I suspect by now that you have heard the news that the Macquarie Financial brand will no longer be available in the broker market. To be clear, because there seems to be some confusion in the broker market, Macquarie Financial is not exiting the Canadian market place. They will continue to operate other lines of business in Canada, as well as support multiple brands in the broker space. But the big “O” (Macquarie Logo) will in time disappear from the broker landscape. However, their legacy, and the enormous amount of talent they assembled, will carry on. Macquarie’s success in the broker space will reverberate for years to come.

I remember it like it was yesterday. I was sitting in my office at Merix, and across my computer screen came the official press release that Macquarie had purchased a lender, and that they were committed to a trailer fee model for mortgage brokers. Even though Merix was the pioneer and present day champion of trailer fees, Macquarie’s entrance into the market gave me a sense of relief. I was relieved because another entity would preaching the same story as ours. More importantly a recognizable brand such as Macquarie’s legitimized what Merix was attempting to accomplish, change the way an industry does business. We still have a ways to go before we reach our final goal, but I think it’s safe to say that trailer fee’s today are no longer viewed as that great unknown. Everyone knows today the value of trailer fee’s. Everyone knows today that they should have some portion of their book of business with a trailer fee lender. That in it self is a significant accomplishment relative to where the market was six years ago. The psychology of something new is critical relative to acceptance, and Macquarie contributed to the acceptance of trailer fee’s. For that I would like to publicly thank all the staff and management at Macquarie Financial.

As for Merix, we will always be the torch bearer of trailer fee’s. We believe to our core that it’s the right model for mortgage brokers. As for other lenders who may decide to offer compensation models which reflects what Merix has to offer, I will be the first to congratulate these lenders when they finally do so. I look forward to the day when other lenders join our cause, i.e. creating future wealth for mortgage brokers. Now’s a good time as any.

Until next time.

Cheers

My work requires that I travel a fair bit, and during my travels I’ve spotted numerous celebrities at the airport. I’ve never had the compulsion or desire to walk up to them and engage them in conversation. They do what they do, and I do what I do.  Besides, I think it’s a Canadian thing to be respectful of other people’s privacy, and we allow them to be.  But there’s something about Donald S. Cherry (aka Grapes) that makes the rational part your brain freeze, and a voice in your head says go over and say hello. So, that’s exactly what I did.  I was at the Vancouver airport walking to the gate to catch a flight to Toronto. In the corner of my eye I spotted Grapes talking to few people and they were getting their pictures taken with him. I’ve seen Grapes in airports many times, and I’ve always find myself walking over to say hello. This time was no different. With the one exception that after I shook his hand, and told him I was fan of his work on Coaches Corner, he said thank you very much and would like a picture. Ah, yeah, sure. So out comes my Blackberry, and another man standing close to Grapes says I’ll take the picture.

After the man took the picture and was handing my blackberry back to me, I realized it was Ron Maclean who took the picture.

I think the uniqueness of Grapes is that people view him has the every day man.  He came from a humble background, and there’s nothing pretentious about him. He’s always honest and speaks straight from the gut. At times that offends people but his attitude is too bad, deal with it. That’s so refreshing. Today it’s all about carefully crafted messages, and god forbid if you’re not politically correct. I admire the fact that he puts it out there, and let’s the chips fall where they may.

What’s also interesting is that this is the same man who will shed a tear on national television when honoring our brave men and women in the armed forces who sacrificed their lives for Canada. I’ve seen him choke-up on many occasions on Coaches Corner.  His reaction is sincere and that’s why he connects with the viewer.

By the time Grapes made it to the gate to catch his flight, I would say at least 100 people stopped him to get their pictures taken with him. Not once did he say no. He smiled, he shook hands and he gave his famous pose for every picture, the thumbs up. The man gets it, and so did Dominion Lending Centres.

Until next time.

Cheers

I suspect this is how Vancouver Canuck fans are feeling today. The feeling comes from the realization that the journey is over before you had chance to reach the destination. It’s the feeling you get when something is taken from you which was so close. That something is the memory of your favorite team winning the Stanley Cup.

I have no allegiance to either the Vancouver Canucks or the Boston Bruins. I have no emotional attachment to either team but I have many friends and colleagues who do. I lived in Vancouver for eight years, and I call tell you that Canuck fans are as passionate as they come. I had a chance to witness that passion thanks to Debbie and Grant Thomas, owners of TMG and close friends of mine. They graciously invited me to be their guest for game five and seven. It was a once in a lifetime opportunity because being from Toronto a Stanley Cup final is fantasy. The only pre-condition Grant made was that I must wear a Canuck jersey to the game. Being a Leaf fan that was difficult to do but the picture is proof positive that I’m no idiot. Let’s see, wear the jersey and go to the game. Don’t wear the jersey, watch the game on TV. Woohoo, Go Canucks Go!

Just wearing a jersey doesn’t make you a fan. I went to the game as a casual observer, and what a spectacle it was. The capacity crowd in the arena last night, as well as the legion of Canuck fans watching on TV, there was nothing casual about their emotional attachment to the game. That’s why Canuck fans are feeling empty today. They’re all spent. You can only go from euphoria to nail biting to bitter disappointment for so long, and now it’s over. I feel for my friends and colleagues who are big Canuck fans. But the important thing is your team gave it a good shot and they provided you with so much excitement.

Ah, that’s a bunch of bullshit!  This isn’t play day where everyone gets a ribbon for participating. This is professional sports where the only thing that matters is winning. Losing sucks! But what’s worse for real Canuck fans they now have to deal with the embarrassment of a city coming unglued after defeat. Smashed windows, violence, burning cars, tear gas, flash bombs have nothing to with hockey. Yet now that’s the story, what a shame.

Until next time,

Cheers

Rolling the dice is perfectly acceptable when you’re in a casino in Las Vegas. I know from first-hand experience that playing “craps” in Vegas can be a rush. For those of you who may not be familiar with the rules or finer points of “craps”, and would like to give it a try next time you’re in Vegas, DO NOT ATTEMPT TO PLAY UNLESS YOU UNDERSTAND ALL RULES!  Now that you’ve rolled your eyes and are thinking thanks for enlightening me Bozic, the fact is many do play without understanding all the rules. Why? Because that’s where the action is and where all the noise is coming from. The noise draws you to the table, and when you get there you think I want some of this. You find yourself placing bets, not even understanding what your odd’s are. You might even start mimicking the bets being placed by other gamblers at the “craps” table. You look down at the table and you’ve got all your bets covered. Come on shooter, make this a magical role. Then you hear the most dreaded words at a “craps” table, seven out…seven out. For those uninitiated that means all your chips are gone! That’s when you start thinking if you only had played blackjack instead you could have played for much longer. But that’s gambling and it’s a part of the experience. That’s okay for Vegas but maybe not so much so when choosing between a fixed rate mortgage and an ARM.

The reality is that many borrowers are rolling the dice today. I’m setting aside those borrowers that can withstand the rate variances, and have the stomach to ride out an ARM for 60 months. I just wonder about borrowers who truly don’t understand the rules of the game. I wonder if some borrowers are placing mortgage bets based on what their neighbor or co-worker did with respect to their mortgages. Maybe borrowers are being influenced today by advertising. The 50/50 mortgage is getting a lot of airplay today, and that product was designed for those that wanted to play it safe or safer. Maybe it’s all about today and they’ll worry about tomorrow, whenever tomorrow comes. Maybe all of the above plays a part in the decision-making process but the biggest influence is the brokers personal bias.

All I know is that at some point in the not too distant future rates are going up. The warnings and predictions have been there for all to see for some time now. For example, Bank of Canada Governor Mark Carney recently said the following, “Low interest rates today do not necessarily mean low rates tomorrow,” warned Carney. “Risk reversals, when they happen, can be fierce; the greater the complacency, the more brutal the reckoning.” There’s no ambiguity there, and I’m thinking he might be one of those people “in the know”. The way I look at it any five year mortgage, under 4%, is free money. It’s also 60 months of peace of mind for the borrower. I can’t help but think if borrower’s get squeezed by a rate hike, and then they ask you how did this happen, irrespective of the facts all they will hear is, seven out…seven out.

Until next time

Cheers

For those of you who reside outside of Ontario, you may not know this but we here in Ontario get to exercise our democratic right one more time.  Then again some of you who live in Ontario may have forgotten that we have a provincial election coming up this October.  Who could blame you for wanting to suppress the idea of yet another election.  In the last 12 months, the good residents of Toronto endured a municipal election, and the voters in Ontario cast their ballots for a needless federal election. Could voter fatigue be setting in? I suspect the incumbents, the provincial liberals, hope so.

During our municipal election, candidate Rob Ford ran on a very simple campaign. The message was clear and to the point, “the gravy train stops here”. I’m not kidding, that was his campaign slogan.  His message was that days of wasteful spending was over.  It was time to be fiscally responsible, and do what was right for the citizens of Toronto.  I know what you’re thinking, sheer lunacy.  Being fiscally responsible was the complete opposite of what everyone in Toronto had became accustomed to under the previous regime. The spend first and think later cabal that used to run city hall were flabbergasted that Rob Ford’s message resonated with the electorate. So much so that the incumbent mayor, David Miller,decided he wouldn’t run for re-election because he wanted to spend more time with his family.  When a politician says he’s not running because he wants to spend more time with his family, it really means that we just did a poll and the results say if I run again I’m going to get my ass kicked. I digress.  Rob Ford won overwhelming majority, and the citizens of Toronto have spoken.

The federal election is still fresh in everyone’s mind.  The conservative party finally got their majority.  Why? Ontario put them over the top. The only way the torries could gain a majority was to do well in the 416 and 905 are code, and that’s exactly what happened. What was the message that resonated with the voters in Ontario? Fiscal responsibility, cutting wasteful spending and lowering the deficit. I’m not a Rhodes Scholar by any stretch of the imagination but I think I see a pattern here.

This brings me to the upcoming provincial election. I’m going to let you take a wild guess what Tim Hudak, leader of the Ontario PC Party, platform is for the upcoming election. You’re so smart, you’re not just another pretty face.  Tim, you had me at lowering taxes.

The fact that you want to bring back chain gangs makes me school girl giddy. That’s not a joke. The issue has been getting a lot of air time in Ontario, and it appears the idea is gaining a lot of support. As a voter I’m a buyer of a politicians vision. Every four years I buy what a politician is selling by casting my vote. Political parties share similarities with private enterprise. If you don’t give consumers/voters what they want, if you think you’re smarter than the consumer/voter, if you suffer from hubris, you do so at your own peril.  But you don’t have to take my word for it. Just ask David Miller and Michael Ignatieff

Until next time.

Cheers,

Image Source: McLeans Magazine, July 27, 2001