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Mortgage Solutions for the every day Canadian mortgage consumer. Are you thinking about becoming a mortgage broker learn first hand what you should look for in a brokerage and what you need to be successful.
Len 00:02
Welcome. My name is Len Lane, and I am the founder and president of Brokers for Life Inc, and we are Dominion Lending Centres in Western Canada. The topic of our podcast will be about what we consider to be Real Life Mortgage Solutions.
Len 00:19
Welcome back. Today we're going to talk about technology in the mortgage industry. 17 years ago, when I started in this business, there was one platform to submit to the lenders through my entire tracking system was a system of coloured folders, that I would move the file from started, already submitted, complete, waiting to get paid. So, I had four different folders lined up across my desk. And that was how the system was pretty much set up. We faxed everything to the lenders. And you didn't even really knew if the other end received it because it could have jammed and at lot of long stories about some of those not happening over the years. But fast forward 17 years and there's a bunch of different platforms out there to work with for different organizations. But in our case, I think we lucked out. And we have the best one I think in the industry. My guest today is Heather Cermak Regional Vice President of Prairies and we're going to talk about Velocity. Welcome.
Heather 01:21
Thank you so much Len, I'm so excited to be here. And that story that you just told, brought back some PTSD memories from when I started out in the business and I was in my dad's office and the fax feeder sometimes wouldn't work. So, I had to stand there and then feed the pages in manually, like we have really come a long way, haven't we?
Len 01:46
Uh, yeah. There was many late nights, trying to make sure we got everything through to the lenders. So. So, the DLCG is fortunate enough to have Velocity, probably the best platform, we've seen a variety of other ones over the years. And but this one seems to have all the bells and whistles and all the bells and whistles work. So, it's quite impressive. So, what other platforms have you seen in the past? I know you're with other groups.
Heather 02:13
For sure. And of course, I'm not going to mention any names. But you know, we’ve both been in the industry a long time. So, I have had the pleasure of working with a lot of the platforms out there. I'll tell you just a quick little story. It was interesting because I was working with a company quite intimately with their technology platform. And then when I decided to make the move over to DLCG, as an employee, you know, that's part of our mandate, we need to promote and sell the company's platform and technologies. So, and I'm not a super techy wizard person. So, it was a little bit daunting to come over to a new group organization. And know, I had to learn a whole new tech platform. But what I found, to my surprise was the majority, and I mean, the large majority of brokers and owners, were already using velocity. So, I didn't come into a situation where I felt like I had to force people to use something or put on a real sales pitch, everybody was already using it. And then to my even further delight, I was able to learn the system quite easily. I found it extremely intuitive. So, it was just so wonderful.
Len 03:36
Yeah, I think, you know, we back and forth about deciding to go on, we get on a full year now of fully integrated, we don't use any other platform. And to have one of my biggest producers say to me that everything's in one place, I'm going like, yeah, that's what I've been telling you for the year before we got her to move. So, the entire team is on Velocity and there's so many other facets to it as well, right where that tracking system I have is built into Velocity only, it's now digital as opposed to a yellow, blue and black or whatever folder. So, it's made quite a difference. Right? So, let's talk about you spent a lot of time training of course as well part of your your overall scope of work, but it's what do you think is the hardest thing for agents to grasp when they start to work with this system?
Heather 04:34
You know, it's interesting because I'll just put it out there. Like if I can learn this system, anybody can learn this system like it really is foolproof. It's very intuitive, it's easy to learn. So, I wouldn't say that there's any particular feature that's hard to learn or any aspect. Where I find the difficulty for agents or owners to wrap their head around is it's really more of a mindset. I think it comes down to brokers and owners feeling like change is hard. And it's scary. And it's difficult, right? I know, I can see you, I can see you being exasperated right now.
Len 05:19
I've been living with change all my life, right? And actually, one of the phrases that one of my past employers always said is things stop changing, start worrying.
Heather 05:33
Exactly, it's really just a mindset and a philosophy. But the other big factor I feel is involved when agents just have a really difficult time wrapping their head around Velocity is that they underestimate the client's ability. So, the broker or the owner has already made that decision that my client won't be able to do this, or I deal with a specific demographic, and so they've made this assumption on the client's behalf, which I don't think is fair. And I think if some brokers would just dive in, trust that the clients are way more sophisticated today than they ever have been, they would see that it actually is much more easy and efficient for the consumer. And for the mortgage broker.
Len 06:25
Yeah, and that is preconceived things. But we've had people in the 70s, no problem we can, you've been uploading pictures of our kids for years now, right, and grandkids. You know, don't really seem to have a problem getting their paperwork into the system. So, and one of the things I do like about the system, of course, is the fact that we're almost at the point where we never receive documents via email anymore. Talk about that security part of the of the system?
Heather 06:56
Well, you know, that is a really important factor in today's day and age. One of the most recent scenarios that we are all very aware of was the London Drugs data breach. And what, I think there was over 800 stores across all of Canada, a very prominent brand in the Canadian landscape. And they were closed, they had to shut down all stores across Canada for a week, and they lost millions of dollars due to the security data breach. And what is really perplexing to me is that the information that mortgage brokers retain from their customers is extremely sensitive, we are talking information about their employment, their income, their identification. This is highly sensitive information that's being transmitted. And I don't understand how consumers and mortgage brokers can say, oh, I'll just text that over to you, or I'll just send it over my Hotmail. This is not a safe way for customers to transmit their documentation. So, what Velocity has developed and you know it well, is this amazing, encrypted safe customer portal, where the documentation can be uploaded in a secure way and come directly into the system. And that's also where it's stored. And I know you use this and you were an early adopter as soon as you started. So, has that been really quite an easy experience for your customers? In your opinion?
Len 08:47
I think so I just, you know, I've always talked about how the system is so streamlined where you're sending the application, the customer experience to them to fill in. You receive their consent, for the full credit at the same time, but at the same time, you're giving them a list of documents that you want them to upload into your portal. And as you said, the portal is also the storage space for all our documents. So, it means that unlike what we've had to do in the past where you don't have to take them out and load them into another section. You know that it's there, it's done. You can technically do a complete application, review all the documents and now with more and more of our lenders actually signing up to receive directly from the portal. It's even at a point where you don't have to print anything anymore.
Heather 09:39
It is really amazing. And I think that is one of the factors that sets Velocity apart in the marketplace is the client experience that you just mentioned. Definitely connected to the portal so we have that safety and security feature in there. But the ease for the customer it really feels like somebody’s holding your hand through the process. I always say instead of, you know, getting all this, tons of paperwork thrown in front of you, where you have to fill out an application, this way the system is prompting the consumer question by question. And depending on how they answer those questions, it will then lead them down whatever path is appropriate, and ask them for the correct documentation. So, to your earlier point, one of your top producers who has migrated over to the system, now we don't have to operate five or six different systems, which makes it really vulnerable, that data really vulnerable. If we can have everything all in one area, it just makes it a more seamless and safe process for everybody.
Len 10:51
Yeah and, you know, there's so much more that you can do with the system. So, actually, I'm talking with that top agent the other day, she has built 30 templates for the customer experience.
Heather 11:03
Wow.
Len 11:05
All personalized, and set up so that it just about every scenario she could think of. They already had a template for it. But now it's all in the system, and they just click the button on which scenario it's going to be. And that's what gets sent out in the customer experience. Right?
Heather 11:22
Well, that’s incredible. And when you're first learning Velocity, and you can attest to this one, there's so many different features in it. And so I think everybody just needs to take it like one step at a time. Because if you try to tackle it all in one go, it will be a little bit overwhelming. But the fact that this agent that you're talking about, has moved over so seamlessly and has now built out 30 templates is amazing. It really is it does speak to the usability of the program.
Len 11:58
Right? She said, you know, every time I think it doesn't do something, I find out that it does so because we're always learning with this system, obviously, right? So, the security is always top of mind. It has to be the as the world gets crazier and crazier, say like London Drugs. All the US car dealerships were shut down for a couple of days last week as well, because somebody hacked into their national system, right? Right across the US.
Heather 12:24
Well, and that's the thing is it's, this is a common occurrence now. This is not an anomaly. So, and the data that you are retrieving from your customers is way more sensitive like there's a lot of really important information flying back and forth. So, it's really imperative. It really is. And I think it's wonderful that you're hosting this podcast to get this information out to the consumers and to other mortgage brokers on the importance because you know what, it's the easy path to just ignore it, and think, Well, oh, it won't happen to me, or it won't happen to us. But I think that's a little bit of an ignorant approach. So, it's wonderful that you and your whole office has adopted this mentality.
Len 13:13
Yeah, and if you think it's not going to happen, it's probably going to happen. If you're not taking the steps to make sure that things are secure, you know that it's a seamless operation now, especially with documents going directly to the lenders. So, what do you hear from the lenders, you probably talked to both sides of the business, but do you hear much back from their feedback on documents directly to them?
Heather 13:37
Well, yes, I mean, if you look at the most recent couple of lender partners that have opened up or connected with us through the channels to be able to submit that documentation directly. If these top Canadian lenders didn't feel that this was necessary, they would not invest in the infrastructure to connect right? So, some of these names, and again, I don't know who I can mention and who I can't, so I'll just stay on the safe side, but these are top Canadian lenders in the mortgage space that have invested the time, the money to build out these safe, secure connections, because ultimately, we do need to work together as a community to protect the end consumer. That is really what has to be in the focus at the forefront of the focus for all of us. So, yeah, the lenders are excited. They are I mean, they're all connected to Velocity at this point, and have been for quite some time, but it's that direct documentation transfer piece and the lender seemed really, really excited to be a part of it.
Len 14:56
Yeah, and that's, you got to think about security for them as well. Right? So, somebody, if you never take the document out of Velocity, there's less chance that it's altered, for one. We can get bank statements directly from their bank accounts. Maybe someday in the future, CRA will let us again, get the original NOA’s from them as well. But, you know, all of that adds reduces the amount of chances of something being fraudulent in a file. So–
Heather 15:28
Well, absolutely, yeah.
Len 15:30
It's a big advance for sure. So, you know, the efficiency part of this is always something that I think he's kind of missed by people that are looking at it originally, right? In the years where I did $40 million, by myself, had I had a system like this and not like my four-folder system.
Heather 15:46
Yeah. Can you imagine?
Len 15:48
Probably could have done 80 quite easily, right? So, and without an assistant, because really, the Velocity is your assistant, right? It’s collecting all your documents, it's doing all of that client has the application and that, you know, it just makes one smooth operation, to get the deal ready to go as well.
Heather 16:08
And, you know, one of my other favourite parts is the upfront process, yes, the application intake, the documentation intake, submitting it to the lender. And then what's really magical is the integrated CRM. And for those who don't know what that acronym is, because I didn't for a long time to the Customer Relationship Management piece. And I think this is something that mortgage brokers, especially within the DLCG network have become really proficient at. And when you can have a customer who submits a new application into our platform, into Velocity, and they're automatically then connected to that piece, where you can now keep in touch with them, you can make sure that over that three-year or five-year term of their mortgage, that they feel that they're still involved in the experience and that you know, you're keeping in touch throughout the year, when there's special milestones to make sure that they feel special and recognized. It really is an all-in-one program and no need for anybody to really have to feel that they need to invest in something external, which again, keeps it all in one system, which keeps it efficient and safe.
Len 17:36
Yeah, and I think the success of the Gold Rush campaign had to have been huge. I don't know how many agents actually ended up signing up for it. I know, you guys were pretty busy for three or four months, and probably are still finishing up all the agents who were late getting their names on the list, but it's like, turning on the SMS, right? That simple program. And I'm getting answers from texts everyday, just about during the weekend for birthdays, or whatever. And, you know, 600 personal clients. So, it's like, I'm not looking for business outside of my original business anymore. So, not that I was. I have enough stuff on the go without having to go chase, realtors or anything like that. It's just these people know me, I have a deal right now from people that I did the mortgage for 10 years ago. I haven’t talked to them since they get my newsletter. But now they're getting other things getting the birthday cards, they're getting the, you know, saying your mortgage is coming up on its anniversary. Yeah. Have you rebuilt MPP into that, too? We do the MPP loader at 10 months. So, you get that as a separate item that's coming out during the year. Right? So, yeah, the advance of and that's, again, another comment that I keep getting is one of the agents says well, great, I don't have it over in another system that I have to move information or send the client's information over to, it's already here. It's already connecting. As long as that box is checked, right? For consent, it puts it into motion, right?
Heather 19:13
Yeah, it's really a no-brainer. It's so seamless. There's not, there's no extra work for the broker or the owner. And yeah, the Gold Rush program has been next level, like it really has been a game changer. And we've set up at this point thousands, and still a few more thousand to go. I think what's happened is it's proof of concept, right? Where all of a sudden brokers who were skeptical or they didn't really pay attention or they weren't really sure what it is. And now they're hearing from all their peers. Exactly what you said, Len, I'm getting more engagement from my database than I ever have. I'm getting people reaching out that I did mortgages for 10 years ago and now they're wanting to refinance or they're moving to a different home. It's that engagement piece is so crucial. And customers, they want it, they want to be remembered. They want to feel connected to their mortgage broker. And we're in a unique position in the Canadian mortgage industry where we get to follow up with that client, in the bank channel. It doesn't really work that way. So, we're really fortunate that we can be connected and involved with the consumers and be really a part of their life. So, thank goodness for technology to enable that.
Len 20:36
Yeah. And you talked about the bank employees, the, you know, their employees of the bank, so that client belongs to the bank, and you're not allowed to do anything with it. Right? So, the bank gets their renewals, the bank gets all their other, their life insurance, probably as well, right? So, they have a higher number than we do for penetration. So it's, uh, it really makes it, like you said, it's like, your it's a goldmine. And it's always sitting there, right? That actually that new client bought a $1.1 million house. Oh, that was well worth the 10-year wait, right?
Heather 21:11
Exactly. Oh, my gosh, how exciting.
Len 21:15
Yeah, there's no question that the advances in the technology platforms are definitely leading the way I believe, and from what I've heard of other systems, where you have to handle documents two or three times to put them into different systems for auditing. Now, the other thing is for our payroll, Margie’s payroll system is basically what we probably spent the most time on before was when she does her daily audits to see who opened the file. Before we had to go and check if there was a written service agreement in place. So, now we know who opened the files. But if we did it through the application, then there should be WSA should be there already. So, saves her a lot of time. And then really, at the end, when they finished their deal are finished with the lender part, at least they should be able to go they can check about five boxes, a lender complete, check that box, send it for compliance.
Heather 22:17
Yeah, it's front to end, it really is such a smooth process. And I think what's so neat about Velocity and the team at Newton is we are constantly building, looking to improve, taking feedback. It's not stagnant. Everybody's always looking for a better, more efficient way. And I mean, the proof is in the pudding. I'll tell you right now, when I have worked in the past with other platforms, the percentage of brokers that were using those platforms, as they're intended to be used for application intake, documentation intake, transmitted to the lender, the percentage of people was very low like I'm talking under 10%. And to come over here and see, the vast majority of brokers already using it and loving Velocity and this platform is it speaks for itself. I mean, if you build a great product, it should sell itself. And that's, I think, exactly what the Newton team has done here.
Len 23:36
Yeah, there's no question there were brokers who weren't part of DLC using Velocity for quite a while, paying for it actually. Right? So–
Heather 23:44
Absolutely, and there still are a lot. Oh, absolutely. Yes.
Len 23:51
So, that kind of opens the door for the end of their contract. Right? So…
Heather 23:56
Yeah, no, it sure does. I mean, I saw that firsthand. Where, again, in my previous life, we had there was some brokerages that were paying to use Velocity, it was outside of the platform, but they knew it was a better product. And now those groups are over here with us too. But it really is just, it's incredible. That is all I can say.
Len 24:26
Yeah, you know, DLC obviously, acquired a new brokerage system, I guess. And one of the conversations I heard about it was that when you're not big enough to spend the money or have the money to develop something like this, that's starting to be the problem with the smaller groups that are out there. There's still lots of three and four-billion-dollar mortgage, national mortgage brokers right? So.
Heather 24:53
And that's just it, and obviously I talk to brokers on a daily basis within and outside of our network. And I always ask those questions, especially about, you know, from somebody that has come from a different network. Because a lot of it can be optics, let's just be honest, our industry is all over social media. And you can paint a really good picture of a culture, or a technology, or really anything. But until you talk to the people who are using the system on a day-to-day basis, and you hear like, you know, it was great when it's when it started off, when it was first launched. It was really awesome and exciting to be a part of. But then it went nowhere. There was no fixes. There was no innovation, it's still the same after five years. That's where people do run into trouble. And to your point, the brokerages that just don't have the money because that's what it is. That's what it comes down to. They can't innovate. It's impossible.
Len 26:06
Yeah, there's no question. Right? So yeah, $3 billion, there are brokerages within DLC that are doing more than $3 billion. So. Right? So, I can't imagine not trying to be at that size. I can imagine being that size. But you know, to be a national broker at only that size, you know, would be very hard to come up with the money.
Heather 26:27
Yes, it would be it. Money makes everything work and we all know that technology is incredibly expensive. And things do take time. And so you do see companies, you know, they come out hot, and they invest what they can and then the funds drying up very, very quickly, when when you're building out infrastructure and technology.
Len 26:53
Yeah, for sure. So, it's not a cheap venture but velocity, I think has had something new come out every month.
Heather 27:02
I know it's hard to keep.
Len 27:04
There's a new update coming out to something else has been changed, or are you what I'm finding as the agent agents are finding that it does all these other things that they didn't think it did? Right?
Heather 27:14
Yeah, and that's just part of the learning curve. So, a huge kudos to you, Len and Margie and the whole team at Brokers for Life because you didn't have to adopt Velocity. You could have been, you know, kept doing what you've been doing for years and years. But I really admire your ability to change quickly, to pivot, to adopt new things. The fact that you've invented a new podcast, it's really admirable. We're really fortunate to have you in the industry.
Len 27:51
Awe thanks. You’re paid to say that, remember that.
Heather 27:57
You can pay me later.
Len 28:00
Okay, I think we will wrap it up there. That's a great segment. It'll be for both sides of our consumers as well as mortgage brokers that are wondering about what's happening with Velocity. It's become a juggernaut in the industry, and there's nothing that's going to keep up to it, I don't think at this point that I've seen. Continue to work on and I want to thank you for your time today. I'm sure you're getting ready for the long weekend like everybody else. And the boys are out of school. Yay.
Heather 28:29
Okay. Amazing. Well, thank you so much, Len. It was a pleasure to be on today.
Len 28:34
You bet, take care.
Len 28:37
Thanks for listening today. I hope you found the information that we provided to be useful in your mortgage journey. And remember, you can always find our associates at www.brokersforlife.ca/associates. Have a great day.