I think most of we’re shocked and surprised to hear about the passing of former Finance Minister, Jim Flaherty.  There was speculation he decided to leave the Finance Department for health reasons, he was afflicted by a rare skin disease.  He denied the claims, and simply said that it was time to pursue opportunities in the private sector.  Today, his reason for leaving and stepping aside is moot, and it’s sad he didn’t have an opportunity to share moments with his family, when they were so close to getting him back.

I think it’s safe to say the late Jim Flaherty made many sacrifices.  Being Finance Minister is not a part-time job.  When you’re responsible for managing the country’s economy and budget, you can probably say goodbye to the nine to five work days.  His efforts and dedication to public service will shape his legacy.  We can quibble about all the changes to mortgage rules under his stewardship, but I think we are all better off today because of his steady hand while steering us through the global financial crisis.  In the grand scheme of things our economy bounced back rather smoothly after 2008; Canada was able to avoid much of the pain other economies endured.  That did not happen by accident. 

 I had the opportunity to meet with Mr. Flaherty on a number of occasions.  I always found him to be engaging and attentive.  He reached out to many business sectors because he wanted to hear firsthand what the needs of the day were. He reached out to our industry and learned the importance of the mortgage broker industry.  He took the time to meet with stakeholders in our industry when it would have been easy for him to say no need, I know better.  He allowed our voice to be heard, and he appreciated the contribution we make to home ownership in Canada.  His approach was a first for our industry, and for that we should all be grateful.  I know I am.

 God speed.

Well, it sure as hell feels like that.  Canadians are known for their climate infatuation, and we spend a great deal of time talking about the weather.  “Is it hot/cold enough for you” etc.  Somehow, some way…it always gets back to the weather.

But this year, even the most pragmatic among us, those people who are always reminding you that extreme weather conditions are a part of living in this country, are spending time trying to book a vacation and escape.  It seems that everyone I talk to is suffering from winter fatigue, and looking for a respite.

I was talking to my travel agent this week and she indicated that she’s swamped.  With every new blast of sub-zero temperatures, with predictions of yet another snow storm, her phone ends up ringing off to hook because people want out.  It will be interesting to see the stats provided by the tourist bureaus in California, Arizona and Florida with respect to Canadians vacationing in their states this year.  Throw in Mexico and the Caribbean, and I would be willing to wager there’s a significant spike this year of Canadians looking for relief in warmer climates. This winter has been been brutal!

It’s March break in Ontario, and like thousands of others, we got out of Dodge for the week and headed to Florida.  Even with all its quirks and peculiarities, Florida is a great place to visit.  Sunshine, warmth, and all the amenities of home. What’s not to like?  Okay, so their beer is nothing more than flavored water, but it’s an easy hardship to put up with. If it comes down to shoveling the driveway, scraping ice of the car windshield, putting on twelve layers of clothing to go out and get a coffee, I’ll gladly inhale another American Coors Light…it’s refreshing and yummy.

Hopefully we’re in the last stages of the winter from hell. That’s a bit of oxymoron. If you’ve had the chance to get away,  good.  If you haven’t, what are you waiting for?  One final note, for all those who live in Ontario, and complain about the heat and humidity in the summer, remember: February is just around the corner.

Until next time

Cheers

To the governments credit, they have invested time to learn about the “smaller” players in the financial space, and have committed to learn more about their needs and to balance the playing field.

The 2014 budget is a prologue to what really matters to the Fed’s – the 2015 Federal Budget.  Canadians are about 15 months away from the next federal election. Time flies when you’re having fun, and the 2015 budget will lay the groundwork for the next campaign.  When the next budget comes down we will all hear about a surplus rather than the deficit.  There will be a lot of chest bumping among the Conservatives about the estimated $6 billion surplus in 2015/2016, and over $10 billion by 2018/2019.  The message will be clear, “we’re the fiscally responsible ones, and the only party qualified to justify over taxation”. Maybe they’ll omit that last part, but please, I wish they would stop making it sound like the government is a corporation that went and earned a $6 billion profit… I feel better now.

Image Source: THE CANADIAN PRESS/Sean KilpatrickIf http://business.financialpost.com/2014/02/12/federal-budget-offers-tax-opportunities-for-private-companies/

The Federal Budget is first and foremost, politics.  It’s an extension of ideology, and in an election year, a party platform.  Early in a mandate, the governing party may deviate to do what’s right.  But the last budget going into an election year is about drawing lines in the sand, and establishing the battle ground.  The Federal Budget preceding the budget that really matters? Yawn. In that regard the 2014 budget did not disappoint.

There are some elements of the budget which we have all come to expect, especially if the government is looking for cover – example, smokers.  I don’t know why the government doesn’t amend our constitution that smokers must pay more, every year.  Smokers will now pay 24% more in taxes for a carton of cigarettes.  Another automatic is to take away some money from the evil wealthy people.   Loopholes are now plugged for wealthy Canadians and their family trusts.  Those are two safe groups to go after, and let’s face it, when was the last time you saw a headline which read, “Poor Smokers” or “Government takes too much from the wealthy?”  Nice and safe.

It was encouraging to hear comments made by the Minister of Finance about smaller banks and monolines in Canada.  To the governments credit they have invested time to learn about the “smaller” players in the financial space, and have committed to learn more about their needs and to balance the playing field. How that all shakes out? Time we’ll tell, but at least they know we’re here and we provide consumers choice, beyond the big banks.

For now, it’s steady as she goes, and we only have 364 more sleeps before we get a budget that we can sink our teeth into.  To help us pass the time we can visit the brewer’s retail and liquor store.  The government is removing some of the red tape to make it easier for more brands of beer to come to market.  This should help some of the smaller brewers in this country.  Maybe the Fed’s jumped the gun on this one and they should have waited until next year.  Think of the campaign slogan, “More Beer”…Um, nice and yummy.

Until next time,

Cheers.

And in the case of  Toronto’s Mayor, Rob Ford, we’re talking major inferno. I had no intention in commenting on the allegations, and now admission that has dogged the Mayor, and captured the imagination of the local populace and comedians worldwide.  The question of “did he or did he not” rendered every other issue irrelevant.  Now we all know.

Full disclosure, I supported Rob Ford, and encouraged family and friends to do the same.  Finally, there was a candidate I could support for policy reasons rather than packaging.  Let’s face it, central casting would never send a Rob Ford look alike to a movie set to play a mayor in a movie, Toronto voters learned a valuable lesson on voting for packaging rather than results (see Toronto’s previous mayor).  So, finally there was a candidate that spoke to the silent majority and who appeared not to be a part of the establishment and intelligentsia.  It worked; Ford got elected by a rather large margin. But his actions today amount to flipping the bird to all his supporters, including me.

From first day of the Ford administration, certain media outlets were determined to bring down the mayor.  Some of the media coverage was repugnant, they spoke in code.  They didn’t believe he looked the part, and they were vicious in their criticism.  But at the end of the day that wasn’t the reason for Fords eventual demise.  Was it because he FINALLY admitted to smoking crack? Don’t think so, and I’m basing that on the media coverage of other well know political drug users. Not much has been written about President Obama’s admission that he used cocaine while in college.  I guess the media gets a pass on that one because Obama’s cocaine use was in the past and not while in office.  Okay, what about the present?  What about Liberal Leader, Justin Trudeau, who admitted to sparking up and enjoying the odd joint while sitting as a member of parliament?  Where was the moral indignation from the press?  I don’t believe that Canada has legalized marijuana, yet. The press’s hypocrisy aside, Rob Ford’s eventual demise is not because of drug use; but the fact that he lied about it.

There are lessons to be learned by the Ford fiasco, like what not to do in a crisis. Ford’s struggle for political survival today can be traced to hubris.  If an individual or a business, believes they’re above the rules and arrogant enough to believe they’re immune from fallout,  might as well start writing their professional obituary.  When Ford stopped listening to his handlers and their recommendations, it was the beginning of the end.  When your inner circle jumps ship because you’re on a path of ruin, and you’re still adamant about doing it your way only, the inevitable results will follow.  In politics and business there’s a play book to follow in times of crisis. In politics when you get caught with your pants down, or in Fords case a crack pipe in his mouth, you follow the tried and true methods.  He holds a press conference, uses his family as props in the in the background, looks straight into the camera and admits he lied, and promises to get help. If he can muster up tears that really works well.  He comes back in sixty days and it’s all behind him, But if you lie about it for months, daring the police to release the video, and you only come clean because you realize there is no out, it’s too late.

My heart goes out to Ford’s family.  They’re the innocent victims in all of this, and I struggle to rationalize why politicians do this to their families. But we’ve seen it before, and we’ll see it again.  Here’s something to ponder, the guy who smoked crack and was inebriated many times while on the clock, brought fiscal responsibility to City Hall, eliminated wasteful spending and ensured there was a budget surplus.  His predecessor other hand had the right look and pedigree, nearly drove Toronto into bankruptcy.  Go figure.

Until next time,

Cheers.

It’s amazing how many thoughts can race through your mind in a matter of seconds.  The images are vivid, yet vanish in seconds.

I had such an experience earlier this week.  There I was, about to start a meeting with the Minister of Finance, Jim Flaherty and my mind went racing down memory lane.  For a split second, I found myself recalling the very first mortgage application I ever filled out. This was twenty five years ago.  I met my first customers on a Saturday morning, but as it was my first deal as a mortgage broker, I would have gladly have met them at 3:00am.  Oh, the knowledge I had back then.  For example, I was aware that mortgage’s was spelled with two “g’s”.  I was so wet behind the ears that I had to keep a drawer open in my desk so I could refer to an old Statement of Mortgage.  I wanted to make sure I didn’t miss anything, so I kept taking a peek at a completed Statement of Mortgage.  I had to resist the urge to laugh at the memory.

In a couple of nanoseconds I also thought about the first time a fledgling national association called CIMBL made their way to British Columbia to pitch brokers on why they should become members.  I was in attendance at the pitch. I remembered standing at the back of the room listening to CIMBL’s talking head, saying without embarrassment, “if you do not become members of this association lenders will not pay you a finder’s fee.”  I couldn’t help but think, “you fool, you just set this new association back by three years in British Columbia”.  I was wrong, it was five years.  There were many other thoughts that kept running through my head, especially about CAAMP, and how far we’ve come as an association.

But I had to clear my mind and prepare for the meeting with Mr. Flaherty. Jim Murphy, CAAMP President, Daryl Harris, CAAMP Chair, and myself were given the opportunity to meet with the Minister of Finance this week.  The purpose of the meeting was to share our thoughts and concerns for the mortgage broker market.  Both Jim and Daryl did an outstanding job, laying out the facts in a balanced and measured way.  It was our hope that the Minister of Finance would view our positioning points through the lens of consumer choice and the important contribution the mortgage broker channel makes to the Canadian economy.  Jim Murphy has done yeomen’s work on behalf of our industry in Ottawa and this most recent meeting added another layer to the relationship foundation between CAAMP and the Finance Department.  Kudos to both Jim and Daryl.

As for my role at the meeting?  I spoke briefly about the important role that mono-line lenders, like MERIX, play in the mortgage broker channel.  Most importantly, the choice we provide for Canadian borrowers.  I also spoke briefly about the contribution that mono-lines make to Canadian tax role.  Mono-lines provide greater choice for borrowers but they’re also job creators.  I made it very clear that we ask for no favour.  The mono-lines are prepared to compete but the nuances and difference between mono-lines and banks should be factored when making decisions which impacts funding for the mortgage broker channel.  The Minister of Finance stated that his office would consult with our industry about all the recent changes and what our needs might be going into 2014.

One of the things I am most proud about during my time on the CAAMP Board is the relationship which has been built with Ottawa and the regulators.  I wasn’t too long ago when it was difficult to get a phone call returned from the powers that be. Today, the calls are being returned and we have an opportunity to sit at the adult table. Influence cannot happen without dialogue.  I believe CAAMP’s efforts are being noticed.  It’s why we don’t hear the “cash grab” argument with the frequency we once did.  Today, even the haters have some difficulty arguing that the nominal cost to be a member is not worth trying to protect our collective wallets.

Until next time,

Cheers