Does the Findings of a New CIBC Poll mean Opportunity for You?

When polls like the one recently released by CIBC come out, it means good news for Canadian mortgage professionals. While the Canadian real estate market as a whole has continued to thrive, several major media outlets have reported on the very high unsecured debt loads plaguing Canadian families.

While Canadian families continue to carry lots of debt, this article released by the Mortgage Broker News suggests that they are optimistic about coming up with solutions to deal with their debt. Where homeowners are concerned – this presents a lucrative opportunity for you.

The time might be right for you to take a look at your existing client base to blitz existing clients for other credit products. Refinancing, for example, can be an increasingly valuable option for those clients with existing value but a debt load that has started to cause considerable stress. Many consumers are aware of this option, so instead of letting the banks get their business, take your business to them first.

Mortgage rates are at all-time lows, clients in many major city centres have seen substantial increases to their property values and people are in debt. We may not be too off the mark in our assumption that it seems that the timing is right for mortgage brokers to surpass the banks and actually take back market share.

Mortgage Broker News has released at least two blogs on this subject discussing the probability of brokers preparing to earn back a major share of the market:

• http://www.mortgagebrokernews.ca/news/brokers-prepared-to-earn-back-market-share-187047.aspx?keyword=market%20share
• http://www.mortgagebrokernews.ca/news/alternative-market-share-hits-record-highs-186579.aspx?keyword=market%20share

As these articles note, “Many broker blame the eroding market share on the discrepancies between how tightened underwriting guidelines have impacted brokers compared to bank reps” but brokers are ready to step up and take on the challenge.

For more about how to use Purview For Mortgage Brokers to identify areas for added value, for both you and your existing clients, please contact us today by calling 1.855.787.8439.

Validating Home Ownership Information = Strengthening Lender Broker Relationships

We’ve often written about the benefits of lenders and brokers working towards strengthened relationships. The lender/broker relationship is critical because the lender relies on the broker as the mortgage application originator and the broker relies on the lender as the funding source.

The challenge is that, over time, these relationships can get strained. When many deals that get submitted either don’t get approved or don’t close because undisclosed information comes up later in the application process, lenders can become frustrated because of the time they spent underwriting your deal.

Validating home ownership information is one way that brokers can strengthen lender/broker relationships. Especially in cases of refinances, it is not uncommon for another party to come up on title. Sometimes it is a spouse or another family member. In some instances the lender will want a credit application from the other person on title and in all cases will require that they sign onto the deal since they are on title.

Validating home ownership information before you submit your deal to a lender is a sure fire way to catch instances of other people on title, to gather more information, to ensure that they are prepared to consent and even guarantee the mortgage and also that they even qualify.

The video below shows how you can validate home ownership information using Purview For Mortgage Brokers.

Creating strong relationships with your lender is just another way to make you more effective and to garner ore closed deals. For more about how Purview For Mortgage Brokers can help you strengthen these relationships please call 1.855.787.8439. 

Standing Above the Crowd: Top Mortgage Broker Tools for 2015

2015 is here and so it’s only prudent that we take a look at the coolest mobile apps and digital platforms that mortgage brokers can take advantage of.

Marketing

Social media is by far the most effective and affordable way that mortgage brokers can market themselves. In 2015 mortgage brokers really can’t afford not to have presences on the following.

• Facebook: Create a page for your brokerage and then participate in Facebook groups to raise awareness of the page. You can also take advantage of paid advertising on Facebook like “boost” posts and “promote” page which are 2 paid options to promote a particular post or your page in prospects’ timelines.
• Twitter: Twitter is completely different. On Twitter you will want to follow colleagues, lenders, suppliers, educating bodies, etc. to begin building a network. You can also begin sharing content published in the media to attract attention to your page and to begin dialogue with media bodies. Twitter also offers an option where you can pay to promote tweets in prospects’ twitter feeds.
• LinkedIn: Many mortgage agents and brokers get a large portion of their business from referral sources like real estate agents and other financial professionals. Connecting and expanding professional connections leading to more referral business.

Underwriting

When underwriting a deal the primary things you will want to validate are: credit, income, debt servicing ratios, and property information. You not only need to be able to access this information but also share it with your lenders. Using the 3 tools below you will have your mortgage underwriting bases covered.

• Filogix: This is the tool that mortgage brokers use to underwrite mortgage applications, submit deals and prepare mortgage documents.
• Purview For Mortgage Brokers: A subscription-based tool that used to only be available to lenders, Purview For Mortgage Brokers is an online application that brokers and agents can now use to generate AVMs, validate property values, verify homeowner information, view mortgage registered on file and more…
• Teranet Express: A per search fee-based website where you can request a Parcel Register which can uncover any liens registered against a property’s title. If a lien does come up on title, you can also purchase instrument images to verify all of the lien registrant’s details.

Administering

Administration comes down to paper, paper, paper – and so naturally many mortgage brokers are taking measures to go paperless.

• DocuSign: In the age of electronic documents, mortgage brokers are using DocuSign to simply email documents to clients to be signed. Some brokers even use DocuSign to meet their clients on the go and have them sign electronically right on their tablet.
• Dropbox: The nature of the beast is that in any mortgage transaction a massive amount of paperwork goes back and forth and the more you can do to be paperless, the more you can increase efficiency and help the environment =) Dropbox enables you to store large files centrally, transmit large files, create a link where customers can upload files.

The tools available for mortgage brokers and agents are numerous, and taking advantage of the right ones can really help to make you more efficient. This list of the top tools should really help narrow the playing field.

For more about the top mortgage broker tools for 2015, or about Purview For Mortgage Brokers, please call 1.855.787.8439.

AVM Perspective: What Can Your Clients do to Increase a Property Value

You may notice that, from time to time, clients will ask you what they can do to increase a property’s value. While the definition of market value as it relates to real estate is clear: the amount a willing buyer is prepared to pay a willing seller for a property - it may seem pretty black and white, but it’s actually not.

There are absolutely things that your clients can do to increase a property’s value. These things will depend on what your client’s future goals are with respect to their property.

Clients who want to sell and want to beef up their list price

Mortgage professional Rebecca Lake summed it up quite tightly in her article https://smartasset.com/personal-finance/5-cheap-and-easy-ways-to-boost-your-homes-value. 

The 5 simplest ways your clients can boost their home’s value:

• Give the kitchen a facelift
• Spruce up the bathroom
• De clutter
• Fresh coat of paint
• Curb appeal/landscaping

Now, the above examples may result in added value for your client if they were listing your home for sale or may result in it selling faster. That said, it doesn’t necessarily mean that it will cause a lender to perceive it as being more valuable.

Many lenders rely upon Automated Valuation Models (AVMs) to validate a property’s value. An AVM is generated using a computer program that analyses public record data, property location, market conditions, real estate characteristics and other factors. In most instances when generating an AVM, the lender will enter the property address which will identify the property, size, location and other key attributes and through comparables or indices, generate a property value. An AVM will not consider minor cosmetic changes in a home when assessing its value.

Appraisals are somewhat more flexible. While most residential appraisals generate the value primarily based on comparable sales, an appraiser may or may not be somewhat swayed by cosmetic improvements to a home. This does not necessarily mean though, even in the case of an appraisal, that the appraiser will bring the property in at the value your client is looking for.

Clients who want to see that changes they have made to their property are guaranteed to be reflected in an appraisal may be required to make other, somewhat more drastic changes. This may include changing characteristics that would impact the comparables used by the appraiser to assess the value of your property:

• Changes that increase square footage
• Finishing a basement
• An additional bathroom
• Additional bedrooms

These types of criteria are considered when comparable sales are generated for an appraisal, because they change the property’s overall characteristics vs. the condition of a characteristic which may or may not be picked up in an appraisal.

The good news is that there are many things your client can do to increase their property value – it all comes down to time and budget. You as a professional can help your clients weigh the time and expense of improvements over possible financial gains in the future.

For more information about the value of an AVM, please contact Purview For Mortgage Brokers today at 1.855.787.8439.

Now Available: Purview For Brokers Annual Subscription!

100 reports per month – 1 low price. Purview For Mortgage Brokers now offers subscription billing.

Contact Rudy Naraine at rudy.naraine@teranet.ca or 416.643.1027 to learn more about subscription billing from Purview For Mortgage Brokers.