there: 4 years “I was with a different Broker Network before Dominion Lending. Then one afternoon one of Dominion Lending’s VPs came into my office to explain what they were doing, and basically when he got to the point of the national marketing fund that they were collecting, I was hooked… It’s easier for me to open dialogue with new clients when I present them with a DLC card, or if they see my advertising with Dominion Lending.”

well as instant translation into more than 50 languages). d) Launched Plan B Mortgage Services (see ‘ancillary services’). e) Launched EnRICHed Academy (see ‘ancillary services’). f ) Launched the Learning Academy (see ‘ancillary services’). g) Ran Dominion Universities – one-day intensive networking and educational programs for agents and brokers – in eight major cities across Canada, attracting more than 1,300. Two amazing

mortgagebrokernews.ca | 43

Feature / Broker Networks speakers: Chris Johnstone, marketing expert, who has helped hundreds of mortgage professionals grow in their businesses using the Internet; and Joe Roberts, bestselling author, leading Canadian business coach and inspirational example of how to manage change. h) Introduced 2013 Dominion Lending Centres National Sales Conference destination: New Orleans (www.dominionlendingevents.ca).

i) Continued focus on lender efficiencies – something many other brokerages have not paid close attention to. By being efficient, we’re building lasting relationships within the industry. It’s our goal to remain ahead of the competition and it has worked for us. We’re often the first company to introduce a service and watch others try to catch up.

Dominion Lending Centres Compensation Broker Model Ancillary Services

•

All franchise owners receive a 95/5 split on all revenue. How they choose to pay their agents is completely up to their own business plans.

•

We are a 100% franchise model.

•

Unsecured Visa Program- We very recently announced the Dominion Lending Centres unsecured Visa program (official launch at CAAMP; the first program of its kind from a Canadian mortgage brokerage). Plan B Deal Desk- Our second newest ancillary offering, Plan B Mortgage Services, is currently being rolled out across the country and pays a minimum of 100bps to referring brokers on all deals. Plan B specializes in getting fast approvals on Alt-A, B and private deals and will even sell the fee for the broker. The referring broker just sends in the lead, our Plan B team takes care of the rest. Plan B was created to offer Dominion Lending Centres franchise owners and brokers exclusive access to expert Alt-A, B and private underwriters. Plan B includes a highly experienced sales team with access to exclusive lender terms from more than 200 institutional and private lenders across Canada. Referring brokers also receive a minimum of 100bps on any future deals that come from the referral source and all ‘A’ business that results from the client is sent back to them. Commercial Deal Desk- You submit only the basic client information – DLC Commercial will take care of the rest. The referring broker earns referral fees ranging from $1,000 to $100,000+. The client remains the referring agent’s client for life and is paid on all future Commercial business completed with this client or on any referrals that they generate. There are many lender advantages, including access to dozens of specialized commercial lenders, status level rates, status level commission and access to elite broker lists. Leasing Deal Desk- We are the only national brokerage that houses a full service leasing division in house (to repeat, this is NOT outsourced!). You earn an average of 300bps per leasing transaction by submitting basic client information – DLC Leasing will take care of the rest. Leasing can be highly effective to help you get Mortgage Financing for BFS clients that otherwise wouldn’t qualify and help you effectively double end the deal. Due to our large volume, we receive many lender advantages, including access to dozens of lenders, status level rates and the highest commission available. The client remains the referring agent’s client for life and all future leasing deals processed from this client will result in 300bps plus payouts. EnRICHed Academy- The first of its kind educational series designed to teach teens and young adults (13-23) everything they need to know about how to earn, save, invest, manage credit, be rock stars in their careers and build long-lasting wealth. Apart from being able to offer an amazing branded tool to their families and friends as well as a unique closing gift to their clients, DLC brokers and agents are able to become certified EnRICHed Academy presenters. Certification training programs are held in major cities, enabling any Dominion Lending Centres team member the opportunity to be learn how to present EnRICHed material in their local communities at schools and through other events such as client appreciation parties. Learning Academy- DLC recently launched our exclusive Learning Academy that specializes in providing hands-on classroom tutoring for people entering the mortgage industry. The Learning Academy features a post-licensing course that teaches agents literally everything they need to do from A-Z to succeed in the business and maps out all critical lead generating activities for them to perform during their first six months in the industry, ensuring the maximum chance of success. Dominion Mortgage- 85% of mortgage clients renew their Mortgage with the lender that brokers place them with. With the Dominion Mortgage suite of products, our brokers offer clients the best rates in the industry while receiving the top compensation in the industry. DLC Brokers are paid 110-120 bps in upfront compensation PLUS a renewal fee of 20bps and 15bps in trailer fees for every year after that. Mortgage Insurance- Our agents average $800 in additional compensation per mortgage on life and disability mortgage insurance. We are also proud to offer the most competitive products in the industry at some of the best rates for your clients.

•

Lead Generation

•

Due to our ongoing national advertising campaign featuring Don Cherry with over $14,000,000 invested into building the DLC brand since inception, we drive thousands of consumers to our corporate site – www.dominionlending.ca – every month. Apart from generating more than 200,000,000 viewer impressions annually, we receive an average of 70 leads per week at DLC head office, which are distributed throughout our network free of charge. On top of that, it is estimated that our free Autopilot Media client communication system generates a total of more than 2,000 leads a month to the individuals using it within our network.

Compliance

•

Our head office team takes compliance very seriously and has created literally hundreds of pages in compliance manuals and documents in order to act as resources for our Franchises and Agents. This constant focus on compliance ensures every mortgage professional in every region of the country has access to ongoing education and up-to-date compliance information from regulators and industry associations. We communicate this information via various means including network-wide or province-wide communications (depending on the issue), the DLC Intranet, DLC Weekly Bulletins and the monthly Dominion Opinion internal newsletter.

Payroll

•

We have a complete reporting system set up for franchise owners and offer very detailed compliance procedure training. All of this is, of course, overseen by head office. Typically within 48 hours of head office receiving payment from lenders, agents receive their commission. On top of that, DLC now offers full payroll processing for Brokers who don’t wish to process payroll from the franchise level.

44 | mortgagebrokernews.ca

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Business / marketing

Shock and AWE This next step in launching your own employee mortgage benefits program is dynamite, writes Doren Aldana Step 3 - Mail Your “Shock ‘n’ Awe” Intro Package In last issue’s article, I taught you how make outbound calls to identify the key decision-makers within your target companies and, ultimately, book a meeting to present your employee mortgage benefits program. Not only that, I gave you a proven script for overcoming the top three objections you’ll face when making these calls. Remember, once you’ve identified the decision-maker, your initial goal is to get their permission to mail them an intro package or, better yet, book a face-to-face meeting. In most cases, the prospect will either not be interested or will opt for you to send them an intro package. Rarely will they ever be so hot for what you’ve got that they invite you to meet with them right on the spot. Assuming that’s the case, here’s the next logical step in the process...

The “Shock ‘n’ Awe” Intro Package Your “shock ‘n’ awe” or “discovery” package, as the name denotes, is designed to inflict awe upon your prospect, or if nothing else, provide them with an overview on what your program is all about. Aside from your initial phone call, this is your only chance to make a great first impression. Fumble the ball here and scoring a touchdown becomes a lot harder. Your package can’t just be a bunch of Word documents printed out and stapled together. It can’t look hokey or willy-nilly. It’s got to look spectacular! In other words, it needs to position you as a true professional with an official, legitimate program. With that said, here’s what you should include in your intro package: 1. An Intro Letter. It should have a professionally designed header graphic at the top with your program logo and tagline. Most mortgage pros make the mistake of just including their mortgage company logo. The problem with that is it doesn’t make you look like you have a real benefits program. That’s why you need a suite of professionally designed marketing

46 | mortgagebrokernews.ca

materials that build your credibility. If you’re wondering how you’re going to get all of this done, you’ll be happy to know that my Done4U Employee Mortgage Benefits Program does all of this heavy lifting for you! That’s right, we literally do all of the design work for you -- so you can leverage a proven, plug ‘n’ play, turnkey system that is customized for your business. Try this: in the top right of the header, put a slogan such as “Saving Employees TIME | ENERGY | MONEY when buying, selling and refinancing.” This speaks to the benefits of your program. The intro letter itself should provide a compelling overview on your program, including benefit-laden copy explaining exactly how your program will help the employer and their employees. Remember, the decision-makers reading your introduction are very busy people so it’s important that you make it easy for them to skim and scan through the information quickly. You can accomplish this by using headlines, sub-headlines, bullet points, italics, bolding, etc. However, these formatting enhancements can easily backfire if you overdo it. So use discernment -- and a little intuition -- to walk that fine line. Really, people should be able to scan through your introduction and make up their minds right away if it’s something of interest. That’s how you want to format it. 2. Tri-Fold Brochure. You also want to include a full-colour, tri-fold brochure with a nice glossy finish. Remember, if it doesn’t look professionally designed, it sends a message that you don’t have a real program, thus, you can’t be trusted. This is not the place to cut corners and compromise quality. Their first impression needs to be “WOW!” That means you’re going to need a superstar designer and some compelling copywriting. Or if you prefer a shortcut, we can do it all for you! Regardless of who does it, your brochure should provide an overview of the program, how it works, the key benefits, an introduction of yourself and your company, the

Cover

Business / Marketing

The Year ahead

employers praising you for the job you’ve done within their company. If nothing else, be sure to include a “Testimonial Booklet” with as many client testimonials as you can muster up! So there you have it. I’ve just given you three reality out there instead include of trying 3. Testimonials. If possible, some of your best critical components to include in your “Shock ‘n’ to selltestimonials around it, then will client in thepeople intro package. This provides Awe” package. trust us.” proof that you’re the “real deal.” In next month’s article, I’ll teach you how to undeniable But any efforts the industry may Admittedly, not everyone who launches this kind of a follow up by phone after you mail out your intro undertake as a whole will have no program will have testimonials, but do it certainly makes packages, including what to say and how to say it. effect if individual brokers don’t Stay tuned… atheir BIG parts, difference if you do have them. which means giving You see, in marketing, proof matters. It’s one thing to toot your clients the best value-added service, improving effisay ciencies and funding own horn and your program is the best thing ratiossliced withbread. lenders, of course, since It’sand a whole other thing if people of homeowners say they placing clients with thetoright who don’t have anything gain lenders start singing your for their needs. are in a good position to praises because you’ve made such a meaningful Doren Aldana is considered by many to be Canada’s “Focus on the best interest of the difference in their lives. The latter is much more leading Mortgage Marketing Coach and recently won the client first and foremost,” said weather a potential downbelievable thanare the at former. That’s thewe power of “Best Industry Service Provider” award at the 2012 Therien. “We a crossroads: testimonials! Canadian Mortgage Awards. Since 2005, he has beenturn in the housing market either go back to being the person you Source: Mortgage Insights: go These to when the banks say no can as itbewas featured testimonials from past dedicated to helping mortgage professionals Highlights from CAAMP’s Fall 2011 attract more 25 years become truly employers trusted or HR clients or, ago, betteroryet, from other clients consumer with less effort, regardless of market conditions. and industry surveys advisers toIfour anda move up executives. youcustomer already have few companies For a free online workshop on “How to Launch Your Own (CAAMP/Martiz Research Canada) to the next level.” CMP onboard with your program, you could start to Employee Mortgage Benefits Program,” visit: www. integrate testimonials from other HR execs or Done4UMortgageBenefits.com mortgage products you offer and a Call to Action inviting the reader to contact you (by direct mail, phone or email) to take the next step in the process. Nothing too complicated, just simple and effective.

About the writer:

morTgagebrokernews.ca

71%

mortgagebrokernews.ca | 47

Feature / Syndicate mortgages

Brokers are increasingly the middlemen for clients looking to invest, writes Josh Will, but knowing all the options is key Within the Canadian real estate investment space, there is an array of great products that individual investors have the opportunity to invest in, aside from owning rental properties. What other options are out there for you to offer your clients? There are a number of choices your client has to consider when thinking about making a real estate investment. MICs, REITs and syndicate mortgages are all terms that are likely not foreign to anyone reading CMP. But do we truly understand the differences between each investment structure? Letâ&#x20AC;&#x2122;s look at the way each of these are structured to determine what the differences are between them, the merits and risks involved in each and ultimately which ones are better for your clients, because we all know that certain investments work for one client, but not for another.

48 | mortgagebrokernews.ca

Proud Sponsor of the Real Estate Investment Referrals Fortress Real Capital is an RSP-eligible syndicate mortgage product offered by Centro Mortgage Inc. that allows consumers to invest directly in the proven market of Canadian real estate by becoming a mortgage lender. Your principal amount is fully secured against the subject property (as a mortgage); therefore, investors enjoy steady interest on the principal and, where available, a deferred lender fee at the end of the term.

feature / Syndicate mortgages Mortgage Investment Corporation (MIC) While attempting a referral to a real estate investment, have you ever heard a client say “I already invest in real estate, I just purchased a MIC”? Did they directly invest in real estate? Or did they invest in more stocks? So how does a MIC work exactly? Does the client truly understand what is generating those returns? MICs have been around since 1973 when federal legislation was enacted to promote private financing and make it easier to invest in mortgages. A MIC is an investment company that is designed specifically for mortgage lending, primarily residential and commercial. This investment structure allows investors to pool their funds together in the MIC, which the managers of the MIC then loan the pooled funds out to people or companies that can’t access a traditional mortgage. The types of properties involved could include apartments, condo developments, malls and other commercial buildings. When the money is lent out to the borrower (i.e. the developer or property management company) the terms of the lending contract are highly

EARN

defined, much like all mortgage contracts. The interest payments that are made on that mortgage are then distributed to the investor and that’s how the cash flow or income from the MIC is generated. MICs are typically managed by the best-in-class asset managers available. When an investor makes an investment into a MIC, they are ultimately investing into the knowledge and expertise of the fund’s manager. The investor is banking on the manager to find quality properties and quality developers to invest in to generate a solid, consistent return for them. Still, there are some drawbacks that people could experience when investing in a MIC. What if the individual investor wants to participate only in certain properties? What if the client wants some decision-making ability in which properties they want to invest in. Unfortunately in this structure, the manager of the MIC selects the properties on their behalf, whereas in syndicate mortgages, investors have the ability to invest into a desired project. Also worth noting is that this type of investment is only available for accredited investors, thus

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Disclaimer: Fortress Real Capital is a product offered by Centro Mortgage Inc. (FSCO License 10102). Fortress Real Capital transactions are all closed by Centro Mortgage Inc. unless specifically noted otherwise. Ontario residents must speak with a licensed mortgage agent/broker for details. For residents outside Ontario, please consult our website http://www.fortressrealcapital.com for more information.

mortgagebrokernews.ca | 49

Feature / Syndicate mortgages Syndicate Mortgages

limiting the market that you can sell to.

Real Estate Investment Trusts (REITs) REITs are another form of real estate investing, or are they? Let’s take a closer look. As you may or may not know, REITs are companies that own and typically operate income-producing real estate properties, including commercial real estate, hotels, hospitals, apartment buildings, warehouses and shopping centres. REITs can either be private or public companies. Public REIT companies offer stock in their companies for sale to investors in the public market; i.e., the stock market. This means that the only way for your clients to purchase these types of investments is to purchase them through an investment adviser. As a mortgage agent you are not licensed to deal in securities. Thus, if your client wants to purchase this investment, he/she will have to go somewhere else. As most REITs are publically traded, this is often considered one of their positive attributes, the convenience factor. It gives the investor liquidity and the ability to ‘get out’ of the investment if they decided that they no longer wish to participate. Investing in a REIT is much like investing in the equity market, where you purchase shares in a company. However in this case the driver of returns is the leasing or sale of real estate assets held by the REIT. In the equity market, investors profit from increased corporate revenues, but both are still subject to the emotional market volatility. Finally the disclosure that is available for the clients is first rate. Since this is a publicly traded company there are obviously rules that the REIT must follow. So at the end of the day the client is able to see exactly how much money the REIT has made, lost, as well as all of the operating costs and fees associated with their investment. So if you have a client that says they are invested in real estate, make sure that they understand that in the above cases they are actually invested in companies that invest in real estate, they themselves are not directly invested into real estate.

In the equity market, investors profit from increased corporate revenues, but both are still subject to the emotional market volatility 50 | mortgagebrokernews.ca

STATS

-8.9% Fredericton, N.B. YOY sales (September) Source: CREA

In a syndicate mortgage, your clients can invest directly into real estate, and the only way for investors to access this type of investment is through you, the mortgage agent or broker. A syndicate mortgage investment structure is a rather simple one. Just like a traditional mortgage, where you put down a certain amount of collateral like 20 per cent and the bank lends you the remaining amount to acquire your home. Well a syndicate mortgage moves and acts very much the same way. In a syndicate mortgage, investors become the lender to a developer to build a project. It could be a highrise condo, low-rise single family development or a commercial complex. Still, there are a couple features unique to the syndicate mortgage process. First, a syndicate mortgage allows investors to select which projects they wish to invest in (one of the key differences between MICs and syndicate mortgages). If the investor feels more comfortable with commercial properties over residential properties then the client has the ability to select this. Another unique feature of syndicates is that they allow the individual investor additional security by having their name registered on title as a charge holder against the property. This feature gives the investor added security. Much like if you neglected to make a mortgage payment on your own home, the bank would likely call you to remind you that you owe them money, then if you missed another payment, the bank might send a letter. If you miss a third one, they may send a foreclosure notice. Syndicate mortgages allow for the same fall-back scenario if a lender neglects to service the debt. But there are a number of risks associated with syndicate mortgages, the first of which is common amongst other real estate investment types: liquidity. Since you are the lender in a mortgage, you have a contract between yourself and the borrower. Typically the borrower will agree to pay you a steady interest rate and repay the full amount of the loan borrowed on a specific date. There are other risks associated with these types of development investments. What if the project runs out of funds and cannot service the debt load? What if the project doesn’t get its required permits or zoning? What if the end result of the built project doesn’t meet expectations financially? This is where you can act on your legal right as a charge holder against the land. If the borrower doesn’t meet the terms agreed upon in the mortgage contract you can force them into foreclosure and sell the property to regain your capital.

Josh Will is a mortgage agent with Centro Mortgage Inc. and the senior VP of marketing and communications with Fortress Real Developments.

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Feature / Co-brokering fees

Whatâ&#x20AC;&#x2122;s my Mickey Baratz

52 | mortgagebrokernews.ca

FSC0 Lic.# M08000714

Phone: 416-483-8018 ext. 233 Cell: 416-986-3688 Email: mickey@vectormanagement.com

Feature / Co-brokering fees

It’s usually the first question from residential brokers looking to co-broker a commercial deal, writes, Steve Fabian. Well, here’s the answer

ast issue, I began a discussion on commercial mortgages with the idea of creating a commercial-specific designation. I want to thank you for the debate that has gone on since. As we continue the discussion on commercial mortgage brokering, I want to tackle a surprisingly ubiquitous question, regardless of the originating broker’s location, deal type or even experience level. That question, of course, is one of fees. To be correct the first question is typically “what’s the split” and then “what will the total fee be.” Without a doubt, we are all interested in making a living, as such, we need to understand our share of fees, commission, etc. The trouble is that far too often a deal lays dormant because someone is worried about fees and their split too early in the discussion. To best tackle this quandary, I think it is important to first understand what is “typical” in

terms of fees and what is a realistic split for the originating broker’s level of co-brokering. I also think it’s important to establish who exactly owns the client. To be clear, with a few exceptions such as First National, Home Trust and Equitable Trust, commercial lenders do not pay any sort of fee split or commission to brokers. None pay basis points for commercial transactions. Thus in order to make an income on a commercial transaction, the broker must charge a fee. Typically, fees can run anywhere from 0.5 per cent up to 2 per cent or even 3 per cent. This is generally driven by deal size and complexity. Naturally as commercial transactions are generally of a higher dollar amount, the potential fees generated can be quite high. Herein lies what I believe is the root of the problem: the potential for fees in the tens and even sometimes hundreds of thousands of dollars can

Mickey Baratz

FSC0 Lic.# M08000714

Commercial Mortgage Section Brought to to you by

Phone: 416-483-8018 ext. 233 Cell: 416-986-3688 mortgagebrokernews.ca | 53 Email: mickey@vectormanagement.com

Feature / Co-brokering fees

A lead that goes nowhere pays nothing; 20 per cent to 25 per cent of something is much better than 50 per cent of $0.00

cripple the originator with myopic short-term greed, rather than focusing on the deal and client.

The split So, what is a proper fee split for co-brokered a deal? Having discussed co-brokering with several industry veterans, many suggest that 25 per cent of the fee for a referral seems to be their standard. The split can be higher if the originating broker is more actively involved in the deal for a practical reason such as language or distance due to geography. It seems that too often the originating broker expects 50 per cent of the fee when most of the work will be done by the commercial specialist. It is best to get a deal done and earn 25 per cent of a fee than to get hung up on split or, worst yet, fumble the deal due to inexperience. The originating broker needs to recognize that a commercial transaction requires a great deal of time and, depending on deal type, some specialized skills in order to get it done. In fact, 25 per cent is fair in a majority of cases, a bit light when the originator is more heavily involved and in some cases 25 per cent is even too much. There is often a second part to this problem: fear of losing “client ownership.”

Who owns the client While it may seem counter-intuitive to many sales people, especially when the commercial deal presents a large number, the earlier a commercial specialist is engaged and the client handed off, the easier the deal will flow. Too often a clear picture of the deal and the borrower’s full information is muddied by the fear of

STATS

-10.8% Highland, N.S. YOY sales (September) Source: CREA

Mickey Baratz

54 | mortgagebrokernews.ca

FSC0 Lic.# M08000714

losing ownership of that client. If you are the residential agent who has a commercial lead and you have decided to co-broker, you should only do so with a broker and/or brokerage you trust. When cobrokering, my brokerage will sign an agreement with you, and, with professional integrity at the forefront, I can say with confidence that the client will always be yours. I urge students in the REMIC commercial brokering courses I teach to wrap their heads around this important aspect very early on and pass on the client. Of course they can and should gather some basic information upfront in order to begin the conversation with the client and the commercial broker, but the sooner the hand off, the better. I have unfortunately seen and been involved in deals where the originator insisted on being the middleperson, and without fail those deals were slow to move forward and then almost always died. Simply put, the information did not flow or was misinterpreted. Those that oppose or at least are reluctant to co-broker will often mistakenly take the position that they should insist on a minimum split to their favour, the thought process often being that they found the deal and lead generation is key. That might be true, but a lead that goes nowhere pays nothing; 20 per cent to 25 per cent of something is much better than 50 per cent of $0.00. Some might say this view is simplistic or self-serving, that couldn’t be more wrong. Just as I refer the residential deals that come our way because they require relationships with lenders, systems and volume levels to get the best deal, so is it true that commercial transaction require specialized systems and skills, lender relationships and most importantly

Phone: 416-483-8018 ext. 233 Cell: 416-986-3688 Email: mickey@vectormanagement.com

Commercial Real Estate Capital Professionals with a unique “One Stop” hybrid position as lender, syndicator, administrator, brokerage and investment managers. We will place, fund and bridge your debt or equity requirement. Commercial mortgages are based on investment grade analysis. Our view is holistic not simplistic. We don’t push paper, we pre-underwrite and package information into a salient “investment grade” discussion paper. Co-Brokering you can rely on. Our approach is analytical, utilizing the same tools and resources as the largest institutions, but with a common sense and feet on the ground approach, only our specialized ”boutique” firm can provide. We DON’T compete with you, we DO Partner with you, whereby you no longer turn away commercial business or worse spend your valuable time chasing a dead end deal. We DON’T have Filogix access; we DO have access to institutional and private real estate capital in all its forms and intricacies. We quickly flush out deals and gather the relevant facts, yet also employ the time and resources necessary to provide tailored, realistic and manageable solutions. At Downing Street we have expertise in all commercial assets classes: Land and Construction, Multi-Residential, Retail, Office, and Industrial.

Contact Steve Fabian, Vice President Mortgage Investments, Principal Broker. sfabian@downingstreet.com 416-248-6206 ext 260. Downing Street Financial Inc. Brokerage #10962 Administrator #11957. 56 Aberfoyle Cres. Suite 500. Toronto,Ont. M8X 2W4

Feature / Co-brokering fees

If the residential broker is uncomfortable with the answers they get, they should find another to co-broker with

originator to expect to be compensated for that. The commercial broker’s preparation of a proper submission requires time and paid resources such as use of databases and legal forms, which all incur expenses. It falls to the residential broker ask all these questions upfront and to understand the commercial specialist’s MO. That means asking about the skills and resources that specialist will utilize. If the residential broker is uncomfortable with the answers they get, they should find another to co-broker with. But, remember, the questions, themselves, should be driven by the desire to get the deal done, not get the greatest split. As is often said, you get what you pay for.

hard work and time. Please remember that the commercial transaction can often consume an abundance of time. This needs to be accounted for when discussing fee splits. One final question that is often asked is “What happens when an upfront deposit is taken on a deal and then a deal dies?” Depending on the amount, these are generally returned; in the odd circumstance 1 10/25/2012 10:24:17 for AM the where theyCMP areNov not,2012.eps it would not be typical

About the writer: Toronto-based Steve Fabian is principal broker and VP of mortgage investments for Downing Street Financial Inc. He is also one of the 2012 CMP Top 10 Commercial Brokers and holds faculty positions at both Seneca College and the Real Estate and Mortgage Institute of Canada (REMIC).

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Profile / provider

Gerald S

oloway

Home Trust’s new GIC Referral Program allows mortgage brokers to earn more fees

t’s no secret that Home Trust understands the power of lasting relationships. After all, It’s celebrating its 25th anniversary this year, and that success was built on the strength of their relationships with their broker partners. Home Trust is a leading alternative mortgage lender in Canada, and funds those mortgages with a wide range of Guaranteed Investment Certificates (GICs). Brokers reading between the lines of a recent article on MortgageBrokerNews.ca, know Home Trust recently launched its new Home Trust GIC Referral Program. Brokers who sign up for the program will have access to an expanded suite of Home Trust products to sell. But there’s more to it than that. “In these changing times, it’s so important for brokers to stay connected to their clients and do more than just sell them a mortgage,” says Gerald Soloway, CEO of Home Trust. “It’s about building those relationships over time and offering a wider range of products. “That’s an approach that we understand, and one that has worked very well for us.” Judging by the interest that Home Trust’s

58 | mortgagebrokernews.ca

Referral Program has already generated, it seems that others see the benefit in that strategy too.

Win with deeper relationships Soloway reinforces the idea: “This GIC Referral Program may not be for everyone. But it is wellsuited for brokers who are committed to growing their business by providing their clients with financial planning solutions for the future.”

Win with increased revenue With $900 billion in GICs invested annually in Canada, there’s opportunity for brokers to diversify their product offering and tap into an alternative revenue stream. With a well-structured program now in place, Home Trust is able to help brokers take advantage of this opportunity. Home estimates that a broker who sells two $50K GICs per week (based on a three-year term) could earn up to $30K in additional fees per year, without interfering with their core mortgage revenue.

profile / provider

There’s

•

opportunity for brokers to diversify

•

their product offering and Learn the ABCs of GICs If GICs fall outside your comfort zone, here are a few pointers to help get you more at ease: • GICs for individuals are often a desirable solution for retirement, an education fund, saving for a rainy day, or for someone who wants to diversify their portfolio. • GICs for corporations, non-profits, trusts or associations can be used to save for a major capital improvement or for the guaranteed portion of an investment portfolio. • GICs provide clients with the safety and security of a guaranteed return, a desirable

tap into an alternative revenue stream

•

choice in a volatile market. Canada Deposit Insurance Corporation (CDIC) insures eligible deposits at each CDIC member institution up to a maximum of $100,000 (principal and interest combined) per depositor. GICs are available as registered (RSP, RIF, TFSA) or non-registered, plus clients can choose a term ranging from 30 days up to five years. Interest can be paid monthly, quarterly, annually or compounded until maturity.

Home Trust’s GIC success factors While there’s no formal certification required to sell GICs, there are rules. And convincing a client to invest their money is usually a different conversation than selling them a mortgage. Home provides all brokers in the Referral Program with sales and technical training to help get them up and running quickly and effectively, plus ongoing support to help drive their success. Brokers who are interested in participating in the Home Trust GIC Referral Program are encouraged to contact their BDM or Ron Cuadra, VP National Sales at Home Trust.

achieve more with a CRU designation

A finance designation from REIC increases your visibility. The CRU designation (Certified Residential Underwriter) signifies you have added depth of knowledge, experience and a commitment to high business standards and ethics. Be the candidate employers and clients select and increase your career and earning potential. Visit www.reic.ca or call 1-800-542-7342 for more information.

learn more achieve more mortgagebrokernews.ca | 59

Profile / INSIGHT

Reverse

revenue

A growing number of brokers are promoting CHIP to an aging population

ith tighter mortgage guidelines, decreased compensation from lenders and the threat of a housing correction on the horizon, brokers are finding new ways to stand out from the competition and keep business walking through the door. With 1,000 Canadians turning 65 every day, and 77 per cent of seniors’ net worth locked up in their homes, that market is ripe with opportunity. CHIP Home Income Plan offers brokers a way to capitalize by turning home equity into cash that can contribute to their clients’ retirement strategy. It’s a unique solution that’s gaining popularity with brokers across Canada, and here’s why…

You can help senior homeowners and their financial planners maximize cashflow for the projected length of their retirement

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Easy Money At a time when many lenders are decreasing their compensation, CHIP is doing the opposite. Upon every successful funded deal, CHIP pays brokers 65 bps; a 30-per-cent increase over last year. “On a per-deal basis, reverse mortgages are one of the most lucrative products for brokers. The compensation is equivalent to selling a regular threeor four-year fixed mortgage, with a tiny fraction of the time commitment.” - Rob McLister, CanadianMortgageTrends.com For the broker, there is no application or underwriting paperwork and no document collection required. Brokers simply refer clients to their dedicated business development manager who takes care of all of the details from the initial client meeting through to funding.

Finding Common Ground with Financial Advisers Financial advisers are interested in investments, you deal with mortgages. Behold the dawn of a perfect partnership, if you know how to work it. You can help senior homeowners and their financial planners maximize cashflow for the projected length of their retirement. Clients can use all of their assets to fund retirement, and in the most tax-efficient manner.” - Jeff Spencer, vice president, HomEquity Bank.

News

Profile / INSIGHT

InternatIonaL

u.s. With CHIP, financial professionals can manage their clients’ assets longer. Brokers enhance U.S. housing market worse than thought relationships with professionals in their network The number of Americans who bought previously and receive a referral And clients peace of occupied homes rose infee. October. But thehave National mind that their financial future is secure. Everyone Association of Realtors says it overstated more than benefits. three million sales during and after the Great Recession, showing the housing market was weaker than previously thought. Working the Circle of Influence to Win The private with CFPs trade group says sales rose four per cent in October to a seasonally adjusted annual rate of A certified financial planner may believe their 4.42 million. That’s below the roughly six million homes high-net-worth clientssay willare never need awith reverse a year that economists consistent a healthy mortgage thanks to the sound financial advice housing market. But it’s ahead of 2008’s revised sales, they’ve given over years. now considered thethe worst in 13While years. this may be true, The tradecan group revisedbenefit its salesfrom fromunlocking 2007 to 2010 these clients certainly downhome 14 perequity cent, from more than 20.6and million to nearly their to diversify assets maximize 17.7 efficiency million. Among thefund reasons for the lower figures, tax as they retirement. the Realtors group says: changes in the way the Census “Financial professionals should know about all the Bureau collects data, population shifts and some sales options that they can offer to their clients, and being counted twice. certainly, CHIP is a viable one may not always The Realtors consulted withthat government and be readily considered.“ Gary Siegle, VP, Invis. private housing experts, including the Federal Reserve, theBy Department of Housing Urban Development, introducing financialand professionals to the Mortgage Bankers Association, National innovative and effective strategies,the they’ll trust you Association Hometheir Builders, mortgage giants Fannie to help themofbuild business. Mae and Freddie Mac and CoreLogic, a California-based data firm that first raised doubts about the annual numbers earlier this year. CoreLogic has estimated that the Realtors group overstated sales in 2010 by at least 15 per cent. The changing numbers could affect how economists view the trade group’s data. It could also affect companies that use the figures for hiring and expansion plans. Sales are measured when buyers close on homes. But many deals are collapsing before that point. One-third of Realtors said they had at least one contract scuttled in October, up from 18 per cent in September. Contracts are being cancelled for several reasons: Banks have declined mortgage applications; home

90.6% 52.1% Percentage of homeownership costs, including mortgage payments, utilities and property taxes that take up a typical household’s monthly pre-tax income in Vancouver and Toronto, respectively (RBC Economics Housing Trends and Affordability Report)

These clients can certainly benefit from unlocking their home equity to diversify assets

inspectors have found problems; appraisals showed aahome was worth less than the bid;with a Gaining Competitive Advantage buyer lost a job before the closing. Realtors More than two years after the recession With tighter lending guidelines making mortgages officially ended, many people can’t qualify for more difficult for somedown buyers to obtain or carry, loans or meet higher payment Realtors are feeling pinch. requirements. Eventhe those with excellent credit and stable jobs are offseniors becausestay they CHIP is known forholding helping infear the that home prices will it keep Sales are also homes they love – but canfalling. also help clients being hurt a decline inWith first-time buyers, whohelp right-size forby retirement. CHIP, you can are critical to reviving the housing market. senior homebuyers purchase their ideal home Sales have fallen in four of the five years without having to worry qualifying for since the housing boomabout went bust in 2006. financing or making payments. Declining prices and record-low mortgage rates “I recently CHIP helpsales. clients purchase a haven’t beenused enough toto boost At the samecondo time, home construction maintenance-free for their retirement.has They begun a gradual comeback the were elated and their Realtor and was should happy add that to I was economy’s in 2011work. for theSince first year able to make growth the purchase then,since the the Great Recession began in 2007. Last month, Realtor has sent me a handful of conventional builders broke ground on an annual rate of mortgages, and I just received a referral from 685,000 homes, the government said recently. another Realtor in his office.” Darnelda Siegers, That was a 9.3 per cent jump from October and Mortgage Alliance, S&R Mortgage Group the fastest pace since April 2010. MostPutting economists sayforward home prices will keep CHIP brings unique falling, value by at least fiverelationships. per cent, through to your And2012. that’s a Many forecasts foresee a rebound prices great don’t way to strengthen yourin business until at least 2013. network. The high rate of foreclosures has made If you haven’t already added CHIP resold homes cheaper than new ones. The to your toolbox, perhaps it’sper time. median price of a new home is roughly 30 For more information and tools cent above the price of one that’s been occupiedto before – twice the normal Investors are build yourmarkup. business, visit www. taking advantagechipadvisor.ca. of the discounts. The housing market is struggling even as the broader economy has improved in recent months. The economy grew at an annual pace of two per cent in the July-September quarter. Many economists expect slightly better growth in the October-December quarter. CMP

THE BEST APPRAISERS IN CANADA ARE CERTIFIED AND REGULATED BY

LOOK FOR THE PROFESSIONAL DESIGNATIONS

DAR & DAC

THE CANADIAN NATIONAL ASSOCIATION of REAL ESTATE APPRAISERS CALL 888-399-3366 or FIND AN APPRAISER at WWW.CNAREA.CA

mortgagebrokernews.ca

mortgagebrokernews.ca | 61

Profile / favourite things

Favourite things…

Afshin Nejaddehghan Broker, Mortgage Central Richmond Hill, Ont.

NEW Mortgage Product:

Home Trust’s Mortgage Bundle

Book: The Da Vinci Code by Dan Brown

Music: Jazz - Oscar Peterson

NEW Mortgage Term:

year fixed Vacation: The Bahamas (3 hours to Paradise)

62 | mortgagebrokernews.ca

Drink: Red Wine

guest / column

Do you want a

credit card with that?

A credit card branded with a broker network’s name? Bad idea, say some brokers, but not John Dearin. He and thousands of others welcome this latest development

I About the writer: John Dearin is an industry veteran and franchise owner of Dominion Lending Centres Mortgages and More. He is based in St. John’s, Nfld. and is a former auditor with Revenue Canada.

am lost as to how providing credit cards is contrary to the primary mandate of mortgage brokers, let alone how it could ever be called “unprofessional.” We, as brokers, provide mortgages, and we will continue to provide mortgages. Credit cards are just an extension of our services, just as some of us provide life insurance and mutual funds. Still, others have suggested (the offering) will make us no different from those “hawking credit cards at the mall.” Well, who is selling credit cards at the mall? I ask. EVERYONE. Just about every store now has credit cards, phone cards, gift cards. It is not the provider of credit cards that is the problem; it is the people who abuse them. Next we will have to give up providing gambling, alcohol sales, driver’s licences, etc., because there are those out there

who will abuse them. Two years ago I was approached at the Halifax airport by a person selling CIBC credit cards. Not professional, you say? I don’t agree. I took one. Here is the problem: my original $5,000 limit has increased to $35,000 in two years. I see no less professionalism in selling credit cards than in selling “B” money. There is a need; it will always be with us. Why should we leave it in the hands of bankers? The sooner we can compete with offerings to our clients that the banks can offer, the sooner we will be able to compete with the banks and increase our client base. I will sell, hawk, or push these credit cards on my clients as they need them to establish credit to even get a mortgage, BUT I will first look at their credit reports to see if they deserve one. If they don’t, they can go to the banks and get one.

mortgagebrokernews.ca | 63

service / directory Banks

Radius Financial www.radiusfinancial.ca Ph: 1 877 369 6398 Page IBC

Bridgewater Bank www.bridgewaterbank.ca Ph: 1 888 837 2326 Page 8 & 9

HomEquity Bank www.homequitybank.ca Ph: 1 866 522 2447 Page 5

Home Loans Canada www.hlcmortgages.com Ph: 1 866 452 1821 Page 3

RMAI Financial Group www.rmaifinancial.com Ph: 1 866 955 7624 Page 21

Tribecca Finance Corporation www.tribecca.ca Ph: 416 225 6900 Page 35 Commercial Lenders

Canadiana Financial Corp

INVIS Mortgage Intelligence www.invis.ca â&#x20AC;˘ Ph: 1 866 854 6847 Pages 38 & 39

Street Capital www.streetcapital.ca Ph: 877 416 7873 Page 7

National Bank www.nbc.ca Ph: 1 888 483 5628 Page 23 Non-Bank Lenders

Dominion Lending Centres www.DominionLending.ca Ph: 1 888 806 8080 Page 17

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Page 15

B2B Bank b2bbank.com/mortgages Ph: 1.800.263.8349 Inside Back Cover

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

Canadiana Financial Corp. www.canadianafinancial.com Ph: 1 877 672 7219 Page 36

VERICO www.verico.ca Ph: 1 866 983 7426 Page Outsert Technology & Software

D+H Limited Partnership www.dhltd.com Ph: 1 866 345 6449 Page 2

The Downing Street Group www.downingstreet.com Ph: 416 248 6206 ext 260 Page 53

Capital Direct www.capitaldirect.ca Ph: 780 868-0550 Page 26

Real Estate

Equitable Trust Company www.equitabletrust.com Ph: 1 866 407 0004 Page 5

Canadian National Association of Real Estate Appraisers www.cnarea.ca Ph: 1 888 399 3366 Page 61

Terra Firma www.tfcc.ca Ph: 416 866 3135 Page 56

Firm Capital www.FirmCapital.com Ph: 416 635 0221 Page 19

Vector Financial Services www.vectorfinancialservices.com Ph: 1 866 483 8018 Page 51,52,53

Fortress Real Calpital www.fortressrealcapital.com Ph: 905 787 9266 Page 47 & 49

Insurance

Canada Guaranty Mortgage Insurance Company www.canadaguaranty.ca Ph: 1 866 414 9109 Page 11

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Page Cover, 24 & 25

Real Estate Institute of Canada www.reic.ca Ph: 1 800 542 7342 Page 57 Services

ING Direct www.ingdirectbrokerteam.ca Ph: 1 800 574 5629 Page 33

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

Merix Financial www.merixfinancial.com Ph: 1 877 637 4911 Page 27

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Centum Financial Group Inc. www.centum.ca Ph: 1 604 257 3940 Page 13

Best Points Travel info@bestpointstravel.com Ph: 1 800 551 8786 Ph: 416 251 9944 Page 45

NEW NAME. SAME 100% BROKER FOCUS. [And 0% focus on competing for your business.]

A new mortgage lender is finally here. Well, we’re not really new, but our name is. You’ve worked with B2B Trust as the administrator of Laurentian Bank broker mortgages for over 10 years. Now we’re B2B Bank, offering our own suite of mortgage and credit products. One thing hasn’t changed though, and that’s our 100% focus on brokers. And, we still offer: • The same great rates, service, business development team, products and parent company (Laurentian Bank of Canada). • One-on-one service that helps you get your deals funded. • Adjudication decisions within 1 business day.

b2bbank.com/mortgages

1.800.263.8349

BANKING THAT WORKS LOANS

MORTGAGES

BANKING SERVICES

DEPOSITS

FOR BROKERS ™

INVESTMENT ACCOUNTS

Service to mortgage brokers in all provinces, except Quebec. Mortgage applications received by the B2B Bank Broker Mortgage Centre after July 7, 2012 will be funded by, and registered in the name of, B2B Bank. Mortgages and lines of credit are subject to credit approval by B2B Bank. Some conditions apply. B2B Bank is a wholly-owned subsidiary of Laurentian Bank of Canada. ®B2B BANK is a registered trademark of B2B Bank. ™BANKING THAT WORKS FOR BROKERS is a trademark of B2B Bank.

If only shopping for a first home was this easy… With a little help from Genworth Canada, shopping for a first home doesn’t have to be complicated. We understand the importance of owning a home and having the information your clients need to make smart homeownership choices. Our promise is to help them with homebuying basics such as understanding down payment options, maintaining good credit and staying on budget. Find us on Facebook! Visit Genworthsmartshopper.ca for tips and resources to help achieve homeownership dreams.