Matters

ALSOINSIDE

Architects, engineers And QuArterbAcks Protect your business from Phishing

FINDING THECONDO THAT ISRIGHT FOR YOU!

FALL 2013

Lice

nse

# 1

01

72

When others say ‘‘no Way’’ We say ‘‘here’s hoW’’.

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 or Pierre Leonard I 800 494 0389 I www.romspen.com

SPELL CHECK

B E N S I M O N PA R T N E R S 4 4 6 S PA D I N A R O A D , S U I T E 2 0 7, T O R O N T O , O N TA R I O , M 5 P 3 M 2 , C A N A DA T E L . 4 1 6 5 9 7 9 7 0 0 FA X . 4 1 6 5 9 7 9 7 0 7

DATE:

AD NUMBER:

AD / JOB TITLE:

PUBLICATION / RUN DATE:

LIVE:

COLOUR:

CLIENT:

CREATIVE TEAM:

TRIM: BLEED:September 16, 2013_11:30 Am

rOm AmbA 13 03

here’S hOw

AmbA / September 2013

8.5” x 11”

CmYK

rOmpSen

benSimOn/pArKer

nA nA

✓

FALL 2013 3

Education DirectorRyan Spence D+H

Government RelationsLayne Walters TMG

Return undeliverable Canadian addresses to:

Alberta Mortgage Brokers AssociationSuite 200, 1940 9 Ave. SE Calgary, AB T2G 0V2

Publication Manager and Editor - Stephanie Weidmann

is a quarterly magazine which provides fundamental

information to members of the provincial association, offering an opportunity for the industry

members to be educated, updated and entertained.

Toll Free: 1.888.452.2652Phone: 403.685.9652

Fax: 403.685.9682 Email: info@amba.caWeb: www.amba.ca

Suite 200, 1940 9 Ave. SE Calgary, AB T2G 0V2

Matters

A SPECIAL THANKS TO OUR ADVERTISERS...

Romspen .......................... 2

TMG Career ..................... 7

Equitable Bank .............. 8

Home Trust ................... 10

RMG ................................. 13

Caplink ............................ 19

Bridgewater Bank ....... 21

Optimum Mortgage ... 32

Paradigm ...................... 34

VWR Capital Corp ...... 39

Capital Direct ................39

First National .............. 40

IncomIng PresIdent's message 6 It’s your Industry

Web HoW to: VIeW cHanges 9 to tHe amba bylaWs

PrIVacy: HoW secure Is 11 your broWsIng? Welcome your neW 14 amba board of dIrectors

reca uPdate: neW amba 15 aPPoIntee to councIl

coVer story: WHat to knoW 16 before buyIng a condo

ask tHe exPert: traIns, 20 Quarterbacks and arcHItects

2013 amba 22 conference WraP uP

amba members get tee'd off 24 2013 golf WraP uP

2013 amba 26 aWard WInners

tHe 5 c’s of credIt and clIent 28 relatIonsHIP management socIal centre: gone PHIsHIng 30 ProtectIng your busIness

amba launcHes neW PractIce 33 of mortgage brokerage course

alt-a symPosIum 34 Is back In 2014

sHake, rattle and boWl 37 boWlIng nIgHt detaIls

OTHER FEATURES...

Manager’s Report 4Outgoing President’s Remarks 5 Making the Most of Your Membership 19Industry News 35AMBA Calendar 38

PresidentGord Appel TMG

Past PresidentRon McClenaghan Invis

Vice PresidentAdil Mawji Invis

TreasurerPhil McDowell Mortgages Are Marvellous

MembershipDale Koeller Calvert Home Mortgage Investment Corp.

MembershipTracey Robinson Mortgage Protection Plan

Regional Outreach Cathy Sehn Verico Brokers for Life Inc.

Professional Development Frank Petrin CML Canadian Mortgage Lender

Risk ManagementKevin Weeks Weeks Law

EventsErica Fikkert Equitable Bank

FALL 2013 contents

Photo credit for some photos used within this issue of AMBA Matters ©shutterstock.com

MattersAMBA 2013-2014 board of dIrectors

FALL 20134

Deborah Keshen AMBA General Manager

AMBA YoUR VoIce At tHe tABLegovernment relations reportHow would you like to have to hold onto non-funded records for ten years? In September a group of AMBA members met with the Hon. Manmeet Bhullar, Minister for Services Canada, to discuss this issue and others on behalf of our membership.

The Minister was well prepared, knowledgeable about our industry and engaged in our issues. He was receptive to our concerns that changing record retention time from three to ten years would be burdensome for the industry with increase our liability exposure with little additional benefit to consumers.

The Real Estate Council of Alberta (RECA) has been receptive to date to amending other proposed changes they were considering to the Real Estate Act after consulting with AMBA and our members. RECA already has the ability to compel a brokerage to hold on to specific records if required and we are not aware of any serious impediment faced through the current three year requirement. We hope they and the Minister will see that the effort to change the Act to ten year record keeping and moving the issue out to the regulations are not required nor are they merited.

AMBA also participated in an industry committee with the Alberta Real Estate Association (AREA), the Law Society of Alberta, RECA and others in a discussion with the Minister, the DM and ADM as well as senior bureaucrats from within the Land Titles Registry to discuss the Government’s current review of the service.

All services within the Province are being reviewed for additional efficiencies

and changes to improve effectiveness. Part of that process is consideration of options for alternative delivery systems. The group met to emphasize to the Minister our belief that:

• Alberta has the best land registry title system in the country and there are no other jurisdictions that currently meet this standard

• We believe the land titles registry system is of critical importance to the industry and to all property owners in the Province

• Alberta currently enjoys the lowest fees in the country

• While the system is not perfect the Government already has approval for upgraded the technology. Regardless the current

system still has extremely high user satisfaction ratings.

• The system generates generous revenues (a net profit of approximately $55 million per year) and has potential for growth through data mining existing data collection

The Government has a requirement to review programs and assess alternatives. We are pleased the Minister

has been open and taken a collaborative approach. In addition to the individual phone conferences and industry meetings, AMBA will continue to be part of the assessment process and ensure the interests of the membership are represented, understood and taken into account.

We are the industry's voice at the table.

MAnAGeR’s RePoRt

FALL 2013

FALL 2013 5

FIND AMBA ON FAceBOOk, LINkeDIN, ANDTwITTer! Follow us @AMBA1975

Ron McClenaghan AMBA President

First I want to thank my loving wife Patti for tolerating my hectic schedule for the past year and even more so for putting up with me for these past 40 some years.

As you can see I am big on making relationships work.

During this past year as your representatives, AMBA has reached out to our Broker members with meetings held in both Calgary and Edmonton. I have said throughout my term as President that this is your association, we need to hear from you and how AMBA can bring value to your business. The Broker of Record meetings will now be an annual function to take place. We will continue to communicate the directions of the association to our member Brokers so they can be proud Ambassadors for having all their associates be members of AMBA.

AMBA takes pride and puts in a lot of hard work with RECA our provincial regulators. This relationship has grown as the demand for quality education, defining reciprocity and how best to address national harmonization of our mortgage industry evolves. Both RECA and the new nationally formed Mortgage Broker Regulator Council of Canada are forging ahead in defining the Core Competencies and Curriculum with continuing dialogue involving the key mortgage associations.

All of us as stakeholders in our industry need to play a role which helps produce and maintain the best possible mortgage professional to serve the mortgage consumers across Canada.

I would like to personally thank Gary Siegle, a long time friend of mine for all the effort and integrity he brings to our industry and the six years of dedicated work with RECA.

The mortgage industry continues to mature and along with the growth comes constant change and challenges. I am pleased to tell all of you that AMBA is not alone in trying to keep ahead of the pace to serve and represent the licensed mortgage practitioners both in Alberta and across Canada.

Our relationships with MBABC in British Columbia, IMBA in Ontario and MBAAC in the Atlantic provinces continues to be enhanced by collaborating our efforts to assist each other in the areas of Education, Communications and Membership services. We believe every province should have their own association in order to represent the mortgage practitioner regionally.

I would like to thank everyone that has helped to nurture these relationships inter-provincially, some are here today and some could not be here.

Firstly I would like to thank our own GM Deborah Keshen, who in her first year has had to learn fast and address a very aggressive agenda both here and abroad.

We have with us from MBABC, Samantha Gale the BC association CEO. I would like to thank both Samantha and Jared Dreyer now their Past President for working with us on many fronts but mostly entering into our working relationship to enhance education programs. Ajay Soni from INVIS a long time industry member is now their President.

I would like to thank our friends from IMBA in Ontario, starting with their Past President Albert Collu. Albert has been very instrumental in making our relationship with IMBA a strong alliance. IMBA has a relentless Executive Director in Joe Rosati, another long time industry member and the sharing that takes place between us has been great.

I had the pleasure of attending their Summerfest Golf Tournament in August as well as address their Board. Raj Babber is their new President and is a strong supporter of all the inter-provincial work being carried out by everyone.

I would like to specifically mention MBAAC our newest provincial association for having the initiative and courage to organize locally. First with Glen Ward as President and now with Janet McKeough the current President. All three of BC, AB and ON have pledge any assistance we can provide in helping them grow in Eastern Canada.

It has been a busy year, The Future is Always Emerging

I look forward to being a participant and I hope all of you attending here today will be as well. Thank You

oUtGoInG PResIDent's ReMARKs

FALL 20136

incoming President's messageIt’s YoUR InDUstRY.

I have been asked many times by my friends and family why I would add yet another hat to wear, I mean really I’m an involved father of 2 wonderful kids, I’m the broker of record for nearly 170 brokers at TMG, I have a beautiful wife whom I truly enjoy spending as much time as possible with and regularly take on projects from home renos to rental properties. The answer is simple: this is my industry. After spending nearly nine years as a mortgage broker I can’t imagine doing anything else for a living. As brokers we provide a tremendous value to Albertans, we save them time, we save them money, we provide them with great service and advice, we facilitate some of the most important, stressful and long lasting financial transactions of peoples lives. This is an incredible service that the public truly benefits from. We are also a great method of distribution for our lending partners. That said we are always under fire as an industry. The last four years have brought many unexpected changes. Throughout these changes (and for nearly four decades) AMBA has been the voice of the industry. Supporting, encouraging and facilitating growth of the mortgage broker industry is what we do.

There are many great brokerages (large and small) in our marketplace stacked with great people and AMBA is how we get organized. AMBA allows us to have a unified voice, a voice which:

Works closely with our regulator, RECA to ensure people entering the industry are at an increasingly higher level of professionalism and competency.

consults on the review of the Real Estate Act with RECA and the Minister of Service Alberta ensuring we have a say in changes that can be beneficial or catastrophic to our market

Provides input on the intended and unintended effects of privatization of the Land Titles Registry

Provides a platform for the sharing of ideas and best practices and helps to promote the brand of Mortgage Broker.

collaborates with the other provincial associations on things like Education and communication

But this isn’t just my industry, it’s your industry too… it’s big enough, we can share. As our industry evolves it’s increasingly important to be involved. At the conference this year I asked that you encourage one of your absent colleagues to get off the sidelines and get I-N-V-O-L-V-E-D. What does involved mean though? I know everyone is busy… so involved means different things to different people and at different times in their lives. The first step is to become a member, if you are reading this article you likely have taken that step, THANK YOU; you are contributing to making our industry better with that simple step. As a baseline I

FALL 2013 7

would argue that every broker in alberta should be a member of amba, otherwise is this really your profession? If you would like to do more, it can be as easy as encouraging your non-member colleagues to become members, it could be responding to surveys or attending symposiums or conferences. If you are really intrigued we have committees for events planning, government relations, community outreach etc. maybe even run for next year’s board of directors. The more voices added to the discussion the more effective we can all be. There are many ways to get involved with AMBA and our industry, the time is now.

ThE ConFEREnCE ThAT WAS:

I want to take this as another opportunity to say another thank you to our conference sponsors. Remember that they support this industry in a big way. Without them we cannot do what we do, a broker with one lender is not a broker… Show them your support, send them some business.

GoLd SPonSoRS:

Optimum Mortgage, Street Capital, First National, Scotia Mortgage Authority, Canadian Financial, Equitable Trust, TMG

SILvER SPonSoRS:

Home Trust, National Bank, D+H CMHC

BRonzE SPonSoRS:

Invis/ Mortgage Intelligence, LMS Prolink, MERIX, MCAP

It’s important in any profession to take time out of practice to learn new skills, to polish old skills and to share best practices with your colleagues. Education, development and networking, that’s commitment to being a professional.

ThE ConFEREnCE ThAT WILL BE:

We’ve heard some of your feedback and are in the planning stages for next year’s conference with a desire to make it the best ever. A shift of location, a new date, some fun activities and a more robust educational offering… Register early space is truly limited this year.

During my year as President of the Alberta Mortgage Broker’s Association (I like the sound of that) I intend to:

Build on the great relationship we have with RECA

Engage with Broker Owners more often and more effectively

Work with MBABC, IMBA, MBAAC and CAAMP to help streamline events and activities to the benefit of the whole industry

Have the new MAP course launched

Work with the provincial government to ensure the interests of Mortgage Brokers are represented and that Albertans will continue to be served in the best way possible

Our board has a big job ahead and if you look at the members of this year’s board, you know we are up to the task but we need your involvement. We need your voice. Pickup the phone, send an email, tell us what you think, what we need. This is our industry and together we are stronger. Remember the AMBA board is volunteer board made up of mortgage brokers, lenders, service providers and insurers. We share the same struggles, concerns, successes and frustrations as you do, and we all have an interest in making things better. Thank you for your support and keep the feedback coming. We are AMBA we are the voice of the mortgage industry in Alberta.

FALL 2013 9

WeB HoW to: View changes to the AmbA bylawsOver the past year AMBA has undertaken a project to bring our bylaws up-to-date, and to change them to reflect the current state of the industry and our membership. As an AMBA member, you are free to review these changes (which were passed at the Annual General Meeting on Oct. 12, 2013).

If you have questions about the new bylaws please contact AMBA at info@amba.ca

steP 2: click, log in and enter your username and password

steP 1: to review the changes to the bylaw go to www.amba.ca

steP 4: scroll down until you see the “member resources” box

steP 3: navigate to the “member Zone”

steP 6: the new bylaws will appear in a new tab or window in your browser

steP 3: clicking on the member resources box will lead you to a page of documents. select 2013 Proposed bylaw changes (clean copy)

HOME TRUST

Our HELOC will give your clients access to the equity in their home with the added flexibility and

convenience that comes with a gold Visa card. With the Equityline® Visa*, you can present your

alternative clients options. Offer our HELOC on its own or as the perfect addition to a mortgage.

Equityline Visa Benefits:

• Fully open

• No annual fee

• Low monthly payments

• Reported monthly to credit bureau

• Insures items purchased with the card against theft and

damages for up to 90 days from date of purchase

For more information, contact your Business Development Manager.

The Home Trust Equityline Visa Card

BECAUSE SOMETIMES YOU NEED MORE THAN A MORTGAGE.

@HTCmortgages #equityline

MORTGAGES I VISA I RETAIL CREDIT I DEPOSITS

hometrust.ca ® Registered trademark of Home Trust Company *Visa Int./Home Trust Company, licensed user of mark. MTG_AMBA 07-2013

FALL 2013 11

Surfing the web at hundreds of megabytes per second has become de rigueur in the modern office. So much of our business is conducted online these days that an internet outage can stop our productivity in its tracks, leaving everyone in your office milling around the water cooler looking slightly dazed.

But your web browsing habits – even the most innocuous of them – could be opening you,

your business and your clients up to a whole world of trouble.

At the 2013 AMBA Conference, technology expert, David Papp shared his secrets to browsing securely, critical information for the information age.

Today, many if not all computers come with a web browser pre-installed. But often, these pre-loaded browsers are not set up in a secure default configuration. Using your browsers, or sharing information online in ways that are not secure can lead to everything from computer crashes to hackers taking over your entire computer.

On your personal computer, these threats would be bad enough, but so much of our clients valuable personal information is stored on our work computers that the consequences of hackers gaining access to your system are catastrophic.

In previous privacy articles we have explored ways to securely store this information, locally, remotely, online or on the cloud, but even if you have taken steps to lock down your important data, nothing is 100 percent secure.

Your web browser is the first point of entry for a hacker looking to attack your system. More and more often, software that can compromise your computer is being directed at web browsers through the use of malicious websites.

These attacks work for a number of reasons, chief among them is our own comfort online. We tend to surf the web feeling fairly savvy and confident of our ability to recognize threats before we click on links, but when we start clicking without considering the risks of our actions, we make our computers vulnerable.

It isn’t uncommon for URL’s to be disguised, luring unsuspecting web users to unexpected sites loaded with malware. Additionally, many web browsers have sacrificed security in order to increase their functionality. And, just like the old adage of your new computer being made obsolete by the newer model that was just

Think you are ready to implement some new and time-saving technologies into your business? Answer these questions from our expert technology panel to make sure you have a proper plan in place.

What happens if the company storing your data runs into legal trouble, goes out of business or is taken over by another company?

What are the security measures you will use when uploaded data? What level of encryption is utilized?

How much is the project going to cost, what are your ongoing maintenance costs? What are your timelines, does the IT Company agree? What could delay the project? Once you have your IT project costs add 15 percent.

No cloud service is 100 percent secure, you still need a physical backup so how will you do that?

Is the company based in Canada? Are all their servers based in Canada? Where do the backups reside?

What are your contingency plans if your system goes down? How fast do you need to retrieve your data and how will you do that?

What mechanisms will you need to remove someone from any marketing communications, your CRM or database?

Data mining is not just for large CRM systems. How are you going to use the data you collect to profile your customers and key lead avenues?

How will you get consent from your clients to continue ongoing communications after their transaction is completed?

How is your role going to be in taking advantage of the technology that is out there to build better relationship, more leads and improve processes?

Other Information:CASL information can be found at: http://www.ic.gc.ca/eic/site/ecic-ceac.nsf/eng/gv00521.html

PRIVAcY: HoW secURe Is YoUR BRoWsInG?

tecHnoLoGY PAneL:toP ten tIPs

1

2

3

45

6

7

8

9

10

FALL 201312

delivered to the store as you swiped your credit card through - many antivirus software packages become out of date almost as soon as they are loaded on to your computer.

All of that seems bleak, but there are steps you can take and programs you can use to help make your web browsing experience safe and secure.

use your Head

The first thing that Papp advises users to take into account, is how likely they are to be a target of an attack. The number of protocols you put in place to protect yourself should be commensurate with potential threats and concerns.

That is to say, if you are delving deep into the furthest corners of the internet, you will want to keep a fairly tight lid on things. If you are using the internet to see pictures of your grandkids on Facebook and check out the occasional cat video on YouTube, you still have to use caution, but don’t feel like you have to be at DEFCON 1.

encryPtIon Is key

Look for sites that use https in their URL as opposed to just http. In this case, the ‘s’ stands for secure. Especially when it comes to inputting personal information, sites that use https provide benefits like confidentiality (your information remains private because only your browser and the server can decrypt it), integrity (protecting data from being modified) and increased protection of your identity.

If you want to test if a site has good encryption or not, just enter the URL at www.SSLLabs.com to run a quick test.

google WHo?

You might not be aware of it, but Google keeps track of all of your searches. That might not seem like a big deal on the surface, but the company has come under fire for turning over people’s search history to various governments. If you aren’t comfortable with that idea, it may be time to consider switching search engines to startPage.com or duckduckgo.com

lock doWn your fIles

Before you upload your files to the cloud, take the time to encrypt them. Drop box and iCloud do have reasonable security settings in place, but when you are storing your clients personal information online, it is best not to leave anything to chance.

Luckily, you can use services like www.TrueCrypt.org to encrypt your files (either one or many at a time) before you store them. Be careful when you share the passwords for these encrypted files, otherwise you will end up back at square one!

PractIce safe text

Skype is not necessarily a secure place to have text or voice conversations. All conversations that occur on the program are monitored by Microsoft. As with Google, if the idea of a third party having access to your conversations sets you on edge, try using iChat or CryptoCat for your private conversations.

enter tHe cone of sIlence

Even though it might seem like something out of Get Smart, www.SilentCircle.com is a highly recommended software/service which can provide end-to-end live encryption for your:

phone calls

emails

text messages

conference calls

Of course you don’t need to be paranoid when you are online; the purpose of all of these tips and tricks is primarily to keep your information from falling into the right hands. Keep your wits about you when dealing with potentially sensitive data and you should have no reason to worry.

If you are interested in receiving a digital copy of the files from David Papp’s privacy and fraud prevention presentation, please contact communications@amba.ca

PRIVAcY: HoW secURe Is YoUR BRoWsInG? (con't)

FALL 2013 13

RMGmo r t ga ge s

RMG

Mor

tgag

es is

a d

ivisio

n of

MC

AP

Finan

cial

Cor

pora

tion

| O

ntar

io M

ortg

age

Brok

erag

e no

106

00 |

Ont

ario

Mor

tgag

e A

dmin

istra

tor

no 1

1790

SOLUTIONS.ADVICE.MOVE.S

MA

RT

Visit www.RMGmortgages.ca or contact one of our Business Development Managers to learn how RMG Mortgages can help you create homeownership opportunities.

FALL 201314

The ballots have been cast and the votes are in and the AMBA Board for 2014 has been elected. Among the slate are some new comers, and some members who have been volunteering their time with the organization for years. One thing unites them all: our board members share a collective determination to uphold the highest standards of business practices in our industry.

AMBA is the voice that represents your interests at the local and provincial level. Our board members are key to advocating for change that protects our industry and creates a level playing field among all mortgage professionals.

Under the stewardship of our board, AMBA hopes to expand our networking and education initiatives for our members. Additionally, we hope to continue to provide excellent social occasions where you can let your hair down and meet new colleagues and contacts.

Our board is here for you. If you have a question or comment, or you would like to volunteer with an AMBA sub-committee, you can find contact information at www.amba.ca.

Welcome Your New AMBA Board

of Directors!

your amba board of directors:

returning directors include:

gord appel tmg Presidentron mcclenaghan Invis Past President adil mawji Inviscathy sehn Verico brokers for life erica fikkert equitable trust kevin Weeks Weeks law

re elected directors are:ryan spence davis & HendersonPhil mcdowell mortgages are marvelous

newly elected directors for 2013 are:dale koeller calvert Home mortgage Investment corporationfrank Petrin Verico cml canadian mortgage lender Inc.layne Walters tmg - the mortgage group alberta ltd.tracy robinson mortgage Protection Plan

FALL 2013 15

Continued on page 36...

RecA UPDAtenew AmbA Appointee to councilThe Real Estate Council of Alberta (RECA) would like to thank Gary Siegle, the mortgage brokerage representative on Council, for his six years of service. Gary was appointed to Council by AMBA in 2007, and has been an integral to the excellent relationship between AMBA and RECA. Gary was a dedicated, conscientious Council member who has made a number of valuable contributions to Council and to the mortgage brokerage profession itself.

RECA would like to introduce Pat Kelly as the new mortgage brokerage representative on Council. Kelly will begin his term on November 1, 2013. Pat is a mortgage associate with 19 years of experience in the industry, and has served 7 years on the AMBA Board, twice serving as President of the Association.

Real Estate Act ReviewIn mid-September 2012, Service Alberta notified RECA that the Real Estate Act was on the Government’s legislative agenda. Throughout late 2012/early 2013, RECA conducted extensive consultation with industry professionals in all sectors and other stakeholders with respect to possible changes to the Real Estate Act.

RECA appreciates the input that AMBA provided on the Real Estate Act consultations and as a direct result RECA made adjustments to the recommendations to Government.

RECA has submitted its proposed amendments for the Real Estate Act to the Government of Alberta. Government has indicated that the Real Estate Amendment Act is scheduled to be on the legislative agenda for the Spring 2014 sitting of the Legislature; however, priorities of Government change on a regular basis and the priority of the Condominium Property Act will likely postpone these amendments to the Fall of 2014 or Spring of 2015.

Of greatest relevance to Alberta’s mortgage brokerage industry are the following proposed amendments:

That the Real Estate Act should apply to banks, treasury branches, credit unions, loan corporations, trust corporations or insurance companies when they are dealing in mortgages from other financial institutions.

That the application section of the Real Estate Act should remove the “word” agent to support consumer protection and a fair marketplace. This would mean that the Real Estate Act would apply to agents of financial institutions when they are dealing in mortgages from other financial institutions.

Clarify that the Real Estate Act does not apply to those who deal in mortgage investment entities.

The Real Estate Act would continue to apply to private lending.

The Real Estate Act would clearly outline that it does not apply to people who lend their own money secured by a mortgage.

Additionally, other proposed amendments are housekeeping in nature, for example, codifying the process where RECA and an industry member come to a mutual agreement on a disciplinary matter without going to a hearing.

Mandatory Written Service Agreements - Change to Rule 43

After consultation with industry professionals and the Mortgage Broker Advisory Committee (MBAC), Council has approved a plan to assist mortgage brokers in complying with section 43 of the Rules when it is implemented in early 2014.

FALL 201316

WHAT TO KNOWBEFORE BUYING

A CONDO

Condo living has long tempted first time home owners and those embarking a new phase of life. Lured by promises of affordability and an easy lifestyle in a hip area, seductive services such as landscaping, snow removal and a property management company at your beck and call make it a different experience than owning a single family home.

But condo dwelling isn’t all living in the clouds and cocktail parties. “Many people incorrectly believe they’ll never have to make another decision with regards to their property,” says Bernice Winters, author of 10 Secrets to Surviving Life in a Condominium. Live the Dream - Not the Nightmare, and CEO of Condo Check.

There’s more to owning a condo than having an investment in a slice of real estate. It’s no different than buying into a corporation, yet many people don’t investigate whether that corporation is financially sound. Here’s a look at what you need to know before going condo crazy.

Article Sponsored by

Jody Robbins, Special to AMBA Matters

FALL 2013 17

WHAT TO KNOWBEFORE BUYING

A CONDO

sHARe tHIs HeLPFUL ARtIcLe WItH YoUR cLIents A PDF oF tHIs ARtIcLe Is AVAILABLe In tHe MeMBeR Zone UnDeR MeMBeR ResoURces

5 Cardinal Rules Before Purchasing

1. Learn what you’re buying

Your first order of business when searching out a condo for purchase is learning exactly what it is you’ll be buying. Who owns what in a condo isn’t as clear cut as a detached home. Windows for example, can be problematic, says Randy Smith, a shareholder with Williams Engineering, who has over 25-years experience working with condos. “In some condos, windows are the property of owners, and if someone chooses to buy one of poor quality and water comes in, it can affect the building. It’s best when the windows are part and parcel of the condo property,” he says.

2. Get down to the nitty gritty

Is there an elevator, pool or gym within the complex? Will you use them enough to justify the maintenance costs? Find out if your parking space is titled or not. This will make a difference to the value of the property. Does the unit have enough storage space? If not, is there a locker for your luggage and bikes? Are pets allowed? Can you rent your unit out short or long term? Are there age restrictions that stipulate who can occupy the unit? “Anytime you see a lot of restrictions, it’s more of a negative. People should be thinking about resale, and a lot of restrictions gives your property less marketability at the end of the day,” says William Charlton, Senior Mortgage Underwriter, Calvert Home Mortgage Investment Corporation.

3. Post tension

Many professions don’t recommend buying a post-tension building. In fact, many lenders won’t lend on a structure built with post tension cables, and if they do, they’ll often ask what inspections have been done to ensure the structure is sound. “Most of these structures are in either a repair or monitoring program, and the removal and replacement of the cables is really expensive,” notes Smith.

4. Don’t judge a book by it’s cover

It’s impossible to know during a walk through what lies beneath the surface. A condo could be 40 years-old, but in mint condition or brand new and falling apart. If you’re unsure if the potential property is in need of imminent or future repair, don’t balk at getting a home inspection. Most folks won’t think twice about getting an inspection for a single family home, but the practice isn’t as common with condos - though it’s as important of an investment. “You want to make sure you know what you’re walking into today, and down the road,” says Charlton.

5. Use a good lawyer

Ensure the estoppel certificate is clear, and that there are no special assessments or condo fees still owing from the previous owner. The last thing you want is to become engaged in a legal battle after you’ve taken possession.

Always AskThe absolute first thing you need to ask owners and property managers, is if the condo has had any water penetration problems, says Smith. “If it has, you need to learn everything you can about it,” he recommends. Find out if the board used a building envelope consultant to solve the problem, or was caulking thrown on the wall as a band-aid solution?

Ask the board how confident they are as volunteers in managing this multi-million dollar business, suggests Winters. “How aware are they? If they don’t have a particular expertise, do they source that out? Do they enforce bylaws consistently and fairly?”

The more informed you are on what’s going on in the building, the better off you’ll be.

Talk to other residents. Suss out if the property management company is attentive, ask if the residents like living there, and if they have any complaints. “If you buy with your head in the sand, you’ll be in trouble. People need to do their due diligence,” warns Smith.

Understanding Condo DocumentsCondo documents are a series of documents buyers should review in order to make an informed purchasing decision. These documents include the minutes from the AGM and regular board meetings, the bylaws that set out the rules, insurance certificate, condominium plan, management contract, fee schedule, current financial statement, operating budget and the reserve fund study.

Minutes from meetings give potential buyers a clue as to how the corporation makes its business decisions, if issues are being dealt with, and if there’s enough money to do so. “You’ll be able to judge if the board is proactive or reactive. Do they use professionals or the guy with the best deal to solve their problems?” says Winters.

The financials are a key piece of this documentation. “You want to know if the corporation is financially sound, or if they are deferring projects to the future,” says Winters.

Both buyers and lenders should be going over these documents with a fine toothed comb. “Lenders should be reading them

FALL 201318

as well because ultimately they are at risk,” warns Charlton.

Confused by it all? Services such as Condo Check, a Calgary-based consultancy examines these documents on your behalf and produces a written report highlighting what potential owners need to pay attention to. They’re looking to see how the board operates and other critical pieces that determines if the property is expected to grow in value.

All experts agree: buyers should never purchase a condo without doing a thorough document review. Otherwise, it’s just too risky. “As an industry, we need to make sure our buyers are fully understanding what they’re buying. All that information is in the condo documents,” says Dale Koeller, VP and Senior Mortgage Underwriter at Calvert Home Mortgage Investment Corporation.

Reserve FundsOften considered the most important aspect of all the condo documents, the reserve fund study is used a guideline for the condo board to make appropriate decisions. It indicates what needs to be repaired, and how much is in the financial reserve to make those improvements.

“A good one will tell you why things have to be replaced. Then you want to find out from the board if they’re actually following those recommendations,” says Smith. He likes to see a reserve fund at approximately three to five percent of the overall building value.

Unfortunately, reserve fund studies and reserve funds aren’t commonly understood by most buyers. “Reserve funds need to be compared to the study to ensure they are sufficient,” advises Koeller.

Reserve fund items are regular planned issues that are highly legislated. If something is in need of repair and isn’t listed in the study, money from the fund can not be used to fix it, which is when special assessments come into the picture.

Special What? Special assessments are additional payments imposed by the board when the condo corporation doesn’t have enough money to fix a large repair bill. Each owner is asked for a portion depending upon how much they own of the common area. The term special assessment typically strikes fear in the hearts of prospective buyers, but this shouldn’t always be the case. “Never judge a condo by its monthly fees or a special assessment - the board and management could be doing everything right,” notes Winters.

Over the past few years special assessments have become a common practice in Alberta, particularly among condo conversions. While special assessments are often seen as a red flag, sometimes they’re a sign of drastically improving the property and its value.

Yet in other cases, it’s a result of the board’s inability to make tough decisions and passing those off to the next guy. “It all boils down to if the board is managing the money properly, keeping the building in good condition and utilizing experts,” says Winters.

Lenders are ultimately responsible for special assessment if the owner can not pay. “We saw a lot of that in 2008 and 2009,” notes Charlton. “Some lenders won’t lend on condos as a result. The ones that do, should be scrutinizing the condo docs.”

Call to DutyCondo boards are made up of volunteer owners who act in the best interests of all the residents. Being part of the board is an excellent way to understand what you’re buying. “Lack of education and awareness costs people,” warns Winters.

If you’re part of a condo, you need to expect to be called upon to be a board member. “You shouldn’t own a condo if you’re not willing to be on the board,” says Koeller.

But you don’t want to be on the board only to be lynched by other owners. Ensure an insurance policy is in place to cover the legal costs of board members should disputes arise.4 Common miStAkeS mADe

By BUyeRS AnD LenDeRS

1. buying based on low condo fees. low fees might be a sign that corners are being cut, or a sufficient reserve isn’t being saved for.

2. not realizing you’re buying a piece of a corporation. take the necessary steps to ensure what you’re buying is well managed, in good financial order, resalable and financeable.

3. thinking if looks good it must be good. get a home inspection to check for leaks and any structural issues that could cause great expense at a later date.

4. not checking condo docs. If you wouldn’t make an investment without knowing its performance, don’t buy into a condo if you don’t know it’s operating properly.

FALL 2013 19

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

Residential

Helen Neufeld ext. 215 Helen@caplink.ca

Commercial

Gay Andrews ext 236 gay@caplink.ca

Caplink Financial Corporation | Suite 2200, 10104 103 Avenue, Edmonton, AB T5J 0H8 | www.caplink.ca

We 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 Caplink now offering FIRST mortgages up

to 85% in major urban centres.

Contact us for more information.

ARe YoU MAKInG tHe Most oF YoUR MeMBeRsHIP?Take advantage of our member benefit programs that can save you money, promote your business and further your career.

e&o Plus cyber legal Insurance from LMS Prolink

Home and auto Insurance from The Personal Insurance Company

amba/Imba affinity Program

Imperial oil (esso) - Offering AMBA members 2.6 cents off a litre of gasoline.

grand & toy - Up to 75% off over 7500 quality office products.

telus mobility - Savings up to 20% off corporate plans for individual AMBA members

constant contact – Exclusive AMBA Member Benefit up to 25% off.

lead generation systems – AMBA members receive a 10% discount on all setup and monthly costs. iToolPro offers comprehensive online marketing and website services for mortgage professionals.

cutco cutlery gift Program - Receive 20% off. Instead of giving gifts that are either eaten or spent, give a closing or referral gift that your clients will appreciate and use every day for the rest of their lives.

Welcome Home Program - The Welcome Home Program is a photo essay of your clients in their new home created on a DVD. The DVD includes your name, logo and contact information at the bottom of every photo. AMBA members receive a 20% discount.

mortgage calculators – the 3423 Canadian Qualifier Plus 4x Real Estate Calculator Members only pay $131.25, which is a 20% discount from retails price!

two grey suits (for brokerages ONLY) – 24 hour HR support

Log in to the ‘Member Zone’ at amba.ca to access your benefits today

FIND AMBA ON FAceBOOk, LINkeDIN, ANDTwITTer!Follow us @AMBA1975

FALL 201320

This Issue’s Expert

KeVIn WeeKs Weeks Law

“A man who does not think and plan long ahead will find trouble right at his door” – Confucius

At Weeks Law we execute all the normal real estate, conveyancing, mortgaging and refinancing transactions with which we are all familiar and deal with on a daily basis; but we also practice in the not so familiar fields of intellectual property, intellectual capital, knowledge management and systems development and integration. doesn’t sound very familiar? Yet you also deal with this on a daily basis in your business and your lives; most of us without really paying much attention to it.

So for today’s article we thought we would take a macro 50,000 foot altitude scope to review what we all really do and how we should go about it by analogically speaking of Trains, Quarterbacks and Architects.

tRAIns, QUARteRBAcKs AnD ARcHItects, WHAt Do tHeY HAVe In coMMon? Simply put, all three showcase varying aspects of programs, systems and processes. Just like our lives, businesses and careers are at certain levels bundles of interrelated programs, systems and processes. some are organized and defined, some not so much; unnervingly similar to the “matrix”.

So let’s start and put this in perspective as far as career and work processes go. This will require an “AhA Moment” to really kick in.

Let’s stARt WItH tHe tRAIns. Trains are the journey of which the successful arrival at the destination is the purpose of the exercise. So in the context of mortgages and real estate transactions, the journey could be the purchase or sale of the passenger’s home or the refinancing of it.

The Trains must run on time with their set schedules, timelines, runs and stops (or what is called milestones for those familiar with project software) but the entire journey is what matters to the passenger and the passenger wants to get to the destination on time and not dropped elsewhere or be unduly delayed or become disheveled. If one is travelling from St. John’s Newfoundland to Victoria, BC one does not want to find oneself running late at Portage & Main; wondering what happened and what happens next.

To avoid such calamities is the business of the Architect respecting the overall design and functionality of the journey and its parts and those responsible for implementing and carrying out the Architect’s plan are the Quarterbacks. These functionaries need to be identified as soon as possible and qualified.

no MAtteR HoW BIG oR sMALL, tHeRe ARe ALWAYs MULtIPLe MoVInG PARts to AnY tRAnsActIon.

By way of example, real estate transactions involve a number of specialist players from beginning to end: realtors, appraisers, mortgage brokers, financial institutions, surveyors, property inspectors and lawyers amongst others. Each of these players may be a “Quarterback” for the particular part of the journey for which they are responsible. However, even though some of these parties manage sections of the Train track that overlap, there is often inadequate communication and feedback between these parties. Rather often the only common link between the Quarterbacks is the client. One of the primary reasons for that is the client, quite often by default and without anyone really noticing, is not just the passenger but is also the Architect. After all, the client usually is the initial instigator and the only one riding the Train from start to finish. They are the ones that ultimately bear the success or failure of their journey. Unfortunately they are frequently neither experienced nor capable of properly fulfilling that function. And that is without getting into the emotional entanglements and escalations that invariably arise; especially when things are not going well.

AsK tHe exPeRt:tRAIns, QUARteRBAcKs AnD ARcHItects

FALL 2013 21

Therefore it behooves all everyone, soon as they become involved, to acquaint themselves with the big picture and identify the Train, Quarterbacks and Architect. It is important for all Quarterbacks to consider the details, timelines, responsible parties and deliverables they are responsible for and how they impact the process of others quarterbacking parts of the transaction. For example, if the Real Property Report is not up to date at closing, a chain of events may occur that affects the timing of the entire transaction including financing. So although not a traditional responsibility of the mortgage broker, by simply becoming more familiar with the process and asking

questions at the beginning, problems can be avoided.

By the time that the Train arrives at the lawyers office it is often too late to be dealing with

Architect and failed or deficient Quarterback issues without incurring adverse consequences. And that is why I always encourage all to call us as early as possible and certainly whenever an issue arises to avoid it becoming a problem at closing. Put another way, “I can tell you what to do or I can tell you what you

have done”.

When something goes awry, human nature dictates that it is everybody else’s fault but their own. Regardless of fault whenever there is a train wreck everybody involved ends up hurt, some more than others. Often asking a simple question early in the process can avoid such difficulties and keep everyone from being involved in a wreck, which at the end of the day is in everybody’s interest. By simply ensuring coordination with proper handoffs between Quarterbacks without fumbling and alerting each other to potential problems and avoiding “not my problem” or “somebody else will fix it” attitudes is often enough to achieve a successful conclusion.

The passenger on the Train always wants an enjoyable experience. If it is enjoyable it will be memorable and if it is a disaster it will be memorable. Either way they will be thinking of their experience including you and talking about it to others one way or the other.

For those who think all of this is obvious and trite with no AHA Moment remember this: “the problem is not knowing what to do; the problem is not doing what we know”.

Think Trains, Quarterbacks and Architects and have a great day.

Uncommon.

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 treating them

like friends and family. We’re Bridgewater Bank, and that’s just how we do things.

bwballstarportal.ca

FALL 201322

ConferenCe Wrap UpThank you to everyone who attended our Annual Conference at the Marriot River Cree Casino and Resort in Edmonton. The event was a smashing success thanks to all our attendees and the diligent work of our Board of Directors, the Event Committee and our amazing volunteers.

The conference began by upping the ante right away at our fist Charity Poker Tournament in support of the Stollery Children’s Hospital. AMBA members sidled up to the table to raise funds and have a great time at our kickoff event.

For those less inclined to gamble, the evening was spent catching up with colleagues and friends at our welcome reception. We were treated to the music stylings of some of the biggest names in Alberta Blues, and the night hit a high note when AMBA’s own Renee Price took the stage to belt out a few tunes.

Despite a late evening, everyone was down on the tradeshow floor bright and early to learn more about, and meet representatives from, all the companies that participated in our tradeshow.

The educational part of the day opened with a technology presentation by Michael Rogers. With technology becoming so central to the way we all do business, Michael explored whether moving to a paperless office is a good idea, how new technologies could make life easier for you and your clients and how to navigate the ever-changing tech landscape.

Following his presentation, Rogers moderated a technology panel featuring Ryan Spence of D+H, Mike Cameron, CEO of AXIOM Mortgage, David Papp -expert in the field of Information Technology and Rachel St. John from Heenan Blaikie’s National Privacy and Information Management group.

The informative panel touched on a wide variety of issues from how to integrate social media marketing into your company’s plan, to the danger of data mining and the potential legal issues around data storage.

After a quick break, the sessions continued with an engaging and energetic presentation from David Papp. David brought his years of experience teaching companies about privacy, fraud and other legal issues to bear in a presentation that held the audience captive in their seats.

Generous ConferenceSponsors

FALL 2013 23

The afternoon opened with a fraud prevention and privacy panel featuring Kevin Weeks of Weeks Law, Jeremy Nichols, Manager of Fraud & Investigation at Servus Credit Union , Doug Farmer Calgary Branch Manager for First National Financial LP and Donna Driver Director of Quality Assurance, Investigations and Recoveries at Genworth Canada. Panelists fielded questions from moderator David Papp and the audience about forclosure fraud, dirt fraud, identity theft and land title insurance.

Following the close of the conference, delegates once again took to the tradeshow to meet and greet valuable industry partners and discuss the all the new information they had learned.

Thank you again to everyone who attended the 2013 conference. AMBA strives to make our events as valuable to our members as possible with a mix of education and networking opportunities, as well as the chance to have a little fun.

Stay tuned to amba.ca for information about the 2014 conference, as well as the ALT A Symposium coming up this January and all the other wonderful AMBA events throughout the year.

Generous ConferenceSponsors

to all our

Gold

Silver

Bronze

Thank You!

FALL 201324

Tee'd Off!aMBa MeMBerS

It’s no secret, AMBA Members love to hit the links. Our annual golf tournament at the Links of Spruce Grove brought together some of AMBA’s best and brightest for an amazing day of (very friendly) competition.

The Links of Spruce Grove is an incredible course that challenged all of our golfers, and even though no one walked away with the Hole-In-One prizes, good times were the reward for all our players.

FALL 2013 25

Tee'd Off!

If you were lucky enough to golf, then you probably met our individual hole sponsors who make the amba golf tournament one of a kind

caplink

VWr capital

first national

canadiana financial

scotia mortgage authority

d+H

mPP

street capital

antrim Investments

merIx financial

calvert

optimum mortgage

equitable trust

alta West

Thank You Tournament Sponsors!amba would like to take this opportunity to thank every sponsor of our golf tournament, this event couldn’t happen without your generous support.

Thank You Hole Sponsors!

FALL 201326

Congratulations

2013Awards Winners

to our amba aWard WInnersduring the AGM at the 2013 AMBA Conference, AMBA took the time to honour some of our members who have gone above and beyond within the association. These AMBA members represent the highest level of professionalism and community engagement and it is our honour to recognize their efforts.

The Ambassador award is given to be a member in good standing with AMBA, who has at least 7 years working experience as a Mortgage Broker. The nominee must demonstrate advanced leadership, integrity and outstanding participation in the mortgage industry.

todd Fralic Quantus Mortgage Solutions (Paul Bojakli accepted on behalf)

It is our pleasure announce the 2013 winner is: Todd Fralic from Quantus Mortgage Solutions. Todd is a previous Board president, has worked to eliminate GST for brokers, sat on the RECA advisory committee and participates on several community boards. Unfortunately Todd was unable to be present to accept his award, so Paul Bojakli accepted the award on Todd’s behalf.

Ambassador Award

The Executive Award is given to a member in good standing with a minimum of 3 years’ experience as a broker who has shown great leadership potential.

William charlton Calvert Home Mortgage Investment Corporation

William Charlton from Calvert Home Mortgage Investment Corporation is the winner of the 2013 Executive Award. Any AMBA member who enjoyed the golf tournament has William to thank for the success of that event. A tireless volunteer William has given many hours to supporting the events committee along with many other events over the last six years.

Executive Award

FALL 2013 27

The partner award is given to a person who is a non-broker/associate member in good standing that possesses leadership experience in promoting and enhancing AMBA as well as the industry.

nancy Kamineski Genworth Canada

The 2013 winner of the partner award is Nancy Kamineski from Genworth Canada. Nancy has been in the industry for over 6 years and has been a great advocate for the broker, consistently displaying leadership through training sessions, providing economic updates and being actively involved with AMBA.

Partner Award

The President's award is given to a broker member with at least 10 years’ experience who has demonstrated advanced leadership, integrity and outstanding participation in the mortgage industry.

everett Koeller Calvert Home Mortgage Investment Corporation

Everett Koeller is the recipient of the 2013 President's Award. Everett has been a member of AMBA since the association began. His commitment to the highest of professional standards and strong customer service over the years have acted as an example to the industry. A recipient of the Queens Golden Jubilee medal for community service his charitable foundation has raised more than $1m in financial aid.

President 's Award

Ryan spence D+H

The AMBA Board Executive is privileged to work with numerous members who volunteer their time, effort and expertise to make AMBA the professional operation it is today. We would like to recognize those efforts and have established a Volunteer of the Year Award. It is with pleasure that we announce Ryan Spence as the 2013 recipient, Ryan if you can join me on stage. Ryan exemplifies volunteerism. His has given thousands of hours to ensuring the new licensing course came to fruition. While Board Directors typically give many hours to the association this course has been more of a part time job for Ryan. We want to thank him and D&H for their exemplary support of the industry and AMBA.

Volunteer of the Year Award

FALL 201328

Have you ever had a client ask you, “How do I or we actually qualify for a mortgage?”

most likely you have been asked this question at some point along your career in mortgages. Well I always go back to the 5 c’s of credit to break it down for them. It is one of the most effective ways to explain how someone qualifies for a mortgage.

“so what do mean by the 5 c’s of credit?”

In response, I always say financial lenders diligently look at an individual’s qualification before considering mortgage financing. the evaluation process in qualifying individuals involves the basic components of their character, capital, capacity, collateral, and lastly and very importantly their credit history. How do the 5 c’s of credit relate to client relationship management? let‘s explore…

How do tHe 5 c’s oF cReDIt relate to Client relationsHip ManageMent?

cHARActeRthe first time you meet someone you get a feeling for what type of person they are and the only way to really find out is to probe and ask questions. In terms of financing; lenders want to know an applicant’s ability to repay a loan. they look at their character via their overall employment history to see how they are able to make payments. such include their professional experience, length of time with their current employer and their current residence. you sure get a better feel for someone once you’ve asked them a few questions. like a clients’ first impression with a bank; a client’s impression of you is much the same. your character needs to come across clear and strong. your employment history and knowledge only empower your credibility to your client(s). building trustworthy character for both the client and yourself only bodes well for your first mortgage transaction and for many more future dealings.

cAPItALWealth is defined by means of property or money equaling one’s true capital. don’t you love when someone (who is not a financier for the purpose of qualifying you for a loan) asks, “so what do you make?” What you are really thinking is, “none of your business!”

a great answer when asked how much money you make,” is that sources of income plain and simple reflect the capability of one’s ability to repay a loan. In essence, the higher one’s net worth, the greater the cushion they have for repayment of a loan in the event of a financial set back. your capital to your clients is how much time you have spent knowing your role as a mortgage Professional. your experience and your education equal your net worth to your clients. you want to be the, “go to Person,” for them.

FALL 2013 29

coLLAteRALIn terms of the purpose of making the correlation between the 5 c’s of credit and client management, “collateral is the security a borrower provides to a lender.” collateral in relation to mortgage lending; is the property being mortgaged and its marketability. really we are all free to choose whatever part of town to live in, but let’s face it when investing in a property the location is vital to how marketable a property is and will be. Where we buy today absolutely affects the selling price of tomorrow. the more a home appreciates the more its value will increase as time goes on; speaking in terms of a healthy working economy. all too often we purchase a home not thinking about the future. at some point we will need to sell for whatever reason life throws at us. think re-sale always. your ticket to your client(s) with reference to collateral is the security you provide to them. as a mortgage broker you are in a more advantageous position when offering completive mortgage solutions from many financial Institutions-providing choice. this is a great way for clients to invest in, “you,” today and tomorrow as they know they are getting the best of the best.

cReDItthis is proof in the pudding so to speak! one’s credit score truly shows their credit worthiness if repaying debt. both equifax canada and trans union of canada are vital to financial lending we all know. It measures one’s payment history, current level of debt, length of credit history, number or frequency of new credit inquiries and the types of credit being utilized. as client’s obtain credit scores; so too do mortgage brokers. mortgage brokers obtain a history of credentials to their client’s such as their length of time in the industry, their current level of knowledge, their educational and their licencing requirements which are public information via reac, amba, cammP and other professional associations.

cAPAcItYWho wouldn’t love to have their mortgage paid off? to be the Queen, (ladies first of course) or king of your our home no matter what the size! all that extra money to spend on whatever you wish. ok let’s get back to reality as most people do not own their home outright. capacity refers to the ability to repay a loan and yes it has some characteristics as one’s capital in a way. capacity measures one’s gross debt ratio and total debt ratio in terms of mortgage financing. these are calculations financial Institutions use to come up with to precisely see what one can afford; which are made up of personal income, one’s existing debt load and the mortgage amount that one is applying for. the gross debt ratio and total debt ratio exists to making sure that a borrower’s income will suffice to carry the debt they are trying to qualify for. With relation to a client’s capacity, you as a mortgage Professional should relay your capacity in return which is, “your legal competency.” as a licenced mortgage Professional; your credentials speak for themselves with all the licensing requirements that you already obtain. this said; it is all the more fantastic when you show your client(s) how to make their “mortgage free” goal come to fruition! selling answers and solutions!

The 5 C’s of Credit can be correlated to Client Relationship Management. It definitely does not entirely have to be received in the stated format as above. Your own knowledge and experience will define your own correlation. Integrity and Accountability are key to having solid relationships that equal success.

caterina olivito-Velti

FALL 201330

socIAL centRe:Gone PHIsHInG - PRotectInG YoUR BUsIness on socIAL MeDIA

Using social media to promote your company may seem like a no-brainer – where else can a company receive so much exposure at so little cost?

But with increased online presence, comes the increased risk that your account, and your business accounts will be targeted by hackers.

A few months ago the world was captivated by the story of Amy’s Baking Company, the owners of which had appeared on a particularly wild episode of Gordon Ramsay’s Kitchen Nightmares. Following the airing of the program, the owners* of the restaurant took to social media to defend their actions on the show in the worst way possible. Their posts seemed frantic and slightly unhinged, as more and more people followed the spectacle online, the worse it got. Later, the owners of the restaurant claimed their accounts had been hacked and that it wasn’t actually them posting their nonsensical screeds. Whether it was true or not – it really highlighted the need for companies to protect their accounts from outside forces who would potentially harm their reputation.

A study in 2011 found that as many as 600,000 Facebook accounts were compromised by hackers and malware each day, by now that number has probably increased. Of course, if your account is compromised, your first worry is probably about your personal profile – after all, many people store and publish their most personal memories on social media. But keep in mind, if you are the administrator of a Facebook fan or business page, those are just as likely to be affected, and the consequences could be even worse.

So, how do we prevent these attacks? Or, if we have already been targeted, how do we recognize it and how do we fight it?

first, some terminology:

Hacker In this case, a hacker is someone with the computer savvy to break into your computer or your social media accounts without you knowing

Phishing The act of sending an e-mail to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft. The e-mail directs the user to visit a Web site where they are asked to update personal information, such as passwords and credit card, social security, and bank account numbers, that the

legitimate organization already has. The Web site, however, is bogus and set up only to steal the user's information.

A hacker intent on using your company to do some phishing can do serious damage to your reputation and could potentially cost your clients and associates thousands of dollars.

so how do these hackers gain access to your accounts?

The most common way is through Adware.

While browsing the internet or catching up on your Facebook newsfeed, you may have come across apps that claim to let you view who has been checking out your Facebook profile, or that let you create your own background for your Facebook page. Don’t be fooled! Not only do these programs not exist, in the process of “installing” them, you are actually allowing hackers to access your computer, including your email, social media accounts and any private information you may have stored there.

You may also receive an email from “Facebook” “Twitter” or “LinkedIn” telling you that your account has been compromised and that you must email them your account username and password in order to verify your settings. Do not answer these emails, and by all means, do not click on the links that they

FALL 2013 31

contain. If you are concerned about the security of any of your social media accounts, go directly to them in your browser to log in.

How will you know you have been hacked?

All of a sudden your Facebook pages will seem to take on a life of their own. You will seem to post statuses sharing links that you certainly never typed, “you” will have sent out private messages to all of your followers urging them to click the same adware link, and all of a sudden your pages will be covered in adware.

If you are seeing Facebook Ads on your profile that appear in the centre, top or left hand column of the page, you have adware.

What can you do about it?Getting rid of adware is surprisingly easy, you may already have done it with suspicious web ads or browsers at home.

In Firefox:

1. In your browser click tools2. In the tools menu, click add-ons3. In the add-ons menu, click extensions4. disable and delete any extensions that seem suspicious or unfamiliar

In Safari:

1. In your browser click safari2. In the drop down screen, click Preferences3. In the preferences screen click extensions4. disable and delete any extensions that seem suspicious or unfamiliar

In Google Chrome:

1. In your browser click Window2. In the drop down click extensions3. disable and delete any extensions that seem suspicious or unfamiliar

In Internet Explorer 8

1. In your browser click tools2. In the drop down menu select manage add-ons3. In the pop up screen click toolbars and extensions4. disable and delete any extensions that seem suspicious or unfamiliar

What can you do to prevent Phishing?

The good news is that there are many steps you can take to avoid becoming the victim of an online scam.

Beef up the security on your social media accounts. Start with your passwords, it is time to do away with “123456”. Your passwords should be varied, and include upper and lowercase letters, numbers and even punctuation marks if your social media account allows it. Do your best to have different passwords for each account, and change them every 6 months or so. If you feel your account has been compromised, change your password immediately.

Be wary of logging on to your social media on public computers or even when using shared wifi. If you have no other option, make sure you always log out fully before leaving or getting off the computer – that includes using a friends smart phone to post a photo of your dinner.

Don’t leave your accounts dormant. It’s better to shut an account down that to leave it collecting dust online. Dormant accounts are more likely to be hacked and if they still bare your name or the name of your company, they can do some real damage to your reputation.

When it comes to your businesses Facebook account, make sure you have more than one designated administrator. If your account is hacked, you may lose access and control over that page, having another admin assigned to monitor it helps you keep a virtual eye on things and can aid you in wresting your online presence from the clutches of online bandits.

But the first and most easily implemented tip for protecting yourself online? Be aware, click with care. Be suspicious of any ads online that seem too good to be true and follow your common sense when clicking on anything. If your gut feeling tells you it’s suspicious, trust it.

FALL 201332

Every client has a unique story to tell. At Optimum Mortgage, we specialize in Alternative Lending. Always have, always will. Our flexible lending guidelines allow our experienced team of underwriters to color outside of the lines and find a customized solution that satisfies the needs of both the client and the broker, while always confirming the affordability of each deal.

Contact your Business Development Manager for more information. 1.866.441.3775 | www.OptimumMortgage.ca

A SENSE OF... CREATIVITY

Y O U R S E N S I B L E L E N D I N G P A R T N E R

This is a list of known adware that will infect your computer and your social media accounts. Avoid these at all costs, and – when in doubt – don’t click! If something seems too good to be true, it probably is.

facetheme.com

Pagerage.com

Profilecraze.com

social-plus.com

facicons.com

facecoolsmileys.com

Iminent.com

buzzdock.com

connectbar.net

elriel.com

dropdowndeals.com

Pagemood.com

sweetim.com

ADWARe:sItes to aVoId

FALL 2013 33

AMBA LAUncHes neW PRActIce oF MoRtGAGe BRoKeRAGe coURseAs of November 1, 2013, anyone hoping to become a licensed mortgage broker in Alberta will have a brand new course to help them complete their training.

Many years in the making, the new course was developed in partnership the with Real Estate Council of Alberta and aims to give learners are greater understanding of the industry they are entering into.

“It’s really important to us that everyone who takes the course has a full and complete understanding of the industry. We want everyone to be successful, but more than that we want everyone to be operating at the highest levels of professionalism and this course really helps to prepare them for that,” says Deb Keshen, Executive Director of AMBA.

All students who enrolled in the program before November 1 will be able to complete the old program and old exam without interruption, anyone enrolling after that date will be directed to the new course at www.mortgagelearningcentre.ca.

The new program is aimed at providing an online learning environment dedicated to providing current and would-be mortgage professionals with timely, relevant and practical opportunities to expand or update their skills and knowledge base.

Mortgagelearningcentre.ca is a platform that supports the needs of adult learners with a mix of educational modules, quizzes and practice exams that can be fit into even the busiest schedules.

Of course the new course could not have been created or released without the diligent work of many people. AMBA and the board of directors wish to extend their thanks to RECA, especially Executive Deputy Director Kirk Bacon for their support and guidance through this process. Special thanks also go out to our own AMBA volunteers, Ryan Spence from D+H as well as Phil McDowell from Mortgages Are Marvelous for their efforts in bringing this project to fruition. Everyone involved with creating the new course has spent untold hours developing and testing the new course, ensuring the new material is ready for eager learners.

Other volunteers who committed their time and skills to creating the new course include William Charlton, Bob Dubask, Doug Cooper, Connie Cooper, David Cooke, Darlene Baker and Pat Hampton.

“AMBA is committed to creating great learning opportunities for both our members and our students. Professionalism is vital to ensuring the long term success of anyone in the industry, and the industry itself. Our hope is that this course gives learners the best opportunity to really learn the business inside and out,” says Keshen.

The cost of the Practice of Mortgage Brokerage Course is $1,500 which includes all the modules, a practice exam and the final exam. Anyone who needs to re-write the exam will be charged a $150 fee.

Any questions regarding the new course can be directed to Renee Price at rprice@amba.ca or you can visit the AMBA website at: www.amba.ca or the learning centre at: www.mortgagelearningcentre.ca

FALL 201334

ALt-A sYMPosIUM Is BAcK In 2014Due to the success of the 2013 Alt-A Symposium, AMBA is delighted to announce that this popular event will kick off our slate of events in 2014.

Once again, we will return to the Sheraton Hotel in Red Deer for a full day of educational and interactive presentations that will help you better understand opportunities in the B and C markets.

The focus in 2014 will be squarely on marketing, helping you reach out to B and C customers, as well as how to package a deal to make it appealing to a lender. Learn the art of marketing from informed and engaging speakers who know the ins and outs of our industry.

Interested in taking part? Why not join us in the “Dragons Den”? During our afternoon session we will invite brokers to present their pitches to a panel of lenders to see which deals they would take and why or why not.

Of course we will make plenty of time for delegates to visit our tradeshow to meet and greet some of the most influential people working in our industry.

The Alt-A Symposium is a joint venture between AMBA and the Private Mortgage Lenders Forum focused on helping you make the most of potentially untapped markets.

If you would like to attend the Alt-A Symposium, visit www.amba.ca to register.

The perfect tool for any problem… all in one convenient package.Extraordinary clients need an extraordinary lender.

No two � les are the same so we take a multi-faceted approach to helping you solve your clients’ unique � nancing challenges.

• Alternative Mortgage Solutions

• 1st and 2nd Mortgages

• British Columbia, Alberta,Saskatchewan, Manitoba

• Residential, Commercial,Construction, Rental

Let’s talk solutions.Find out how Paradigm can help fi nd alternative lending solutions for your clients

Call 1-800-979-2911 or visit paradigmmortgage.ca

Grant PlunkieBusiness Development / Senior Underwriter

S y M p O S I u M

AMBApreSeNTS

2014

FALL 2013 35

HoUsInG stARts PReDIctIons FALL FLAtAs 2013 draws to a close the Canada Mortgage Housing Corp (CMHC) has adjusted their forecasts for housing starts for both the current year and for 2014.

In August, CMHC predicted 182,800 for 2013, but with market upswings, it has since revised that number between 179,300 and 190,600 starts.

Predicting a flat outlook for the market heading into the new year, CMHC estimates between 163,700 and 205,700 units will be starting in 2014, marking a decrease from their August forecast.

Both forecasts show a sharp downward trend from the booming number of housing starts in 2012, which was aided by a post-recession housing boom.

BoRRoWeRs Less LIKeLY to ReneW eARLYNew trends indicate that more and more, borrowers are showing reluctance to renew their mortgages early. This new data comes on the heels of historically low lending rates that may be influencing the decision to hold off on renewing.

Many feel those clients who are getting between 2.79 and 8.89 five year mortgages have little incentive to renew early. However, clients who signed up for their mortgages five years ago – before the decrease in interest rates – are prime candidates to be lured away from big banks.

Though market research shows that most clients are happy with their current lender, there is no reason for brokers to shy away from them. An emphasis on rates and more dynamic products that better suit their needs may be all the incentive required to encourage clients to switch.

MInIsteR BAcKInG AWAY FRoM InDUstRY InteRFeRenceFinance Minister Jim Flaherty seems to be backing away from further interference in the mortgage industry after a contentious few months. The minister has recently expressed his satisfaction with the current state of the housing market and has signalled his intent to address calls for higher interest rates from Scotiabank CEO Rick Waugh.

“I’m comfortable with the way the housing situation has evolved,” Flaherty said at a news conference. “I tightened the rules on mortgage insurance four times in the past several years, and OSFI has also taken some action, the superintendent of financial institutions, and I’m comfortable with what I’ve seen.”

Flaherty caused a stir within the industry last summer by making a myriad of changes, most notable, lowering the maximum amortization period for insurable mortgages to 25 years from 30.

seLLeRs RULe In cALGARY MARKetEncouraging news for sellers in the Calgary Real Estate Market; the Calgary Real Estate Board (CREB) says that the city is a sellers’ market, in spite of a recent raise in the number of real estate listings.

“Price growth and tighter market conditions have encouraged some of the recent rise in new listings. This is a trend worth noting as the rise is easing some of the tightness in the market. Despite some movement, sellers’ market conditions persist.” says chief economist Ann-Marie Lurie of CREB.

October saw a nine per cent rise in real estate listings over 2012, with 2,522 units listed during the month.

Homes that are listed are also selling faster, with most spending an average of 40 days on the market, compared to 40 days in October of 2012. Home prices are also up five per cent from last year, with the average sale house currently sitting at $458,876.

Industry neWs

FALL 201336

RecA UPDAte new AmbA Appointee to council (continued from page 15)

FIND AMBA ON FAceBOOk, LINkeDIN, ANDTwITTer! Follow us @AMBA1975

Council will review and consider Rule amendments

at its October 2013 meeting, and RECA will develop, in conjunction

with the MBAC, tools and practice resources to assist in meeting the requirements of the Rules, such as:

• relationship between the parties

• services to be provided by the brokerage

• obligations and responsibilities of the respective parties

• consent for collection, use and distribution of personal information of the client

• method of calculation of remuneration or how the industry professional will be compensated

• consent to obtain a credit report

New Rules on Private LendingAs a result of the activities of the Alberta Securities Commission over the past number of years and RECA’s consultation with mortgage brokers dealing the private lending market, changes to the rules with respect to private lending for the single private lender/investor are required. The draft Rules from RECA’s private lending and syndicated mortgage Committee will be considered by MBAC for recommendation to Council.

Syndicated mortgages will be dual regulated by ASC and RECA until such time as the Real Estate Act amendments are proclaimed.

RECA has/is working with AMBA’s Private Lender’s Forum on the development of an Investor/Lender Disclosure and “Know Your Client” documents to eliminate any conflict where possible.

EducationWe are looking forward to the launch the new Practice of Mortgage Brokerage course in fall of 2013. RECA is developing a managing broker’s education program to launch in the summer of 2014. This program will be based on national core competencies under consideration by the Mortgage Broker Regulators Council of Canada (MBRCC). The development of this course will allow RECA to develop specialized Re-licensing Education Programs for managing brokers, a request from the industry for some time.

Mortgage Broker Regulators Council of Canada (MBRCC)The MBRCC was formalized in 2012 in order to create a collaborative forum to improve consumer protection and develop national solutions to shared concerns and promote harmonization of Canada’s mortgage broker regulatory practices. RECA was integral to the creation of the MBRCC, and RECA’s Deputy Executive Director, Kirk Bacon currently sits as its chair.

the MBRcc 2012-2015 strategic Plan focuses on two consumer protection issues and setting appropriate eligibility and education standards for industry members. The consumer protection projects were identified as common issues that need addressing across the country and that would immediately and positively impact borrowers dealing with mortgage brokers once implemented by each regulatory organization. The value added provided would assist in increasing the professionalism of mortgage brokers in the eyes of borrowers.

MBRcc priorities to date have been:

• Mortgage suitability: ensuring that a mortgage fits a client’s needs and personal circumstances.

• Material risk disclosure: ensuring consumers understand all of the risks associated with any mortgage undertaking.

• Professional competencies: ensuring that licensed professionals are adequately skilled and knowledgeable.

other Projects

• Licence reciprocity process between provinces was created prior to the formal establishment of the MBRCC

• Education course development and design standards

• Multi-jurisdictional licensing tool for industry members

• Establishment of MBRCC website at: www.mbrcc.ca

registration is now open, visit www.amba.ca or email

renee at rprice@amba.ca for more information or to register.

Shake, rattle and bowl!

Already weary of how many quarts of egg nog you will imbibe this holiday season? Then slick your hair back and get the turn-ups in your jeans just right, because it’s time to Shake Rattle and Bowl your way into the season with a unique holiday party.

Greasers, dolly’s and even squares are all welcome to join us and show everyone who really reigns supreme on the lanes.

Gather your team (team shirts are not mandatory but are certainly

encouraged) or let AMBA pick your team for you, and square

off to achieve five and ten pin dominance.

don your best retro-wear – we know you have a poodle skirt in your closet you are just dying to take for a spin – and

rub elbows with your colleagues and friends.

amba wants to celebrate with you in true retro style on december 5, 1 -4pm at

the mountain View bowling alley (#11 – 3919 Richmond Road SW)

for a night of competition. entry fee for bowlers is $43.75

FALL 201338

Hit the ice with AMBA

AMBAcALenDAR

sHAKe, RAttLe, AnD BoWLDecember 5th, 2013calgary, AB

MLAA/AMBA cHRIstMAs eVentDecember 12th, 2013edmonton, AB

AMBA cURLInG BonsPIeLFebruary 28th, 2014Red Deer, AB

AMBA ALt-A sYMPosIUMJanuary 29th, 2014Red Deer, AB

DeceMBeR 2013

FeBRUARY 2014

JAnUARY 2014

BRoKeR oF RecoRDApril, 2014edmonton, AB

BRoKeR oF RecoRDApril, 2014calgary, AB

AMBA AnnUAL conFeRenceJuly 3rd–4th, 2014Kananskis, AB

APRIL 2014

AMBA GoLF toURnAMentseptember 28th, 2014Innisfail, AB

sePteMBeR 2014

JULY 2014

MeMBeR ReGIonAL MeetInGoctober, 2014Location, tBA

FRAUD & cRIMe PReVentIon sYMPosIUM

october 9th, 2014Red Deer, AB

GoVeRnMent RecePtIon/YeAR enD

november 19th, 2014edmonton, AB

octoBeR 2014

noVeMBeR 2014

MARK YOUR CALENDARs!

Our annual curling Bonspiel is back for 2014. New and experienced curlers alike are welcome to join us for a day on the sheets.

We’ll be taking to the ice at the Calgary Curling Club on February 28, 2014. As always, we will start the day with a new curler lesson so you feel comfortable throwing those rocks and pushing those brooms.

If you want to register your team or your company is considering sponsoring this event, contact rprice@amba.ca

Sponsorship Opportunities AvailableSponsoring an AMBA event is a great way to promote your company and expose your brand to influential industry members.2014 sponsorship packages are now available with a wide variety of options to meet your advertising goals.If you are interested in becoming a sponsor please contact Renee Price, membership and events coordinator at rprice@amba.ca

FALL 2013 39

AdID: 582904 PublicationID: CIM-H0512

R AT E S & F E E S A R E S U B J EC T T O C H A N G E W I T H O U T N O T IC E .

Member CAAMP, AMBA, MBABC, BBB, Offices in Vancouver, Calgary, Edmonton & Toronto.

Rates start at

7.75%AND UP

2nd Mortgages1st MortgagesRates start at

5.75%AND UP

LTV ResidentialPrivate Money Lending

UP TO80%

Over 600 Million lent Since 1997

Equity Lending!

BRITISH COLUMBI A • ALBERTA • ONTARIO • ATLANTIC PROVINCES

RATES & FEES ARE SUBJECT TO CHANGE WITHOUT NOTICE.

CapitalDirect EDIT Novemeber2013 4/16/12 4:17:22 PM

Trevor BowieBusiness Development Manager

Atlantic Provinces

Phone: 902 | 894.7700Fax: 902 | 894.7736

Toll Free: 866 | 830.7734tbowie@capitaldirect.ca

Business Development ManagerOntario

Phone: 905 | 299.6951Fax: 905 | 824.7095

Toll Free: 800 | 814.2578hdoggett@capitaldirect.ca

Hugh DoggettPaula Hutton

Phone: 403 | 278.6200Fax: 403 | 278.6296

Toll Free: 800 | 959.9290phutton@capitaldirect.ca

Business Development Manager Alberta North & South

Greg Kakuno Business Development Manager

British Columbia

Phone: 604 | 329.6067

Toll Free: 800 | 625.7747

gkakuno@capitaldirect.ca

Richard EarlesBusiness Development Manager1-866-907-5407richard@vwrcapital.comTwitter: @VWRCAPITALCORP

Funding Mortgages In: x British Columbia x Alberta x Manitoba x Ontario

Your Underwriting Team:Dimitri Kosturos: VP UnderwritingRichard Earles: Business Development ManagerLeah Wilson: Underwriter

Send Deals To: info@vwrcapital.com

Or Call: 1-866-907-5407

x Competitive rates and nominal lender fees x Purchases, refinances, ETO, and renovations x Rental properties, owner occupied, raw land,

serviced land, small multi-family x No income qualification x No minimum beacon score

Your Private Mortgage Solution

www.vwrcapital.com

SIGN-OFF Okayas Is

NewPrOOf

Client:

PM:

CD:

PD:

Pr:

PRODUCTION SPECIFICATIONS

Project #: 35852 Date: Jun 18, 2013 CD: MG Pr: Margot PM: C M Y K

Client: first National size: 8" × 11" aD: IH PD: sarah CW: PMS #

Project: 25th anniversary Bleeds: 0.125" GD: warren PMS #

Deliverable: ad fonts: Helvetica Neue PMS #

File Name: 35852 FN25ad JohnT AMBA Ev3 Copy Deck: Lang.: english

2013 © Maritz. The fonts/images and related software included with the attached electronic mechanical are owned and/or licensed by Maritz Canada Inc. They are provided to you as part of our job order for your services, and are to be used only for the execution and the completion of this job order. You are authorized to use the fonts provided by Maritz Canada Inc. in the execution of the job order, provided that any and all copies of the Maritz Canada Inc. fonts shall be deleted from your systems and destroyed upon completion of this job order. You warrant and represent that you have secured the necessary licenses for the use of Maritz Canada Inc. Licensed fonts in order to execute our job order and will abide by the terms thereof.

Maritz Canada Inc. – 6900 Maritz Drive, Mississauga, Ontario L5w 1L8 SLUG DV15 • Mar 11/13

“They care. And it shows.”

F I N A N C I A L L P

At First National we’ve spent the last 25 years focused on delivering outstanding service to you. And we will continue that commitment towards the next 25.

Thank you mortgage brokers for 25 years of shared success.Behind the

scenes

Nicole White, Underwriter

John Thompson, TMG Alberta

Jan Gosse, Regional Sales Manager, Alberta & Prairies

“From top to bottom,

it’s the

quality of people

that make them different.”

35852 FN25ad JohnT AMBA Ev3.indd 1 13-07-04 10:45 AM