For God’s sake they should get a couple of thousand tugboats, some good strong rope, and tow this island somewhere closer to civilization. 

In the name of all things holy it’s far.  For God’s sake they should get a couple of thousand tugboats, some good strong rope, and tow this island somewhere closer to civilization.  For transparency I was fortunate to be able to sit at front of the bus for the flight over.  That gave me the opportunity to stretch out and get some sleep, some seven hours’ worth.  It was the other fifteen hours that I had to fill, and what I learned is that to pass that amount of time away you need a distraction.  Like food!  The flight attendants try to feed you at every moment.  “Mr. Bozic, is there anything I can get you?” Let me see, it’s been 22 minutes since my last meal, “sure, how about some dim sum and 4 bags of chips”.  I’m not kidding.

The real estate market is red hot here – This according to the cab driver who drove me to my hotel.  Property values are increasing by 10% annually, and he owns multiple properties. Hmm, interesting.  I was afraid to ask him if he was a part-time mortgage broker.  Let me rephrase that, I was afraid of the answer.  I have this illusion that the Australian mortgage broker industry wouldn’t allow that.

As soon as I unpacked at the hotel in Melbourne, I went for a walkabout.  I went out and picked up two newspapers, which I planned to read from front to back, so that I can get a flavour of what’s current and happening in Australia.  On the front page of The Australian and The Daily Telegraph was this number one story: the original Wiggles are no more.  Yes, Australia’s jewel and gift to children’s programing is going through a radical makeover.  Three original members are leaving for personal reasons; the usual, wanting to be closer to family etc.  Yeah right, one day the truth will come out and we’ll all learn that there’s a Yoko Ono story in there somewhere.  One of the replacements is, are you sitting down, a Wigglette.  Only 22 years of age, Emma Watkins is the new face and the first female member of the Wiggles.  If you’re wondering she will dawn the yellow shirt.

Australian stock market has tanked.  It’s lost all of its gains in 2012. The European debt crisis dominates the business section but the major banks here feel they’re insulated because they have been preparing for the inevitable for some time now.  Australia biggest trading partner is China.  As goes the Chinese economy so goes Australia’s.

The best five year fixed rate I could find is 6.5%.  Gulp!

Melbourne is a lot like Vancouver, from architecture to the overall feel.  Melbourne hates all things Sydney; just like Vancouver and Toronto.

The learning continues.  The bastards drive on the wrong side of the road.  I was nearly killed twice jaywalking.

Revolving doors at the hotel turn in the opposite direction.  Smacked my head a few times – D’OH!

Clearly I speak funny.  I was in Melbourne for less than twelve hours and two people asked me the following: “so you here on vacation, mate?”

The most important thing I’ve learned so far is that there’s no awkwardness in meeting family for the first time. It was odd talking to my cousin on the phone, making plans to meet at the hotel and having to describe what I was wearing so he could pick me out of the crowd.  He found me, and I got a chance to spend some time with him, his beautiful daughter, his brother and his mom, my aunt.  They were extremely gracious and they treated me like family.  It doesn’t matter what happens from here – that will be my lasting memory of this trip.

Until next time

Cheers

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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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…)

The family cruise to Alaska is coming to an end. As I write this blog we’re in Canadian territory, off the coast of B.C., on our way to San Fransisco, to head back to Toronto. Now that’s taking the long way home. Spending 12 days on ship is an experience, and it does take some adjusting. The biggest adjustment is being way from work for a prolonged period of time. It’s been close to four years since I’ve been away for more than five working days in a row. I’ve taken plenty of short vacations over the years but they’re usually four or five days in succession. The reason is simple, I can always come up with a reason why “now is not a good time to be away work”. Too busy or it’s too slow. There’s always a justification. If you’re guilty of the same thing here’s what I’ve learned, we’re not that important. I checked emails every morning, responded when I thought it was necessary but I made the decision that my family and this trip came first. MERIX wasn’t neglected in my absence because there’s a great senior leadership team in place, and they’re more than capable of taking care of the day-to-day tasks. If the business  consumes you that you can’t take a couple of weeks off, frankly, that doesn’t bode well for your business or yourself. Coming to this realization is an ongoing process, and I’m still working on it.

It’s interesting as a vacation draws to an end the work switch seems to get turned on. With every passing hour “work” issues enter your thoughts and I suspect it’s the minds way of preparing ourselves for what’s next. What’s next for me professionally? There’s been a number of changes at MERIX recently, and I’m really excited about the direction our company is taking. I’ll elaborate further about some of the changes in future blogs. I’m also looking forward to take on the challenges of being CAAMP Chair, effective this November. The next 16 months are going to be very busy, and I can’t wait to get started.

A a final thought relative to my trip to Alaska? Russia sold Alaska to the US in 1867. The land and all if its natural wonders sold for $7.2 million. That worked out to 19 cents an acre. As some of my Jewish friends want to say…”such a deal”.

Until next time.

Cheers

The excellent adventure continues and I’ve come to learn a lot of things about taking a cruise.  Firstly, don’t ever call it a boat.  The crew doesn’t like it, and given that they would be responsible to haul my sorry ass out of the water if I went overboard, no need to make them upset.  It’s called a ship. So ship it is.  I also learned that all cruise liners are not equal.  This is my first cruise so I’m basing this on what some of my fellow passengers have told to me.  It appears the magic number is around 900 passengers.  I’ve been told the really big cruise liners, the one’s which hold 3,500 people, are nice but given the amount of passengers on board it impacts service levels.  I’m told there are wait lines for everything.  From waiting to eat to going to the bathroom.  No such issues exist on the ship we’re on.  We’re on a Crystal Cruise Liner, and they have a reputation for not overcrowding and superlative service. I’ve come to learn that’s a fact. I’ll get to the service in a moment.

I also learned that many passengers are frequent cruisers.  Example, I met a man by the name of Barry last night in the cigar lounge. Yes, the ship has a cigar lounge…high backed leather chairs….mahogany wood…cognac…and a giant flat screen TV with Fox News on all the time. It’s paradise! I digress, Barry and I got to chatting, the usual small talk, what do you do for a livening, first time on a cruise etc?  This is Barry’s 10th cruise, and he’s already booked his cruise for next year, the Atlantic crossing.  Barry has time on his hands, he’s retired, as most of the passengers are.  I think the median age on board is 73.  It’s been a long time since anyone has referred to me as young man.  Barry did, and I like Barry.  He’s a big bear of man, a retired family law lawyer from Virginia.  His specialty was divorce.  He said to me in his Virginia accent, “young man, when I was practicing law my matto was…I’ll guarantee I’ll win your case or you’ll get your spouse back”.  Let me tell you, laughing so hard that you’re coughing up cognac through your nose is damn painful.

As for the service on board, it’s almost over the top.  After a couple of days on board I wanted to yell, “enough already…trust me…if I need something I’ll snap my fingers”.  Just kidding!  I would never snap my fingers…I’d whistle.  Truly the  service is exceptional, and it’s consistent throughout the ship.  I’ve spoken to crew members from Croatia, Poland, Check Republic, Australia, South Korea, US and Canada.  They’re all so happy and willing to please. Being an employer I asked many of them why they excelled at customer service.  Every one of them said the same thing, “the company is good to us, we’re good to the company, and we always put the passengers first”.  Truly inspiring when you consider that crew members are on contract anywhere between 4 to 6 months.  They work each and every day of their contract.  No time off, that comes at the end of the contract, usually two months off.  I can’t imagine working for six months straight, with no days off, away from family.  Many of the crew members indicated that it’s difficult being away from their kids for such a prolonged period of time but they do what’s necessary to provide for their families. 
Damn, if we could convince these people to become brokers and lenders we would all be golden. They’re committed…they have passion…and they’re willing to sacrifice.

The most important thing I learned about being on a cruise is…food.  It’s everywhere and it’s available 24/7.  Something happens to you when you’re on a cruise.  You’re on the ocean…you see an iceberg…and you say to yourself…”wow, that’s a big iceberg…I think I’ll have a hamburger”. 

Unlit next time

Cheers