The BC Mortgage Broker

VOLUME 3 • ISSUE 9 • 2013

INSIDE: 2013 Alternative Lending Directory Members Respond to The BCSC Proposal

to Remove Exemptions for MIC’s

PM #41297283

My reason

Daryl French

VERICO LendingMax Corp Member since 2009

“We decided to join VERICO because of the quality people; not only the leadership of VERICO but also the amazing mortgage professionals they have attracted to the VERICO Network. It was important to us that we maintain our unique look and feel while also having the ability to leverage relationships with some of the industry’s best.

It was the right decision then and even more so today.”

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

My reason

Michael Sjerven

VERICO Vivid Mortgage Inc. Member since 2011

“VERICO was the clear #1 choice when I was looking to start VIVID Mortgage. They offer a competitive cost structure, provide excellent tools/technology, and encourage brokers to do their own branding. Brokers and agents alike prefer to work with the best and VERICO's reputation has helped us in building a great team.

Thank you VERICO!”

Interest Rates Starting from an Incredible 5.75%

1 Mortgage Financing st

$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

V O L U M E

3

•

I S S U E

9

2 0 13

•

|

c o nten ts

In this issue: EDITOR Jessica Facini jfacini@mbabc.ca 604.408.9989

40

MAGAZINE CHAIR Deb White 250.545.2202 deb.w@telus.net Publisher

Craig N. Brown

Art Director

Donna Szelest

Contributors

Jared Dreyer Samantha Gale Roger Levesque Deb White Karl Madsen Kevyn Oyhenart Megan McDonald Geoff Willis Kelly Wolfe Christine Perkins Cindy Freiman Adam Lawrenson Eric Gold Rick Robertson

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

22

36

features

articles

22 CAAMP-MBABC AWARD

25 affinity program 33 how are you giving back?

34 going above and beyond 36 an overlooked opportunity...

RECIPIENT SANDY HIGGINS

columns

debt consolidation

6

VIEWPOINT from the MAGAZINE CHAIR

7

rePORT from the EDUCATION coordinator

40 using email to send mortgage information

18

8 message from the president 11 rePORT from the ceo 12 REPORT FROM THE government relations CHAIR

211-1433 St. Paul St, 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.

14 REPORT FROM THE ethics CHAIR 20 report from the membership

10 2013 board of directors

31 report from the communications

directory

chair

11 CALENDAR OF EVENTS 16 LETTERS To the editor 17 member profile: LendEr 18 in the COMMUNITY news 26 updates and announcements 30 MEMBER PROFILE: broker 43 thank you to our advertisers 46 mbabc new members

2013

PUBLICATIONS MAIL AGREEMENT NO. 41297283.

RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: Suite 404, 999 Canada Place, Vancouver, BC V6C 3E2

PRINTED IN CANADA.

departments

chair

A LT E R N AT I V E L E N D I N G

2 0 1 3 A L T E R N AT I V E L E N D E R S D I R E C TO R Y

Alternative Lenders Directory.indd 1

1

2013-02-08 9:47 AM

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 5

vie w

p o i n t

|

L E T TE R

F R O M

TH E

M A G A Z I N E

C H A I R

Looks like we

Made It!

Deb White, Magazine Chair

Looks like we made it!! 2012 is now in our rear view mirror!!

There were so many changes in our industry last year that I lost count. A few lenders are no longer available to brokers and the insurers changed the rules many times, just to name a few. How did you as a broker manage throughout the year?

Now is the perfect time to reflect on 2012! We should look back on it as a great year to learn and embrace the changes that were presented. How will you take what you have learned in the past to enhance your business for the coming year? We as mortgage professionals are here for the consumers to guide them throughout their financial decisions. It is

6

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

our time to shine and stand proud for our chosen career.

Remember to stay positive about our industry. Your emotions and comments are heard loudly by the consumers.

In this edition of the BC Mortgage Broker Magazine you will find information on the discussion regarding the proposed changes to the MBA as well as suggestions on how to stay busy in your community. If you are not involved in your community, make yourself a promise to do so in 2013. Trust me, you will feel so rewarded.

Kindness in words creates confidence. Kindness in thinking creates profoundness. Kindness in giving creates love.

F R O M

TH E

E D U C ATI O N

C H A I R

|

r eport

“Calling All New Brokers & Managing Brokers” Roger Levesque

The MBABC Education committee has worked hard over the years to implement two quality courses, the Applied Information Course (AIC) and the Designated Individual (DI) Course.

The AIC course is geared towards new brokers entering the industry. It offers a great insight to the mortgage broker world. This two day course is broken down into 9 modules: Module 1: Role of the Mortgage Broker

On the other hand, the DI course is geared towards office DIs and franchise owners. This one day course gives insight to a more in-depth management environment. The course in broken down into 6 modules:

Module 2: The application

Module 1: The introduction & Overview

Module 3: Credit

Module 2: Role Definitions, i.e. Broker, Sub-Broker

and Un-licensed Assistant

Module 4: Income Confirmation Module 5: The 5 Cs of Credit and the Basic

of Private Lending

Module 3: Disclosure Requirements Module 4: Hiring Responsibilities

Module 6: Closing the Deal

Module 5: Contractual Obligations

Module 7: Legal Aspects

Module 6: Management Responsibilities

Module 8: Disclosure Statements & Compliance

The DI course is a “must take” for anyone leading and managing an office. It won’t make you a manager or a leader but it will highlight the areas in which the DI should be aware of.

To know that you don’t know is a good start but not to know that you don’t know is a dangerous proposition!

Module 9: Business Planning & Marketing The course is presented by experienced mortgage brokers, lenders, insurer reps, equifax reps, FICOM reps and real estate lawyers. An optional evening module was added to offer role plays and live mortgage application examples. The student feedback is always extremely positive. One might say it is a tough industry to get into these days; the AIC will definitely give directions and guidance to new brokers to succeed.

April 11 & 12 2013 Hilton Metrotown Vancouver 6083 McKay, Burnaby, BC Member Price: $ 350 Non-Member Price: $ 399 8 :00 am – 5:00 pm Both days.

Breakfast @ 8:00am Course commences @ 8:30 am. Two refreshment breaks both days and lunch served both days.

May 3 2013 Hilton Metrotown Vancouver 6083 McKay, Burnaby, BC Member Price: $ 325 Non-Member Price: $ 375 This is a full day session beginning at 9am and concluding at 5pm. Meals, breaks and a course manual are included.

To register for an MBABC Education course, contact: Catherine Barry, MBABC 604.844.2898 cbarry@mbabc.ca

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 7

messag e

|

F R O M

T H E

P R E S I D E N T

“I see a terrific future ahead for mortgage brokers in B.C.” Jared Dreyer, MBABC President

As we start 2013, your MBABC has been very busy right out of the gates on your behalf. Samantha Gale has been an excellent addition as Executive Officer and has assisted us as we navigate our way through the many changes we are facing.

Your Board has also been busy conducting town hall meetings across BC to get our members input and share with them the new direction of MBABC. As you know, there are very important and relevant issues facing the mortgage industry in our province right now. Those include a review of the Mortgage Brokers Act, potential self- regulation of the mortgage industry and new mortgage investment corporation legislation.

Members of your Board have been meeting with FICOM, members of the Ministry of Finance and BC Securities Commission. All of these meetings are to ensure the voice of our membership is heard on the current issues at hand.

8

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

In addition your Board members and the team at MBABC head office are working hard on other initiatives to show the important value of being a member. Now more than ever we need our members support in getting involved in your provincial association. Together we can make this the best association in Canada!

I see a terrific future ahead for mortgage brokers in BC. This does require our members to be involved and active in both the BC mortgage industry and the MBABC. We need you, our members to encourage your colleagues to join this association. We all have a stake in making sure the mortgage industry in BC is viable and that we are the preferred choice for consumers seeking mortgage financing.

Make this year your best year ever and become a PRO with the MBABC. The opportunities are endless; it is up to each of us to take advantage of them in 2013!

All the best to your success, Jared Dreyer, President MBABC

2 0 13

Jared Dreyer, President

Geoff Parkin, Past President

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

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

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

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

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

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

Karl Madsen, Government Relations Chair

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

D+H BC ad 7.25x4.71.pdf

b oard

1

of

directors

di r e ctory

S T A F F

Kevyn Oyhenart, Ethics Chair

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

Samantha Gale

Troy Resvick, Media Chair

accounting@mbabc.ca

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

Deb White, Magazine Chair

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

Geoff Willis, Communications Chair

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

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

Megan McDonald, Membership Chair

Ajay Soni, Director At Large

1400 – 1140 W. Pender St Vancouver, BC V6E 4G1 604.630.3653, 604.351.7574 cell Megan.mcdonald@mcap.com 13-02-19 6:21 PM

|

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

Executive Officer, MBABC & MBIBC

samanthagale@mbabc.ca

Debra Hiller

Accounting / Member Services

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

C

M

Y

CM

MY

CY

CMY

K

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

repo rt

|

F R O M

T H E

C E O

Change

IS

UPON US Samantha Gale

December and January have been remarkably busy times at the MBABC. While contemplating my holiday plans in late November, I received an email from the Financial and Corporate Sector Policy Branch attaching a copy of the Mortgage Brokers Act Review Consultation paper. I had been expecting a release of the paper over the course of the last two years, and knew that its release was imminent since the summer of 2012. However, the wait for it was long, and I never actually thought its publication would come to fruition.

But it did come! And with it, comes the potential for significant change for the mortgage industry.

The topics which the paper addresses are important and fundamental issues for mortgage brokers and lenders concerning mortgage broker regulation, including the definition of “mortgage brokering”. The current Mortgage Brokers Act, a forty-year-old piece of legislation that desperately needs to be modernized, contains a truly torturous definition of mortgage brokering.

“Mortgage brokering” in section 1 of the Act is defined to include such activities as “mortgage lending” and “mortgage administration”. I am reasonably certain that mortgage lenders have never conceived of themselves as mortgage brokers, but technically they are. Mortgage lenders provide mortgage funds to borrowers while mortgage brokers act as intermediaries – yet somehow the governing legislation for mortgage brokers has mashed these two concepts into one, creating some challenging compliance issues along the way. For instance, mortgage 10

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

brokers, including those who are mortgage lenders, must both provide conflict of interest disclosure to borrowers.

Mortgage lenders are by the nature of their role as creditors potentially in conflict with mortgage borrowers, and I cannot think of any need for them to disclose this to a borrower, particularly when mortgage brokers will also provide all encompassing conflict of interest disclosure to borrowers.

The Consultation paper also provides an opportunity for the industry to discuss some broad and important concepts, such as the question of what is the right regulatory model for the mortgage industry. The government has been the regulator for mortgage brokers and private BC mortgage lenders.

But now on the table, and what is to some a most exciting prospect, is the concept of self regulation. Self regulation provides an opportunity for the industry to set its own standards through some kind of democratically based, industry led body. A successful self regulatory organization can provide an opportunity for the reduction of government expense and burden, greater transparency, an enhanced agility to respond to issues and develop enhanced practice standards, improved public protection, trust and confidence in the mortgage broker industry, and greater flexibility to deal with conduct matters in a way that more closely mirrors the ideals of self regulation. The concept of self regulation is one of the issues which the MBABC has been discussing with the industry in its town hall meetings in various cities throughout the province. My impression so far

is that the industry overwhelmingly endorses this concept. As a matter of fact, I have not yet spoken to a single industry member who favours government regulation over industry self regulation!

The Ministry’s consultation paper contains a detailed section which discusses some complex issues relating to mortgage investment corporations (MICs) and mortgage syndicators. In B.C. there is dual regulation of these industries by two regulators, one of which is the British Columbia Se­ curities Commission (BCSC), which regulates capital raising activities and the second is the Registrar of Mort­gage Brokers, who regulates mortgage lending and borrower activities. The paper explores this dual regulation and asks the public for input on questions such as: If mortgage brokers registered under the MBA also participate in capital raising activities, to what extent, if at all, do you think they should be exempt from the Securities Act either in respect of registration or pros­pec­tus re­quire­­ ments?

Do you think mortgage brokers selling shares in MICs or fractional interests in syndicated mortgages pursuant to Securities Act exemptions should be subject to know your client and suitability rules?

I was contemplating the answers to these questions, when a colleague called me during the first week of January to let me know that the BCSC just issued a proposal to remove all exemptions for MICs and syndicators, which would then require them to

c a le nda r either register as an exempt market dealer or utilize the services of an exempt market dealer. Both options are neither cheap nor simple. The proposal carries with it just a one month deadline for providing comments. This came as a surprise to many as the BCSC just extended its temporary exemption for the mortgage investment entities until June of 2013, and many industry members viewed the Min­istry’s consultation paper as the vehicle to carry forward a discussion around the appropriate regulatory model for the mortgage investment entities. To some it seemed that two arms of government were dealing with the same issue, and working in uncoordinated fashion.

The MBABC did however spring into action. The same day the proposal was published, we made a freedom of information request to BCSC to see their research and justifications for the proposal, which the BCSC developed over the last year. The BCSC concluded that only 1.8 million dollars in mortgage capital would be lost from the available capital in the market with the implementation of their proposal. We met with the BCSC to discuss our concerns after obtaining the information. We also met with industry members and other organizations. In addition, we sent the industry a survey to assist in a better determination of the impact the proposal would have on the industry. While the proposal submission deadline looms, stay tuned!! The MBABC will continue to develop submissions, gather information and represent its members on this issue.

Samantha Gale, CEO MBIBC & MBABC Stay connected through the MBABC website www.mbabc.ca under Government Relations and Policy & Legislation for updates and announcements regarding all MBABC office activities.

March 7th

June 4th & 5th

June

events

Be A Better Broker Seminar + Wine Tasting Networking Event

April 11th & 12th

May 3rd

of

Applied Information Course

Designated Individual Course

MBABC/CAAMP Joint Symposium & Golf Tournament

Sydney Spit Networking Event (date tbd)

September 9th

MBABC Annual Charity Golf Tournament,

Predator Ridge Resort Vernon BC October 10th & 11th

Applied Information Course November 8th

November

Designated Individual Course

Education Symposiums (Vancouver, Victoria & Kelowna)

* Please visit www.mbabc.ca for full details

This is YOUR Provincial Association. Stay Connected.

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 11

repo rt

|

G O V E R N M E N T

R E L ATI O N S

MINISTRY OF

Finance PREPARING TOReview

Karl Madsen, MBABC Director

The BC Government’s Ministry of Finance is preparing to review the Mortgage Brokers Act in 2013 with a view to rewriting the Act in 2014. The stated aim of this review is to identify and correct areas where the Act (originally written in 1972) may have fallen behind current market practices in terms of consumer protection as well as to streamline inefficiencies that may have crept into how our industry is regulated.

Minister asking for industry input by February 28, 2013. She also sent out in a separate email with a position paper listing some of the aspects of the Act that are under review. Many of the suggestions that the Ministry is looking at have come from the MBABC and its members. Samantha is currently working with the board to present our suggestions on how to regulate our industry going forward.

On November 29, 2012 Samantha Gale emailed all MBABC members a copy of the letter from the Office of the Deputy

Some of the major issues for us to consider are: • The desire by many mortgage brokers

to form a “Self Regulating Organ­iza­ tion” and how that would be structured and funded.

• The desire by many submortgage brokers to be able to incorporate a “personal services corp” for tax purposes while still remaining a submortgage broker.

• To recognize the need for different levels of education and responsibility for such diverse industry roles as Designated Individuals, Submortgage Brokers, Mortgage Lenders and MIC managers rather than working within the current “one size fits all” approach to registrants.

• The difficulty of regulating lender sales force employees when many Federally regulated entities are currently exempt from registration under the act.

• Potential jurisdictional overlap between the Securities Act and the Mortgage Brokers Act when regulating for MIC and mortgage investment management activities and how that creates inefficiencies and high compliance costs in the industry.

If you have an opinion on any of these issues or would like to learn more, please read the emails Samantha sent out at the end of November, 2012 and send back your comments as soon as possible. This will allow Samantha appropriate time to compile and compose a strong industry position on these and other important issues. This is our chance to be heard. The last Mortgage Brokers Act was written in 1972. Once the Act is rewritten in 2014 it may be a long time before we get another opportunity to influence how our industry is regulated.

12

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

Relax...

We’ve got the products you need to help you cover your clients’ needs.

With over 600 employees and 25 years experience, Home Trust continues to provide service excellence to you, our Broker Partners. Despite change in the past year to mortgage lending regulations, you can still count on our common sense approach to underwriting to provide you and your clients with the alternative solutions they need.

SOLUTIONS FOR ALL CLIENTS

FULL SUITE OF PRODUCTS • Mortgages

BROKER INCENTIVE PROGRAMS

• Business For Self

• Volume Bonus Program

- Prime

• New Immigrant

• Referral Fees

- Alternative

• Bruised Credit

• GIC Broker Referral Program

• Visa*

• Stated Income

- Secured - Unsecured - Cash Secured • Deposits - GIC - RSP - RIF - TFSA

Contact your Business Development Manager or visit www.hometrust.ca/broker

Home Trust Company is a member of CDIC. *Visa Int./Home Trust Company, licensed user of mark.

HOME TRUST MORTGAGES

I

CREDIT

I

VISA

www.hometrust.ca

I

DEPOSITS

repo rt

|

F R O M

TH E

E TH I C S

C H A I R

most recent ethics

Complaints report

Kevyn Oyhenart

Ethics: a: a set of moral principles: a theory or system of moral values b: the principles of conduct governing an individual or a group <professional ethics> c: a guiding philosophy d: a consciousness of moral importance “ethics.” Merriam-Webster.com. MerriamWebster, Web. 1 Feb 2013

In Canada, we teach a wide variety of subjects in our school systems, and as a result produce a wide variety of technicians: people who are masters of

their subjects such as Mathematics, Anatomy and Chemistry to name a few.

For some reason though, much like the lack of teaching in the understanding of how money works, we don’t spend a lot of time on Ethics.

In our country it is not guaranteed you will be taught ethics or the root of moral conduct unless it came from family or influencers in our lives. As a result of this we are vulnerable to becoming a nation that pursues Capitalism in its purest form without ethical standards

in place. I believe this is a contributing factor as to why we have experienced in our lifetime the rise and fall of Wall Street and the housing market in the USA. Case in point: Bernie Madoff and the “Ponzi” schemes, and the lack of transparency in our governments and even in the sports world. As a result we are spectators to collapsing reputations of various figures of success and achievement all around us that we put on pedestals daily.

But is this not exactly what today’s society needs more of?

I think as a society we need to initiate a change; starting with the curriculum in grade school, and most definitely in our business and the hiring and training of new Brokers. We need to put more of an emphasis on ethical conduct and less of an essence on being that virtuoso technician. Honestly, what good is all the technology in the world if we are not making the correct decision for our clients from an ethical and moral or compassionate point of view?

We can punch all the numbers into the computer we want and it can spit out all the different variables and plans it has available to it. But as a Broker, you need to decide if the client can make those payments. You need to present the plan that may or may not ruin them financially. You need to pay attention to their goals and ambitions and sort through the details to truly make a great decision to help them out.

What I am saying is that we need to be asking ourselves the right questions using an ethical perspective and conduct.

Change your point of view and be consistent.

Yours in Ethics, Kevyn Oyhenart

14

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

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

Editor

TO THE

Re: the BCSC Proposal to remove all exemptions for mortgage investment corporations and mortgage syndicators: requiring them to either become or use Exempt Market Dealers “I wanted to personally thank you for your planning, effort and determination to ensure the best interests of the MBABC members are protected and maintained.

It was the first time I had the opportunity to attend and participate an MBABC town hall meeting and I found it informative and beneficial.

My primary reason to attend was to listen and understand the position of the Securities Commission and the impact of their decision with respect to syndicated mortgages.

On a micro-level, changes to the current exemptions of sub-brokers and mortgage brokers arranging syndicated mortgage would have a direct impact on my personal business.

It was great to hear your point of view (syndicated mortgages are not securities and it would not make sense for the BC Securities Commission to change their position on regulating this area immediately or at all). In short I agree completely with it.

Assuming the BC Securities Commission has a mandate to increase the efficiency of the free market transactions – there would be no reason for them “not renew this exemption”. If in the future BC Securities Commission accept that real estate is not a security perhaps it will open the dialogue for the MBABC to offer a solution of self-regulations.

In my view, syndicated mortgages mutually provides benefits to borrowers who require financing at the most reasonable market rate, while providing a fair return for sophisticated lenders who wish to lend their capital.

In conclusion, it is my hope and understanding the BC Securities Commission will NOT be changing any rulings and granting mortgage brokers and sub-brokers to arrange syndicated mortgages. I trust you will update the members of the future meetings between MBABC and BC Securities Commission.”

Wesley Fong, The Mortgage Centre _________ “I have reviewed this proposal and am responding to let you know that I disagree with this proposal. Completely disagree.

I don’t know where the BCSC gets their

16

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

stats as I have called numerous MIC’s and no one has said at some point did they not comply. BCSC mentions that 90% don’t comply – I find that hard to believe. MIC’s offer a valuable service and there is no need to have them under the EMD category. All they offer is one type of an investment, so why should they need an EMD designation to tell an investor there is risk. There is risk in buying stocks on iTrade, there are risks going to the casino and losing your shirt.

There are risks in everything we do. I think this is a cash grab and using bureaucracy to riddle a system of all its good potential and usage.

MIC’s offer clients a solution when the banks and credit unions cannot. With the economy slowing down, they are there to help. Imagine if there was no private financing, there would be more foreclosures and more people walking away from homes and living on the streets. All the new mortgage rules that have come about make it so much more difficult for the average person to get a mortgage or refinance – MIC’s offer a solution. The investor knows the risk and the borrower knows the rates and fees. MIC’s offer a very good resource to the borrower when times are tough, income is lower and credit challenges have pushed them our way. They are not a long term solution and they don’t want to be, but they are a solution for the borrower to help them stay in their home and get back on their feet. Some of the Family and Friends MIC’s have been around for years and produced good returns to the investor when the stock market and mutual fund market has not. The investors who put their money in MIC’s do not need more beaucracy and more paperwork – they know the risk. The MIC’s offer one product – not like an EMD dealer who offers multiple products. The folks that invest are passed onto the MIC via friends and family that HAVE done well and tell their friends about it. Should this pass, there will be less opportunity for private financing and less money being lent out, thus affecting borrowers.

This is a very bad decision that will not only affect MIC’s but the general public and the borrower. We need people in homes, not on the street – this will drive that even higher.”

Steve Brouwer, Drake Entrust Mortgage Services _________

“It is my understanding that there exist some +/- 225 MICs in this province. By removing these exemptions, the result will be some 200 hundred of these MICs will no longer be able to operate within provincial legislation and regulatory framework.”

Not only will this put a substantial number of people out of work it will dislocate investors from their chosen investment vehicle.

It will also create geographic holes in the lender community whereby some borrowers will just be flat out of luck in their time of need. Is the weight of this potential social and economic upheaval worth the perception of protecting savvy investors who are quite capable of doing their own due diligence to safeguard their investment dollars, as does any investor currently in the traditional capital marketplace?

In short this notion to remove exemptions will create monopolies in the private lending community of BC. The results are entirely predictable: Borrowing costs (rates) will go up without free market competition and geographic lending boundaries will constrict without smaller regionalized MICs that provide an immeasurable service and role within their lending areas. Who is protecting the borrower when contemplating these changes?

Is this really a good idea? I submit it is very flawed thinking.

I have no doubt there are some bad operators out there. Emphasis by the regulatory bodies should focus on weeding out those firms that break laws/regulations and put investors or borrowers in harms way. Don’t tip the playing field on its ear!

On a positive note I believe the outlook for MIC businesses as whole looks very promising everywhere. Combined with all the mortgage lending changes nationally the past few years and steady lender policy tightening, there is a very large gap between AAA lending and private lending. The upside potential for MIC(s) mortgage volume growth for all firms is good within the current business practise framework in BC. “This is strictly my opinion for what it is worth gleaned by working as a Mortgage Broker in the Southern Interior for the past 5 years.”

Carl McLennan, Blue Tree Mortgages _________ Please submit via email any opinions or comments you would like the MBABC to address to: editor@mbabc.ca *the BC Mortgage Broker only publishes opinion with consent

p ro f i le

|

L E N D E R

MBABC’s Member Lender Profile presents

Christine Perkins

Cove Mortgage

How long have you been in the mortgage industry and what is your background I started out in the mortgage industry in 2004 with a background in sales, marketing and communications. I can’t believe it’s been that long already!

You work with a MIC lender and not an A lender. Have you become busier with the new rules on the A side?

In 2012 Cove saw an increase in business due to the conventional mortgage rule changes. Many of the A lenders anticipated these changes and altered their programs before the government imposed deadline. We didn’t see a mad rush when they officially took place in July as some lenders assumed. Instead we saw a very steady year.

What do you think that 2013 will bring in regards to mortgage lending?

I anticipate a further increase in business in 2013 as it usually takes consumers 6 months to understand and

accept mortgage rule changes. The fence sitters will now realize that they may have to work with a MIC for their financing needs for the short term.

Further, we are seeing a faster turnaround time on deals closing as clients are doing less shopping knowing that there are fewer options available to them.

Any tips you can give brokers in regards to submitting deals to Cove?

Make sure you know the entire “story” from your client before submitting the file. You don’t want to raise any red flags with your underwriter because they feel there are too many unknowns.

Knowing all the details of the file upfront helps you to sell the story and develop a stronger relationship with the decision makers at Cove. The story is often the difference between an approval and a decline. It is also important to communicate to your underwriter what you anticipate the exit strategy will be on the file in a years time.

Do you have a specific area of BC that is your territory?

I have the opportunity to work with all of the Brokers in BC except for Vancouver Island where Ross Elliot is the local dedicated representative.

You have always been a huge supporter of MBABC. What do you find is the biggest benefit?

The networking opportunities, trade show and print advertising available through the MBABC have always been paramount to my role as the BDM/Sales Manager.

It is also very important as a MIC Lender to have a local voice working on our behalf to promote our lending niche. We have found that there has been a greater interest from the MBABC to obtain MIC’s feedback as many of us have grown to be very professional and influential with much to contribute to the mortgage industry in BC. We anticipate we will continue to work more closely with the MBABC in 2013.

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 17

News in the

The Office of the Information and Privacy Commissioner for BC recently made an order relating to a “Freedom of Information” request from FICOM.

The ICBA requested information about union pension plans filed with FICOM, which FICOM decided to disclose. The Trustees of the pension plans requested a review of the decision of FICOM on the basis that s. 21(1) of FIPPA applied. The Assistant Commissioner found that the Trustees and the Unions had not demonstrated that disclosure would cause significant harm to their competitive position or interfere significantly in their negotiating position under s. 21(1)(c)(i) of FIPPA; or cause them undue financial loss under s.

21(1)(c)(iii). The Assistant Commissioner required FICOM to disclose the information.

See www.mbabc.ca under News Room for full details

_________

Reminder for Relicensing Education for Mortgage Brokers To renew your license in 2013, you need to complete 2 online modules and 1 Regulatory Update seminar (in person) or webinar (online) offered by MBIBC. Please refer to the website of the MBIBC for full details

_________

Dominion Lending Centres Pioneers Visa Card Offerings Dominion Lending Centres (DLC) is pleased to announce a national partnership with Visa and Desjardins, culminating in an exclusive DLC-branded Visa Card Program.

DLC is the first mortgage company in Canada to launch its own branded credit card program. We have an exclusive deal for our Visa Program, which is underwritten by Desjardins, and represents a new option for Canadians.

For more information, please contact: Cindy Freiman Director of Public Relations & Communications Direct: 289-240-6322

_________

Wendy’s Dreamlift Day Funds raised at nine Wendy’s restaurants in the Okanagan, Kamloops and Salmon Arm, helps the Sunshine Foundation take children with severe physical disabilities or lifethreatening illnesses to Disneyland for a day.

All of the profits and staff and management wages Wednesday went to the foundation.

The event Wednesday raised $115,027, surpassing last year’s record of $114,276. That brings the total over 19 years to $1.22 million.

Rolke, Richard. “Another record broken at Wendy’s Dreamlift Day.” Vernon Morning Star. Vernon. Published: January 31, 2013.

I Am Someone Anti-Bully Campaign: This initiative was launched by Gary Mauris, President of Dominion Lending Centres, alongside Amanda Todd’s mother, Carol Todd, and Port Coquitlam Mayor Greg Moore. Gary was moved by a YouTube video Amanda posted reaching out for help (before she ended up committing suicide) that said she has no one and she needs someone. We can all be Someone. Bullying is more prevalent than ever thanks to technology and the Internet. Kids can no longer escape their bullies by going home. Not only is Port Coquitlam aiming to pass BC’s first anti-bullying bylaw, but the program also includes a revolutionary text messaging platform where kids can anonymously report bullying. A “program-in-a-box” is being created so other communities across Canada can easily implement the same program.

This campaign also includes the launch of the Snowflake Walk: www.snowflakewalk.ca to raise awareness for the need to prevent bullying.

18

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

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States.

With over $1 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M. Blake Cassidy 800 494 0389 | romspen.com

$35,000,000 $78,000,000

Condominium Condominium Construction ConstructionFacility Facility TORONTO, VICTORIA, BCON $11,000,000 $11,000,000

Big Condominium Box Retail Development ComplexSite CHICAGO, TORONTO,USA ON $15,800,000 $7,500,000

Industrial 19 Serviced Building Construction Industrial Lots FORT EDMONTON, McMURRAY, AB AB

LOOKING FOR A BANK THAT SHARES YOUR CREATIVE VISION. GOOD LUCK WITH THAT.

repo rt

|

F R O M

T H E

M E M B E R S H I P

C H A I R

Exciting NEW

Initiatives Megan McDonald As your new Membership Chair I am very excited to be representing all of you, our members and industry professionals. For those of you who may not know me, I have recently returned to the west coast as MCAP’s Director, Business Development for the Eclipse line. I’ve been with MCAP for about 10 years now and I have been a member of the MBABC for 9 years, as well as the past Director of Education. I am glad to be able to continue serving the MBABC in this new position.

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

There is a lot going on right now with the MBABC. We have several exciting new initiatives on the go and plan to be very busy over the next few months in creative development. I will be sharing these ideas and plans with you later in the year.

I take this position on the MBABC board seriously, as I am a strong advocate of the broker community. Part of my goal for the coming year will be reaching out to the current membership and looking at ways in which we can continue to grow together.

I’m also planning to take a good look at and refresh myself on our value proposition. I feel an organization’s values are extremely important in defining what you stand for and what you represent. I hope to get everyone involved in not only reaffirming our values, but strengthening them and putting them into practise.

I’m looking forward to working with all of you over the next year!

Megan McDonald, Membership Chair, MBABC

CAAMP-MBABC AWARD RECIPIENT

Sandy Higgins The Mortgage Centre Island Properties

®

B

uilding on her 30 plus years of experience in financial lending, Sandy Higgins took over ownership of The Mortgage Centre- Pacific Properties in 2009, rebranding it as The Mortgage Centre- Island

Properties. She is an Accredited Mortgage Professional who provides “handson” knowledge in mortgage financing including residential, builder mortgages, and commercial. Building relationships and always providing professional ser-

vice to her clients is essential to her value system. This belief has garnered her multiple nominations and awards from The Mortgage Centre, including a 2009

INNOVATIVE SINGLE FAMILY LENDING

Rookie Franchise Owner of the Year nomination, The Mortgage Centre

Region Award.

Sandy has built a superb team of talented and experienced mortgage brokers who adhere to the company philosophy of client service excellence and reinvesting in the local community. Leading by example, Sandy joined a local radio station in 2011 for a 1 hour Q & A talk show every second Saturday with the goal to promote and enhance why the public should use a mortgage broker as their first choice for mortgage financing. Her voice and message to the public on the valueadded services our industry provides was rewarded by her fellow peers with a 2012 CAAMP-MBABC Award for service excellence. We are very proud of her dedication to our network and to the betterment of our industry. On behalf of myself and our head office team at The Mortgage Centre, we congratulate her on a well deserved award.

Mike Ashe, Regional VP Western Canada Mortgage Centre Canada

To be considered for this Award, nominees must: • be a member in good standing of CAAMP • have his/her AMP designation • be a member in good standing of MBABC • have generously given of their time and effort within the Canadian mortgage industry and to CAAMP • have contributed to his/her local community through volunteerism • have demonstrated leadership and commitment to the improvement of the mortgage industry in British Columbia • have qualities that exemplify professionalism and inspiration related to the mortgage industry in British Columbia • have had a significant impact on the mortgage industry in British Columbia

vide o r P We ! tions u l o S

Find out how we solve your mortgage requirements

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

www.peoplestrust.com

ATING O BR

E

NT

R VE

• TW

The CAAMP-MBABC award recognizes an AMP from the Mortgage Brokers Association of British Columbia who has demonstrated outstanding lead­ ership qualities that have had a significant impact on the mortgage industry on both a national and provincial level.

Nomination Criteria

RS •

nomination, and a 2012 Top 3 Mortgage Professional (Owner) in the Pacific

For over 25 years our common sense approach has been our hallmark

EA

Club Certificate in 2012, a 2012 Top Franchise Growth Award (under $100m)

CEL E

Executive’s Sales Club Certificate in 2011, The Mortgage Centre Master’s Sales

Y- F I V E Y

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 23

Achieve YOUR TRUe

BUYiNG

POWeR ThROUGh cONSOLiDATiON

Deal directly with the Lender that offers unparalleled experience in mortgage lending We can fund a broad spectrum of property types and loan situations.

Purchases, refinances, residential & commercial    

24 hour response time Competitive rates and fees Expert advice, consistent reliable Service Lending area, BC, Alberta, Saskatchewan

Submit your applications through Filogix, fax 1-888-226-8834 or by email documents@caplink.ca Or give us a call to discuss your deal 1-888-429-0114

ONE STOP, ONE S

ONE STOP, ONE SOURCE

Residential Helen Neufeld ext. 215 Helen@caplink.ca Commercial Gay Andrews ext 236 gay@caplink.ca

A DiviSiON OF

PRiNT . LABeLS . FORMS

1.800.661. 9952 Caplink Financial Corporation | Suite 2200, 10104 103 Avenue, Edmonton, AB T5J 0H8 |

24

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

www.caplink.ca

centralforms.com

TELUS has a free program for all MBABC members that increases your referral and new business through VIP service and savings of up to $1000 for you and your clients.

1. Savings for you and your clients • You receive an ongoing 40% Discount on TELUS Optik TV and Internet while you participate • Your clients receive a one year 40% Discount on new TELUS Optik TV and Internet services or a FREE pay per view movie credit if they already have our services • $500 to $1000 in savings a year for most clients • Offers that are unavailable to general public

2. VIP Service • One less thing for your clients to worry about – no need to call TELUS, we call them • TELUS services are more likely to be working when your clients move in • TELUS help through a single point of contact for you and your clients

3. More referrals and new business • We use your name; “your Broker John Smith has negotiated a 40% discount for you” • Every month the discount is shown on the bill reminding your clients of their BROKER of choice – You! • Incorporate this offer in your geographic farm, advertising, open houses, and newsletters as a conversation starter.

Email Marketing keeps you in front of your customers. Even when you’re not.

Constant Contact’s Email Marketing tool is easy to use, affordable, and gives you everything you need to succeed. Get up to 25% off for 12 months—that’s 10% more than the standard pre-pay offer.

So sign up now!

How Grand & Toy helps businesses work better SAVE TIME. SAVE MONEY. MBABC members benefit from exclusive savings up to 75% OFF on over 7500 quality office products – with paper pricing at $33.80/carton* From your daily office supplies to more customized solutions, our Business Solutions Advisors and industry specialists will support the unique needs of your business while also providing you with environmentally responsible solutions.

Esso Business Card Program • 2.6 cents per litre fuel discount off the retail posted pump • Detailed monthly invoice • Esso has the largest retail network across Canada with over 1850 locations to serve you • Cards restricted to fuel, oil, top-up fluids and car wash • Personalized identification may be printed on each card and the invoic Not an MBABC member yet?

Join us today to benefit from the exclusive affinity partner programs Contact Catherine Barry at MBABC for more details: cbarry@mbabc.ca VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 25

Updates

MBABC

&Announcements Many MBABC members have asked why submortgage brokers are unable to use personal mortgage broker corporations for tax savings strategies when other professionals such as realtors and lawyers are able to take advantage of professional corporations. The answer is simply that there are no legislative provisions which permit mortgage brokers to create personal mortgage broker corporations.

The Mortgage Brokers Act (the Act) does not directly enable individual submortgage brokers to collect broker earnings through a corporation in order to split income for tax purposes or defer the payment of taxes. Submortgage broker is defined in section 1 of the Act to mean “any person who, in British Columbia, actively engages in any of the things referred to in the definition of mortgage broker and is employed, either generally or in a particular case, by, or is a director or a partner of, a mortgage broker”. Submortgage brokers are therefore employed by mortgage brokers, essentially meaning that they are employees, who must be natural persons with social insurance numbers and not corporations. However, the second part of the definition of submortgage broker contemplates that a submortgage broker may be a partner of a mortgage broker. Under common law in British Columbia, a partner of a mortgage broker may be a corporation - the Act thereby contemplates the registration of corporations as submortgage brokers. However, nearly all relationships that submortgage brokers will have with their sponsoring mortgage broker will not be that of partner in a formal partnership arrangement, but rather the more traditional relationship of a mortgage broker employing a submortgage broker. In addition, there has not been a single corporation who 26

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

is a partner of a mortgage broker, which has been registered as a submortgage broker.

professional corporation is only possible if it is provided for in the professions’ governing legislation.

During the last ten years, franchising and co-brokering have been used as a strategies by some submortgage brokers to incorporate while also maintaining ties to a larger, well known mortgage brokers. Under this arrangement, the submortgage broker must incorporate a franchisee entity, set up a separate office, enter into a franchise arrangement and a co-brokering relationship with the franchisor entity and then register as a mortgage broker. The challenge for franchisees which operate as co-brokers with their franchisors is that the public may be confused about which mortgage broker entity they are dealing with, as the two mortgage broker entities may share part of the franchisor name and management operations, in addition to operating in close proximity to one another.

Amendments to the Real Estate Services Act were introduced in 2009, which permit licensed real estate professionals to incorporate personal real estate corporations. Remuneration paid to a real estate professional may be paid directly to his or her personal corporation, and then payment of fees or dividends may be paid from the personal corporation to the professional.

The personal real estate corporation may only provide real estate services by the licensed professional and cannot avoid regulatory liability. In addition, under the Regulations, voting shares may only be issued to a licensed professional.

Most professionals, such as doctors, dentists, lawyers, and realtors are able to incorporate professional corporations. The benefit to industry members is that a professional corporation enables them to take advantage of income splitting and tax deferral options.

Corporate tax deferral is an advantage for professional corporations as they will pay a lower tax rate on active business income, up to a single limit of $500,000, than their personal taxpaying counterparts. The professional can then defer the payment of corporate dividends to shareholders to maximize personal tax benefits. Income splitting is a clear advantage for professional corporations as the professional corporation can pay dividends to shareholders, such as spouses, children or affiliated corporations, who are at a lower tax rate than the professional. However, the incorporation of a

The definition of submortgage broker should be amended by eliminating the option of corporations, who are partners of the mortgage broker, to obtain submortgage broker registration. This provision is clearly not relevant in today’s mortgage broker environment.

However, the Act should be further amended to enable submortgage brokers to incorporate professional mortgage broker corporations which are capable of collecting and retaining broker fees and commissions owing to a submortgage broker from their mortgage broker. This provision would modernize the legislation and put submortgage brokers on the same footing as other professionals, such as realtors. Permitting brokers to do this would also provide a simpler and more transparent mechanism for mortgage brokers to utilize corporations for tax savings strategies than co-broking strategies which are sometimes utilized, and may create confusion for the public. The net benefit of permitting personal mortgage broker corporations

MBABC UPDATES & ANNOUNCEMENTS continued is therefore twofold: enhanced consumer protection and the removal of economic barriers for mortgage brokers.

The MBABC has therefore recently submitted recommendations to the Ministry of Finance that the Act be amended to permit submortgage brokers to incorporate personal mortgage broker corporations.

The rules for taking broker or lender fees prior to mortgage funding on residential transactions (what I will refer to as “advance fees”) can be a somewhat challenging to understand. The rules relating to advance fees are contained in a piece of legislation called the Business Practices and Consumer Protection Act (the BPCPA).

Advance fees charged by anyone for arranging a residential mortgage are

prohibited in the BPCPA. I make this conclusion from the following analyses.

Section 5 prohibits mortgage brokers or lenders from engaging in deceptive acts or practices for transactions that are for primarily personal, family or household purposes. This is why advance fees are prohibited only for residential transactions and individual borrowers but not commercial transactions or corporate borrowers. In addition, section 4(3) makes it a deceptive act or practice for any mortgage broker or lender to arrange a mortgage for a fee, unless the fee is deducted from the mortgage advance at the time of closing. Under s. 8 of the Mortgage Brokers Act, the registrar of mortgage brokers may discipline a mortgage broker registrant for a breach of a provision of Part 2 of the BPCPA, which includes section 5. The result is that a registered mortgage broker or lender cannot take

advance fees from clients for arranging residential mortgages, as fees can only be taken from the advance of mortgage funds at the time of mortgage funding.

One of the rationales behind the prohibition against advance fees would be to protect the public from a fraud, in which a fraudster, usually with an anonymous email address, website or cellular telephone number, solicits vulnerable, credit challenged people who seek funds, including mortgage funds. The fraudster then promises the mortgage funds to the vulnerable person in exchange for an advance fee, usually in the range of $500 to $2,000.

The fraudster never funds the mortgage loan and keeps the advance fee. This kind of advance fee scam has been the subject of several cease and desist orders, which have been posted on the FICOM website since the registrar of continued

Video Panel discussion available only in Digital Magazine...

MIC Managers Uncensored…

Regulatory Requirements, Compliance & the Future

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

Panelists:

Gord Wintrup, President Bayfield Mortgage Professionals Hali Strandlund, President, Fisgard Capital John Ribalkin - Verico Nova Financial Services Inc.

INTERACTIVE DIGITAL ADVERTISING OPPORTUNITIES

Available for iPad, iPhone and Kindle

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

MBABC UPDATES & ANNOUNCEMENTS continued mortgage brokers obtained administrative powers to issue cease and desist orders for unregistered activity.

However, the problem with sections 4(3) and 5 of the BPCPC is that they are convoluted statutory prohibitions which define the taking of advance fees as a deceptive practice instead of simply prohibiting the activity. Additionally, these sections are exceptionally over reaching.

The challenge for many mortgage brokers is that they may be reluctant to take on difficult residential mortgage clients, when their fee is contingent on their application actually being approved and funded. Often mortgage files require many hours of preparation, document management and negotiation. Sometimes mortgage commitments are obtained by mortgage brokers after they have invested significant amounts of time into the file, but the client may eventually opt for alternative financing or decline the offered financing – this can happen even at the last minute, just prior to closing. Under the wording of sections 4(3) and 5, mortgage brokers will have no way of collecting fees when there is never any mortgage funding from which to deduct the fee.

All mortgage brokers who deal in residential mortgages are effectively prohibited from taking advance fees in order to assist in the prevention of a small number of fraudsters from taking advantage of the public.

Most

professionals, including lawyers, accountants and realtors are able by contract to negotiate advance fees.

Lawyers, for example, commonly ask for a retainer of funds from a client, which are kept in their trust account and withdrawn only when the services and an account have been rendered.

In Ontario, section 37(1) of the Mortgage Brokerages, Lenders and Administrators Act provides that “If the principal amount of a mortgage is $300,000 or less, a brokerage shall not require a borrower to make, and shall not accept, an advance payment or deposit for services to be rendered or expenses to be incurred by the brokerage or any other person.” Advance fees are therefore permitted to be charged by mortgage brokers in Ontario for residential mortgages with a principal sum of over $300,000.

In Alberta, section 71 of the Real Estate Act Rules places restrictions on the collection of an advance fee for assisting an individual in obtaining a mortgage from a lender. This Rule applies to a mortgage where the borrower is an individual who enters into a credit arrangement primarily for personal, family or household purposes. It prohibits collecting a fee from such an individual until the lender has provided written confirmation to fund the mortgage to the borrower, has provided an initial disclosure statement and at least two business days have passed since the disclosure statement was received (or the individual has waived the time period for its delivery in accordance

with the Fair Trading Act). In Alberta then, mortgage brokers are entitled to charge fees in advance of mortgage funding if a mortgage commitment has been obtained and cost of credit disclosure rules are followed.

There should be a balance between safe guarding the public interest from advance fee fraud and permitting an industry member to charge fees or collect a retainer for work performed on behalf of the client. The MBABC has therefore made recommendations to the Ministry of Finance that mortgage brokers should be entitled to collect advance fees for residential mortgage transactions so long as those funds are held in a trust account maintained by the mortgage broker, a lawyer or a notary, withdrawn in accordance with the terms of a Client Services Agreement and after the contractually agreed upon services of the mortgage broker have been performed.

In addition, the MBABC has recommended that like mortgage brokers in Alberta, mortgage brokers in British Columbia should be permitted to take a fee at the time they provide a mortgage commitment to the client, provided that cost of credit disclosure rules have been followed. After all, harmonizing the advance fee rule in British Columbia with that in Alberta for mortgage brokers further assists in fulfilling the mandate of the New West Partnership and Trade Agreement and the Agreement on Internal Trade, which promotes labour mobility and harmonization between British Columbia and other provinces.

Samantha Gale

28

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

RMG mortgages The Right Partner Makes All the Difference.

Industry leading compensation Competitive fixed and variable rates Realtor referrals through mortgage brokers and agents for property listings Client referrals direct to mortgage brokers and agents Up to 3% cash back mortgages Industry leading transfer/switch program

Contact your Business Development Manager for details!

Sasha Idema Lower Mainland

604.328.6901 sasha.idema@RMGmortgages.ca

Tania Hatcher Island & Interior

250.818.3884 tania.hatcher@RMGmortgages.ca January 2013 RMG Mortgages is a division of MCAP Financial Corporation Ontario Mortgage Broker licence no 10600 & 10515 Ontario Mortgage Administrator licence no 11692 & 11790

p ro f i le

|

B R O K E R

MBABC’s Member Broker Profile presents

Kelly Wolfe

Mortgage Broker Lendingmax

How long have you been a Broker in the Kelowna area?

Officially I am going to say 3 ½ years. I did get my license 5 years ago, however, spent about 8 months caring for my ailing mother. I have been with Lendingmax since April 2009.

What is your past experience?

Oh my goodness. Where do I start? I have been in the “money” business for over 25 years. I have been a lender in a branch, an area manager for CMHC, a manager for a credit union broker center, plus a BDM for a major lender. I sometimes refer to myself as a fossil in the industry. I must like it because I am still doing it.

Coming from the lender/ insurer side, how are you enjoying being a Broker?

I am so glad I have a diverse background in the mortgage business. It really helps to know how to structure deals so they make sense. There is so

30

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

much change – with insurers and lenders that we need to stay on top of things. It is important for Brokers to know the BDM’s are there for a reason.

Use them to help you put deals together. Use the resources available to you – like the insurers’ websites and lenders websites. It doesn’t hurt to know your competitors too. You may need them at some point.

What is your opinion of the town hall meeting that you attended with MBABC? No question – I am so glad I went. Wow, we have a lot of work ahead of us in BC with regards to regulation and registration in our province for Brokers. We don’t realize how great a team we have at MBABC spear heading our future.

There was a lot of information given at this meeting and it was great to have it done locally. We sometimes think we are isolated from what is going on – the truth is we are all in this business together.

Do you feel being a member of MBABC is important?

For sure. I have been a member for many years. In the past it has felt more like a social club, however, I am impressed with the work that has been done in the past few years. I feel the Directors and Staff have been working diligently to ensure the integrity and professionalism of our Industry. This to me is the most important aspect of MBABC. Education is key as is visibility.

Working hand in hand as a government liaison and protecting the future of the Mortgage Broker business.

If you could improve anything with MBABC what would it be?

Tough one. Perhaps a little more regional representation at the board level. I know travel makes it difficult for folks to be board members, however if there was some way to engage brokers from other areas of BC – like Northern BC or the Kootenays? Maybe you could have web meetings/conference calls.

Just a suggestion.

repo rt

|

F R O M

T H E

C O M M U N I C ATI O N S

C H A I R

NEW MBABC CONSUMER

Facing Website Geoff Willis

I hope that 2013 will be defined as the year that BC brokers began to collaborate in achieving awareness amongst mortgage consumers that Your Mortgage Broker is your first choice in satisfying a mortgage need.

produce frequent content in order to be the media’s first call for mortgage input. Watch for the MBABC President and other MBABC members to be featured in local media stories on television, radio and in print.

This will begin with a new MBABC consumer facing website that we will all work towards driving consumers eyeballs to. This will be achieved by promoting with search engine marketing activities and targeted Google ads. You will hear more about this strategy in the second quarter of the year as we move towards a nearly completed consumer facing web presence.

Please give some thought to how you can play a role personally in promoting the MBABC umbrella brand for all

mortgage brokers to win the hearts and minds of consumers, and see this as a win for you!

If at any time you feel that you have an idea or concept that would help us as an industry to advance our communications to consumers, please don’t hesitate to share it with me or with the association office directly.

Video will also become more prevalent for MBABC in its desire to connect to both members and prospective mortgagors about the benefits of working with an MBABC member broker.

If you want to be active on social platforms and are challenged with fresh content to share with your followers and friends, MBABC is a great solution as a regular provider of current and local content. To be aware of this news and to be able to share with your contacts, start by following MBABC on Twitter and Liking our Facebook page.

Now that we are six months in with the new lending rules, it appears clear that they have had some impact on transaction activity we can anticipate the local media doing more stories on real estate and lending for real estate. The MBABC will be working hard to VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 31

stressful.

Un

In the world of banking, common sense has become surprisingly uncommon. Rules are piled on top of rules, making life harder than it needs to be for everybody. Well, that’s not how we operate.

We strive to do right by our broker partners in a way that simply makes sense, like our new Advantage and Edge programs. We’re Bridgewater Bank, and That’s just how we do things.

Bwballstarportal.ca

Delivering Capital.

Direct … to your Client Direct … to your Brokerage Direct … to your Bottom Line Contact your Business Development Manager today to learn all about our alternative lending solutions for your “B” Clients.

The broker’s recource for

Real Equity Lending for Homeowners 32

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

Greg Kakuno

Direct : 604 329 6067 Fax: 604 430 3287 Email: gkakuno@capitaldirect.ca

ar t icle

how are you

Giving Back

If you’re well established in the mortgage brokering landscape, chances are, you make a decent living. Your community has supported your career and your word-of-mouth business is flowing smoothly. So, what are you doing to pay this success forward and support your local community?

Or, if you’re fairly new to the industry and want to become the go-to mortgage expert in your area, there’s no better and cost effective way to become known that donating your time and energy to a local cause.

Even if you’re committing marketing dollars to a local cause, you’ll get much more exposure if you actually show up at events and further back the initiative. Volunteer your time to clearly demonstrate that you care about the cause and your community.

It’s pretty easy to find causes or activities to support in your local community. But the key is to do more than simply make a monetary contribution once a year. Sure, money can help, but you’ll get much more out of the experience – both on a personal and business level – if you also donate your time to fundraise, coach a sports team or even gather items for the local food bank.

These are feel-good measures that not only help deliver a personal sense of pride and accomplishment, but also assist you in reaching out to so many more people around you.

Getting involved in your community shows you’re dedicated to improving the lives of others and will help you stand out as a great person and broker.

Voluntary work can also help you further enhance a range of useful qualities required in your day-to-day business including project management, team building and social development.

A day spent working together on a project outside of regular workplace activities also enables people to assume different roles, which can bring more reserved people to the forefront and encourage everyone to work in a more coordinated manner.

If you’re running an office or franchise, think about encouraging employees to spend time out of the workplace lending their skills to causes they value. This can increase their total job satisfaction and strengthen their attachment to your workplace. What a great way to build morale.

Getting involved Following are three ideas to help you get more involved in your local community: 1. Sponsor or Host an Event. Whether it’s a local Canadian Cancer Society Relay for Life event, a Variety Village fundraising event, a local kids’ sporting fundraiser event or some other local program, most communities have at least one large event in need of sponsors. Read the local newspaper(s) for upcoming events. Can’t find a local event that fits your business? Why not host your own? All it takes is a little planning, support from your suppliers and favourable media coverage, and you have the makings of a wonderful marketing opportunity and a great community event.

SNAP newspapers, for instance, are more than willing to promote upcoming events as well as often send someone out from their team to cover local events.

2. Adopt a Project. Once you begin looking for an organization to become involved with, you’ll probably find your community has many projects, big and small, that could use your hands-on volunteer support. Why not ask your referral partners if they need any help with their community initiatives? Remember that volunteering your time is as valuable as making a monetary donation – and your business will likely see more benefit by being active in the community as opposed to solely donating money towards a good cause.

3. Join a Group. Getting involved can help build a bond between your business and the community. It also introduces you to others within your community who may share common interests and needs. Become a member of the Chamber of Commerce, Better Business Bureau, Business Network International or another club to make some business connections, as well as some friends.

It’s easy to say that you don’t have time to get involved in your community but, the truth is, you and your business can’t afford to miss out on the wonderful opportunities and relationships that can arise from giving back to you local community.

Cindy Freiman, Director of Public Relations & Communications DLC cindy@dominionlending.ca 289.240.6322 VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 33

ar t icle

above

going

AND BEYOND What a Trusted Appraiser Partner looks like in 2013

What is a Trusted Appraiser Partner?

Whenever I speak to mortgage professionals I ask them, “What does an ideal appraiser look like to you?” There are varying answers but it comes down to someone they can trust. This term trust means different things to different people. For many, it is the quality of the appraisal report, for others, it is the speed in which the appraiser can turnaround the report. More often than not, it is a combination of the two and knowing the appraiser is available for consult when required; herein lies the term, Trusted Appraiser Partner.

Every individual in the real estate industry is feeling the pinch; realtors are seeing record low sales volumes, mortgage brokers are fighting with lower amortizations, LTV ratios, and declining equity across the board, and appraisers are struggling with declining fees and AVMs (automated valuation models). However, this point in any industry cycle presents the golden opportunity for those professionals who have self-educated, networked and built systems to provide unparalleled service. These professionals will come out of the cycle, stronger and possibly with less competition moving forward. In order to remain competitive and to ensure client satisfaction, many appraisal firms are going above and beyond the fundamentals, providing excellent service to their mortgage broker clients. Ensure your appraiser is exceeding your expectations in 2013 by committing themselves to the following ideals:

Quality and Speed This goes without saying. If an appraisal firm does not have the ability to turn around high quality reports in 24 hours or less consistently, they will not thrive in today’s incredibly fast paced environment. Quality precedes speed, but a wellwritten appraisal report that does not meet a tight deadline is as good as scrap paper. The appraiser’s ability to manage quality and speed is paramount. It requires an innate ability to prioritize and manage many assignments at once.

34

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

Example: A mortgage broker from Vancouver Island called me on a Monday and asked if I could see a property on Bowen Island and have it done by the end of the day. As always, I looked to see if I could fit that in my schedule but unfortunately I could not. Upon further inspection, I was able to re-schedule an appointment at no impairment to the home-owner and re-arrange a few personal things. Long story short, I was on the next ferry and the report was completed in time.

Knowledge Similar to real estate sales, an appraiser must be familiar with the local markets and property types. The nuances of Downtown Vancouver and the variances of farmland in the Okanagan cannot go unnoticed. Don’t be afraid to ask your appraiser if they have completed similar assignments in the past. The last thing a mortgage broker needs is a deal turned down by the lender because the information contained in the appraisal was inaccurate.

Example: A few months ago I was asked to complete an assignment of an apartment building for a client. Despite my experience with apartment complex valuations, I felt that this assignment required someone with more expertise in that area. I declined the assignment and referred it to someone with more experience in that specific property type.

any necessary changes that are evidence based. If you and your team have a solid relationship with your appraiser, ask him or her to present on various aspects of the appraisal process during a team meeting. The appraiser can cover topics often asked of them, like “Who is the client?” and “How do you determine remaining economic life?”

Communication

In 2013, ensure your Trusted Appraiser Partner is providing you with unparalleled service excellence.

I remember going through college and hearing the professor say that communication skills were the number one asset companies were looking for. It seemed trivial at the time, but after six years appraising real estate, this has become very apparent. Below are some examples of good appraiser/broker communication: The appraiser should notify the mortgage professional of the appointment time and due date.

When an appraiser enters a property and it is not what they expected, they should give the mortgage broker a call immediately.

If the mortgage broker is relying on a value which seems unusually high, the appraiser should contact the mortgage professional before viewing the property and/or typing the appraisal report. It is possible there is not enough equity in the property to proceed with a full appraisal.

Example: A few weeks ago I was asked to complete an appraisal for a mortgage client. It was a million dollar home in West Vancouver. Upon arrival, and unbeknownst to the mortgage broker, the home was in the process of being renovated. Before completing the inspection, I called the broker client and notified her of the current condition. They were relieved because the lender they were using would not lend on a partially finished home. If the appraisal had been completed without consultation, it would have been unusable.

Education It is imperative that you work with an appraiser that is a member of the Appraisal Institute of Canada. There is the CRA (Certified residential appraiser) designation and the AACI Accredited Appraiser of the Canadian Institute) designation, each which allows the appraiser to value all residential properties with 4 units or less; whereas the AACI is required for any residential properties over 4 units and any commercial type property. These are the most accepted designations amongst banks and lenders and each designation ensures its holder upholds the most rigorous education standards and ethical practices. As important as it is to learn the theory of real estate valuation, it is equally important to educate the readers and users of the reports as well. This includes homeowners, lenders and brokers. When a mortgage professional asks why a certain comparable was used or why another comparable was not used, it is imperative this discussion take place and the rational be explained. It is indeed acceptable for an appraiser to review a file and make

Make sure that the appraiser is: • Completing appraisal reports with speed and accuracy • Familiar with the property type • Exceeding your communication expectations A member in good standing with the Appraisal Institute of Canada and willing to present to your team on appraisal theory and relevant appraisal issues that affect Mortgage Brokers.

Thank you. Have an awesome 2013!

Adam Lawrenson, AACI, P.App Accredited Appraiser with the Appraisal Institute of Canada adam@lawrensonwalker.com If you or your team would like to have Adam Lawrenson present at your office. He offers a 30 minute presentation titled, “Appraisal 101 – What Brokers Need to Know”

The Jones Brown Errors & Omissions Liability Insurance program is designed to be a quick and efficient way to get the best possible coverage at the best possible rate.

With an electronic application and readily accessible program contacts who have authority to quote and issue policies on behalf of the Insurer – you can spend time doing what you do best, running your business.

Steven Cole

MBABC Program Executive 604-609-2199 scole@jonesbrown.com

Kate Ramsay

Account Executive 604-609-2192 kramsay@jonesbrown.com

JONES BROWN INC.

MBABC E&O INSURANCE This program is designed for professionals, by professionals, with each policy as unique as your business.

You’ve worked hard to attain all that you have.

Protect it today with an Errors & Omissions policy through Jones Brown Inc. and Royal & SunAlliance Insurance.

JONES BROWN INC. | Suite 805 ‐ 609 Granville Street | Vancouver, BC | V7Y 1G5 | 604-608-6323

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 35

ar t icle

AN Overlooked

Opportunity... debt consolidation The Opportunity For well over a year now, from Global TV NEWS to Twitter, every media outlet has been littered with stories about Canadian consumers having too much debt.

We’ve all heard them, but here’s a reminder….

Debt increasing 400% faster is a headline included in a report from The Canadian Press, November 14, 2012. At that writing: auto loans average $19,228.

Installment loans average $22,849. Credit cards average $3,573, and Credit Lines sit at $34,050. If we assume each person only had those averages owing, we get $79,700. That’s PER PERSON! Some households have more than one person with debt like this.

As of the end of Q3 2012 Stats Canada showed this amounted to $474 billion in non-mortgage debt. For comparison Canadian mortgage debt was $1,079 billion at that same reporting. So refinancing opportunities could potentially be more than 40% of the mortgage market. This is a huge opportunity for mortgage brokers to help Canadian homeowners and prove that mortgage refinancing can benefit the Canadian economy. After all, less money spent on interest is more money available to spend on things we need – that’s a solid rule for everyone.

There are only two groups of professionals I can think of who can provide immediate prescriptions for that malaise: Debt Counselors and Mortgage Professionals. It’s apparently a huge untapped market and Mortgage Brokers actually have many of the skills and most of the solutions, to help consumers reverse the trend and improve their credit health.

The Timing Now is an excellent time of year to focus on this market niche. As I write this article, people are just starting to receive their credit card statements with all those Christmas purchases on them. In the booming economy we experienced prior to the 2008 financial crisis a pay-what-we-can attitude worked for many people.

People’s jobs were fairly secure, and probability of income increases was realistic.

That attitude didn’t necessarily get their balances paid down but it did create an illusion that the monthly payments were affordable. That’s not the case today. To paraphrase the “leading economists” panel at last November’s CAAMP Conference “the economy we’re in now is the new normal for probably the next 3 years”.

There are no clear signs that the economy is going to improve in the near future, 36

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

so a wait-and-see attitude towards reducing consumer credit balances is not a viable solution today.

Background

good feeling. Starbucks and Tim Horton’s base their business on this concept, and they deliver the perceived benefits of caffeine as well. That one product alone at $4.00 a day can add up to $1,460.00 a year on our debit or credit card.

Cause #1 Marketing Psychology

Cause #3 Realization

Ever heard the saying “more credit to ya”? The word credit is often used to describe something good, additional.

Having more “credit” can be a status symbol. There’s a reason the marketing spin-masters called them Credit Cards, and Lines of Credit. How many would have been issued if they had been named: Debt Card and Line of Debt? They’re only Credit until we use them, then they’re immediately Debt. That said, Lines of Credit can be very practical and useful tools and like any tools they’re most safely used by those who have been properly trained.

Did you ever receive your credit card statement and the balance due was higher than your thought it would be? We all have. If we buy something for $36.50 and give the seller two $20 bills then receive back: a Toonie, a Looney, and 2 quarters we have a good understanding that we now have less resources and a visual reminder of what we DO have.

When we make that same purchase and using credit simply sign our name on an electronic pad, or enter a security code, there no tangible evidence that we now have less money than before. It’s a psychologically different transaction and makes it easy to spend too much. (The credit card companies know it!)

Cause #2 Chemistry Every emotion we experience is connected to a chemical rush that our brains experience. When we shop for and buy something our brains get a flush of Dopamine (the ‘feel good’ chemical). People are easily addicted to the feel-good sensation they get when they buy something and we will buy things, whether we need them or not, just to get to that

The Symptoms The three major symptoms that cause debt burdened people to seek relief are: monthly payments too high, stress about “how much we owe”, and a realization that they’re never

Delivering Great Service.

Equitable Trust provides The Broker ExperienceTM with service that guarantees:  customized solutions,  consistent and clear pricing,  and the satisfaction of closing a deal.

We specialize in Business-For-Self, newcomers and credit challenged clients.

Call us today!

Ian Silvester Manager, Residential Mortgages, (B.C.) T 604.561.4966 E isilvester@equitabletrust.com Tim Wachter Manager, Business Development, (Western Canada) T 403.470.4434 Toll Free 1.866.940.1201 E twachter@equitabletrust.com

www.equitabletrust.com MBABCAd_HalfPg_Winter2013.indd 1

13-01-03 1:26 PM

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 37

The Options we you can present to them include: Equal Payment Plan whereby the focus on paying off their smallest balance first. When that account is paid off, add that payment to what they’re paying on their next smallest balance and keep doing that until all the debts are repaid.

Second mortgage Consolidation Loan.

A line of credit can be a band-aid solution but will not give them a forced debt reduction plan. A fixed repayment loan will.

First mortgage refinance Lastly the Do Nothing option. Point out that their alternative is to keep doing what they’re doing and experience the same results they’re getting now. going to get ahead without help. A Mortgage Broker can be a good place for those needing credit help to turn to and in my own career I have on several occasions provided a way out that avoided the credit report blemishes that an Orderly Payment of Debts plan can cause.

The Ways We Can Help Let your clients know that you can offer advice and solutions to reducing consumer credit payments. (monthly payments will be a bigger annoyance in their lives than the total they owe).

Get permission from the client. Ask if it’s OK with them for you to share what you know about consumer credit. Getting that permission is key to them not taking what you’re about to explain as judgment of their situation.

Gracefully explain the problem in a third party perspective.

Tell the story without it being about them. Preferably tell your own story.

Show them options.

Ask them to choose one.

Share that accountability is important to their success in mastering the credit and ask them if they would be willing to allow you to follow up with them on their progress.

Give them something in writing outlining the plan they’ve decided on. If you want to push the envelope, ask them to sign it.

Assure them the plan has worked for many and will work for them also.

38

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

Whether it’s, pay their balance off faster, lower their monthly payments, or do both, Mortgage Brokers have the professionalism, tools and skill-set to help them. As an added bonus we can add in Hope for free!

Do these things and you’ll go a long way to creating a Client for Life relationship.

As part of a new partnership with MBABC, Mortgage Mentor is providing a custom edition of their “Payment Optimizer” debt consolidation analysis tool. To tie in with that MBABC has also negotiated a special arrangement on Mortgage Mentors IRD-Calc pre-payment penalty module.

Since the passing of the Business Practices and Consumer Protection Act in 2006, Mortgage Mentor has been providing selected users one of the most broker & borrower friendly versions of the Cost of Credit Disclosure form.

This is now available at no cost as part of this new MBABC – Mortgage Mentor relationship. More can be learned at www.mbabc.ca or www. mortgagementor.com Rick Robertson President MMI Mortgage Mentor Inc. “building the best Broker tools since the fax machine”

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

C

M

Y

•

CM

rates and nominal lender fees , Manitoba and Ontario

MY

CY

CMY

K

olution” RICHARD EARLES

richard@vwrcapital.com

Extra leverage when you need it.

When walls are going up at every turn, you’ll sometimes need a little extra leverage to secure financing. At Paradigm, our multi-faceted team works together with the brokerage community utilizing a variety of tools 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 find the right solution for you and your clients, giving them the extra leverage they need to get back on their feet again.

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

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 39

ar t icle

email USING

to send MORTGAGE

INFORMATION

Promotes Date Breaches and Violates Privacy Laws B.C. Health Ministry data breach affects millions, Jan 2013 Legal threats over data breaches come as government ponders new ways to secure information, Jan 2013.

Federal department bans use of portable devices after personal data breach, Jan 2013 No longer does a week go by without another serious data breach being reported by the news. What implications do these data breaches have on the mortgage industry? To answer this question, there are four key issues that we need to focus on: Whether digital communication methods deployed by the mortgage industry contribute to data breaches and enable identity theft.

How the failure to comply with current and emerging electronic privacy laws can result in unintended consequences for industry members.

How increased awareness of e-Privacy standards amongst the mortgage industry clients can negatively impact the volume of your deals.

How industry standards and viable technology solutions can address potential problems.

In considering the issues above, we need to understand the root cause of a data breach and identity theft. The vast majority of breaches occur because sensitive information was not encrypted. Encryption is defined as the process of encoding messages (or information) in such a way that eavesdroppers or hackers cannot read it, but authorized parties can.

Whether digital communication methods deployed by the mortgage industry contribute to data breaches and enable identity theft.

This brings us back to common digital practices used by the mortgage industry. The answer is an overwhelming yes!

Although there are some exceptions noted below, the majority of mortgage professionals are still using e-mail or fax to disseminate sensitive information which includes mortgage applications and supporting documents. The focus of this discussion will be on e-mail.

The use of e-mail is systematically contributing to the data breach and identity theft problem. Why is the case? Using e-mail is just like sending a postcard over the Internet.

E-mail is not encrypted. Even worse, as e-mail traverses the Internet it can leave copies of itself and its attachments on any e-mail server that it encounters. Anyone who has access to those servers or deploys an e-mail sniffer may for example, read the contents of your client’s mortgage application. Information such as a SIN number, birthdate or an address can be used to steal your clients’ identity. The risk here is enormous and the consequences of a breach will significantly damage the reputation of the mortgage industry.

How the failure to comply with current and emerging electronic privacy laws can result in unintended consequences for industry members The volume of Canadian data breaches being reported has led to significant hardening and enforcement of provincial

40

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

electronic privacy law with Alberta taking the lead. New provincial privacy laws such as PIPA (Personal Information Protection Act of Alberta) have emerged that require the use of technical safeguards (encryption of sensitive information) and are now being enforced by levying fines against offending companies and making the violation a matter of public record.

Alberta has also implemented a streamlined process for an individual or company to report a privacy violation to the Office of the Information and Privacy Commissioner of Alberta which has serious ramifications for the offending company. The privacy violation could be as simple as a broker’s client receiving an e-mail containing sensitive information or finding out that the broker uses e-mail to shop his or her mortgage application to different lenders. The client’s recourse is as follows: The client fills out a readily available electronic complaint form and submits it to the Office of the Information and Privacy Commissioner of Alberta.

The privacy commissioner’s office will phone the offending firm to ensure that they put safeguards in place to prevent the violation from recurring.

If safeguards (e.g. encryption) are not in place after

approximately 45 to 90 days, a privacy officer or adjudicator can fine the offending company and make the complaint public on their website. A formal inquiry will now take place and may involve a privacy audit of the offending firm.

It is expected that a similar enforceable version of PIPA will be coming to British Columbia and Ontario in 2013.

How increased awareness of e-Privacy standards amongst the mortgage industry clients can negatively impact the volume of your deals.

Potential and existing clients of a mortgage broker have also been exposed to the data breach headlines. This has had the positive effect of educating and increasing their e-Privacy awareness. This increases the likelihood of them asking a broker about how their digital information is being protected as it goes through the various stages of approval. Such questions may include, is my information encrypted? How long does it live? Who has access to it? It is inevitable that brokers are going to have to come up with sensible answers which are going to put backward pressure on lenders and brokerage firms to put secure systems in place. Simply put educated clients will reject brokers who do not comply with electronic privacy laws.

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 41

Mandate industry standards and viable technology solutions to address the problem.

Now that the “e-mail” problem has been clarified, it is critical to understand how to address it. Mortgage professionals need to be better educated on the risks of using conventional digital communication methods as well as understanding their electronic privacy obligations. This includes assessing liability and potential loss of reputation if a breach occurs. Viable technology alternatives need to be considered to replace e-mail for sensitive communication and be deployed as soon as possible. Additional policies should be phased in that simply reject any sensitive information that is sent using conventional non-secure channels. In the interim, priority should be given to information that is sent securely which would most certainly include mortgage applications.

It is my opinion that a cloud based solution that has appropriate safeguards is the most practical choice as it leverages the web without having to install software and can be very quickly deployed. Furthermore, cloud solutions can present other features that are not in e-mail which can be made available to give the sender better productivity and control

of their information; this would include message recall if it has been sent in error and message expiry. Productivity comes in the form of message tracking and unlike e-mail, imagines that one knows with 100% certainty that the recipient picked up your message and downloaded your files.

As mentioned above, there are some exceptions and bright lights in the mortgage industry, who have secured their electronic communications including a handful of brokers and brokerage firms. INVIS and Mortgage Intelligence corporate IT department, under the leadership of Nicole Brass, have recognized the importance of having a secure and encrypted way to communicate sensitive and/or confidential information with its Brokers and business partners. They have set an excellent example for other brokerage firms in an effort to eliminate the risk of identity theft by using E-Courier to exchange sensitive electronic communications since 2008.

Given the risks at stake it is prudent and imperative that other brokerage firms and lenders follow their example.

Eric Gold , C.E.O & Founder http://e-courier.ca Secure file and message transfer made simple Office: 604.261.4631 Mobile: 604.868.1221

Watch Video Panel discussion available only in Digital Magazine Watch only through Digital Newsstand – available at the Apple Newsstand and iTunes and the App Store.

INTERACTIVE DIGITAL ADVERTISING OPPORTUNITIES Available for iPad, iPhone and Kindle

Get the most out of the BC Mortgage Broker by adding a digital component to your ad. These enhancements will bring your ad to life, give clients even more insight to your business and experience what you have to offer.

Features include live web links, emails, video embeds, audio embeds, slideshows and address for GPS. All annual contract holders will get their first ad free.

42

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

Thank You TO OUR

ADVERTISERS

Antrim Investments – New to private lending? Our friendly and knowledgeable underwriters will help you every step of the way, creating a custom mortgage solution for your clients. Antrim offers residential 1st and 2nd mortgages (OPEN TERMS STANDARD) and some of the most convenient residential construction financing on the market.

Armada Mortgage has been lending since 1995. Our goal is to help brokers structure a financing solution based on the client’s overall objective. We work in a team environment which contributes to a broker/customer service experience that will have you coming back to work with us again. Call or email us for guidelines and Rates that your borrowers will say yes to!

Bridgewater Bank is unbanklike. We’re broker-focused, helping you succeed with uncomplicated and unconventional service and solutions. We are the uncommon, unstressful Schedule I chartered bank with a portfolio of over $3.5 billion representing over 66,000 accounts across Canada (with the exception of Quebec). We aim to do right by our customers and partners in ways that make sense.

That’s just how we do things.

Caplink Financial Corporation – Due to our experience and broad funding capabilities Caplink can customize financing packages to accommodate first and second mortgages, blanket mortgages, bridge financings, business for self, poor credit, bankruptcy settlements, foreclosures, hard to verify income and other specialized financings.

Caplink will finance residential, commercial, retail, industrial, multifamily, recreational, and acreage properties. Our prime lending areas are Alberta and B.C. Central City Law Corporation is a Surrey law firm owned by Michael A. (Mike) Christ, who is a lawyer, former mortgage broker and member of the MBABC. Mike has almost 30 years experience in residential mortgage and real estate law and works with major project marketing firms and leading institutional and private lenders.

Cove Mortgage Ltd. – Offering 1st, 2nd, and 3rd mortgages since 1976 from $20k up to $2 million all across B.C. on residential, rentals and small commercial. Cove helps brokers to quickly put the pieces together and find creative mortgage solutions. With a team of highly experienced Underwriters and support staff Cove is committed to excellence and professionalism. Please give us a call at 604.929.8156.

Dominion Lending Centres – With unstoppable growth since inception, Dominion Lending Centres has grown a network of members that span from coast-to-coast, becoming known as Canada’s National Mortgage Company. People join for many different reasons: the compensation, the technology, the training, the vision, the brand, and more. Make your career your success story, contact us to learn more. We look forward to serving you!

Equitable Trust Company – Founded in 1970, Equitable Trust is an alternative mortgage lender whose core business is first charge mortgage financing. Equitable serves single family borrowers and their mortgage advisors in the Lower Mainland of B.C. including west

of Vancouver to Chilliwack to Abbotsford and the Victoria region.

Customers include business-for-self, Canadians, newcomers, and investors who do not meet the traditional credit criteria of the major banks.

First National Financial LP - Mortgages are our specialty. With more than $65 billion in mortgages under administration, First National is the largest non-bank provider of single-family residential mortgages in Canada. Our mortgage specialist and our award-winning technology Merlin, help you build and manage your business more effectively so you can close more deals. With offices in Vancouver, Calgary, Toronto and Montreal, First National offers you national coverage and local market expertise to ensure success.

Home Trust is Canada’s largest independent trust company with over 600 employees, proudly serving Canadians for over 25 years.

We are the industry leader in alternative mortgages and offer a wide range of financial services, including prime residential mortgages, commercial mortgages, deposit products, and Visa* cards. *Visa Int. /Home Trust Company, licensed user of mark.

Jones Brown - From our beginnings in 1997, Jones Brown’s mission has been to be Canada’s finest, privately held insurance brokerage and risk management consultancy. We are very proud of the Errors & Omissions insurance program we’ve created exclusively for MBABC members, which offers the most responsive service in the industry, and very competitive pricing. Call us today to see what you’ve been missing.

Lanyard is a non-bank lender providing low cost and creative financing solutions in B.C. and Alberta. We offer: • Loan Amounts: $1,000,000 to $15,000,000 • Interest Rates: typically 5.75% to 8.5% • Income Property Loans: up to 75% of value • Condo Inventory Loans: up to 65% of value • Call toll free: 866.698.5388.

Lawrenson Walker Realty Advisors Ltd are clear leaders in the field of Residential Real Estate Appraisal and Consulting. Serving the Lower Mainland of Vancouver and the Fraser Valley, we offer a full range of valuation and consulting services to a wide variety of lending institutions and private individuals. Originally founded in 1992, Lawrenson Walker has grown to become one of this region’s most widely trusted and respected firms in the business today.

Mandate National Mortgage Corporation is a MIC carrying on business in B.C. since 1982. The Company’s business is to obtain a stable source of income by investing in a diverse portfolio of residential and commercial mortgages. Such properties include single family and multi-family dwellings, commercial and industrial properties inclusive of pubs, marinas, strata, retail/office and development loans. Mortgages cannot exceed 75% of the appraised value of the property. The Company generally restricts its lending to major centres in B.C. & Alberta.

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 43

THANK YOU TO OUR ADVERTISERS continued MCAP is one of Canada’s largest independent real estate lending companies, providing construction financing and mortgage solutions for residential and commercial properties. We work exclusively with the broker channel for mortgage originations, providing underwriting and securitization services. We have been rated # 1 overall in the CMP Brokers on Non-Bank Lenders Survey for customer service and our Professor Broker tool.

Mortgage Architects is a national mortgage brokerage with a national network of brokers across Canada and offices in Toronto, Mississauga, Vancouver, Calgary, Laval and Halifax. Mortgage Architects is the only brokerage in Canada where brokers benefit from ownership of a lender and the unique opportunities of this affiliation. Their client-for-life focus helps brokers build their business today while supporting their growth tomorrow.

Paradigm Mortgage is an alternative lender sourcing equity loans through licensed brokers in B.C., Alberta and Saskatchewan. We lend on 1st and 2nd mortgages, either residential (75% LTV max), commercial (65% LTV max) or construction (65% LTV max). Our primary lending areas include urban areas of B.C., Alberta and Saskatchewan.

Loan amounts of $50,000 to $5,000,000. “Let’s Talk Solutions!”

Peoples Trust Company - Specializing in Alternate Equity Lending, Peoples Trust offers an alternative to borrowers who may not meet all of the lending criteria of the major financial institutions. We pride ourselves on excellent service, flexible terms and a common sense

approach. We can help self-employed borrowers or applicants with imperfect credit on large loans, bridge financing & rental properties.

The Real Estate Institute of British Columbia is an organization of diversified professionals whose mission is to advance and recognize excellence in education, knowledge, professional development and business practices uniting all sectors of the real estate industry.

Our members come from every sector of the real estate profession and have the coveted R.I.(B.C.) or RI designation.

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $1 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M. Each application is considered on its individual merits. With direct access to decision makers, Romspen leads the industry in time-sensitive lending.

Sherwood Mortgage Group is a boutique style brokerage firm operating as part of the Mortgage Architect Planning Network. With over 20 years experience, our TEAM at Sherwood is committed to producing top performing brokers – our future growth and success depends on you. Join our TEAM of seasoned professionals who know the business and understand how to support you so you can perform your best. Smart Minds, One Vision!

Street Capital Financial Corporation is a Canadian owned

WHY MORTGAGE ARCHITECTS? I’m at Mortgage Architects because I believe in the future and longevity of this company. Led by industry veteran Ron Swift, the vision and leadership make me proud to be in partnership with Mortgage Architects. The structure of this broker/lender company offers unique opportunities and levels of support that are unparalleled in this industry.

That’s why,

GREGNOWIK FRANCHISE OWNER

Visit joinma.ca today to learn more.

Brokerage 10287 © Copyright 2013 Mortgage Architects Inc. All rights reserved..

44

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

residential mortgage lender. Street Capital prides itself on offering a broad spectrum of mortgages, competitive interest rates and exceptional customer service. Street Capital is proud to work with mortgage brokers to help more Canadians find financing solutions for home ownership. Street Capital is owned by Counsel Corporation, a financial services company listed on the Toronto Stock Exchange (TSX: CXS). For more information about Street Capital, visit: www. streetcapital.ca.

TD Broker Service:

V.W.R. Capital Corp. - We are a private mortgage investment corporation specializing in lending 1st, 2nd, and 3rd mortgages for individuals who cannot qualify through conventional financial institutions. We work with a large network of mortgage brokers and currently lend in British Columbia, Alberta, Manitoba, and Ontario. No minimum beacon score, NIQ, 75% LTV max, equity lending, and nominal lender fees starting from $500.00!

Westkey has been in business for over 50 years and is 100% Canadian owned and operated.

TD Broker Service is a national mortgage lender dedicated to service excellence. We offer competitively priced mortgage products designed to help brokers develop mortgage solutions. We provide professional Regional Sales Managers to help you grow your business.

TD is a recognizable brand that you and your customer can trust. We have 1,100 Branches with convenient hours to serve you better.

Our focus is to serve our customers with a one stop one source solution for all of their print, marketing and communication needs. Our Head Office and flagship manufacturing facility is situated in Beautiful Vancouver BC, where we manufacture and distribute throughout Canada.

Vector Pacific has always been known for our ability to be your Commercial mortgage specialist. In addition to that we manage a MIC which allows us to do Residential Construction and Equity loans. We also have the ability to fund truly private challenging loans. It’s our business to say “Yes”!

Capital Direct Lending Corp.

Appraisal Institute of Canada - British Columbia D+H

VERICO is Canada’s Number One Mortgage Broker Network. Find out why the most respected brokers and influential mortgage companies in this industry are members of the VERICO Network.

Talk to us. You’ll be impressed.

MBABC_HalfPg_Ad_1212.pdf 1 12/18/2012 2:58:17 PM

Mortgages at the speed of life With First National you can rely on the strength and innovation of our technology and the flexibility of our mortgage solutions – designed to keep you responsive to the always changing needs of clients.

C

M

Y

Mortgage solutions are our business – making clients’ home ownership dreams come true is yours. Let’s make this happen together, call your Account Manager today.

CM

MY

FirstNational.ca

CY

CMY

K

Delivering Ser vice. Creating Solutions. Building Success. *2010 Broker on Lenders study, conducted by CMP Magazine and published September 2010.

VOLUME 3 • ISSUE 9 • 2013 | the bc mortgage broker 45

New MEMBERS welcome WELCOME

FIRST NAME

COMPANY

apps Velji

verico select Mortgage Corp.

Afro-Canadian Mortgage Ltd.

Wesgurjinder

athwal Steele

aK Mortgage Financial Plus inc.Inc. All Mortgages

Hanny Kurt

au Wipp

Macquarie Financial ltd.

Alpine Credits

gordon

Beynon

Dominion lending Centres vic City Mortgage group

Owen

Brown

invis inc.

Brian

Buchanan

invis inc.

Sean

Yadong

alfredo

Stanley Sezginalp

Wang Carrete

ALT Mortgages

Augustin Financial

Augustin Financial Dominion lending Centres Casa Mortgage inc.

Emily Erin

Hayward Chadwick

Augustin Mortgage Financial Meridian Mortgage services alliance

Kevan shashi

Ibbotson Chander

BayfieldParagon IslandPro Mortgagegroup inc verico Mortgage

Jason Spencer

Chapman Ennis

northern savingsProfessionals Credit Union Bayfield Mortgage

Marion Sukhdev (Dave)

Chekaluk Sumra

Ecom appraisals inc. Corporation Centum Axis Mortgage

Patrick

Laura

Cheng

Kershaw

Mortgage Centre - Mortgage Evolution CMHC

Dulce

Coelho-Fedoriw

verico select Mortgage Corp.

Heather

Briglio

Cove Mortgage Ltd

Randy

Kirk

Colman

invis - Mary Ellen Colman

steven

Corcoran

invis inc.

Chris Peter

Pornaras Daniel

D+H select Mortgage Corp. verico

Amanda Janine

Hampton Davies

DLC 360group Financial g & Compass F Financial

Candice Scott

Delorme Allan

invis inc. Lending Centers Valley Financial Specialists Dominion

Paul Mark

Forbes

CRG Mortgage Investment Inc.

Devine Smith

scotia Mortgage Dominion Lendingauthority Centres - A Better Way

Derek

Diener

invis

Richard

Earles

Dominion lending Centres | valley Financial specialists

alvin

Farmer

Dominion lending Centres Drake Entrust Mortgage services

tara

Fels

MCaP service Corp.

Lyndon sannie

Fransoo Fisher

Envision Financial division of Firstltd.

West Credit Union Bayfield Mortgagea Professionals

Sachin Jillanne

Varma Ford

Genworth Financial Dominion lendingCanada Centres

Tao Tina Diana Marc

Mu

Alfred Lalonde

Dominion Lending Centres Acer Mortgage Dominion Lending Centres Vanisle

Dominion Lending- Interest Advantage

Paul Amar

gillBains

Bayfield Mortgage Guards Capital Corp.Professionals ltd.

lisa Cathy

glasper Godin

invis Homeinc.

Trust Company

Michelle Darryl

Haddad Doerkson

lendingmax Interior Equities Corp.

Brett

Adam

Hall

Lawrenson

Mortgage alliance

Lawrenson Walker Realty Advisors

Michael

Hayward

verico select Mortgage Corp.

Kees

Hendricks

HomEquity Bank

Raymond Elizabeth

Lee Howatson

Merix Financial scotiabank

Marci Joyce

Deane Hubenig

Mortgage Alliance WestMortgages Dominion Macklem

Ryan Zaheed

iannone Valli-Hasham

Macquarie Financial Mortgage Centre - City ltd.

Wide

Chris Jaime Camilo

Jimenez Rodriguez

the MortgageFinancial group Inc. MortgagesLab

David

Michael

saba

amarjit

Chris

Whistle

deChamplain Hessamian

Johal

Novy

LendingMax

Madech Mortgage Corporation strategic Professional Mortgage inc.

tMg the Mortgage group Canada inc.

One Stop Mortgage Corporation

Jennifer

Jollymour

Dominion lending Centres Duet Financial

Henny

Karbowiak

tMg the Mortgage group Canada inc.

Ruhi

Kaur

vERiCO superior Mortgage

Heidi teisha

Li Keith

VERICO Clear Trust Mortgages Inc. ltd.

Exclusive Mortgage Professionals

May

Grant

46

LAST NAME

Zacknicole

Jared

38

new members

Hsu

Stefance

Pan-Canadian Mortgage Group Inc.

The Mortgage Centre - Express Mortgage Services

Xuanyu

Huang

VERICO Clear Trust Mortgages Inc.

Cara

Mann

Verico Lighthouse Mortgage Corp

Lucky

Parmar

Verico Select Mortgage Corp.

the bc mortgage broker | WINTER 2011

the bc mortgage broker | VOLUME 3 â&#x20AC;˘ ISSUE 9 â&#x20AC;˘ 2013

MBABC Feb 2011.indd 38

11-01-28 12:33 PM

2013 A LT E R N AT I V E L E N D I N G

2 0 1 3 A L T E R N AT I V E L E N D E R S D I R E C TO R Y

1

Company

Niche

Submission process

Target market: primarily 2nd mortgages up to 80% financing with proof of cash flow or 75% without.

Target lending areas: lower mainland and major centres in the Okanagan and Vancouver Island.

AFC does not charge more for rental properties and does not insist on a 50/50 fee split with the Broker.

Email: info@acceptedmic.com Fx: 604.937.7299 Ph: 604-937-7269

Alta West lends a mix of 1st, 2nd, and 3rd mortgages. We lend on residential and commercial properties of all types including but not limited to single family, condo, new construction, acreage, duplex, townhouse, mixed use, warehouse, retail, farms, fractional, strata hotels. Fast commitments and fast funding!

Dean Larson Email: dean@awcapital.ca

YEARS IN OPERATION: 5

YEARS IN OPERATION: 31

ALT Mortgages strives to be the busy mortgage broker’s preferred source of private mortgage funds. Our parent company, Conconi FT Holdings Ltd, has been a private lender for more than 10 years. We are a direct funding source, and are not a cobroker. As such, we are able to close faster and fund cheaper than many other B and C lending operations. We specialize in low beacon, business for self, inter-alia, and debt consolidation mortgages.

Deals can be submitted via e-mail to funding@altmortgages.ca or via facsimile to 888.519.2539. Don’t hesitate to give us a call at 604.568.4063 or visit us online at www.altmortgages.ca

New to private lending? Our friendly and knowledgeable underwriters will help you every step of the way, creating a custom mortgage solution for your clients.

Antrim offers residential 1st and 2nd mortgages (most with open terms as standard) and some of the most convenient residential construction financing on the market.

Email: applications@antriminvestments.com Ph: 604.530.2301 Fx: 604.530.2185 D+H

YEARS IN OPERATION: 5

YEARS IN OPERATION: 20

Armada has been providing mortgage solutions to its customers since 1995.

Armada lends in all lower mainland BC cities and other major cities including Kelowna, Kamloops, Victoria and Nanaimo. We offer owner occupied residential 1st & 2nd mortgages up to 75% LTV with rentals up to 70% LTV. We also offer construction mortgages. Lender Fees up to 2.5%, Broker Fees are added separately.

Great broker service and Rates your borrowers will say yes to!

Email: Sales@armadamortgage.com Fx: 604.467.6409 Ph: 604.467.6449 D+H Expert via Co-Broker to Gordon Hone YEARS IN OPERATION: 11

PROVIDING CERTAINTY QUICKLY • Customized 1st and 2nd mortgages in BC and AB • Loan sizes up to $10 million • Residential, commercial, construction and land financing • 1st mortgages up to 75% LTV, 2nd mortgages up to 85% LTV • Competitive Rates • Quick feedback and timely execution • Responsive and creative financial structures • Flexible solutions to changing circumstances

Vancouver: marianne@bancorpfinancial.com mark@bancorpfinancial.com Ph: 604.608.2717 Vancouver Island: jlm@bancorpfinancial.com rick@bancorpfinancial.com Ph: 250.479.3999 Alberta: marianne@bancorpfinancial.com rick@bancorpfinancial.com Ph: 403.264.5471 YEARS IN OPERATION: 18

Bayfield Mortgage Professionals , alternative lending since 1982.

Our geographic area that we will consider: Residential properties with commercial properties upon exception.

BC & Alberta, Mainly the following: • GVRD • Fraser Valley up to Chilliwack • Victoria Regional District, Nanaimo, Courtenay, Comox, Campbell River • Kamloops, Vernon, Penticton, Kelowna , Salmon Arm • Sunshine Coast (Gibsons, Roberts Creek ,Sechelt) • Greater Calgary • Greater Edmonton • Red Deer • Medicine Hat *we are a custom solution provider, and therefore will consider other areas on exception • 1st, 2nd, and 3rd mortgages up to 75% LTV • Bridge financing • Construction • Inter Alia • Mortgages of ½ interest * Fees split with the involvement of the referring broker

Expert, email or fax.

Gord Wintrup gord@bayfieldonline.com Inder Matharu inder@bayfieldonline.com Fx: 604.533.8909 Ph: 604.533.8909 Toll free @ 1.888.918.3388

1st and 2nd mortgages in BC and AB • Up to 75% LTV • Houses, condos, townhouses, rentals, lots, construction draws and some commercial • Common sense lending when dealing with debt consolidation, judgments, bankruptcies and equity take outs • Rates and fees based on the merits of each deal • Quick turn around

Email: canadmin@telus.net Ph: 250.869.4912 Toll Free: 1.888.869.4912 Fx: 250.869.4913 Toll Free: 1.888.869.4913

YEARS IN OPERATION: 31

YEARS IN OPERATION: 9

“At Capital Direct, we start, where the BANK stops!”

• 1st and 2nd mortgages in BC, Alberta, Ontario & Eastern Canada • 1st mortgages up to 65% LTV, 2nd mortgages up to 80% LTV • Open & Closed Terms • Residential SFD, Strata Lots, Fee Simple, Investment Properties, Duplex, Triplex, Fourplex, ALR Land • BFS, Commissioned Sales, Salaried Income, Fixed Income (Pension), Non Residents, Corporate • 24 Hour Turnaround / Funding within Days • Flexible Rates & Fees to suit you and your client’s needs Our underwriters have over 100+ years of experience to assist you in creating the right plan for your clients!

Email: Greg Kakuno gkakuno@capitaldirect.ca George Lay glay@capitaldirect.ca Fx: 604.430.3287 D+H Expert / Alternate Lenders / Capital Direct

YEARS IN OPERATION: 15

2 0 1 3 A L T E R N AT I V E L E N D E R S D I R E C TO R Y

3

Company

Niche

Submission process

Due to our experience and broad funding capabilities Caplink can customize financing packages to accommodate first and second mortgages, blanket mortgages, bridge financings, business for self, poor credit, bankruptcy settlements, foreclosures, hard to verify income and other specialized financings. Caplink will finance residential, commercial, retail, industrial, multifamily, recreational, and acreage properties. Our prime lending areas are Alberta, BC and Saskatchewan.

Email: documents@caplink.ca Fx: 1.888.226.8834 D+H/Expert

YEARS IN OPERATION: 16

Consumers Choice Mortgages Inc has been supplying private investor funds to the mortgage broker industry for the past 8 years. Prior to that they were brokering under the name of Swallow’s Mortgages In Minutes. The company represents approximately 30 individual private investors, who have amounts from $20,000 up to $7,000,000 for investing in mostly residential second mortgages (some first mortgages). Currently the maximum loan size per file is $600,000. The lending areas are The Lower Mainland, Fraser Valley, Vancouver Island, Sunshine Coast, (with limited funds for Kelowna and Penticton). LVR maximums are 80% for owner occupied with clean credit and 75% for rentals. Poor credit considered for low loan to value deals. The rates for second mortgages are between 10% and 12%. Broker fees are negotiable and shared 50/50 with the referring broker.

Cathy and Darryl Swallow’s business is 100% private lending.

Cathy Swallow Phone: 604.541.7301 Cell: 604.506.6957 Email: cathyswallow@telus.net Darryl Swallow Ph: 604.541.7303 Cell: 604.710.5814 Email: dswallow@telus.net Preferred method for sending files is attachments to emails

First and second mortgage construction and term loans for up to 75% and 85% respectively of the appraised value of the development.

Submission by contacting Morley Cooper or Cam Cooper at 250.475.2669

YEARS IN OPERATION: 12

YEARS IN OPERATION: 19

Purpose: Offer creative short term mortgage solutions for non conventional clients.

What we do: 1st, 2nd & 3rd mortgages from 20 k up to $2 million on most property types in BC. Mortgage financing up to 80% LTV in the Lower Mainland, Fraser Valley and Greater Victoria area, lower LTV’s elsewhere.

Geographic Lending Area: Servicing British Columbia with a major focus on the Lower Mainland, Fraser Valley & Greater Victoria areas.

Loan Types: Single family residential, Recreational properties, Condo apartments, Bridge financing, Inter-alia, Revenue properties, Small commercial, Serviced land Underwriting Guidelines: http://www.covemortgage.com/lending-guidelines.html

Loan Inquiry: Brokers from Mainland BC Christine Perkins, BDM 778.988.8940 christine@covemortgage.com Brokers from Vancouver Island, BC Ross Elliot, Agent 250.480.9566 ross@covemortgage.com Loan Submission: Underwriting Direct cove_mortgage@telus.net D+H Fx: 604.929.9592 YEARS IN OPERATION: 36

Financial Corporation

Primarily residential 2nd mortgages in urban BC, targeting Greater Vancouver and Southwestern BC. No default management or extremely poor credit unless LTV is < 60%. Prefer self employed revenue property financing, or funds for well established business clients looking for funds to invest in their own business. We are looking for good quality people with equity in homes in high turnover markets. Will lend up to 85% LTV under some circumstances, although generally most loans are 75% LTV or less. We make decisions quickly and generally fund within ten days.

Email: d.wilson@dominionlending.ca

Loan size: we will consider all requests up to 75,000 throughout BC and larger loans on an individual case basis.

Types of Loans: 1st, 2nd and 3rd mortgages, bridge financing, foreclosure redemptions, debt consolidations.

Loan Terms: 1 year closed, commission split 50/50

Email: warren@drakefinancial.com Off: 604.855.6661 Fax: 604.852.4717 Cell: 604.855.5601

YEARS IN OPERATION: 5

YEARS IN OPERATION: 20

Dundarave Mortgage Investment Corporation lends up to 75% LTV first and second mortgages in BC and Alberta. We consider all properties including residential, rental, commercial, industrial, office, and rural. We also do bridge, construction and mezzanine financing. There is no GDS, TDS or credit qualification. We are a common sense equity lender who is prepared to fund quickly.

A deal can be submitted by phone, email or fax to either Joanne Thomas or David Beckingham as follows: Ph: 604.985.5626 Fx: 604.990.9644 Email: jthomas@dmic.ca or beckingham@dmic.ca YEARS IN OPERATION: 5

Eclipse – the leader in alternative lending options – knows there are lots of customers out there that don’t fit the “norm” when it comes to their work and lifestyles. That’s why Eclipse lending is here. We look at the whole picture, listen to the whole story and come up with options that fit.

Interested in making a deal? Give us a call at our dedicated broker Deal Run hotline and let our preeminent team of experienced Deal Runners work their magic for you and your customers! We’ll use our decades of experience to find a fast, flexible and workable solution to your most perplexing mortgage situations – honest!

Contact: Kori Musselman kori.musselman@mcap.com 1.866.260.D-RUN (3786)

Founded in 1970, Equitable Trust is alternative mortgage lender whose core business is first charge mortgage financing. Equitable serves single family borrowers and their mortgage advisors in the Lower Mainland of BC including west of Vancouver to Chilliwack to Abbotsford and the Victoria region. Customers include business-for-self Canadians, newcomers, and investors who do not meet the traditional credit criteria of the major banks. Unique features include: • Up to 80% LTV • Self-Declared Income Accepted for BFS or commission/gratuity, • Flexible GDS/TDS, and • Beacons starting at 500.

Ian Silvester Manager, Residential Mortgages isilvester@equitabletrust.com 604.561.4966 Tim Wachter, Manager, Business Development, Western Canada 403.470.4434 Toll Free: 1.866.940.1201 Toll Free Fax: 1.888.440.1201

YEARS IN OPERATION: 8

YEARS IN OPERATION: 44

2 0 1 3 A L T E R N AT I V E L E N D E R S D I R E C TO R Y

5

Company

Niche

Submission process

For over twenty years First Circle Financial has specialized in providing residential construction and equity based sub-prime term mortgages to a myriad of borrowers.

We also provide financing for small commercial, mixed use, and land development properties. We have focused our efforts on providing the highest quality standard of customer service. Our lending niche allows us to overcome many of the obstacles that other lenders cannot.

Fx: 604.986.3200 Email: mortgages@firstcircle.ca

YEARS IN OPERATION: 22

Highland

Mortgage Investment Corporation

Fisgard provides flexible and creative residential and commercial mortgage solutions in BC and Alberta.

Fisgard mortgage products range from residential first and second mortgages to multi-million dollar commercial, construction and mezzanine loans. One of Fisgard’s strengths is it’s experienced underwriting team and innovative approach to difficult or unusual mortgage situations.

Email: newdeal@fisgard.com Fx: 250.385.1498 D+H/Expert

Greyfriars Mortgage Investment Corporation (GMIC) was established 23 years ago in 1989. GMIC specializes in 1st & 2nd mortgage financing as well as residential construction financing.

We lend primarily in the lower mainland and the Fraser Valley. GMIC is an equity lender, our approval criteria is based on the Loan to Value (LTV) of the property to be financed.

Contact Jeff Stephenson today 604.534.5070

Highland’s target market is primarily second mortgages on residential properties located in the lower mainland. We also look at commercial strata units and serviced raw land. Loan amounts from $40,000 to $300,000 to 75% LTV. Deals outside the target market will be considered at lower LTV’s. Pricing is dependent on the deal and starts at 9.5%. Credit is not an issue as long as explainable and income is not required as long as reasonable. An exit strategy is required.

Please contact Randle Barrington-Foote Email: rjbfoote@shaw.ca Off: 604.986.1002 Cell: 778.231.4916 Fax: 604.986.1905

YEARS IN OPERATION: 19

YEARS IN OPERATION: 23

YEARS IN OPERATION: 3

Home Trust is Canada’s largest alternative lender, proudly serving Canadians and working with you, our Broker Partners for over 25 years. We offer a wide range of financial products including, residential and commercial mortgages, deposit products and Visa cards. We focus primarily on a unique segment of the Canadian marketplace, including consumers who have non-traditional credit backgrounds, new immigrants and whose specific needs are not met by financial institutions.

Home Trust is a wholly owned subsidiary of Home Capital Group, a publically held company that trades on the Toronto Stock Exchange (TSX) under the symbol HCG. Our head office is located in Toronto, with branch offices in Vancouver, Calgary, Montreal, Halifax and a satellite office in Winnipeg.

To find out how you can close more deals, contact your BDM or visit www. hometrust.ca/broker.

Mike Forshee Ph: 403.692.4730 Fx: 1.866.544.3081 mike.forshee@hometrust.ca D+H and Morweb both accepted

YEARS IN OPERATION: 27

Fast and friendly service at some of the best rates available.

• 1st & 2nd & inter-alia mortgages up to 75% • Loans from $100,000 to $20 million • Equity only, no debt service or credit required • Residential, commercial, land, construction • Purchases, refinance, debt consolidation • Construction draw mortgages • Solution based lending for tough files Put our experience to work for you.

Contact Chris or Adam Email: cdelisle@instafund.com akorbin@instafund.com Phone: Chris Delisle or Adam Korbin 604.687.2020

Everyone has PRIVATE FUNDS. So why CALL US? We have NO GUIDELINES! Well, OK, maybe one or two.... If: You would lend your own money on the deal Can support your application with documents And have a clear exit strategy Then chances are we will fund it!

We are the Small Loan Specialists Firsts and Seconds ~ $10,000 - $100,000 Integrity Mortgage Inc. looks at every deal on a CASE BY CASE basis. We are known for being fast, straight forward and easy to deal with.

Rates and Fees are determined by the strength and risk of the application.

Kim Strynadka, AMP Owner, Mortgage Expert Integrity Mortgage Inc. Ph: 250.729.3890 Cell: 604.839.3890 TF: 877.729.3890 TF Fax: 866.298.2071 www.integritymortgage.ca

Working in partnership with Mortgage Brokers, we provide flexible, customized lending solutions with a focus on residential 1st mortgages, commercial properties with leased space, and smaller construction projects. Our primary lending areas include the Okanagan Valley, selected areas in the Kootenays and larger urban centres including Vancouver Island.

Email: info@interiorequities.com or dfinlay@interiorequities.com or Darryl@interiorequities.com Fx: 250.763.7765

YEARS IN OPERATION: 23

YEARS IN OPERATION: 11

YEARS IN OPERATION: 31

Creative Mortgage Financing is our specialty We currently have a vast amount of Private/Corporate/Commercial Mortgage Funds available for the following product type: • 2nd mortgages for Apartment Buildings, Townhomes and/or Condo Developments • 1st mortgages for any type of multi Residential and/or Commercial Revenue Producing Properties • 1st mortgages on Raw Land in select areas • Inventory Loans for Builders • Draw Construction 1st mortgages We prefer to lend in major centres in BC, Alberta, Saskatchewan and the Maritimes. We also will look at other areas, including the US and Mexico etc.

Product Type: • 1st or 2nd Mortgages • Bridge Mortgages • Construction/Draw Mortgages • Interim Mortgages • Blanket Mortgages with individual discharge provisions

Lorne Keetbaas Ph: 403.680.6716 keewest@gmail.com

YEARS IN OPERATION: 42+

2 0 1 3 A L T E R N AT I V E L E N D E R S D I R E C TO R Y

7

Company

Niche

Submission process

We are Vancouver Island specialists. We lend on residential construction, owner occupied residential properties and small commercial properties. We are an equity based lender. We have a proven track record to our Brokers. We stay on top of your deal until it is funded.

Email: margaret@midislandbroker.com Ph: 250.752.6944 Fx: 250.752.5363

Lanyard is a non-bank lender providing low cost and creative financing solutions in B.C. and Alberta.

• Loan Amounts: $1,000,000 to $15,000,000 • Interest Rates: typically 5.75% to 8.5% • Income Property Loans: up to 75% of value • Single Family (Jumbo) Res. Loans: up to 55% of value • Condo Inventory Loans: up to 65% of value • Land Loans: up to 50% of value (major urban areas only)

For Commercial: Mike Saba: msaba@lanyardgroup.com; or Brian Chelin: bchelin@lanyardgroup.com For Residential: Mike Gough: mgough@lanyardgroup.com; or Mike Saba: msaba@lanyardgroup.com Toll Free: 866.698.5388 Vancouver: 604.688.5388

YEARS IN OPERATION: 16

YEARS IN OPERATION: 14

Mandate primarily provides interest only floating rates for a one year term. Loan types include single and multi-family, inventory, bridge, commercial and industrial properties inclusive of pubs, marinas, strata retail/office and development loans.

Mortgages cannot exceed 75% of appraised value on properties located in BC and Alberta. Loan amounts start at $50,000. Syndication specialist over $2 million.

Creative financing solutions.

Email: mandatenational@telus.net Fx: 604.734.5546 D+H Expert via Co-Broker option

YEARS IN OPERATION: 31

New City

Financial Group

*1st and 2nd mortgages in Greater Vancouver.

• Residential, commercial & construction deals.

• Up to 75% LTV. • Competitive Rates/Terms.

• Quick approvals/answers.

Email: info@metropointemic.com Ph: 604-831-2947 Fx: 604-503-2948

Our Lenders specialize in 1st and 2nd mortgages on residential apartment buildings and commercial properties as well as inventory loans. We can facilitate mortgages in the $150,000 to $6,000,000 principal range. Typically, with a solid information package, mortgages can be approved within a few days.

Brad Harris or Christina Giuliani 208 - 3855 Henning Drive Burnaby, BC V5C 6N3 Ph: 604.738.5422 Fx: 604.738.5428 bradncr@gmail.com christinancr@gmail.com YEARS IN OPERATION: 27

Providing services all over Canada for raw land selectively and commercial deals only.

Product type: • Bridge financing • Selective 2nd mortgages • No 3rd mortgages • Approved CMHC correspondent • Lease financing • Receivable financing

Call first 604.664.7079 and then by e-mail acb@nexusinvestments.ca Fees depend on the deal but do not include the brokers fee.

We are a full-service lender, providing mortgage brokers with lending solutions for their clients. We specialize in Alternative Lending. Our policy is and always has been to confirm the affordability of the deal. Our Sensible Lending® philosophy ensures that each credit application is considered based on its own specific merit and circumstances. We understand that every client is unique. Our experienced and knowledgeable team of BDMs and underwriters work hard to find customized solutions for your clients while providing you - our brokers with error-free, hasslefree, on-time delivery of service. We offer lending solutions for some of your most complex deals including: • Business-for-self clients • Clients with soft income (tips/side jobs) • Clients who do not meet the traditional “A” lending requirements • Clients with less than perfect credit scores due to extenuating circumstances For current rates and lending guidelines please visit www.OptimumMortgage.ca

Contact your local BDM first to discuss deals: Interior BC & Lower Mainland East: Karl Madsen, 778.874.4605, karl.madsen@cwbank.com.

Lower Mainland West & Vancouver Island: Jackie Matthew, 604.317.4027 jackie.matthew@cwbank.com.

Or submit mortgage documents through: D+H Expert Portal: Optimum Mortgage Email documents: mortgage.documents@cwbank.com Fx: 1.866.477.8897 Underwriters: 1.866.441.3775

YEARS IN OPERATION: 22

YEARS IN OPERATION: 9

PHL Capital Corp. will fund residential and commercial mortgages between $50,000 to $1,000,000 on properties located in the Metro Vancouver and Fraser Valley areas.

PHL Capital Corp. is a common sense, broker focused lender, and will work with the broker to structure private financing to best suit their client’s needs.

Email: steveponte@phlgroup.ca parmpurewall@phlgroup.ca Fx: 604.575.7410

Common sense underwriting with the ability to react quickly and fund larger loans.

Pacifica lends primarily on residential and commercial real estate in major urban centres in BC and Alberta. We offer competitively priced 1st and 2nd mortgages that are typically open.

Email: shillman@pacificamortgage.ca srubin@pacficamortgage.ca Fx: 604.899.0337

PMC sources equity loans through licensed brokers on residential (75% LTV max), commercial (65% LTV max) and construction (65% LTV Max on completed value) properties. Our primary lending areas include urban areas of BC and Alberta.

Exceptions considered. Loan amounts of $50,000 to $5,000,000. Our expanded team is diverse, skilled, and fun to work with. “Let’s Talk Solutions!”

Email: solutions@paradigmmortgage.ca Phone: Grant Plunkie, Brad Graham or Leanne Wilson at 1.800.979.2911

YEARS IN OPERATION: 6

YEARS IN OPERATION: 19

YEARS IN OPERATION: 19

2 0 1 3 A L T E R N AT I V E L E N D E R S D I R E C TO R Y

9

Company

®

Niche

Submission process

Specializing in Alternate Equity Lending, Peoples Trust offers an alternative to borrowers who may not meet all of the lending criteria of the major financial institutions.

We pride ourselves on excellent service, flexible terms and a common sense approach. We can help self-employed borrowers or applicants with imperfect credit on large loans, bridge financing & rental properties.

Tom Wollner, RI, FRI, AMP Peoples Trust, Manager Residential Mortgages - BC Suite 1115 – Bentall Two PO Box 231 555 Burrard Street Vancouver, BC V7X 1M8 Tel: 604.331.2210 Fax: 604.683.2787 Cell: 604.351.0422 Email: tomw@peoplestrust.com www.peoplestrust.com YEARS IN OPERATION: 28

Private, equity lending with no income verification and no credit score requirements. Very flexible approvals catering to virtually any situation or circumstance - up to 75% LTV. All types of residential properties considered, including farms, acreages, mobiles – even raw land! We can even help with foreclosures! Exceptional rates and fees on 1st, 2nd & 3rd mortgages. Lending in British Columbia, Alberta & Manitoba.

Email: lending@premhome.ca Fx: 1.877.600.3362 Ph: 1.866.460.4409

Mortgages are all open, interest only. Lines of credit loans and no interest charged on unadvanced funds. No renewal fees. We control our money, no committees or boards needed to approve our loans so we are fast! Creative solutions, expert advice, and we are fun to deal with! There are lots of mortgage lenders, but only one Reliable.

Email: reliabledale@reliablemortgages.ca or reliablejessica@reliablemortgages.ca Dale or Jessica Ph: 604.503.3200 Fx: 604.503.3201 www.reliablemortgages.ca

YEARS IN OPERATION: 27

YEARS IN OPERATION: 19

Spectrum Canada MORT G AGE

SERVICES

INC.

Romspen is Canada’s alternative commercial mortgage lender specializing in “B” product commercial real estate. We offer customized mortgage solutions for term, bridge and construction financing from $2M to $75M, with each application considered on its individual merits. With direct access to decision makers, Romspen leads the industry in time-sensitive lending. Romspen has a long term track record of successful mortgage investing in Canada and the US. With its origins in the mid60’s, Romspen has been in business for 46 years and is one of the largest non-bank commercial mortgage lenders in Canada.

Blake Cassidy Managing Partner blakecassidy@romspen.com 416.928.4868 416.966.1161

Spectrum-Canada provides a wide range of non-conventional “private style” creative mortgage products to solve your clients’ financing needs for credit/income challenged individuals, construction/land financing etc and hard to place deal.

We offer “Sensible Solutions” with 1st and 2nd mortgages in almost all geographic locations from BC to Ontario and up to 80% LTV in urban centres. See how Spectrum can help you.

James Pell Email: James.Pell@spectrum-canada.com Phone: 604.855.9750 (Abbotsford) or Toll Free: 1.877.909.6263 Fx: 778.371.7957 or 1.866.534.7194 D+H or Morweb also accepted

YEARS IN OPERATION: 47

YEARS IN OPERATION: 14

Our niche is anything that makes sense in the southern interior of BC and selected spots on Vancouver Island. No ports or forts.

Email: tekamar@telus.net Ph: 250.832.8766 YEARS IN OPERATION: 15

Thompson Valley Mortgage Group

Small town BC and AB, population 3000+, 1st and 2nd residential, we do not use beacons.

Tudor Mortgage Investment Corporation

TMIC specializes in residential 1st, 2nd & inter-alia mortgages up to 75% LTV in BC only, lending primarily in the Lower Mainland/Greater Vancouver area and the Fraser Valley. We offer competitively priced mortgages in the $25,000 - $500,000 range, interest only payments with 12 to 18 month terms typically. We make decisions, and can fund, quickly.

Please contact Shannon Murphy Email: shannon-murphy@shaw.ca Tel: 604.536.0503 Fax: 604.536.0176

Vector Pacific started managing PCMIC in 2006 and prior to that VPMC was a specialist in Non-Institutional Commercial Mortgages. With the history of PCMIC being in Residential Construction Mortgages, and VPMC’s specialty being Commercial Mortgages, we married the two to provide Common Sense for Uncommon Mortgages.

Email: paul@vpmc.ca Fx: 604.986.3155

Email: w1005@shaw.ca Fx: 1.877.559.1005 YEARS IN OPERATION: 21

YEARS IN OPERATION: 9

YEARS IN OPERATION: 32

Open terms and lower rate 2nd mortgages for clean credit borrowers who can’t confirm sufficient income. Lending in and near major centres in BC. Up to 75% LTV. Inter alia and bridge financing okay. Flexible repayment terms.

Email: toddhickling@shaw.ca Fax: 604.899.0362 Cell: 604.803.9248 YEARS IN OPERATION: 13

VWR Capital Corp is a private mortgage investment corporation specializing in 1st, 2nd, and 3rd mortgages for individuals who cannot qualify through conventional financial institutions. We work with a large network of mortgage brokers and currently lend in BC, Alberta, Manitoba, and Ontario.

Products: • 1st, 2nd, and 3rd Mortgages on residential Real Estate.

• Closed & Open Products to 75% LTV • 12 month terms • Negotiable Amortizations / Interest Only • Nominal Lender Fees What do you want brokers to know?

VWR Capital wants brokers to know that our fee structure is designed for a brokers to earn more income. We want the broker community to know that we do not dictate broker fees, charge broker fees, match broker fees, or split broker fees.

Brokers can submit a Mortgage Application & Credit bureaus for all applicants to info@vwrcapital.com.

After initial review of these documents we issue a conditional commitment.

YEARS IN OPERATION: 19

2 0 1 3 A L T E R N AT I V E L E N D E R S D I R E C TO R Y

11