By the time this blog is posted, I’ll be somewhere over the Pacific Ocean heading towards Sydney, Australia.   My final destination is Adelaide, Australia.  The purpose of the journey is to attend the Mortgage & Finance Association of Australia National Conference.  It’s a long, a very long way, to go to attend a conference.  By the time you read this blog, I will be well into my 22 hour flight and, I suspect, I will be going a little stir crazy.  I’ve traveled a number of times to Europe, but an 8 hour flight to Europe is like a walk around the block compared to “going down under.”  It’s a trip I always wanted to make, but I always found a reason to put it off.  Must be the thought of been cramped in a tin can for 22 hours.  But now, there was definitive time and reason to go.  The MFAA is Australia’s equivalent of CAAMP.  As much as I’m delighted to remove an item from my bucket list, going to Australia, the primary purpose of the visit is to represent CAAMP, and to go for my own personal development.

Canada and Australia are similar in many ways; specifically as it relates to the mortgage industry, an oligopoly exists in both countries, but the big difference is the disappearance of mono-lines in Australia.  That was a result of the credit crisis of 2008, or as the Aussie’s like to say, the GSS (Global Shit Storm).  The mortgage industry in Australia changed significantly post-2008.  As mentioned, mono-lines became a footnote in the annals of the mortgage lending history in Australia.  Given limited competition, broker commissions where significantly reduced.  The four major banks in Australia now control 90% of the broker market share.  The banks imposed proficiency exams on brokers to do business with them, at a cost of $750 to write the exam.  The major banks took an equity position in some of the larger broker house’s in Australia, and they exercise their influence and control by way of board seats.  Yet, for all the challenges the Australian broker market has faced since the GSS, they still control a 40% market share.  That’s what I find fascinating.  The Canadian broker market came out relatively unscathed after 2008, and yet broker market share in Canada is not growing.  The data would suggest that broker market share in Canada is actually contracting; so what is it about Australian broker market  that enables them not only maintain their market share but actually grow it?  That’s going to be the first question I ask of any stakeholder in Australia.  I hope to garner some insights and to see if there’s some practical application to our market, given examples from Australia.

What I’m really looking forward to is talking to lenders and brokers who fully embrace a trailer fee model.  Brokers and lenders in Australia are vested and fully committed to this model.  So what I hope to gleam is, how did they get there?  I believe the trailer fee model is now accepted by the broker community in Canada.  It’s no longer viewed as the boogieman or the great unknown.  In large part this is due to Merix’s commitment towards this compensation model, and it pioneering of the trailer fee model.  Many lenders talked about in the past but Merix actually did it.  I commend all the broker lenders in Canada that have created a hybrid of the Merix model.   Lenders in Canada can call them renewal fees if they like but the fact is prior to Merix, lenders were not paying on renewal.  My hope is that every lender jumps on board and helps to create future value for mortgage brokers in Canada.  Who knows, maybe one day Aussie brokers and lenders will ask us, how did you do it?

Until next time

Cheers

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“Apple products for me were always about “fun” but now it’s crossing over into my business world.”

I’ve noticed over the last couple of years how technology has changed my leisure activities.  There was a time that I would get up on Saturday and Sunday morning, head out to buy some strong coffee and buy a number of newspapers.  My body clock wakes me up at 6:00 am, even on weekends, so if I want to sleep in a bit I have to read.  The fact of the matter is I rarely go back to sleep because the caffeine usually takes effect by the time I get through two or three newspapers.  Once I’m done with the newspapers I have a big decision to make.   Do I add it to the pile of old newspapers or actually take the pile to recycling bin?  I just realized over this past weekend I haven’t had to make that excruciatingly difficult decision in some time now.  I can’t remember the last time I bought a newspaper.

My reading habits have changed because of the iPad.  Most Apple users are zealots when it comes to their technology.  I wouldn’t categorize myself as such but my iPad usage has changed my information purchasing habits.  Realistic or not – I want my information for free.  Why?  It has nothing to do with price.  It’s about easy access and availability.  Why settle for two or three newspapers on the weekend when my fingertips can get me access to major newspapers around the world?  Some newspapers are trying to hold out, The New York Times and The New York Post, by charging an on-line subscription fee.  I just won’t do it because I can get my fix for free.  It’s not just newspapers.  I can’t remember the last time I went to a music store to buy a CD.  I’m sure if I gave it some more thought I would come up with other examples how an Apple product has changed other leisure activities for me.  But there’s a far more profound change taking place.  Apple products for me were always about “fun” but now it’s crossing over into my business world.

I can’t remember the last time I took a PC with me while traveling on business.  There’s not a great need too.  A recent report indicated that Apple will dominate the tablet market well into 2016.  How’s this for growth in the global tablet market?  It’s estimated that by 2016 some 375 million touchscreen tablets will be sold.  That’s up from 56 million sold in 2011.  It’s estimated that the Apple iPad will own approximately 53% of all touchscreen tablets sold in 2016.  A lot of this growth will come from emerging markets, India, China and Brazil, but Apple is making a strong push in the corporate world as well.  What once was the exclusive domain of Microsoft is now at risk.  It’s estimated that 122 million tablets will be purchased by the corporate world in 2016.  This is a direct result of improvements for enterprise software for tablets.  Once security issues and functionality is satisfied, the corporate world will embrace this technology to meet the needs of their customers and employees.  But I think what will have the most impact in the future is the age demographic of those individuals leading the corporate world, and specifically IT departments.  Slowly but surely Generation “X” is replacing baby-boomers in key decision making positions.

Here’s the definition of Generation “ X”: “Technologically Adept: The Generation “ X” mentality reflects a shift from a manufacturing economy to a service economy. The first generation to grow up with computers, technology is woven into their lives. As the corporate world integrates new technological tools, Generation “X” has learned and adapted. This generation is comfortable using PDAs, cellphones, e-mail, laptops, BlackBerrys and other technology employed in the corporate world.”
Gen “ X” is not afraid to shift or to adapt to new technology, and execution will be left to those who come from Generation “Y”.
I think Gen “Y” is up for the challenge.  “Tech-Savvy: Generation “Y” grew up with technology and rely on it to perform their jobs better. Armed with BlackBerrys, laptops, cellphones and other gadgets, Generation “Y” is plugged-in 24 hours a day, 7 days a week. This generation prefers to communicate through e-mail and text messaging rather than face-to-face contact and prefers webinars and online technology to traditional lecture-based presentations”.

A match made in touchscreen tablet haven.

If all else fails Gen “X” and Gen “Y” will use devious psychological ploys to convert you.  My dear Blackberry is on its last legs, and it’s almost time to lay her to rest.  I went to the head of our IT department, Salim Naram, for council and advice about my next purchase.  I’m not sure where Salim falls, I suspect late Gen “X” or early Gen “Y”.  Without hesitation Salim said, “You have to get an iPhone”.  I pleaded my case, my emotional attachment and loyalty to the product.  He listened attentively said, “No worries, we will order you another one.  And while we’re at it…why don’t we get you a Buick to drive around in?”  I measured my response carefully, “SHUT UP!”  Can’t wait to get my new iPhone.

Until next time,

Cheers.

I was thinking last night that people don’t celebrate the simple things in life.  We’re all familiar with the saying, “don’t sweat the small stuff”.  In reality it should be “celebrate the small stuff”.  I had such a moment last night.  As a point of background I’m a step-father.  That’s evidenced by the fact that our 10 year old refers to me as Boris.  That’s a recent phenomenon because until recently he referred to me as Bowis.  A step-father is like an older brother, a much older brother.  He respects me because I’m, well , a lot bigger than he is.  He’s figured out that I have some pull in the house.  He’s not sure why but he’s come to accept the household dynamics.  One thing’s for sure…he’s a lot more afraid of his mother.  So I’m an elder in our house, and he knows that I would protect him to my last breath.  He feels safe which allows me to experience “real like” father and son moments with him

A simple joy that I experienced with him was teaching him how to ride a bike.  He remembers it as well.  He rode that bike majestically for forty-five seconds, and then went over the handlebars.  It took me four months to get him back on that bike again but he eventually mastered it.   I remember the first time he went to hockey camp.  For clarity purposes his mom purchased all his hockey equipment  (she’s an amazing mom) but she forgot to buy a cup.  So there I am in the dressing room, helping him get his gear on for the first time, and one piece of important equipment is missing.  So I say to myself, “does he really need a cup…he’s only 9”.  So off to the store I go, I purchase a cup, I show him how to put it on, and he’s ready to go.  Of course being 9 years old at the time he would walk around the house with the cup on his head saying “hey Boris, look, a gas-mask”.  I guess I didn’t help by laughing and saying, “show me the gas-mask again”.  It’s the simple things.  Well, last night was another seminal moment in the young boy’s life.  I took him to see The Three Stooges.  Oddly enough his mother didn’t want to go.  I’m not sure why woman don’t get the emotional and intellectual depth of Larry, Curly and Moe.  There’s more to these men than hammers to the head, eyes being gouged or nose hair being pulled out.  So misunderstood.  As for our 10 year old, he laughed and laughed.  Which of course makes it so much easier to put aside the movie’s plot.  The Stooges are a guy thing, a father and son thing.

Looking forward I might get stuck with having “The Talk” with him in a few years.   Right now it’s easy, girls are yucky.  Any sign of affection on TV or in the movies he covers his eyes and yells, “tell me when it’s over”.   That’s so sweet because in a few years he’ll be surfing the net for porn, looking for movies like On Golden Blonde.  Today he can’t even bring himself to use the correct words for reproductive organs.  If his mother and I want to clear him from the room we booth yell out, PUBERTY!  That sends him running.  As an example were playing ball hockey last year in our back-yard.  He was in net, mask on, goalie gloves poised and pads waiting to be stacked.  I was shooting an orange road hockey ball at him.  For those of you that don’t know that ball can hurt.  So I’m shooting…he’s hot dogging it…so I decide to amp it up a bit.  I take a shot and ball hits him just below his stomach, and just above his groin.  He wasn’t wearing a cup.  He looks at me and says, “you almost hit me there”.  Now I have to amuse myself by asking, “where’s there”?

He points!    I’m not letting him off the hook, “sorry bud but I don’t understand sign language”.  He realizes there no way out but to answer, and as god is my witness here’s what he said, “You almost hit me in my Dick Chaney”.  It took me about five minutes to pick myself up from laughing and catch my breath.  I had to ask, “How do you know Dick Chaney?”  He said, “I always hear his name when you’re watching FOX News”.  The boy is clever.

 Until next time,

Cheers.

We love our home in Florida.  It’s a great place to go to decompress and leave the real world behind.  I’m not suggesting the real world doesn’t follow us, technology and commitments see to that.  However, when we’re away we’re not slaves to our blackberry and telephone.  It’s a great place do as little as possible, and that’s great unless you bring your 10 year old along.  Our home in Florida is in an established neighborhood.  We’re in a gated community, right on a golf course, an adult play ground.  But it can be a little challenging if you’re trying to keep a 10 year old occupied. (more…)

Another March break is upon us and in our household that means it’s Florida time.  Canadians migrate to Florida this time of year with the same enthusiasm as a fat kid  attacking a bag of Smarties.  Got to get it all in, now!

Family vacations in Florida can be a whirlwind, especially for families that make the pilgrimage for one week.  It’s not easy fitting in Bush Gardens, Universal Studios, Cape Canaveral, Lego Land and the number one attraction in Florida, Disney World, all in one week.  Ah Disney World, where dreams come to life, and spankings become a reality because the kids have been rotten &#$@’s for the entire day.  I’m just kidding, everyone knows that spanking is yesterday’s discipline.  (more…)