Proud to be named Vice-Chair of CAAMP

Friends:

I remember the first CIMBL (precursor to CAAMP) conference I attended 16 years ago. As a newly-minted mortgage executive I recall an excitement, enthusiasm and a sense that we were all learning and growing together. I knew at that moment that this was a very special industry and it was an association I would admire for many years to come.  CAAMP was a place where new and seasoned mortgage professionals would come together, share best practices and chart a course for the future.

Looking back on this past year it is remarkable to me the ground we have covered as an Association and what lies ahead.  I feel privileged to have been part of the discussion, and debate, over many issues that impact our industry and the members we represent.

Having sat behind ‘closed doors’ I can tell you that I feel your Board worked tirelessly on your behalf over  the past year.  The passion, commitment and understanding they have for our industry will continue to propel the Association forward, representing our member’s interests in a very meaningful way.  I feel privileged to be recognized as the Vice Chair of CAAMP for the upcoming year.

I advocate for CAAMP because:

1.  Our association is inclusive of brokers, lenders and suppliers alike.  That mix actually makes our voice stronger when we are lobbying in Ottawa.
2. Our different (broker, insurer, lender, etc) yet interdependent businesses helps unify our day-to-day business interests.
3. Members are aligned in seeking a very strong and growing broker channel in Canada. 
4. Quite honestly, because it is in my DNA, I have a deep passion for this industry and the people it serves just as the staff and volunteers at our association have. 

CAAMP is not perfect – but we are engaged.  We will continue the positive work done in recent years and be even more approachable to our members, still more relevant to our stakeholders and better coordinated with our regions.

I am extremely proud to count myself among such a committed and passionate group of fellow CAAMP Board members. I am confident that our Board will represent the voices of ours members.

If you have any feedback or seek to get more involved please reach out to me or any of your directors directly at any time:  www.caamp.org/board-of-directors

Cheers,

Mark

Did the mortgage market do what we thought it was going to do in 2014?

By Susan Ashton, BComm, AMP, TMG The Mortgage Group

As we all know, predictions and forecasts are all well and good but sometimes they fall short of what actually happens. While I might be able to predict, with some level of certainty, what is going to happen tomorrow, the longer the time frame, the harder it is to “hit the nail on the head”.

So let’s start with last December’s Globe and Mail article – Five Canadian Mortgage Market Predictions for 2014. I thought it would be fun and interesting to revisit this article and see how accurate it really was.

Keep in mind that Rob McLister of Canadian Mortgage Trends, the author of The Globe and Mail article, is one of the thought leaders when it comes to shooting straight from the hip about the mortgage industry and where’s it’s going. Here’s what he said would happen in 2014:

1. Prediction: New mortgage rules – Expect more rule tightening in 2014 designed to reduce mortgage risk for lenders, mortgage default insurers and the government. By definition, those rules will make it slightly harder to get approved for some mortgages and further slow the housing market.

What actually happened: Well, when it comes to new mortgage rules, we certainly saw lots of changes in 2012 and 2013, but fewer in 2014. We had CMHC cut their Self-Employed/Stated Income and Second Home products but there were no changes to the Genworth and Canada Guaranty (the two private insurers) products, so this hasn’t had a significant impact on approvals. We have seen lenders starting to change the way they view payments for debt servicing purposes on personal lines of credit. Where once we could use the actual interest–only payment, as long as it was proven, most lenders want us to use 3% of the outstanding balance. We still had a couple of lenders who would use the lower payment amount, but these last remaining lenders will discontinue this practice at the end of this year so I predict more restrictions in 2015 than we saw in 2014.

2. Prediction: Credit unions will steal market share – Since they’re provincially regulated, credit unions have more flexible lending guidelines than federally regulated banks. They’ll use that to their advantage in addition to marketing more heavily, both online and to mortgage brokers. We’ll also see some big mergers this year as credit unions seek out economies of scale.

What actually happened: Credit Unions are definitely increasing their market share. While I can’t say that I am using them more, they can do things that OSFI regulated lenders just can’t.  I expect it will take more time than one year to see Credit Unions really make a noticeable dent in market share.

3. Prediction: Stronger online player – A new online model is sacrificing commissions for volume. This trend will heat up competition industry wide, delivering greater mortgage discounts to all consumers.

What actually happened: Some online brokers do compete on rate though the full service brokerage model remains alive and well. Your mortgage is more than just rate – it’s about getting the best product for your situation; it’s about getting the right advice for your situation and it’s about protecting your future.

4. Prediction: Hybrid mortgages will grow more popular – Economists and government officials have been warning us of higher rates for four years. So far they’ve been wrong, and now many consumers aren’t sure what to believe. More Canadians will hedge their rate bets with hybrid mortgages (part fixed and part variable).

What actually happened:  Hybrid mortgages are definitely talked about more, but I’ve found that clients want the stability of a fixed rate payment, or the advantage of the lower payment/rate that a variable offers. Mainly it’s the savvy, yet risk adverse, investors who talk hybrid mortgages. These products represent a great opportunity to speak with your mortgage associate about what is right for you.

5. Prediction: Consumer IQs will increase – For those in the mortgage industry who prefer an uninformed consumer, your days are numbered. Canadians will spend more time researching rate comparison websites, online mortgage forums, news portals, blogs, calculators and other online mortgage tools. They’ll become increasingly savvy about fine print like penalty calculations, rate blend policies and refinance restrictions.

What actually happened: Consumer IQs are most certainly getting higher. The Internet has brought about change and transparency in the industry, which has benefited consumers. The younger generation also educates themselves online prior to making any sort of purchase – another great thing for the industry. I love to work with clients who come into my office, armed with great questions with a goal of learning even more. The perfect client! This will only continue as the amount of available information grows.

So there it is. Rob McLister just released his predictions for 2015 in the Globe and Mail. Let’s see how well he predicts the market next year.

Stay tuned!

It’s been all about elections

We seem to be living in an election merry-go-round. In Ontario we recently had our provincial election. Torontonians are living through a municipal election. Canadians are prepping for a federal election in 2015. The US seems to be in an election cycle every two years. And within our industry we just completed the CAAMP election.

I am ‘electioned’ out! I can tell you from the prospective of both a voter and a candidate that our elections are long – too long.

The CAAMP election started with some consideration and a formal nomination by the end of August. Then there was preliminary campaigning and discussions throughout the first two weeks of September and then there is the actual election - which is essentially a two-week window.

Campaigning is exhausting. It is in and of itself almost a full time job. There were two things that really impressed me during the CAAMP campaign.

1. The level of engagement of voters was fantastic. I believe this will be recorded as one of the highest levels of voter turnout in recent years. Members were talking, debating, concerned, enthusiastic… you name it.

1. The level of support I received from countless people throughout the industry. This election (at least in Ontario) seemed to cross-organizational boundaries. It really seemed to be one that put the industry first.  For our industry to be strong we must have a collective voice with our lender and supplier partners. To me that voice was reaffirmed in this election.

Though I initially wrote this post before the CAAMP election results were known, I can tell you that as a successful candidate I am eager to work with the Board and the Association to represent our incredible industry.  When we put our collective passion, commitment and talents into our industry we will all succeed immeasurably.

I wish everyone a terrific FALL season and hope to see many of you in Montreal in just a few short weeks.

Cheers,

Mark

Hello Friends and Colleagues

Although post-Labour Day symbolizes an end to summer and the start of a new school year for millions of Canadian students and their families, there is also a sense of renewal and excitement as a new year settles in.

As my wife and I helped prepare our three kids for school last week, I was reminded of just how quickly time passes, as well as the sense of anxiousness with what lies ahead.

For me, this “new year” is even more significant than the one we typically welcome in the cold of winter on January 1st. 

New beginnings allow us to review and reaffirm our current path while, at the same time, they encourage us to adapt and adjust our habits as we add and pursue new goals.

During the past few weeks I have spent some time thinking and reminiscing about the state of our industry – and more specifically – the state of our national association. I have always felt very much connected to the mortgage brokerage industry in Canada, working as an executive with our lenders and as president of a national mortgage brokerage. I now feel compelled to seek your support to become a Director (ONTARIO) of CAAMP.

I remember the first CIMBL (predecessor of CAAMP) conference I attended nearly 15 years ago. As a newly-minted mortgage executive I recall the excitement, the enthusiasm and that sense that we were all learning and growing as an industry. I knew at that moment that this was a very special industry and it was an association I would admire.  It was a place where seasoned mortgage professionals would come together, share best practices and chart a course for the future.

It seems there has been considerable chatter lately about the role of CAAMP, the regional associations, and the overlap between them. Questions around the need for a national association coupled with discussions about a broker’s only association have also been on the table. This is healthy dialogue and I am pleased to see the level of engagement about our representation in our industry.

I would like to take this opportunity to tell you the three key reasons why I continue to advocate for CAAMP:

1. I welcome the fact that our association is inclusive of brokers, lenders and suppliers alike. I feel that mix actually makes our voice stronger with the folks we are lobbying in Ottawa.
2. The fact that we share a board of directors to oversee this national association helps unify our day-to-day business interests. 
3. The majority of members are aligned in seeking a very strong and growing broker channel in Canada. 

CAAMP has been very effective in many respects but is not perfect.  A few areas where I see that CAAMP must improve are:

Co-ordination with all industry associations:events, sponsorship opportunities, research, government relations, etc. Doing so will benefit not just members of the various associations, but the strength and voice of our industry as a whole

In addition, CAAMP has to be more responsive and approachable. It has to advocate the broker channel while improving its events and symposiums. CAAMP has to remain the best source for government and the media with respect to all-things-mortgages.

Over the years I have asked my teams, “What is the solution? Don’t just tell me your challenges; tell me the recommendations to fix them.”

At this point in my career, I feel I must get more involved. I want to be part of the solution.

I have been a member of our national association since 2001 and an AMP since 2007. On a personal level, I feel that CAAMP has provided me with an opportunity to connect with a large number of people across our industry over the years. The way I see it, ours is a very small, close industry and the opportunities to interact with our colleagues, suppliers, and competitors have proved priceless.

I appreciate your support and welcome your feedback, comments and questions.

Cheers to a “new year” and a new perspective.

Mark