Over the last few weeks there’s been chatter in the industry about a lender in the mortgage space deciding to no longer offer trailer fees. The lender in question articulated their rationale for doing so, and it’s not for me to question their decision or pass judgement. Over the last two weeks I’ve been asked the following two questions, on a number of occasions.  Firstly, what do I think about their decision? Secondly, are we contemplating the same?  The answer to the first question is “Interesting, but I don’t really care”.  The answer the second question, “Absolutely not”.

The notion that Merix might consider revisiting its core value proposition, and no longer offer trailer fees to mortgage brokers, would only come to pass if Merix decided to rip the soul out of the company. Trailer fees are a part of the Merix DNA.  Trailer fees are what set Merix apart from its competitors. Merix is the pioneer of trailer fees. We can debate the economic merits of trailer fees versus being paid up front. But one thing that is not up for debate is the commitment Merix has to trailer fees. I’m not one to say “never”, but as I sit here today, in the role that I occupy, trailers are here to stay. (more…)

I think we’ve all heard the term “To Big to Fail”. The term became fashionable at the onset of the sub-prime crisis in 2008. Some financial institutions were deemed too vital and important to the global economy, therefore, they would be provided with a safety net by governments. Other institutions which were deemed NOT to be “Too Big to Fail”, Darwin’s theory applied – it was survival of the fittest.  We could debate the fairness of the “Too Big to Fail” classification, but that will have to wait for a future post. Based on what has transpired over the last two weeks I really do believe there’s another subset of characterization for handful of organizations, like FIFA.

FIFIA has been in the news for last few weeks, and even non-soccer fans can’t help but be drawn to all the stories off corruption, bribery, kickbacks and basic flaunting of international law. To be fair, FIFA, the world’s governing soccer authority, is not alone. My definition of “Too Big To Care” is fairly simple; “no action is so abhorrent that it will impact us financially”. What other entity fits that category? How about the NFL? Before you suggest that I should take a saliva test, here’s the simple truth. The NFL – National Felons League is not impacted financially even though it employs murderers, drug dealers, drug addicts, wife beaters and child beaters. The NFL has demonstrated that it is bullet proof, apologies for the poor choice of words. Rocked by scandal? Not a sponsor lost or decline in viewership. This year’s Super Bowl set a viewing record. The NFL is a money making machine, and sponsors and fans are willing to set aside their moral outrage every Sunday, or when filling out their office pool. The NFL has got this down to a science. When scandal hits, they pretend they care, for a couple of weeks, and then it all goes away. (more…)

It’s been a few weeks since my last post and I thought it might be time to at least check in.  It has been rather hectic over the last few weeks.  Upon arriving home from our vacation, we were back on another plane in less than 24 hours for business purposes.  There’s been a lot of hotels, managing dirty laundry on the road and embedding really bad eating habits.  If I’m not careful, I’ll have to change the spelling of my name from Boris, to Borises. 

I headed back to my old stomping grounds this week – Vancouver.  DLC, Dominion Lending Centres, asked me to speak at their Owner’s Conference.  When asked if I would participate, the answer was quick – absolutely!  It’s a wonderful opportunity for me to meet with our customers and garner some insight into the cool and innovative things that DLC is doing.  Gary Mauris, Chris Kayat and Jay Seabrook of DLC have been very supportive of Merix, and if I can make even a small contribution to the success of their conference, I do so with pleasure. 

While in Vancouver, I was also pleased to be able to attend the 25th Anniversary Celebration of TMG, The Mortgage Group.  Wow!  I can’t believe how quickly time flies!  This is a homecoming of sorts for me.  Many, many moons ago, Grant and Debbie Thomas, Principal Owners of TMG, asked me to join their organization. I worked for Grant and Debbie for a number of years and upon reflection,  my time with TMG played a very important role in my career development and career path. I will be forever grateful for the opportunity they gave me and even more grateful for the enduring friendship which ensued.  Congratulations on your 25th Anniversary milestone!

Until next time.

Cheers,

Off for a vacation in Tuscany to explore the sights, and of course the food and wine.  I’m not much of a wine connoisseur.  I know good from swill but the subtleties of wine escapes me.  It makes me giggle when I see people make a production of the wine experience, especially when they’re not far removed from Baby Duck and Mateusz, to each his own.

The trip got off to a somewhat auspicious start.  Air Canada not leaving on time, combined with having to catch a connecting flight in the most idiotic airport in the Western Hemisphere, Frankfurt, it’s no wonder we missed our connecting flight.  If you’ve never been to the Frankfurt airport, don’t.  It is very un-German like, meaning no order and complete chaos. I suspect the individuals who were responsible for gate placement, human traffic flow and security clearance, first had to ingest two hits of acid, and then when fully hallucinating, they put it all together.  A little Purple Haze by Jimmy Hendricks playing in the background would be a great pairing. 

I’ve been brushing up on my Italian over last couple of weeks.  I grew up in an Italian neighbourhood so it’s all coming back to me. Like the word for “sandwich” is “sangwich”, and you don’t “turn the lights off”, you “close the lights” And my favourite, yous guys, like “where are yous guys going?”  Who needs Google translate?

Depending on the amount of wine consumed, I may skip next week’s blog.  I suspect I’ll be too busy shovelling pasta into my mouth, my absolute favourite cuisine, and washing it down with some chianti.  I plan on working off the calories by walking daily.  In honour of our Italian hosts, when walking I plan on falling down for no apparent reason. My way of paying tribute to Italian soccer players.  Italy is going to love me.

Until next time,

Cheers.

There’s been a tsunami of economic data released over the last two weeks; couple that with the new Federal Budget, as well as musings from the Bank of Canada, there’s a lot to chew on.  I’m always on the lookout for the “nugget” as it relates to the mortgage industry.  Be it data or something said. 

The Bank of Canada is still predicting that if there is a price correction it will be a “soft landing”, but with an interesting caveat.  According to the Bank of Canada, “The adverse impact of the oil price shock in Alberta, along with robust price growth in Toronto and Vancouver suggests a correction in these markets” – nothing really new here.  I think we all know there are two very distinct real estate markets, Toronto and Vancouver on one hand, and the rest of Canada on the other. As for Alberta, once again nothing new. But what I found interesting was that the Bank of Canada suggested that the Toronto and Vancouver marketplace may have to be dealt with separately from a regulatory or pricing standpoint if home values continually rise. Well, this is different. For now it appears to be a warning or simply a heads up to the two respective market places, but it would be naive to think this is just bluster. The Bank of Canada is concerned that a significant correction in home prices in Vancouver and Toronto could spill over to other regions. For all my friends and colleagues in Vancouver, you’re used to this type of chatter. For decades you’ve been hearing, “Here it comes, get ready to create tents cities in Stanley Park because the market is going to crash and you’ll be out of your homes”. I get it, you roll your eyes when you hear this. But for us in Toronto it’s fairly new.  Toronto has been this countries piñata for the last decade so leading in any category is fresh. So you’ll have to excuse us here in Toronto if we become skittish by threats. It’s only from of our lack of experience dealing with predictions of the apocalypse.

Helping to ease some of our angst in Toronto, and Ontario, was the most recent federal budget.  Yes, Ontario is the pretty girl, and federal Tories want to take us to the prom.  The most recent federal budget was skewed to help the manufacturing sector in this country.  Trouble in the resource sector? No problem, the federal Tories looked to Ontario and pulled a Joey Tribbiani from Friends and just said “how you doin?”  Worry not Alberta. The Tories are not saying “goodbye”. They’re simply saying “we’ll see you again” – like right after the next election.

Until next time,

Cheers.