The BC Mortgage Broker Fall 2012 by NICHE MEDIA

FALL 2012

INSIDE: MBABC Practice Tip:

Avoid Late Penalties with FICOM Use an APR Calculator that Accurately Determines the Outstanding Principle Balance

MBABC Launches Members Only Webinar Series

PM #41297283

Karen Gibbard

VERICO Gibbard Group Financial Member since 2010

My reason

“I joined VERICO because I liked the business model; it’s simple, straight-forward, and just makes plain business sense. Like most entrepreneurs, I want to be in charge of MY business and how it runs on a daily basis. With VERICO, I have the ability to use their tools and strategic alliances when I need or want to. I have the freedom to focus on promoting MY brand. A simple way to sum up my reason for joining VERICO: It just makes plain business sense.”

Talk to us. You will be impressed.

VERICO remains Canada’s #1 Network for a reason. Talk to us and find out why. ®

1.866.983.7426 | info@verico.ca | www.verico.ca

Garth Ellis

VERICO Ellis Mortgages Canada Member since 2005

My reason

“The same reasons that compelled me to join VERICO 7 years ago are the same reasons that keep me with the VERICO network today: Association with the most respected mortgage professionals in Canada. My trust in VERICO’s management. Confidence that VERICO is dedicated to help me grow my business.”

Interest Rates Starting from an Incredible 5.75%

1st Mortgage Financing $1,000,000 - $15,000,000 High-End Single Family: • L/V: Up to 65% • Interest Rates: from 5.75% • Fees: from 1.5%

Income Producing Properties: • L/V: Up to 75% • Interest Rates: from 5.75% • Fees: from 1.0%

Condo Inventory: • • • •

L/V: Up to 65% Interest Rates: from 7.0% Fees: from 1.5% Flexible Partial Discharge Provisions

Toll free: 866-698-5388 Residential: Michael Gough: mgough@lanyardgroup.com Mike Saba: msaba@lanyardgroup.com FINANCIAL

CORPORA TION

Visit our website at: www.lanyardgroup.com

Commercial: Mike Saba: Brian Chelin:

msaba@lanyardgroup.com bchelin@lanyardgroup.com

c o n t e n t s F A LL

2 0 1 2

VOLUME 2 , NUMBER 7 EDITOR Jessica Facini jfacini@mbabc.ca 604.408.9989 MAGAZINE CHAIR Deb White deb.w@telus.net 250.545.2202 Publisher

Craig N. Brown

Art Director

Donna Szelest

Contributors

Deb White Samantha Gale Kevyn Oyenhart Lara Greenstein Paul Lewis Geoff Willis Donna Rachel Cindy Freiman Deanna Oenema

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

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

26 211-1433 St. Paul Street Kelowna, BC V1Y 2E4 P. 250.868.2229 F. 250.868.2278

www.nichemedia.ca

The bc mortgage broker is published in KELOWNA, BC by NICHE MEDIA. ©2012. All rights reserved. The views expressed in The bc mortgage broker are those of the respective contributors and not necessarily those of the publishEr or staff. PUBLICATIONS MAIL AGREEMENT NO. 41297283. RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: Suite 404, 999 Canada Place, Vancouver, BC V6C 3E2

PRINTED IN CANADA.

featurescolumns 16 The Trust Bank: What Deposits has Your Brand Made

22 Please Stand Clear of

VIEWPOINT from the CHAIR

20 CALENDAR OF EVENTS

ASK THE EXPERTS

26 in the community

articles 18 Use an APR Calculator Accurately

21 Letter to BcSC 32 Have Fun But

Remember You’re At Work

31 in the news

12 rePORT from executive

the Doors

officer

34 MEMBER PROFILE: broker

14 ethics report

36 thank you to our

30 communications report

advertisers

departments 9

2012 board of directors directory

38 member profile: LendEr 40 RECIPES 42 mbabc new members

10 rePORT from FICOM FALL 2012 | the bc mortgage broker

v i e w from

p o i n t the

magazine

Deb White, Magazine Chair

chair

What a fantastic time of year... Changes, they’re everywhere. It just seems that last week I was wearing flip-flops or sandals to work and now its boots or shoes. Should I ride my motorcycle to work or drive my car? Now I look outside and see the wonders of Mother Nature. The amazing leaves that were making the countryside look so green, are now brown and red, and gracing my yard and driveway. Every day we are faced with changes in our personal lives as well as our work lives, and how we deal with the differences is what identifies us. Do we embrace the changes and adjust accordingly or do we keep doing the same thing but expect different results? Over the next year, I believe our industry will see many changes - from changes from insurers to the rise and fall of home prices and interest rates. What will you do to adjust? Here at MBABC we, too, have undergone many changes. We said goodbye to our long-term executive officer Tamera Olsen and welcomed Samantha Gale to the role. In November MBABC be hosting a Grey Cup party during the CAAMP Mortgage Forum – Sunday November 25th. Look for full details on our website and please join us. Also, in the beginning of 2013 many of us on your board of directors will be up for re-election. I wonder what changes this will bring? I think we are in for some exciting times! Personally, I am very excited that the CAAMP Mortgage Forum is being held in Vancouver this year. Our amazing province has so many things to offer and it is so nice to welcome our colleagues from all across Canada. This year CAAMP is inducting three members into our Hall of Fame. One of these members is from right here in British Columbia! Do you know who it is? I hope to see many of you there! Embrace the changes that challenge you! When you change the way you look at things, the things you look at change. Deb White

“Embrace the changes that challenge you! When you change the way you look at things, the things you look at change.” Deb White’s contact information:

M B A B C

M I SS I O N

S T A T E M E N T

The Mortgage Brokers Association of British Columbia’s mission is to provide its members with the best educational opportunities, ethical guidance and professional representation, while increasing consumer awaremess by advocating mortgage brokers as the number one choice for mortgate financing. 6

the bc mortgage broker | FALL 2012

1 – 3009 43rd Ave Vernon, BC V1T 3L4 250.545.2202, 250.549.7283 fax dwhite@mbabc.ca

MBABC Launches MEMBERS ONLY Webinar Series as additional Member Benefits

MBABCâ&#x20AC;&#x2122;s expert brokers & educators are providing applied business knowledge, tips & advice for our members FREE as a member benefit.

Our first webinar : Lender Underwriting Trends â&#x20AC;&#x201C; Keep Curent!!! Discussed strategies in: - - - - -

Dealing with various lenders Which lenders currently have money to lend How is B20 impacting bank and credit union approvals Different income treatments (ie:rentals) Tips for getting deals approved & strategies for getting the best deal for your client

Over 90 members participated - Keep posted for the 2nd Webinar slated for December 4, 2012 For any webinar requests please contact: communications@mbabc.ca

FALL 2012 | the bc mortgage broker

ask the experts from

the

m b a b c

Q I live in Northern BC and currently am not a member of MBABC. I am considering joining, but would like to know what MBABC offers A If you live in a remote location, membership in MBABC is a vital connection between you and your industry. As an association we offer access to the following benefits wherein any member can take advantage – regardless of location: - Highly competitive E & O insurance - Medical and Dental insurance - Cost of Credit Calculators - Industry News & Important Alerts - Regulatory Practice Support *call the Executor Officer and staff if you need assistance - Professional Development Programs & Webinars The MBABC also provides advocacy on behalf of all of its members, including ones in remote areas. Also - The MBABC and MBIBC will be hosting a town hall meeting for its members, other industry members and stakeholders throughout the province. We will be discussing the role of the MBABC’s new Executive Officer, Samantha Gale and sharing with you some programs and benefits available to MBABC members. And most importantly, we want to hear from you about ways in which the MBABC can better support your business.

Q I get confused by the form 10 and form 11. Do I need both forms for every file? A Form 10 is the Conflict of Interest Disclosure form for borrowers. Every borrower must sign a Form 10. This allows the broker to disclose whether he or she represents the borrower or other parties to the transaction and any actual or potential conflicts. The Form 10 itemizes most of the common conflicts for the broker to “fill in” or “tick”, but also leaves room for the broker to disclose other conflicts which are not itemized. The Form 11 is the Conflict of Interest Disclosure form for lenders. Brokers should only provide a Form 11 to lenders if there is a conflict with the lender. Two common conflicts are 1) if the broker or a related party to the broker is the borrower or 2) if the broker receives a fee from the borrower. However, there might be other more complex conflicts which require disclosure to the lender. For example a broker should disclose on a Form 11 if he or she negotiates the sale of a lender’s interest in a mortgage to a party who is related to the broker, such as the broker’s spouse.

Q Can you please explain the difference between MBABC and MBIBC and what their respective roles are? A The Mortgage Brokers Association of BC is a non-profit association representing all members in the province of British Columbia. The MBABC is accountable to its membership, and provides education, advocacy, social networking events, insurance programs and tools which directly benefit and support the membership. The cost to members of providing education programs, seminars and networking events are often reduced by the sponsorship of mortgage lenders, mortgage brokerage companies and other business organizations. The Mortgage Brokers Institute of BC is also a non-profit association that provides relicensing education to all registered mortgage brokers and sub mortgage brokers in the province of BC, regardless of whether they are members of MBABC. The MBIBC provides strictly non-partisan education, which has been approved for delivery to registrants by FICOM. 8

the bc mortgage broker | FALL 2012

The MBABC wants to hear from you! Send us your questions and have them answered in the next issue. Contact:

jfacini@mbabc.ca

2012 directory b oard Jared Dreyer, President

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

Roger Levesque, Vice President Education Co-Chair

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

Susan Shannon, Secretary

102 – 1497 Admirals Rd Victoria, BC V9A 2P8 250.483.1375, 250.217.8777 cell 250.483.1377 fax, susan.shannon@vericoselect.com

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

Geoff Parkin, Past President

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

Bruce Kahkesh, Directory Committee

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

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

Karl Madsen, Government Relations Chair

Kevyn Oyhenart, Ethics Chair

Troy Resvick, Media Chair

Executive Officer, MBABC & MBIBC

samanthagale@mbabc.ca

Debra Hiller

Accounting / Member Services

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

Deb White, Magazine Chair.

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

Geoff Willis, Communications Chair

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

Megan McDonald, Membership Chair, MCAP

Daryl Harris, Director At Large

director s S T A F F Samantha Gale

6431 Dakota Drive, Richmond, BC V7C 4X5 604.272.1784, 604.341.5798 cell 250.549.7283 fax koyhenart@shaw.ca

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

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

accounting@mbabc.ca

Catherine Barry

Education Coordinator

cbarry@mbabc.ca

Jessica Facini

Marketing & Communications

jfacini@mbabc.ca

MORTGAGE BROKERS ASSOCIATION OF BRITISH COLUMBIA

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

204.928.7707, 204.292.4817 cell 866.954.7620 x 202 darylh@onelinkmortgage.com

FALL 2012 | the bc mortgage broker

o M B A B C

r P R A C T I C E

t T I P Sub-Broker Example:

Avoid Late Penalties with FICOM

e know that for our MBABC mortgage broker members, every dollar counts, and they need to keep more dollars in their pockets and fork over fewer penalties to FICOM. Yet there are still a significant number of brokers who continue to be subject to late renewal penalties and late financial filing penalties. Every two years from the date of the registration issue, mortgage brokers and sub-mortgage brokers must renew their registration if they desire to continue brokering. Technically under section 3 of the Regulations to the Mortgage Brokers Act “An application for renewal of registration must be submitted to the Registrar at least 30 days in advance of the last day of the current registration.” The penalty for the late filing of a renewal was introduced in 2004 as a way of FICOM dealing with a significant problem with tardy renewals, which resulted in unregistered brokers potentially engaging in mortgage 10

the bc mortgage broker | FALL 2012

brokering activity during gaps in registration. Despite section 3 of the Regulations, the practice of the Mortgage Brokers Department has always been to assess the penalty from the last date of registration, and not from the date 30 day prior to registration expiry. The penalty is $50 per day to a maximum of $500, and may therefore double the cost of renewal if a broker is 10 days or more late in submitting his or her application to FICOM. The registration expiry date of every mortgage broker and submortgage broker is now public information and can be viewed on the FICOM website at http:// www.fic.gov.bc.ca/web_listings/mbsblisting.aspx Search for a broker and then click “view certificate” to see the broker’s public registration information The Registration Expiry Date is listed at the bottom of the page. Brokers should check their expiry date from time to time to ensure that they renew their registration on time and avoid costly penalties.

Mr. Jared Colin Derrick Dreyer Sub-Broker Registration Information Mortgage Broker Name:

Dreyer Group Mortgages Inc. dba:VERICO Dreyer Group Mortgages

Restrictions: Registration Issued Date:

January 01, 2011

Registration Expiry Date:

December 31, 2012

Mortgage Broker Example:

Mortgage Broker Registration Information Legal Name:

Dreyer Group Mortgages Inc.

Business Name:

VERICO Dreyer Group Mortgages

Business Address:

308-15252 32nd Ave. South Surrey, BC V3S 0R7, CA

Telephone #:

(604) 649-5991 Ext:

Email Address:

jared@dreyergroup.ca

Designated Individual:

Mr. Jared Colin Derrick Dreyer

Restrictions:

Not authorized to handle trust funds

Registration Issued Date:

Mar 06, 2012

Registration Expiry Date:

Mar 05, 2014

By Samantha Gale Executive Officer, MBABC & MBIBC

MBABC & Samantha Gale:

Fresh Direction & Focused Mandate

must admit to having reservations when being approached by the MBABC to leave my regulatory position with the Mortgage Brokers Department at FICOM and come on board – working with the MBABC, as the new Executive Officer. You see I have always loved my regulatory work. I started my career as a lawyer in Vancouver, before moving to FICOM in 1998. I instantly found the work at FICOM to be truly fascinating – never a dull moment, unlike the repetitive and often tedious nature of the legal work I used to do. There was the constant supply of enquiries from both the public and industry with interesting fact patterns and legal twists. I had an opportunity to delve into some new and modern legislation on the real estate side (the Strata Property Act and the Real Estate Development Marketing Act) and to stretch my creative thinking with some innovative solutions when working with the ancient and outdated Mortgage Brokers Act. And of course, the interaction with the 12

the bc mortgage broker | FALL 2012

mortgage brokering industry provided me with a whole new window into an exciting, dynamic, and sometimes challenging, business sector. However, I should have known that the MBABC Executive would have easily persuaded me to make the move. They wanted the MBABC to have more balance. The association already has the benefit of being directed by some of the most successful mortgage industry representatives, who sit as board members. The Executive’s vision was to offset that perspective with an Executive Officer who was well versed in the legal and regulatory environment in British Columbia. The feedback from the members was clear – they wanted their association to be involved in more substantive government relations work, to raise the professional standards of industry, assist with removing unnecessary red tape and facilitate the success of their business. The new goal is for the MBABC to really focus on providing advocacy for its members with their provincial regulator and government. I am excited and

“The new goal is for the MBABC to really focus on providing advocacy for its members with their provincial regulator and government.” Samantha Gale’s contact information: samanthagale@mbabc.ca 604.408.9989 #404-999 Canada Place Vancouver, BC V6C 3E2

Achieve YOUR TRUe

BUYiNG

POWeR ThROUGh cONSOLiDATiON

feel very grateful to be a part of the MBABCâ&#x20AC;&#x2122;s new vision. For me this represents a new opportunity and challenge. While I truly believe that what is best for the public is also best for the industry â&#x20AC;&#x201C; my new role requires that I no longer take a neutral position on issues and that I leverage my knowledge and experience for the benefit of the industry and in particular, our membership. The Ministry of Finance has not yet released its anticipated White Paper on the review of the Mortgage Brokers Act. However, we expect the White Paper to be released in the near future. We welcome an opportunity to speak to the Ministry on your behalf in addressing a myriad of issues regarding the Act, from confusing fee restrictions, the need for personal mortgage bro-

ker corporations, bank brokers and a whole host of other issues. Please let us know which issues are of concern to you and your thoughts on potential solutions. In this regard, we will be touring the province with Town Hall meetings, so we can talk to you about our current mandate for the MBABC, the MBIBC and to hear your concerns, views and expectations from the MBABC. I look forward to getting to know our current members and perhaps convincing some nonmembers to come on board. Samantha Gale P.S. I wish to personally thank Grant and Debbie Thomas of TMG for their generous support of MBABC.TV, and in particular, providing production facilities, time and their thoughtful insight.

ONE STOP, ONE SOURCE

STOP, ONE SOURCE

A DiviSiON OF

PRiNT . LABeLS . FORMS

1.800.661. 9952 centralforms.com

FALL 2012 | the bc mortgage broker

from

the

r ethic s

By Kevyn Oyhenart, MBABC Ethics Chair

C H A I R

Conducting Business on the Internet

Ethics and Courtesy

or many, the internet has opened up an almost unlimited business and networking environment. However, the internet itself is not policed and it is up to us as users and as professionals to ensure that our ethical behavior, decorum and courtesy are at the forefront of our decision making. If we do not take this approach, not only will we tarnish our own image, but we could be starting down a path we may regret; a path where barriers may prevent our growth as an industry in the online world. There are professionals of all sorts in all industries that abuse and misuse. There is what we call “Spammers” who bombard clients with mostly unwelcome advertising. Spam is sent so often each day that for most it is just ignored. We should not allow this to hinder us from sharing relevant and informational communications via cyberspace. Here are a few simple guidelines to use when conducting business or networking on the Internet: 14

the bc mortgage broker | FALL 2012

Respect everyone’s email address Treat this like you would a close friends phone number. You wouldn’t just give it out without asking permission first. This would cause a breach of trust and can easily be avoided. Some people, including myself, have had the same email address for most of our internet lives. It is a part of who we are and how we are identified nowadays. So respect it like you would your own.

Properly identify yourself and your business This should go without saying. Make sure you identify yourself, company and give your full name and occupation. It would be poor practice to cloak yourself in a “yahoo” or a “Hotmail” address unless you can explain your reasoning.

Addressing of others When you send an email to a client or prospect for the first time, just like writing a formal letter, you should address that person as such. Write their full

“... it is up to us as users and as professionals to ensure that our ethical behavior, decorum and courtesy are at the forefront of our decision making.” Kevyn Oyhenart’s contact information: 115-15155 62A Avenue, Surrey, BC V3S 8A6 250.549.7283 fax 604.341.5798 604.341.5798 cell koyhenart@mbabc.ca

name out, title and position and follow that up with a “Dear Sir/ Madam….Dear Mr. or Mrs.” For example.

Thanking people for answering you A simple thank you goes a long way in this world but it is easily one of the things we quickly forget. An even better way would be to send a hand-written thank you card. That in itself is a fantastic way to be remembered in the future.

If you want something Offer something of value in return. If you are asking others for something you should be prepared to give something as well. It can be as simple as a link to your website which should offer value and benefit.

Anonymous postings

Truth

Some users list themselves as anonymous on some of the forums. If you want to be seen as a true expert, you should be signed up and contribute regularly. The incognito posters have their reasons for doing so, most of which are born of cynicism and disrespect.

Be truthful. If you are new and don’t know the answer, don’t pretend to. Acknowledge this to your potential client but reinforce the fact that you have an excellent mentor that is helping to guide you along. Even though the internet has created the ability to hide behind a bold front of your choice, people can and still use their gut feelings to make decisions. They still sense your values and motivations. In truth the internet has created opportunity, but with that comes an enormous responsibility to maintain integrity. Treat your clients the same way on the internet as you would if they were seated across the table from you. The internet is an accessible support tool that can and will enhance your business profile online if used properly.

Professional attitude If you are in contact with clients and cannot service them yourself, refer them on to someone who can. This is a great way to establish trust and future dealing when you may be able to help them out. Behave with integrity at all times and make sure what you offer is in the best interest of your clients. Speak well of your peers and other professionals – this will pay itself forward tenfold.

With more than $10 billion in assets under management and 10 CMP medals under our belt, MERIX Financial continues to provide originators with the tools they need to succeed.

Find out how rewarding partnering with MERIX is. Call 1-877-637-4911, email info@merixfinancial.com or

Can you spot the MERIX originator?

FALL 2012 | the bc mortgage broker

T h e Tr u s t B a n k WHAT DEPOSITs

HAS YOUR BRAND MADE

n my 20 years in marketing I’ve noticed an interesting phenomenon, which occurs each time the world makes a forward shift. The faster technology moves, you can bet on an equal reaction from the consumer to seek out the security of good relationships as well as the stability of products, brands and services they can trust. Everyone loves the thrill of being on a rollercoaster - but we all want that safety rail. The thing is, trust is a commodity that doesn’t come easy, particularly in the world of real estate. This is why building a brand that is authentic to you or your company, and remaining true to it, is so vital. In today’s marketing environment, the average Canadian gets bombarded with an estimated 3,000 marketing messages per day. From social media, to digital signage, to emails and traditional print, radio and TV, the noise can get deafening. Worse still, technology makes it easy and relatively inexpensive for advertisers to be tempted into adopting the ‘’latest’’ marketing templates and tools. But without having first established a strategic direction or an identifiable brand ‘handwriting’, the result is often a discordant noise with an absence of 16

the bc mortgage broker | FALL 2012

a strong, clear and consistent voice. Invariably this approach creates brand fragmentation - a recipe for consumer distrust and disconnect. Whether you’re a one-person business, a medium-size mortgage company or a large corporation, building a consistent brand is the most important first step to creating trust. When you have a professional looking website, why cheapen your image by delivering feature sheets in an MS word template? When your ad is created by a publication with no insights into your brand, or when a company you have never met runs your Facebook page, you are risking not just your reputation and possible brand equity – but the trust of your consumer. However, if all your touch points speak the same language, from your company name on the door, to how the customer is treated when they walk in, to the ‘tweets’ they get, you will be the rare voice in the crowd that is genuine.

How to make your brand trustworthy in a world of instant information? When competition is fierce, brands can forget the truth. But if you step back and focus on brand authenticity, you will make big deposits in your Trust Bank, which will pay off for you in the form

of customer loyalty. Nothing pays like the truth. Particularly when the consumer is going to find it somewhere online anyway! 1. Be authentic When creating your brand messaging, align perception with reality. Be authentic about who you are and all you have to offer. You wouldn’t want to be misled by someone, so don’t risk it with consumers. Tell it like it really is. 2. Use your consumer as your ambassador Ask for testimonials for your website and encourage your clients to post their experiences online in places like ‘’Yelp’’ or Yahoo message boards. People are more likely to trust your brand if other people have had positive experiences. Remember, the happier your client’s experience, the more likely they will fly the flag for you with others. 3. Keep it relevant Make sure everything you do follows the brand strategy. So after getting to know you, when your consumer remembers feeling good about your product or service, it won’t be because you ran a random viral video or a Facebook promotion. Rather it will be because they had a positive, consistent, personal, and authentic experience with your brand, from start to finish. Something you did mattered to them. As a result, you became relevant.

The thing is, trust is a commodity that doesn’t come easy, particularly in the world of real estate. This is why building a brand that is authentic to you or your company, and remaining true to it, is so vital. cial impact of it. When there is real meaning behind what you do, you will experience the full power of authenticity. Lara Greenstein is the co-owner of Juice Group. An independent, integrated advertising agency based in Vancouver, BC. Local and international clients include Jenny Craig, Nestle, brand author Martin Lindstrom, Boys’co and Semperviva Yoga Studios.

4. Under-promise. Over-deliver In a world of me-too’s, with so much competition for the same client, with every attempt to beat out the opposition with promises that can never hope to be fulfilled, it is that company service or brand that can under-promise yet over-deliver that will win the race. Never set expectations you have no chance to deliver. 5. Be transparent Reveal legal obligations – don’t hide them, don’t overcomplicate them; treat them as you would treat all the positive things you have to say. 6. Be truthful If there are risks the consumer is taking, or there is something they should know about and even avoid, tell them! Reveal the dangerous side of the mortgage industry in a simple and uncomplicated way – even show visuals about it. Your consumer will thank you! 7. Support your community in a meaningful way Being in the mortgage industry means being involved in communities. Think about how you can authentically support your community with something you believe in - not just for the commerFALL 2012 | the bc mortgage broker

artic l e

U S E

A N

A P R

C A L C U L AT O R a c c ura t e l y determine the outstanding principle balance

have discovered that some mortgage brokers are math geniuses who love to tackle complex math formulas and finance-related equations. However, the vast majority of brokers want to find ways to easily and accurately compute calculations. When the new Cost of Credit Disclosure Requirements came into force in British Columbia in July of 2006 under the Business Practices and Consumer Protection Act, and the Disclosure of the Cost of Consumer Credit Regulation, brokers were tasked with understanding how to calculate the “annual percentage rate” (the “APR”) for the purposes of providing cost of credit disclosure to residential borrowers. The legislation requires brokers to calculate the APR using a simplified formula, which is: APR = (100 x C) where C is the cost of credit, T is the term (T x P) and P is the average outstanding principal over the term

Section 6 of the Regulations requires that P, which is the average outstanding principal over the term of the mortgage, be determined by applying each installment payment firstly to accrued interest costs, secondly to any outstanding non-interest finance costs and thirdly against the outstanding principal. Pursuant to section 6, if, for example, a borrower incurs $2,500 of non-interest finance charges on a $250,000 mortgage loan, and only pays $2,000 per month, the balance of outstanding principal after each payment would be as follows.

Interest Paid

Non Interest Finance Charges

Principal Balance of Principal Paid Outstanding

$700

$1,300

$250,000

$700

$1,200

$100

$249,900

the bc mortgage broker | FALL 2012

The method of calculating P value is therefore complicated. Some APR calculators or spreadsheets gross up the principal by adding the noninterest finance charges to the principal and then determining the average outstanding balance after the application of the instalment payment. This calculation method does not accord with the Regulations. Other APR calculators simply do not take non-interest finance charges into account.

The MBABC Edition of Mortgage Mentor Through the MBABC, mortgage brokers can access a special MBABC edition of the cost of credit program, “Mortgage Mentor”, which calculates the APR in accordance with the requirements of section 6. Brokers who sign up now can obtain a one-year subscription which will be extended until January 2014. The program has built accurate compliance reminders right at each data entry field. A fairly new feature is the ability to Save and Recall client information. This is especially helpful if the client changes: loan amount, rate, term, or even payment frequency and you need to quickly produce a new Cost of Credit Disclosure. With the simple re-entry of the file number, click Restore, and change the one item, will instantly create a new APR form for you. Mortgage Mentor has added several enhancements, which include: ü the ability to handle $0.00 payment for specialized ‘private’ deals ü the ability to disclose on mortgages where the rate changes over the course of the loan ü form text that automatically changes to suit special circumstances such as Cash Back ü the speed of processing split credit disclosures by only entering three to four new pieces of information ü a universal Cost of Credit Form that satisfies both Fixed Credit and Open Credit requirements continued on page 20

Work with a lender who can bend. At Antrim, being flexible allows us to create the custom mortgage solutions your clients require. We provide a broad range of residential 1st and 2nd mortgages tailored to the needs of your self-employed, stated income, and low beacon clients. Furthermore, a common sense lending approach allows us to approve and fund deals fast. Our friendly and knowledgeable underwriters look forward to helping you.

Call us today

604.530.2301

November 16, 2012

Town Hall

e v ent s

................................. Nanaimo (round 2)

December 4, 2012

Free Webinar Series on Lending Underwriting Trends Part II

February 5, 2013

February 2013

Town Hall.................................................. Vancouver

May 2013

January 22, 2013

April 2013

Town Hall..................................................... Langley

Free Webinar Series Return to PST Seminar

Applied Information Course

Designated Individual Course

*Check www.mbabc.ca under events for full details

USE AN APR CALCULATOR

mbabc

continued

EDITION Amounts to be deducted from the loan proceeds Default Insurance Lender Fees (see comment) Lender Bonus (see comment) Broker Fees (see comment) Appraisal / Economic Rent / Inspection costs Appraisal Report freely available for borrower use Survey Cost if Certificate required by the lender Survey Certificate freely available for borrower use

An initial Disclosure Statement must be given to a borrower two days prior to the borrower incurring an obligation under a credit agreement unless the two day period is waived by the borrower in accordance with Section 15 of the regulation.

Title Insurance if required by the lender Title Insurance pays out to Borrower Legal fees payable to Lender’s solictor Legal fees payable to Borrower’s solicitor Mortgages to be paid out Loans or Credit Accounts to be paid out Current Mortgage Arrears to be deducted Outstanding City Taxes to be deducted Value of Credit Union Shares Other Other

the bc mortgage broker | FALL 2012

If the lender allows the borrower to CHOOSE their own lawyer/notary, then tenter the actual amount of “reasonable, estimated” cost (if property purcahse is involved, include property purcahse and registration fees).

ü the elimination of database cleaning tasks by automatically deleting disclosure data once the mortgage has funded. ü A unique, same-format APR Addendum that allows you to include additional information that comes along with: Inter-Alia, Guarantor, and multiple applicant files. Contact Samantha at the MBABC office at samanthagale@mbabc.ca for further information about the MBABC Edition of Mortgage Mentor and the other special features

BC Instrument 32-517 Exemption from Dealer Registration Requirement for Trades in Securities of Mortgage Investment Entities

artic l e

Letter to BcSC

r e g a r d i n g

MICs and SYNDICATORS Mortgage Investment Entities: Request for Extension of BC Instrument 32-517 I write in reference to BCI 32-517, and the expiration date of the British Columbia Security Commission’s order set out in that Instrument, which is currently December 31, 2012. We understand that the purpose of BCI 32-517 is to provide an opportunity to study the impact of the potential requirements of National Instrument 31-103 on mortgage investment corporations and mortgage syndicators (collectively the “mortgage investment entities”) prior to implementing NI 31-103. While there are no available statistics on the size of the mortgage investment entities, reliable sources have conservatively estimated the annual capital held by the mortgage investment entities in British Columbia to be 5 billion dollars, with those entities ranging in size from small (under 10 million), medium (averaging 30 million and up) and large (over 100 million). It is clear that mortgage investment entities are growing in number in B.C. as borrowers look to alternative mortgage lending sources when bank mortgage approvals are increasingly a challenge to obtain. Mortgage investment entities are therefore more than an important sector in the British Columbia economy - they play a vital role in the province’s economic recovery and are a necessary lifeline for many mortgage consumers. As everyone is certain to agree, industry regulation is necessary to ensure that the public is protected from harm, but regulation should also whenever possible be reasonable and measured so that industries are not crushed by the weight of regulation. The removal of prospectus and registration exemptions by NI 31-103 will most likely require all mortgage investment entities to obtain registration in one or more registration categories under the Securities Act. The cost of registration has been estimated at $150,000. The smaller size mortgage investment entities simply cannot afford this cost, while larger entities may be forced to pass the financial burden on to the consumer in order to survive. NI 31-103 is therefore certain to have an impact on mortgage investment entities, mortgage consumers and the economy. While no industry group is ever problem free, mortgage investment entities in British Columbia have an excellent reputation for compliance and have demonstrated a high level of integrity in their dealings with the public. They are currently required to comply with rules under the Securities Act, the Mortgage Brokers Act, and the Income Tax Act. It is not clear why these current regulatory requirements are considered insufficient, or what particular harms or compliance issues exist which warrant the imposition of a significant new regulatory burden on mortgage investment entities, which will quite literally put many of them out of business. The MBABC would welcome an opportunity to discuss these matters with the BCSC and the Ministry of Finance. On behalf of MBABC members, I respectfully ask that you consider further extending the exemption expiration date of December 31, 2012 in order that the impact of NI 31-103 can be better understood and evaluated by the industry and other interested stakeholders. I look forward to receipt of your advice.

Order under section 48(1) of the Securities Act Definitions 1. Terms defined in the Securities Act, R.S.B.C. 1996, c. 418, as amended (the Act) or in National Instrument 14101 Definitions and National Instrument 31-103 Registration Requirements and Exemptions (NI 31-103) will have the same meaning in this order. 2. In this order, mortgage investment entity means a person whose purpose is to invest substantially all of its assets in debts owing to it that are secured by mortgages, hypothecs or in any other manner on real property, and whose other assets are limited to; (a) deposits standing to its credit in the records of: (i) a bank or other corporation whose deposits are insured by the Canada Deposit Insurance Corpo ration or the Autorité des marches financiers; or (ii) a credit union; (b) cash; (c) securities listed in subsection Section 8.21(2) of NI 31-103; and (d) instruments held to hedge specific risks relating to the debts owing to it that are secured by mortgages, hypothecs or in any other manner on real property. Background 3. Persons trading the securities of a mortgage investment entity may be required to register pursuant to section 34 of the Act and comply with the requirements set out in NI 31-103. 4. NI 31-103 prescribes conditions of registration and other requirements and restrictions applicable to dealers. 5. National Instrument 45-106 Prospectus and Registration Exemptions provides exemptions from the prospectus requirement for certain transactions. 6. Mortgage investment entities have represented that many of the registration requirements in NI 31-103 are inappropriate for their business. 7. The Commission proposes to evaluate the impact of the dealer registration requirements on mortgage investment entities. 8. The Commission considers that limited relief from the dealer registration requirements for mortgage investment entities would not be prejudicial to the public interest. Order 9. The Commission orders, under sections 48(1) of the Act, that the dealer registration requirements do not apply to a trade in a security of a mortgage investment entity issued under an exemption from the prospectus requirements, provided that: (a) the person is not registered under provincial or territorial securities legislation (b) the person is not registered under the securities legislation of a foreign jurisdiction (c) prior to the trade, the person does not advise, recom mend or otherwise represent to the purchaser that the security being traded is suitable to the purchaser, with regard to the purchaser’s; (i) investment needs and objectives (ii) financial circumstances, or (iii) risk tolerance (d) at or before the time the purchaser enters into an agreement to purchase the security, the person obtains from the purchaser a signed Risk Acknow ledgement Form in the form prescribed in Appendix A, and (e) the person has electronically filed with the Commis sion a current information report in the form pre scribed in Appendix B, or has filed an update of a pre viously filed information report, on or before the 10th day after the prospectus-exempt distribution. 10. This order will expire December 31, 2012. FALL 2012 | the bc mortgage broker

Please stand clear of the doors Por favor manténganse

alejado de las puertas

like being herded as much as the next hoofed animal, directed into this line, shuffled into that waiting area, stuffed into that dark closet ensuring I will never see the light of day again without being thrown into the air or pulled back down to earth at twice the force of gravity. Don’t get me wrong, everyone THINKS they have free will here, walking to and through every attraction queue willy-nilly. The powers that be supply you with a handy map and show times guide for all the performances, leading you to think that you have all the choice in the world for your entertainment. But in the underbelly of the operation is a team of seedy characters watching your every move and turning the dials of every decision you make. You forget that they take away all your real-time decision making by forcing prepayment for the vacation months ahead of time including what parks on what day you will visit, what food at what meal time you will eat, and what attractions at what time you will be forced to enjoy. You forget that the map really only has one clockwise path through each attraction. You forget that they know when and where everyone woke up, ate breakfast, and arrived at the park. You forget that they control the wait times to each attraction. If the carousel is under served, isn’t it odd that every other attraction around it suddenly has a 60-minute wait time? And why do I always ask what time the 3:00 p.m. parade starts? The answer of course is mind control. 22

the bc mortgage broker | FALL 2012

Those same seedy characters that control my every move at the theme park must also be in control of all technology jargon and fancy marketing terms you read in the paper in advertisements or on-line in corporate websites. Take cloud computing as an example. What was once “hosting an application on a server” became ASP (application service provider), which in turn became SaaS (software as a service) without really changing the software, hardware, or any of the actual features you use every single day. You don’t have to work at the National Institute of Standards and Technology to really understand cloud and how it’s different from simply hosting software on a server. It is however certainly in your best interest to understand the difference since “hosting” and cloud are dramatically different in their level of complexity and overall value to you.

Here are three sly questions worthy of asking a potential technology suitor: (Note: There are several cloud service models: IaaS (Infrastructure as a Service: hardware and networking), PaaS (Platform as a Service: a cloud based software development and hosting platform), and SaaS (Software as a Service: software you access from the Internet versus from your office/computer). Each can be sitting in a private location (only accessed by the people who built it) or public (could be accessed by any person or corporation). The following questions apply to all three service models.

Let’s say there was a sudden surge of users on your system based on all the positive reviews you received on CNN. How would the software handle the load? Common but not really close to great: We know what our peaks are and have sized our hardware accordingly. We’re okay that the infrastructure is 90 percent idle most of the time. Good but not great: Our systems are designed to be vertically and horizontally scalable and can accommodate as much load as you can throw at them. What’s wrong with this: Scalable means that hardware would generally need to be bought, installed, and configured or is already there sitting idle. Given that provisioning new hardware is slow and expensive and that nobody likes wasting money on idle servers, it stands to reason that either approach to scalability is problematic for businesses. The Cloud Answer: Our systems are managed as a pool of resources allowing us to change the capacity requirements on demand, taking from less taxed systems as required. If we run out of physical capacity we have the option of renting additional capacity

...of all the technology trends affecting how we do business, mobile is the one that will have the greatest impact. from public cloud providers in a seamless fashion. The value of pooling resources together (like CPU, hard drives, and memory) allows a technology provider to make capacity “elastic”, expanding when high demand is needed and collapsing and releasing the resources when the peak is over making it available to any other system. When you include public sources for the pool the capacity is virtually unlimited. Bridging public and private clouds is easier said than done for many systems but there are numerous examples of this design in the world today. Automation is also a key component of a cloud solution. It is naive at best to assume that application of slow, bureaucratic manual processes to

Powerful earning potential? Undeniably. The power to earn is what drives business. And unlike the big banks, we drive business by serving brokers. In fact, our Power Compensation Program™ gives member brokers powerful opportunities to increase their earnings. To us, compensation is more than just a commission. It’s about empowering our brokers with the tools to succeed.

1-888-837-2326 • bwballstarportal.ca

FALL 2012 | the bc mortgage broker

infrastructure somebody else happens to host will yield any tangible benefit. Information Technology at the speed cloud requires thorough and rigorous automation of typically manual processes. You have a lot of great features, but I only want to use these SIX for now. What’s the new cost? Good but not great: One of the benefits of using our system is that everything is included in one single price, allowing you to choose how you want to use the system with no limitations Why not so great: The benefit as suggested would generally mean that it’s likely a system limitation masked as a benefit. There is very little configuration and all of the features are written as single component. While that may be perfectly reasonable for your needs, that type of technology deployment makes it very difficult to price per feature since the solutions providers’ costs are the same regardless of what you use. The Cloud Answer: Our features are deployed as individual applications on a single platform. You may use the app store to decide what features and functions are best for your business while ensuring that the information and security is integrated into a single desktop.

Get your clients back on level ground. Negotiating a mortgage for clients who don’t fit the mold can sometimes be an uphill battle. At Paradigm, our multifaceted team works together with brokers, utilizing a myriad of tools and finance options to find unique solutions for your clients’ non-conventional financing needs. The depth of our experienced team is enhanced by our in-house law firm and our focus is building genuine long-term relationships in order to get your clients back on level ground.

Let’s talk solutions. Find out how Paradigm can help find a creative lending solution for your clients Call 1-800-979-2911 or visit paradigmmortgage.ca Paradigm Mortgage Corp. is the managing agent for Mission Creek Mortgage Ltd.

the bc mortgage broker | FALL 2012

Cloud solutions are deployed as “pay per use”, meaning you only pay for what you need when you need it. Additionally you tend to pay for these services by user in a monthly or annual payment form. You get the entire “value” of the base product, and add on any features you believe best suits your needs. I was just chatting with one of my sister companies in another province and they raved about your product. How long does it take to setup? Good but not great: With over 100 clients under our belt, we have created a convenient and repeatable implementation process to have you up and ready in just a few short weeks. Why not so great: A few short weeks doesn’t seem that bad does it? What is generally true about this statement are those weeks are made up of a few tasks: buying and installing hardware and software specifically for you, using internal tools to configure the system for you, adding users and configurations at your request. The Cloud Answer: Well, that would be up to you! We provide all the tools necessary for you to setup your own experience. Click here to create your new profile.

One of the more time consuming aspects of a new client setup is the acquisition of new hardware and software for the use of an individual client. Within a cloud solution every client uses a single platform, eliminating the need to acquire new hardware for every additional client being implemented. The multi-tenant nature of cloud systems means that data privacy and segregation are paramount; the efficiency benefits of shared resources aren’t worth the cost of a data breach. Another important aspect of Cloud is self-service. From the creation of the very first user, to managing the use of all the features, rights and security controls, even the entire user interface are all in your hands. Create an administrative account and off you go. These few questions should help you defog the actually reality from the technology solution jargon “in the cloud”. It does require you to ask the questions though, so don’t believe everything you read. Well, believe this one, its “generally” true. Thank you for riding with us. Watch your step as you exit the vehicle and please don’t step on any small children as you push and shove your way out to the crowd of people walking to the next attraction. We hope you enjoy the rest of your stay (don’t worry, we have already programmed the subliminal message in your hotel alarm clock).

See you real soon! Paul Lewis Vice President, Technology & Architecture

FALL 2012 | the bc mortgage broker

iN THE

community MBABC is proud to announce that the total amount of funds raised was $10,000 at our Annual 2012 Charity Golf Tournament this September. Cumulatively the MBABC has donated over $126,000 since September 2006. We would like to thank all of our generous Sponsors for their continued support of MBABC and of BC Children’s Hospital Foundation.

Combine business success with supporting BC’s kids The Mortgage Broker Giving Program provides an opportunity for mortgage brokers to support BC Children’s Hospital by donating a portion of their commission with the closing of each transaction.

For more information about this program, or if you would like to register, please contact Barbora Samieian at 604-875-2523 or bsamieian@bcchf.ca.

Invis 2012 Charity Golf Tournament: Angels in the Night – Homeless Shelter Project was able to raise over $15,000. The Angels delivery night is December 11, 2012. For further information and to arrange your registration, please contact: Anna Hewstan, Sr. Marketing Manager, Invis & Mortgage Intelligence. annahewstan@invis.ca | 604.539.4772 26

the bc mortgage broker | FALL 2012

Steve D’Souza and Nathan Isherwood of Origin Client First Mortgage Solutions DLC and Chad August from Royal LePage Brookside Realty Host the 10th Annual Nick Wilkes Annual Memorial Golf Tournament. “A friend of ours was killed in a car accident over 10 years ago on his way to work. We decided to do a charity golf tournament in his name. It started with a few friends getting together just to remember, but has grown into a yearly Shotgun tournament. We raise money for our local high school and give a scholarship and bursary in our friend’s name. He was a track star (with his records still being held today), so the scholarship is heavily weighted towards a student involved with Track & Field. Over the past 10 years we have raised over $15,000 that we have been able to give back.”

The next tournament will be held August 13, 2013 Steve D’Souza continued on page 28

iN THE

community MBABC 2012 Golf Tournament continued

the bc mortgage broker | FALL 2012

Genworth Canada held its annual Greater Vancouver golf tournament in support of the Make-A-Wish Foundation in August. The tournament provides an opportunity for industry professionals to come together and enjoy a fun filled day at the beautiful Redwoods Golf Course, while raising money for a great cause in the process. The mission of Make-A-Wish is to grant the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy. Thanks to all the golfers and Genworth Canada for matching their contributions as $6,000 was raised allowing the foundation to grant the wish of another child!

For more information on this event and Genworth Canada, please contact your local Genworth Account Manager.

FALL 2012 | the bc mortgage broker

e from

p the

C O M M u N I C A T I O N S

By Geoff Willis, MBABC Communicatoins Chair

C H A I R

COMMUNICATION (from Latin “communis,” meaning to share)

his year the MBABC created a new Chair within our organizing committees and we called it “Communications”. The new chair was created so we could begin a process of developing a framework to communicate the key reasons for being, as an association for its members, and to communicate the mortgage broker’s key reasons for being, for B.C. consumers. I am hopeful that you are already beginning to see evidence of this focus internally, as we have continued and enhanced our video content with MBABC.tv. In our last session in September we brought you three accomplished female brokers in Paula Siemens, Maureen Young and Monique Cornish. All of them talked about how they went about building their respective businesses and how they continue to grow with new directions and investments. The result was record viewership at broadcast time and more post production viewing and sharing of the video segments on our YouTube channel. If you have not yet seen the videos, I would encourage you to watch them

the bc mortgage broker | FALL 2012

in five-minute segments at the MBABC YouTube channel. Jessica Facini, MBABC’s Marketing and Communications leader has had her antenna up for quality content to share with members via our social media platforms and via group SMS right to your mobile phones. This way you can share key content with clients, referral partners and others without always having to be on the lookout for fresh new content. We are looking to provide even more value to our members with assistance on building and sustaining social media platforms to support you in the near future. Communications has also played a role in establishing more direct and meaningful relationships with our local media outlets. This was evidenced by our involvement in the recent Mortgages Section of the Vancouver Sun where our President, Jared Dreyer, penned a foreword for the section on recent mortgage rule changes. The MBABC was also featured in recent CBC News and CKNW content on mortgage lending and the recent mortgage rule changes. We will

“Communications has also played a role in establishing more direct and meaningful relationships with our local media outlets.” Geoff Willis’ contact information: Communications Chair 370 – 2608 Granville St Vancouver, BC V6H 3V3 604.742.3411, 604.657.9195 cell 604.630.7270 fax gwillis@mbabc.ca

continue to do everything that we can via traditional media to advocate for mortgage brokers as the channel of choice for the B.C.mortgage consumer. Last but certainly not least we are making efforts to improve the profile and reach with B.C.mortgage consumers online. This will begin with enhancements to our “find a better mortgage” consumer facing landing page and this will include an opportunity for member brokers to be profiled to prospective clients with video biographies and the use of testimonials. It will also act a conduit for organizing consumer education webinars so you can engage your prospects without having to do all of the execution and create the content yourselves. We believe that we have an opportunity to collaborate under the MBABC umbrella to all promote the message that a B.C. consumer is better served with a mortgage broker and we can get this message posted all over the online marketplace. The ways and means we intend to execute to get this message across the screens of B.C. consumers will be revealed and discussed with our membership and the B.C. broker population at large in the coming weeks and months, please stay tuned in. This is an exciting new initiative that provides a means for all of us to come together to advocate for each other and our value proposition with consumers in a targeted manner and I think it will yield both short and long term rewards for our members. If there is a strategy or tactic involving communications, social media, media relations or SEO/SEM that you would like to share with us or if you think there are opportunities in these arenas that MBABC should pursue I would strongly encourage you to make contact with either myself or Jessica Facini at the MBABC office. Have a great Fall season.

iN THE

news

Will There Ever Be A Single National Mortgage Broker Regulator?

Summary: Samantha Gale, MBABC examined the possibility of a National Regulator and the future direction of the Mortgage Brokers Association of British Columbia.

Mortgage Associates Program Competencies and Curriculum The MBABC/MBIBC provided feedback to Mortgage Brokers Regulators Group on the Mortgage Associates Program Competencies and Curriculum, which creates national standards for mortgage broker qualification courses.

Please visit MBABC under NEWSROOM for full articles

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FALL 2012 | the bc mortgage broker

artic l e

Ask around to see what others are planning to wear to the party. But be sure not to dress provocatively at a workplace function. Dressing inappropriately – in low-cut shirts and too-high hemlines or like you threw on the first thing you saw – are viewed in a certain light by both industry peers and their spouses. Don’t let your poor choice in attire speak poorly of you. After all, you’ve worked hard to become a respectable businessperson – don’t let your clothing choices discount your hard work. That doesn’t mean you can’t wear tailored clothing – just make sure nothing’s hanging out that shouldn’t be. Keep your hands to yourself. Don’t flirt, and avoid any other inappropriate behaviour. An industry or company party is not the time to tarnish your career by doing something inappropriate or illegal. Plan to hang your cell phone up for the evening. No one likes to be interrupted by a ringing, beeping or buzzing phone, or made to feel the person on the other line is more important than they are. This is, after all, a chance to network and interact with coworkers and other industry personnel. Treat them with respect and you’ll be respected. If you have to check in with a babysitter, for example, excuse yourself and make the call away from the crowd. Don’t gossip – especially if you’ve been drinking. There’s nothing worse than having the wrong person overhear a private conversation. Avoid talking shop all night. There are much more opportune times to talk about tough deals. Party conversation should be light and fun – an atmosphere where you can step away from the daily grind. If something important comes up, schedule in a time to talk in the next week or two as opposed to during the party. Definitely don’t talk about yourself all night – neither your accomplishments nor your hardships – nor hang out with the same old crowd. Why not introduce yourself to someone new or reconnect with someone you don’t see very often? Listen to what others have to say and you just may form a valuable new relationship. It is possible to enjoy yourself at an industry or company function while adhering to a few rules of etiquette. And, better yet, you’ll be able to better relax the next morning because you won’t be worrying about how you behaved at the party!

H a v e f u n b u t

REMEMBER

YOU’RE AT WORK

e’re coming up to holiday party season. It’s time to let loose and have some fun, right?! Sure… but it’s also important to remember that, regardless of whether you’re attending your company soiree or a general industry function, you can’t allow yourself to get too loose. It doesn’t matter if the party’s held after hours or midday. Everything you say and do will always be a reflection of you as a business professional and will impact your company. This may sound obvious, right? But, we’ve all heard stories of coworkers getting all wild and crazy at company events and then suddenly not working with you anymore. While you think this may never happen to you, remaining in control of your words and actions is essential to truly enjoying the holidays… and the return back to the office in the New Year. Even if you’re the business owner, being on your best behaviour in all circumstances will ensure your business is viewed in a positive light.

Plan ahead If you’re planning to drink at the party, make sure you leave your vehicle at home. Plan to take a cab or public transit, or arrange a car pool with someone you’re sure won’t be drinking. It’s okay to have a few beverages, but don’t go overboard. We all know our limits, so it’s important to stay within them. Even small quantities of alcohol have been known to loosen inhibitions and cloud judgments, which may lead you to do things you wish you hadn’t. After all, a company or industry party is not the time to have an open discussion with someone you don’t like. Set your differences aside for a more appropriate time when you don’t have to worry about being loose lipped. If you’re in a workplace where people tend to drink a lot, order something like a rum and Coke or gin and tonic for your first drink, then stick to plain Coke or tonic after that. That way no one will notice whether you’re drinking – in case you’re worried about what others may think. 32

the bc mortgage broker | FALL 2012

Cindy Freiman is Director of Public Relations & Communications for Dominion Lending Centres. She can be reached at: cindy@dominionlending.ca; 289-240-6322.

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the US. With over $1 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $2M to $75M. Blake Cassidy 800 494 0389 | romspen.com

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BROKer p

2. Do you find that rules are different for brokers depending on the geography?

MBABC’s Member Broker Profile presents Deanna Oenema of Invis - The Oenema Group 1. How are you finding the market in a smaller community? I have lived in 100 Mile House for over 40 years now and I’ve seen the community go through good and bad financial times. Ten years ago I became a mortgage broker and helped underwrite an excessive amount of mortgage applications. In today’s market, homes are still selling, but for more realistic values. Investors are finding the silver lining in the lower market values and are thriving on the deals to be had, and I often see first-time home buyers taking the opportunity to purchase foreclosures at a lower price point than a regular market home. Although the lower mainland market is stronger than the market here, in the past several years lower mainland families are seeing how far their dollar can go in the Cariboo and are choosing to purchase and move north to our local communities. 34

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Absolutely! I have to waive my flag three times harder than a broker does in larger city centres because of the lower home values in the area. Have lower mainland brokers ever heard of private lenders say, “Sorry, we don’t lend in your area!” It’s extremely difficult to find private lenders willing to lend in rural areas which makes my ability to place second mortgages for my clients extremely frustrating. Some “A” lenders have a problem with providing conventional mortgages if the homes are not directly in our town limits, if the population is under 25,000, and if a home is on more than a 10-acre parcel.

3. How long have you been a member of MBABC and why do you feel that it is important to be a member? I have been a member for over seven years now and will continue to do so. I value the network connection it provides. MBABC has a strong voice for all B.C. brokers, including the brokers in rural areas. I also appreciate how they encourage the AMP designation. Having said that, I would like to see brokers earn their AMP designation after they have demonstrated ethical business practises and continued mandatory education. This may take years, however it is important to establish a stronger AMP designation which would increase client’s piece of mind knowing that their broker has the experience behind them.

4. What are you doing to get ready for the winter market? As fall is upon us, I feel like a squirrel now gathering and saving my nuts for the upcoming slow winter season. We all know it’s coming, and I’ve learned to take advantage of it by making time for myself and unwind after the busy spring and summer seasons. I’ll be updating my policy binders where I keep track of who does what in my area and grow my

potential book of private lenders who are willing to lend here. I will also utilize the time to make plans with our internal marketing department for the upcoming year.

5. How have the changes with mortgage policies affected your business? It’s hard to make the mortgage ratios stay under the newest TDS/GDS regulations. Even harder to make insured mortgages debt service using the maximum 25 year amortizations. Even clients with a modest income and good credit are settling for lower price points to accommodate their decreased mortgage payment in their monthly budgets now that the new policies have taken effect. The number of refinance approvals is down because of the decreased property values and due to the new 80 percent LTV rules. Overall these new general trends impact my annual income, and I’m sure other brokers feel this too.

6. What do you do to set yourself apart from others? I don’t look over my shoulder to see what other brokers are doing. Instead, I look ahead and concentrate on my own business model that suits my lifestyle. There is a positive to living in the Cariboo for all these decades - everyone knows me! I keep my personal business local and as a result these small business owners come to me for residential mortgage advice. I consistently advertise in the local paper, hockey arena and I’m a reliable supporter of local charities and events where I donate prizes and my time. I maintain a strong personal relationship with realtors and financial advisors where they know my years of experience. I take pride in my customer service and mortgage experience from the number of applications I’ve processed over the years. This word of mouth advertising is a value to my business as new clients have been assured of quality mortgage advice from my past clients. It’s priceless.

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t h a n k to

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the bc mortgage broker | FALL 2012

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FALL 2012 | the bc mortgage broker 1/4/2012 12:39:59 PM

lender p

1. You have been in the industry for many years and most recently moved over to Street Capital. What promoted your move?

The closure of Firstline Mortgages gave me a chance to move on to a newer more progressive lender with Street. Although it was sad to see Firstline shutdown, it has opened new opportunities for me.

MBABC’s member profile presents Donna Rachel, Regional Business Manager of Street Capital Financial Corporation

2. How are you finding the change - learning different products & different brokers to work with? It is a refreshing change! Street Capital is very focused and loyal to the broker channel. I am very happy to have been assigned and to be responsible for the Okanagan region. This is a territory I held many years ago at Firstline so it’s so nice to reconnect with brokers and meet the many new faces in this area.

3. Where do you find the most value from being a member of MBABC? The ability to network - when I am working on new broker partnerships, the member list on the MBABC website is an invaluable tool. Also, the events put on by MBABC are top notch.

4. What is your opinion of the market these days and what do you think the future holds for MONO lenders?

After several years of slower BC markets, I think 2013 will be a year of growth. I believe that we will see the monoline lenders continuing to grow and diversify their products. Street Capital’s recent bank license announcement is very exciting news for us. The ability of brokers to market more than mortgage products to their clients is a really a positive change also.

5. What area do you cover? The Fraser Valley and the Okanagan Valley, which is so exciting for me as I get to reconnect with the brokers that I used to work with years ago!

6. What tips can you give to brokers? Work your database and think “outside the box” for new clients. Street Capital recently launched an uninsured product line called the Street Options Program. Options targets niches like stated BFS income, stated commission income and clients with some credit issues. Brokers could market themselves as a specialist in this area, sourcing business from credit counsellors or accountants.

If you or someone you know is interested in being highlighted for either our Lender or Broker Profile, please contact the Magazine Chair at debw@mbabc.ca 38

the bc mortgage broker | FALL 2012

MBABC_HalfPg_Ad_0912.pdf 1 9/25/2012 3:21:31 PM

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MBIBC Stuffing

Heat oil. Cook onions, garlic and meat until brown. Add tomatoes, beer, coffee, tomato paste and beef broth. Add spices Stir in 2 cans of kidney beans and peppers. Reduce heat and simmer for 1 1/2 hours Add 2 remaining cans of kidney beans and simmer for another 30 minutes

Brown lean ground pork. Drain and place in bowl. Saute onion, celery and green pepper. Combine with browned pork. Add bread crumbs and seasoning. Add water until stuffing is moist. Makes enough to stuff a 15lb turkey.

the bc mortgage broker | FALL 2012

8 cups bread crumbs 1 â&#x20AC;&#x201C; 1.5 lbs of lean ground pork 1 cup green pepper 1 cup celery I cup onion 1 tbsp parsley 1 tbsp Salt and Pepper Garlic powder to taste Poultry seasoning to taste Water as required

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www.equitabletrust.com MBABCAd_HalfPg_Fall2012.indd 1

AM FALL 2012 | the bc mortgage12-09-20 broker 10:42

welcome

new members w e l c o m e to

FIRST NAME

nicole Alex

LAST NAME

verico select Mortgage Corp. ALT Mortgages

gurjinder

athwal

aK Mortgage Plus inc.

Hanny

Macquarie Financial ltd.

McLellan

ne w

DLC Canadian Mortgage Experts

Darren gordon

Bodner Beynon

DLC Producers West Financial Dominion lending Centres vic City Mortgage group

Owen Nick

Brown Di Fabio

invis inc. Lending Centres - The Mortgage Team Dominion

Brian

Buchanan

invis inc.

alfredo

Carrete

Dominion lending Centres Casa Mortgage inc.

Barry Erin

Homme Chadwick

Dominion Lending Centres Northern Motgage Solutions alliance Mortgage Meridian Mortgage services

shashi Dawn

Chander Priestley

verico Paragon Mortgage inc Dominion Lending Centres group Slegg Mortgage Ltd.

Kevin

Jason

Jennifer

Marion

Jack Patrick

Dulce

Nadine

Kirk

Jeannotte

Chapman

Woodley

Dominion Lending Centres Hilltop

northern savings Credit Union

Dominion Lending Centres Valley Financial Specialists

Chekaluk

Ecom appraisals inc.

Lin Cheng

GMC Global Mortgage Corp. Mortgage Centre - Mortgage Evolution

Coelho-Fedoriw Scott

verico select Mortgage Corp. GMC Global Mortgage Corp.

Colman

invis - Mary Ellen Colman

Yvette

Corcoran

invis inc.

Peter Edward

steven

Schulenberg

Mortgage Centre Malahat

Daniel Savage

verico Secondselect Street Mortgage Mortgages Corp. Ltd.

Janine

Davies

g & F Financial group

Candice

Delorme

invis inc.

Diener Hung

invis VERICO Clear Trust Mortgages Inc.

Richard

Earles

Dominion lending Centres | valley Financial specialists

alvin

Farmer

Dominion lending Centres Drake Entrust Mortgage services

Johanna tara

FelsLim

VERICOservice Clear Trust Mortgages Inc. MCaP Corp.

Fisher Mauro

Bayfield Mortgage Professionals VERICO Clear Trust Mortgages Inc. ltd.

Michelle Kristy

Paul

Derek Sherry Andy

sannie Jean

Carlini

Sherwood Devine

Lee

The Mortgage Centre

Verico ABC Mortgages scotia Mortgage authority

VERICO Clear Trust Mortgages Inc.

Jillanne

Ford

Dominion lending Centres

Paul

gill

Bayfield Mortgage Professionals ltd.

Stanley lisa

Shawn glasper

VERICO Clear Trust Mortgages Inc. invis inc.

Michelle Harry

Gaurav

Sharma

VERICO Clear Trust Mortgages Inc.

Haddad So

lendingmax VERICO Clear Trust Mortgages Inc.

Brett

Hall

Mortgage alliance

Michael

Hayward

verico select Mortgage Corp.

Yu Hendricks

VERICO ClearBank Trust Mortgages Inc. HomEquity

Wilson

Andy Kees

saba Meryll

Tze

Hessamian Dreyer

VERICO Clear Trust Mortgages Inc.

strategic Professional Mortgage Verico Dreyer Group Mortgages Inc.inc.

Elizabeth

Howatson

scotiabank

Joyce

Hubenig

Dominion Macklem Mortgages

Alycia

Hall

Verico Dreyer Group Mortgages Inc.

Scott Ryan

Harriman iannone

Verico Nova Financial Financial Services Inc. Macquarie ltd.

Chris John

Jimenez Parente

the Mortgage groupServices Inc. Verico Nova Financial

amarjit

Andrew

Jennifer

Cheryl Henny

Johal

Liem

tMg the Mortgage group Canada inc. Verico Paragon Mortgage

Jollymour

Dominion lending Centres Duet Financial

Batke Karbowiak

Vericothe Select Mortgagegroup Corp. Canada inc. tMg Mortgage

Ruhi

Kaur

vERiCO superior Mortgage

teisha

Keith

Exclusive Mortgage Professionals ltd.

Phillip

Shayne

Blythe Gorman

the bc mortgage broker | WINTER 2011

the bc mortgage broker | FALL 2012

Tara

MBABC Feb 2011.indd 38

Ryan

mem b er s

COMPANY

apps Conconi

Ken

o u r

Verico Select Mortgage Corp. Verico Select Mortgage Corp. Verico Select Mortgage Cor

11-01-28 12:33 PM

VWR half-pg-magazinead-CMYK-march2011.pdf 1 09/03/2011 9:45:37 AM

•

rates and nominal lender fees

CMY

olution” RICHARD EARLES

richard@vwrcapital.com

FALL 2012 | the bc mortgage broker

Another MCAP deal approved, complete and funded.

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