CMP Magazine Hot List 2014

CMP ROUNDTABLEBROKER HEAD

DISCUSSION

2013YEAR IN REVIEW

ZEN AND THE ART OF MORTGAGE BROKERING

e leaders of today who are helping shape the industry for tomorrow

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COVER / CMP HOT LIST 2014COVER / CMP HOT LIST 2014

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MORTGAGEBROKERNEWS.CA

2013 saw hot players continue to boil and a few new industry leaders start to heat up.

he New Year brings a fresh start for everyone, including those in the mortgage broker industry. 2013 saw industry players continually

jockeying with the previous years mortgage rule changes and the ever-present threat of further action but its fair to say most endured the frustration and emerged relatively unscathed.

To be sure, 2014 will provide its own challenges but as one of our Hot Listers teases in the forthcoming feature, perhaps brokers and broker networks -- wont be forced to go it alone. We dont want to reveal too much here but suffice to say, the industry players selected for our Hot List in 2014 will definitely have a contributing hand in shaping the mortgage broker industry this year and beyond.

Our list contains some old faces and some new; certain professionals who continue to lead and others who are keen to join their ranks. These brokers are not only leaders in their respective companies; they are leaders in the industry.

Enough with the pleasantries, though; read on for 2014s Hot List.

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COVER / CMP HOT LIST 2014

Who: Collin Bruce What: Mortgage Broker

Where: Dominion Lending Centres Mortgage Mentors

Collin has been a mortgage broker since 2005 and has owned his own Dominion Lending brokerage since 2009. Being DLCs No. 1 broker in terms of volume and units over the past four years helped Collin bring home CMPs Mortgage Broker of the Year Award in 2012.

Collins brokerage, Mortgage Mentors, is home to 30 agents and, together, the team is top five for Domin-ion Lending Centres in terms of both volume and units.

Milestones achieved in 2013

Goals for 2014

Forecast for the industry in 2014We expect 2014 to be a really busy year. The housing market forecast is very strong, and being in Alberta we expect big things. With the lenders continuing to tighten lending guidelines, I do worry a bit about smaller offices being able to survive with less diversification of mortgage products. Hopefully the consumer will continue to see the value in strong customer service and product expertise over just selling interest rate alone.

Increased his individual volume by over 20 per cent

Increased the brokerage volume by over 15 per cent

Donated over $50,000 to charities

Achieve an individual volume that exceeds $300,000,000

Achieve an overall brokerage volume that exceeds $550,000,000

Who: Mark Kerzner What: President Where: TMG The Mortgage GroupMark Kerzners resume comprises a number of management and executive positions at various mortgage industry companies. He brought this experience and an MBA from the University of Toronto to his role as President with TMG The Mortgage Group in 2009.


Goals for 2014

Forecast for the industry in 2014The broker channel has always been and continues to be resilient. Despite the market challenges the industry has faced beginning in 2008 and continuing until today, we have increased market share largely because brokers represent the best solutions for consumers looking for mortgage financing. Arming ourselves with training and support tools are vital for our continued success.

I am confident that broker share is going to continue to grow because, in an era of change, Canadians must rely on experts brokers.

TMG proudly celebrated a number of staff and broker 10- and 15-year anniversaries with the company

Achieved phenomenal growth in terms of overall production as well as the number of new individuals joining TMG

TMG was named CMP Employer of Choice

TMG Founders Debbie and Grant Thomas were recognized for their contribution to the industry and inducted into the CAAMP 2013 Mortgage Hall of Fame

With an ongoing company objective to support our brokers through the best training and tools in the industry, TMG will continue to lead in 2014

TMG will continue to achieve its four-year benchmark of exceeding market growth

Our lender relationships are paramount. 2014 is about continuing to work together, understand consumer challenges, and ultimately, provide home financing solutions to our consumers

TMG will continue to get involved in communities across the country and will raise more than $50,000 for Breakfast Clubs of Canada

TMG has the most talented, dedicated and passionate leadership team in the industry. This is just one small part of a corporate culture that is characterized by family values and manifests itself in empathy, support and caring about our brokers and their customers

As an industry we also have to find ways to collaborate effectively to bring our message to the Canadian public. I am pleased to be working with an industry committee whose goal is to engage and educate Canadian consumers as to why using a mortgage broker is in their best interest. This initiative is agnostic with respect to brand; rather, it is an opportunity to work as a united front to sell our value proposition against other mortgage channels. Over the course of 2014 we look forward to expanding the committee to include members of other brokerages, associations, lenders and suppliers who share the same vision.

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Who: Alyssa Richard What: Founder What: RateHub.caAlyssa leveraged her business degree from Queens University to break into the financial services industry and attain a financial consulting job in the United States with Bain and Company. It was there that she learned about mortgage rate comparison sites and conceived the idea for RateHub.ca. Following the success of RateHub.ca, which is Canadas No. 1 rate comparison site, Alyssa launched ClosingCosts.ca, which helps homebuyers calculate the cost of buying and selling a home.


Goals for 2014

Forecast for the industry in 2014As consumers continue to go online to start their mortgage research, we think it will become increasingly important for brokers to develop a strategy to acquire online leads, either through their own sites, rate sites, etc. The brokers who survive will be the ones who have a strong online presence. We think those who do will play an important part in the mortgage industry, and were excited to continue to work with some of the best brokers in Canada next year.

This year, we launched a refinance centre, a condo guide, and a section on investment property mortgages as well as alternative mortgages

We created more widgets for industry professionals to use on their sites

We also launched ads (and offered ad space) on the site for the first time

We were mentioned by the press more than ever before, and became regular commenters on CTV

Overall, we averaged 250,000 visits per month

We want to solidify our position as the No. 1 mortgage rate site in Canada

We hope to expand our education centre offerings

We also want to build up offerings for alternative mortgages, such as bad credit mortgages, new-to-Canada mortgages, etc.

We plan on doing some offline advertising

Overall, we want to continue to see profitable growth

Who: Albert Collu What: President Where: Mortgage ArchitectsAlbert joined Mortgage Architects as president in 2013, following a successful stint as president and CEO of Argentum Mortgage and Finance Corp., where he was instrumental in growing the company by $2 billion and adding 500 brokers in two years. Albert attained a business degree from York University and is currently enrolled with the hopes of attaining a law degree from the University of London in England. He has also worked in the mortgage industry in the capacities of national manager with two leading lenders.


Goals for 2014

Forecast for the industry in 2014I dont have enough space to elaborate but in sum my forecast is this I believe most brokers will remain relatively flat but that said I also believe that those brokers that embrace the regulatory changes that have occurred the past two years will reap great rewards. These rewards will be attained by brokers who have widened their appetite and proficiency of alternative mortgages ,diversified their revenues and who have implemented existing customer database strategies.

As the President & CEO of Argentum I made a strategic decision to bring Mortgage Architects and Argentum together by way of agreeing to the acquisition of Argentum

This provided both organizations an opportunity to collide incredible strategies and leadership teams to create a formidable company in Mortgage Architects to better position our mortgage brokers for success.

This has catapulted MA to a channel of 1200 brokers with strong market share

My main aim for 2014 is to continue the incredible momentum weve enjoyed with Mortgage Architects in 2013 and to create an identity within in our industry so that Mortgage Architects becomes synonymous with an environment known to contribute and assist towards increasing income for its mortgage professionals

Our unique lender/broker strategy is the only living and breathing structure in our business that allows us to give back commissions to our mortgage brokers

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Who: Patricia Giankis What: President & CEO Where: ScoreUpPatricia has over 30 years experience in the financial services industry on both the banking and mortgage brokering side and, more recently, launched ScoreUp a credit analysis and education resource. Patricia has lectured at womens shelters and the YWCA and has provided assistance to community charities.


Goals for 2014

Forecast for the industry in 2014We feel that the requirement for good credit will become a necessity by most merchants dealing in loans, financing, leasing and credit granting to name a few. This trend which we have already experienced by the tightening of the mortgage loan requirement with the B20 rules (and more to come) will cause Canadians to seek out trusted, proven and easy to use credit assistance, credit management and credit education. We forecast that this requirement for good credit will be adopted and become the standard around the world thereby making the need for a credit management and credit education system a must.

CENTUM Financial Group endorsed Score-Up Inc., making our products & services available to thousands of their agents

Signed International Womens Leadership Association in New York who has over 40,000 members

Jamaica National Building Society endorsed Score-Up Inc., and have over 30,000 members

Signed 30 + licensees and growing every week

Brought Score-Up Inc. to the US by way of opening offices in NYC, Atlanta and Ft. Lauderdale

Featured in the September-October 2013 Success Issue of the Inspirational Woman Magazine in Association with The IWLA

Signed two super brokers

Publish a book due this year

Open 10 new offices in the U.S.A.

To bring score navigator online to Canada

To market and brand product across Canada

Who: Martin Reid What: President Where: Home TrustMartin was appointed to the position of president for Home Trust Company and its parent, Home Capital Group Inc. in January 2010.He brought 20 years experience in the financial services industry to the position of treasurer with Home Trust in 2007. Prior to that, he worked for Deutsche Bank Canada in a number of roles; Deutsche Bank New York as its director of market risk for the Americas; and Dundee Bank of Canada as managing director or rates and liquidity.


Goals for 2014

Forecast for the industry in 2014Broker penetration will continue to increase as buyers become more aware of the value they bring in this heightened regulatory environment.

Home surpassed $1 billion in shareholder equity

We are on target to complete our 16th consecutive year of ROE over 20 per cent

Home assets under administration surpassed $20 billion

Our strategy for 2014 is to continue providing our Broker Partners with leading-edge service and a One Stop Shop product suite that will assist in capturing additional market share within the residential mortgage space

This past year Home has continued to expand in the areas of underwriting personnel, technology and office space, so that we may continue to meet the demands of mortgage brokers across Canada, both in 2014 and beyond

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Who: Gord Appel What: Vice-President Where: TMG The Mortgage GroupWith 10 years of mortgage experience and over 20 years in sales and customer service, Gord is Vice-President and broker of record for TMG Alberta. He is also the current sitting president of the Alberta Mortgage Brokers Association (AMBA).


2013 saw growth all areas of our business; volume, funding ratios, insurance penetration, agent year-over-year growth and profitability

Volume is up 25 per cent

Funding ratios are up

insurance pen rates are up 40 per cent

Profitability rate is up 12 per cent

Goals for 2014

Forecast for the industry in 2014

It promises to be another busy year

AMBA recently launched the best pre-licensing education course in the country

The Real Estate Act will be reviewed by the provincial government

The potential privatization of the Land Titles Registry

The new task force created to help the Provincial and the National Associations work more cohesively and eliminate duplication where possible

Looking forward to the important work our association is undertaking and yet another successful year for TMG in Alberta

2014 will be a year of continued change; some good, some bad, and some indifferent. I expect most of the major markets across the country will continue to remain strong, whereas the pockets of weakness will continue to fight for growth. The good brokers will, as always, adapt to the changes in the lending environment; providing their clients with innovative and thoughtful lending solutions. Their clients will be the educated. Theirs will be the advocate(s) for the broker within the marketplace.Change is the new constant; the demand for the innovative, informed broker will strengthen the industry by washing out some the less committed and/or part-time brokers. The top brokerage houses will continue to focus on their internal client (their brokers) by providing them with the best in technology, marketing and education, allowing both brokerage and broker to stay in the forefront of the flux. Those that cant afford this investment or dont focus on their true clients will falter over time.Let us not forget our lending partners. Sadly, in recent years we have seen the relationship between lenders and brokers/brokerages

deteriorate. The feeling of reciprocity (or lack thereof ) can be chalked up to one of what have you done for me lately? This, I think we can all agree, is detrimental to both sides of the relationship. I expect both lenders and brokerages will look for creative ways to repair and renew a sense of partnership providing better efficiency and support within the industry and inevitably better solutions for not only the originator, but the lender and ultimately the client. Is bigger better? It certainly can be if the corporate culture is one capable of providing that boutique feel while also making available the luxuries previously mentioned (technology, marketing, payroll support etc). This may be a difficult balance to achieve for some of the smaller brokerages without considering making the move to bigger; consolidation will continue to be a reality in 2014. The reasons for consolidation have also seen a shift from a focus on volume as the primary driver, to the alignment of culture, efficiency, best practices and sustainability also sharing the spotlight.In short, our industry will get better, faster and stronger as the best and brightest in the broker channel shine.

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Who: Gord McCallum What: President Where: First Foundation Residential MortgagesA commerce graduate with distinction from the University of Albertas School of Business, Gord has worked hard building First Foundation into a group of companies offering mortgage brokerage services as well as general insurance, life insurance and other financial services.Gord is a former director with the Alberta Mortgage Brokers Association and a consecutive four-time member of CMPs Top 50 Brokers list. He was also named the Accredited Mortgage Professional of the Year in 2011 by CAAMP.


Goals for 2014


Expansion into Saskatchewan with the acquisition of Highland Mortgage Partners in Regina

Completed our rebranding and the redevelopment of www.firstfoundation.ca

Relaunched the #owngrowprotect blog at www.firstfoundation.ca/blog

Hosted a number of excellent mortgage industry leaders on Canadian Mortgage Hangout TV #cmhTV

Secured a lease on a prime high-traffic location in Edmonton that gives us room to grow and more visibility

Help more people to own a home, grow their wealth, and protect themselves and their loved ones

Increase mortgage client to insurance client conversion rates

92 per cent funding ratio across all of our lender partners

Grow organically throughout Western Canada

Partner with other like-minded brokerage owners across Canada to increase the asset value of mortgage brokerages; create saleable value in mortgage brokerages where none existed, and give owners a potential exit strategy

Continue to develop leaders within our organization

Minor regulatory changes

More competition online

Some consolidation between firms

New business models emerging

Increasing rate uncertainty

Stronger real estate markets in local areas with job growth - and underwriting that reflects this

Who: Dan Eisner What: Founder Where: True North MortgageA former contestant on CBCs the Dragons Den, Dan has since opened nine of his retail True North Mortgage stores across Canada; from Vancouver to Halifax with a number of offices dotting most major cities in between. True North Mortgage has received a number of awards over the years including; CMPs Broker of the Year in 2011, CMPs Hot 50, Profit 200 fastest growing companies from 2010-2013. Eisner, himself, was also named to Avenue Magazines Top 40 under 40 in 2009 and to Business in Calgarys Business Leaders of Tomorrow in 2011.


Goals for 2014

Forecast for the industry in 2014It will be an uphill battle trying to maintain and grow our business as OFSI continues to rewrite the rules of underwriting ever few months.

Closed over $830 million in mortgages representing a 20 per cent growth over 2012

Successfully opened 2 new stores

Expand by opening more store in cities we currently do not have locations

Develop and grow our newly founded Real Estate Brokerage arm across Canada

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Who: Phil Fiuza What: Managing director, single family mortgages Where: Canadian Mortgage Capital Corp. and Atrium Mortgage Investment Corp.


Goals for 2014

Forecast for the industry in 20142014 will continue to bring its challenges to the broker channel. Rule changes, tighter underwriting criteria, the fear of a landing (pick one hard, soft, none at all?). Its a bit upside down out there when I tour the offices and talk to the agents directly. They are struggling and are frustrated with underwriting policies that some lenders are implementing because pick and click underwriting doesnt really work these days. What I do see is an increase in the quality of the transaction we are getting. When people hear alternative lending, they immediately think bad credit, bankruptcies, high ltvs. Let me tell you, this is not the case. We are seeing applications with quality borrowers and quality real estate.

We launched a single family division in 2013

We are not interested in competing on pricing to grow receivables quickly

We prioritize a safe risk profile while targeting an eight per cent dividend yield to our shareholders.

Our challenge for 2014 will be building on our current relationships with the existing broker community and enhancing it

Building new relationships is important, but keeping Atrium top of mind with the existing set is top priority. We feel that we have a responsibility for helping to spread the MIC message, thats why events like the Mortgage Summit are very important to us

Atrium also has offices in Alberta and B.C. Most of the business out west is commercial. We want to expand our residential portfolio in these areas as well. We plan to establish a larger single family presence in the west during 2014

Hiring more underwriters to increase our underwriting capacity in Ontario and in Western Canada

Who: Brennan Wood What: Regional VP Where: Mortgage Alliance Commercial CanadaBrennan, who holds a J.D., left the legal world in 2008 to focus exclusively on commercial financing across Canada. For most, commercial financing can be daunting but Wood has been around the commercial brokerage roller coaster his entire life. When he saw an opportunity to grow professionally with a new division of Mortgage Alliance he jumped in with two feet and hasnt looked back. Growth has been exponential and Wood believes it will remain that way as his network across Canada continues to grow.


Goals for 2014

Forecast for the industry in 2014From the commercial perspective there is great opportunity for brokers who dedicate themselves to commercial financing. Lenders continue to impose more confusing rules on borrowers. This confusion increases the demand for quality brokers who are not only able to source but structure loans to meet specific lenders changing appetites. As long as brokers are able to provide effective solutions that meet clients requirements there will be no shortage of opportunities. Through diligent review of transactions we offer realistic and effective solutions that both borrowers and lenders are happy with.

CMP top 10 largest commercial broker list

Top producer Mortgage Alliance Commercial

Personally: I got engaged!

Continued aggressive growth across the country through strategic partnerships

Top commercial broker in Canada by volume

Access to equity solutions for developers

Close at least one deal in every province

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There is an old proverb that says, In calm water every ship has a good captain. With the last three rounds of mortgage rule changes now worked into the system and mortgage rate wars compromising profits, there is going to be a lot of people leaving

the mortgage sales space. The positive side of this is that more complex rules and tighter lending conditions are both exciting and great news for people who have been committed to improving and evolving with the times. When markets get more challenging there tends to be flight to quality where consumers dont want to work with just any mortgage professional, but instead begin to favour those with track record and formal training. I am excited for the great opportunity to go the extra mile for clients, giving them the tools to navigate the more tumultuous real estate, mortgage, and investment landscape. With every change in market conditions there is increasing opportunity this will be a year where long-term business planning pays off for those who have anticipated this for some time now.-Calum Ross of Calum Ross Mortgage

INDUSTRY PLAYERSHEATING UPIN 2014 As a principal broker, I recognize that a well-developed customer relationship platform will be crucial to the success of my brokerage model for 2014. Building, finessing and maintaining a solid client relationship has converted leads into more funded mortgages. Our model is not just based on understanding constantly changing mortgage regulations and upholding class leading professionalism, but more on client fulfillment. I find that getting deals completed is not as challenging as making sure that the client is left satisfied. Take the time to get to know your client, understand their needs, and most importantly be there for them as they get to those goals.-Enza Venuto of CENTUM Streetwise Mortgages

Who: Gary Mauris What: President Where: Dominion Lending CentresGary played a central role in creating three national companies from the ground up. Currently, he is active as the president of Dominion Lending Centres.


Goals for 2014


#1 Brokerage in Canada in both volume and number of mortgages funded

DLC Up 6.3% Over 2012

Record Market Share 17.2% market share among all Canadian brokerages (27% when combined with MCC)

Purchased Mortgage Centre Canada bringing total annual funded volume to $20 billion

Lender Rankings & Efficiencies DLC is #1 among 11 of Canadas Top 20 Lenders; #1 or #2 with 15 of the top 20 lenders

Continue to drive consumer awareness via consumer direct marketing initiatives such as home show sponsorships, television, radio and PR campaigns, newsletters and education

Build on our social initiatives such as Breakfast for Learning, anti-bullying campaigns and financial literacy

Continue to add products consumers will recognize and value such as unsecured Visa card line, mortgage insurance and equipment leasing

Stable and consistent year from a growth perspective

Not likely to experience significant swings, and interest rates should continue to be low for the foreseeable future, although the rate wars and sub 3% fixed pricing is in the past

Alternative lending space to see greatest uptick due to changing guidelines and new regulatory requirements imposed on lending community

Continued consolidation within broker community

Local associations will struggle to keep membership numbers, as agents and owners grow frustrated with the added costs in duplication of industry events

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48

CoverThe Year ahead

morTgagebrokernews.ca

71%of homeowners say they

are in a good position to

weather a potential down-

turn in the housing market

71%of homeowners say they

are in a good position to

weather a potential down-

turn in the housing marketSource: Mortgage Insights: Highlights from CAAMPs Fall 2011 consumer and industry surveys (CAAMP/Martiz Research Canada)

reality out there instead of trying to sell around it, then people will trust us.

But any efforts the industry may undertake as a whole will have no effect if individual brokers dont do their parts, which means giving clients the best value-added service, improving effi ciencies and funding ratios with lenders, and of course, placing clients with the right lenders for their needs.

Focus on the best interest of the client fi rst and foremost, said Therien. We are at a crossroads: we either go back to being the person you go to when the banks say no as it was 25 years ago, or become truly trusted advisers to our customer and move up to the next level. CMP

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2014 will represent a challenging year for our company. Already tightened lender underwriting standards and future B-21 mortgage insurer changes could shrink the entire Canadian mortgage origination space. Still, Butler Mortgage Inc. has ambitious goals. We are committed to direct-to-consumer Internet marketing of discounted mortgage rates serviced entirely from our call centre. We spent 2013 managing the changeover and revamping our systems. We still have dozens of systems tweaks and process upgrades to make; changing a 20 year old business model is really hard. We are certain that future of mortgage marketing is web-based and we must be part of that evolution.-Ron Butler, Verico Butler Mortgage

2014 will be a year of growth and education for our team. Automation and education will be our main focus for the first half of this year with the expectation of an increase in our market share. A large part of a successful business is the reputation it has achieved by continuity in business practice. I believe what sets us apart is our strength in mortgage planning and annual reviews. With new brokers joining our team this year, education is foremost. In order to provide referral sources and new clients the services they are expecting these new team members require the education and tools to not only build their customer base but to also provide continuity of business. We like our clients to say, Wow, your help is exactly what my friend told me it would be. Let this be a successful year for all!-Greg Nowick of Mortgage Architects Universal Mortgage Architects

CMP Magazine Hot List 2014

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