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Mortgage Broker News | 11 Mar 2010, 02:00 AM Agree 0
Just days after Abode Mortgage announced its permanent closure a few of the lender's former senior staff members are set to take the helm at a new mortgage lending operation called Canadiana Financial Corp.
  • john | 12 Mar 2010, 07:06 AM Agree 0
    So much for paying to brokers what was owed,,,,just rename the company and start fresh, that will teach brokers to not use fly by night lenders,,,
  • mike | 12 Mar 2010, 07:10 AM Agree 0
    so, who took over all the Abode mortgages? Is Canadiana Financial taking them over? If so, should they not be paying the outstanding broker fees?
  • wayne | 12 Mar 2010, 07:15 AM Agree 0
    Abode is gone and this bunch just opens a new company. Same management that stiffed a bunch of brokers. I say a boycott is in order. Sounds so fly by night.
  • Zoltan Padar | 12 Mar 2010, 07:25 AM Agree 0
    What a wonderfull way of screwing brokers out of their commission. Till We get paid on the file we have done with ABODE, I will not trust these guys and will not send them any mortgages. Hope, the rest of the brokers thinking the same way and realise what these people are doing. Hope I'm wrong.
  • zoli | 12 Mar 2010, 07:30 AM Agree 0
    These people most likely will have products very similat to ABODE old product, what I thought were not so out of the ordinary anyway. Let just see if they are to pay all brokers off first, or we can put this "brand new company" into bankruptcy faster than they have srewed us. Agree? I wish for solidarity by others and pull together all.
  • R. Ross | 12 Mar 2010, 07:31 AM Agree 0
    I heard they might be making moves to actually pay any outstanding abode fees, even though it is technically a different company all together. If they did that would be a great first step, but either way they are going to have to do some serious PR to win me back.
  • Tom | 12 Mar 2010, 07:36 AM Agree 0
    Same management can't get a deal done to pay brokers so they form a new company and who cares about the brokers.
    These guys have to do right somehow or I feel they won't last. And besides, who needs another lender following insured guidelines right now. We need true sub-prime more than ever.
  • john | 12 Mar 2010, 07:36 AM Agree 0
    They will be in the same office as Abode, same management. They will not pay FF , why else would they just set up a new company ?,,,to end the liability of the unpaid FF.
  • Dan P | 12 Mar 2010, 07:38 AM Agree 0
    Hope this new company has a massive warchest for PR, they are going to need it! That cost alone might be enough to trip the new horse before it evens breaks out of the gate.
  • Don't Con Us | 12 Mar 2010, 07:39 AM Agree 0
    Hard to believe they can actually get a licence.
  • Down Abode | 12 Mar 2010, 08:02 AM Agree 0
    I learned this lesson from the hard way. I hope everybody here not going to setup with this new Canadiana financial company.
  • mystery | 12 Mar 2010, 08:09 AM Agree 0
    abode was backed by deutsche bank and they called the shots. Canandiana is backed by 5 fathom partners, whom the brokers should hope call the shots.
  • Vic P | 12 Mar 2010, 08:14 AM Agree 0
    I have been in contact with the good folks at Canadiana and it appears that satisfying their loyal brokers is certainly part of Canadianas transitions plan. They are coming out with products that the industry needs right about now.
  • Pay your debts!! | 12 Mar 2010, 08:29 AM Agree 0
    Will this New Lender have a product that only lends to those who don't pay and of their debts? That would be most appropriate. Their salaries should go to pay the Mortgage Brokers who have not BEEN PAID.
  • R.Ross | 12 Mar 2010, 08:32 AM Agree 0
    Great point. I dont think we have to worry about 5 fathom pulling the same job as douche bank.
  • Great compensation up in smoke | 12 Mar 2010, 08:33 AM Agree 0
    "Linehan described DiGiambattista as "a proven sales executive in the mortgage industry with a passion for building competitive compensation structures"
  • Can't resist | 12 Mar 2010, 08:38 AM Agree 0
    I guess we have some new nominees for this award
  • worked for free | 12 Mar 2010, 08:48 AM Agree 0
    building "competitive compensation structures"... I wonder who devised the competitive compensation structure that consisted of me booking deals with Abode and getting NO compensation for them... For anyone thinking of sending a deal to them, I have some swampland in Florida to sell you....
  • check this out - website | 12 Mar 2010, 08:56 AM Agree 0

    www.canadianafinancial.com - if you click on their domain it takes you to merix? what's the deal???

    For further information: Corporate Contact: Mike Linehan, President & Chief Executive Officer, Canadiana Financial Corp., Email: mike.linehan@canadianafinancial.com
  • S. Simon | 12 Mar 2010, 09:04 AM Agree 0
    I have been in contact with the management team, who have assured me that they will be taking care of the Agents who supported Abode. We should give them an opportunity to resolve.
  • RG | 12 Mar 2010, 09:08 AM Agree 0
    I've been advised a commission payback structure will be part of the launch.
    We are gaining not losing!
  • Jim | 12 Mar 2010, 09:26 AM Agree 0
    I wonder if the former Abode employees will be paid any wages owing to them or the money they fronted for their expenses on Abode's behalf?
  • Response | 12 Mar 2010, 09:37 AM Agree 0
    S. Simon and RG: Why are all of us exploding with anger? Because No One from Abode had dealt with, spoke to or communicated any type of payment. Today was the "Big Announcement" when they had an opportunity to address all the individuals they didn't pay, yet they chose not to. Why should we wait? give an opportunity?
  • I am worried | 12 Mar 2010, 09:47 AM Agree 0
    December: told CMP that paying outstanding finders' fees to brokers was "very important to us when negotiating a new purchaser." He added that talks were going well with supporters and that the company would be back within a few weeks.
  • Former Employee of Abode | 12 Mar 2010, 10:00 AM Agree 0
    Easy now people, I was employed by Abode and believe me no one wanted this to happen. Do you really think that the executive team wanted to close the doors and not pay the people who supported them? Better yet do you really think that the team here wanted the failure of a company on their resume?
    I can promise you that the people who were running Abode are Top Notch, first class professionals. I have seen rumors on here that the new company is wanting pay the brokers outstanding commissions. If this is in fact true then this only speaks to the character of the people involved. They would not be bound in any way to pay out there former partners; they would only be doing it as it is the right thing to do.
    I was also not paid out any compensation or outstanding commissions when Abode closed and I would have to say that I was owed more than most individual agents. You can't get blood from a stone people; in my opinion this was simply a case of a single line funding company being taken advantage of by an unscrupulous funding partner and nothing more.
    Please don’t vilify good people; no one at Abode wanted this to happen.
  • Mike | 12 Mar 2010, 10:31 AM Agree 0
    Where do we file a claim, if we are owed money by Abode? It just seems logical that there should be a formal process to follow. The mortgages have payments coming in and that money is going somewhere?
  • Anti-Pam | 12 Mar 2010, 11:16 AM Agree 0
    Well, the press release came out just now and it looks like Pam is at the new company as the COO, not the CFO as she was at Abode. This can't be a good thing for either the new company or brokers across the country. So, when a company fails financially and does not pay their employees or brokers wouldn't you want to have a chat with the Chief FINANCIAL Officer and question their ability to run another company?
  • Over reaction by UNPAID PEOPLE | 12 Mar 2010, 11:23 AM Agree 0
    If you think the Broker community cares that You Were Owed More Than the Brokers and now you have a New Job. They just want to be paid. No sane person will do business with a New Co. that doesn't pay the brokers and smugly starts up again with no APOLOGY just excuses. Good luck
  • Mr. Regulator | 12 Mar 2010, 11:27 AM Agree 0
    If this new company was a licensed mortgage brokerage do you really think that provincial regulators would allow a group of people who were responsible for another company and it's collapse to just start a new company and continue on just like before? As a mortgage broker the regulators scrutinize our business acumen and look at our background for any "failures" in the past (bankruptcies, judgements, law suits, etc.). I would suspect these people with their history at the failed Abode would be denied a mortgage broker's licence, but, somehow, it's okay for them to be a mortgage lender. Does that make any sense at all? Do the board members qualify for CAAMP, MBABC and AMBA membership based on what happened at Abode?
  • joe broker | 12 Mar 2010, 11:33 AM Agree 0
    Never used them - guesss I am the lucky one...
  • joe broker | 12 Mar 2010, 11:34 AM Agree 0
    Sure can bet if I was a broker who's comapny failed... I would be screwed with getting a new licence for a newly named company
  • Toronto Broker | 12 Mar 2010, 12:51 PM Agree 0
    Joe D is Top Notch, and I know he'll make things RIGHT!!!
    Lets all wait and see what they do!
  • Former Abode Employee | 12 Mar 2010, 02:31 PM Agree 0
    You are exactly the people that i am talking about, quick to condemn my comments and quick to assume i employed by this new company. I am not employed by this company and I had to start my own business from scratch. That’s right no income!!! You still had a job and a pipeline of deals that were paying you. So stop feeling sorry for yourself and go find another deal to replace the ones you didn't get paid for.
    You still may be paid and yet you still want to condemn these people. How about this; if you don't get paid condemn away, until then lets wait to see what happens. I too have an interest to see if I will be paid as well.

    I do hope that you and all brokers compensated.

  • Former Abode Employee 2 | 12 Mar 2010, 04:02 PM Agree 0
    Regardless if you are a broker or a past employee of Abode, not being paid money owed to you is not right and feels even worst when the people who ran the company appear to be starting a new company without addressing the past debts. Mike Linehan is someone who I did not know before Abode, but who has showed me that he is a guy that in the past has done the right thing and thus I trust that he is a stand up guy.

    As we all know actions speak lounder than words and the actions of Mike and the rest of the management team over the next couple of weeks will show what they are made of and if they can earn our support or if they have earned the reaction that has been posted today.

    Even with Mike not returning my calls, I am still hopeful that he is the man a got to know and he will work with his new partners to ensure that everyone is paid. For it is the right thing to do for all who are owed money, the right thing to do to give their new company any hope of success and the right thing for our industry.
  • John | 12 Mar 2010, 09:57 PM Agree 0
    Seems the responses to the news here is quite stifled, except for the former employee.

    This is how it works in corporate Canada, build up debt, execs party down, lavish lifestyles, big houses, cottages. Then oppss, we didn't pay the employees/brokers. Shut down and start anew.

    I can make one promise here, I will not send one deal to Abode or this new company owned by previous Abode management (if it smells like doggy doo, it is doggy doo) and if Merix is involved, I will not deal with them either. I will think about a new relationship if and when I am paid in full for my previous services.

    LOTS of others out there offering the same programs and they are courting me big time for mine. Onward and upward.
  • Anti-idiot | 13 Mar 2010, 12:47 AM Agree 0
    Unmoderated comments can result in error and misleading information. Know your facts before positing.
  • Money Owed | 13 Mar 2010, 03:50 AM Agree 0
    There does appear to be a lot of over reaction here. I'm owed almost $10,000.00 by Abode when everything is said and done. I'm not condemming anyone, I know "Former Abode Employee" and know that there has been lots of talk about how to make good. I know that "Former Abode Employee" was one of many who was hurt in the closing of Abode, who had to scramble and start from scratch, this person is not crying the blues, this person is picking up the peices and moving on...as we all should be.
    Sh*t happens, companies fail especially in tough economic times, let go people...move on, if you get your money it's gravy no sense crying over spilled milk.
    Before we start condemming people for situations beyond their control why don't we wait and see if Mike, Joe and the rest of the people involved in Abode (whom I assume probably lost their entire investment into Abode) make good with the money owed???
    Regarding the regulatory side of things...I personally know of a BROKER who's company failed who left with THOUSANDS of dollars of associates money and who was granted a new licence under a new brokerage name and whom continues to practice in the industry so is there really regulation per say???
    Give these people a chance...they are good people in a bad situation that was out of their control...sit back, take a breath and hope for the best...I am.
  • Andrew Kuyper (MERIX) | 13 Mar 2010, 04:33 AM Agree 0
    Hi John, let's put that little rumour to rest, shall we?

    MERIX is not involved in this. End of story.
  • Website Confusion | 13 Mar 2010, 04:40 AM Agree 0
    www.canadianafinancial.com - if you click on their domain it takes you to merix? what's the deal???

    For further information: Corporate Contact: Mike Linehan, President & Chief Executive Officer, Canadiana Financial Corp., Email: mike.linehan@canadianafinancial.com

  • Mark | 13 Mar 2010, 04:47 AM Agree 0
    it clearly states in the press release that Five Fathom Partners is involved, NOT Merix, so that seems pretty straight forward to me. Fathom is a respected player in the game.
  • Website Confusion | 13 Mar 2010, 06:56 AM Agree 0
    Once again...who is running the show? Who is taking on this liability?
  • Jill Paish, MERIX Financial | 13 Mar 2010, 11:14 AM Agree 0
    I can assure you MERIX and Canadiana are two entirely different companies and have separate management teams. MERIX is not involved in this company at all.
    It seems that they have corrected the link with the website.
  • open | 13 Mar 2010, 03:07 PM Agree 0
    Are there not 2 components to Merix / Paradigm Quest. Merix originates mortgages and Paradigm services and funds them (underwrites as well?). Both were started together and as a team. saying differently would really be splitting hairs....

    So the question is.....

    Will Paradigm be doing the same for Canadiana and therefore would it not be that the 2 are linked by more than just investors. Makes sense from the investor to leverage a fulfilment, servicing company they have rather than start investing in another one...

    I wish every luck getting paid but Abode has been closed Canadiana is a new stand alone company...hard to take money to pay independent debts
  • GaryM | 13 Mar 2010, 03:35 PM Agree 0
    I ask you to do something for me!, I make a deal with you well knowing in advance that I am not going to pay you!!

    CEO,CFO and the rest of the managment team of Abode knew that they were not going to be able to pay the brokers their commissions but they still accepted deals!!

    Tell me why this is not fraud? you talk about integrity? John Donald and the rest of the 5P have reuined their reputation by being party to this transaction!!! they have setup and acquired the assets of Abode ($500M Portfolio with DB), because it will make them well over $9,000,000 in profits!!! and they dont have to pay anything to any single broker!

    managment of Abode sold them this portfolio for $0 and in return they got jobs!! why else john donald and those people would start a new lender? they already got one!

    shame on you guys! all of us Brokers, should start our own lender that we own instead of making all these people rich.
  • Madoff with my money | 14 Mar 2010, 01:27 AM Agree 0
    1.Abode management is doing everything they can to pay brokers FLIP this is a new company, don't cry over spilt milk, suck it up its just your commission. 2.Canadiana has nothing to do with MERIX FLIP the new website goes to the Merix website yet everyone is denying any connection.3. Five Fathoms is/was a respected player FLIP was a respected player, it seems they are caught in this new scam and they aren't "doing the right thing" for a company that hasn't even started, the lies, mis information, blaming brokers for being upset about being ripped off for $Thousands$ of dollars of commision, not taking any responsibility, no apology, the level of arrogance. Wow. time for a new name. 5 fingers in my pocket
  • get your heads out of the sand | 16 Mar 2010, 01:35 AM Agree 0
    doesn't anyone have the guts to come clean? time to speak up before this crashes and burns.
  • It's Magic | 16 Mar 2010, 06:56 AM Agree 0
    How did this new company get approved to do business with CMHC or have they even been approved as of yet? Perhaps we, as brokers, need to petition CMHC to not deal with this management team that failed so miserably at Abode who are now hiding under the Canadiana banner. I think it's very clear that their failure from the past will not be forgotten in the broker community. It makes you wonder why they would even try. I feel sorry for whoever has invested in them now. They'll have a short life, but I guess the "management" team will get a pay cheque in the meantime while they practice their new employer's script of "do you want fries with that?".
  • This is interesting... | 16 Mar 2010, 07:02 AM Agree 0
    Anyone can do the following search on a domain name and here's who regsitered the website:

    Registrant:
    Paradigm Quest
    390 Bay Street, Suite 500
    Toronto, Ontario M5H 2Y2
    CA

    Domain name: CANADIANAFINANCIAL.COM


    Administrative Contact:
    Mariani, Chris chris.mariani@paradigmquest.com
    390 Bay Street, Suite 500
    Toronto, Ontario M5H 2Y2
    CA
    +1.4163668606
    Technical Contact:
    Mariani, Chris chris.mariani@paradigmquest.com
    390 Bay Street, Suite 500
    Toronto, Ontario M5H 2Y2
    CA
    +1.4163668606


    Registrar of Record: easyDNS Technologies, Inc.
    Record last updated on 26-Feb-2010.
    Record expires on 26-Feb-2013.
    Record created on 26-Feb-2010.
  • J | 16 Mar 2010, 08:46 AM Agree 0
    I understand how most people on here are very upset, I did over $1 million with Abode that I didn't get paid for. I did receive a call from Joe DiGiambattista last Thursday, and it sounded like he was slowly making the rounds with all the brokers Abode owed money to. He went through the deals that I was owed and stated he would send me a cheque on the week of the 22nd, and that they were going to pay all brokers from deals owed with Abode, and stated that it took 4 months to get launched again because part of the deal with any investor would have to be that the brokers would need to be compensated for monies lost with Abode. I will take a wait and see attitude towards this. He gave me his cell # and told me to call him with any questions.
  • J | 16 Mar 2010, 08:49 AM Agree 0
    It sent without me finishing...
  • J | 16 Mar 2010, 08:54 AM Agree 0
    This site sucks for makng comments...every time I press the enter button it sends....so no enter button for me and it will be a big long paragraph. I think they are in a position that they had to negotiate for the payment of brokers in order to gain any credibility in the market, as I was fuming when I read their announcement and I was ready to call for a boycott and to let every broker I could meet know not to send them business. I don't think that would be good for them...so unless this new company fails before it starts, I would think they would have to pay. Additionally, I was told by him that it wasn't that many brokers, so the cost to them wouldn't be all that high to right the ship. I don't know, I liked dealing with Abode before they went under, I thought they had some really good people there. If the new company steps up and pays me (won't get vb but will get commission) then I will be open to dealing with them again. I will update on here one way or another on the week of the 22nd.
  • Broker Owed Money | 17 Mar 2010, 08:28 AM Agree 0
    do you know if you are the only broker who's been contacted, or are there others?
  • J | 17 Mar 2010, 05:07 PM Agree 0
    Hi Broker owed money...the honest answer is I don't know for sure, but it appears from the above comments there is a broker named Britt who seemed to have gotten the same information.
  • J | 17 Mar 2010, 05:15 PM Agree 0
    Pressed enter again...I don't know how many brokers have been contacted...all I was told is they were planning on catching up with everyone owed money and that I would receive mine on the week of the 22nd. I will let everyone know if I do or not.
  • Editor | 18 Mar 2010, 01:39 AM Agree 0
    We at brokernews can definitely understand that there are a lot of mixed feelings out there about this whole situation, and while we dont moderate the forum, we do make it clear that if it's not respectful and constructive, we will have to remove it.

    Just remember that being an anonymous forum, a certain level of respect is required from everyone. In other words, it's perfectly okay to have strong feelings about something, but keep the name calling on the schoolground.

    thanks,

    Jesse
  • Concerned | 25 Mar 2010, 12:35 AM Agree 0
    THanks Jesse, good note.
  • The 22nd has come and gone | 27 Mar 2010, 08:10 AM Agree 0
    The 22nd has come and gone, no cheques only promises. Merix does own Canadiana. No statement from Merix only denials. The icing on the cake is comments being removed from this site.
  • Faith... | 27 Mar 2010, 01:40 PM Agree 0
    The scrutiny and criticism I've read is justifiable based on Abode's failure to deliver to the brokers and agents owed for providing them business. There's no argument that justice has not been served.

    To put this weight on the Five Fathom's just for bringing some talented individuals on board that likely had little or no influence over the payments not being made is not fair. Please correct or comment if I'm not accurate in my statement.

    The individuals vested in Canadiana, from my readings, we're not vested in Abode. Let's see how they handle this situation before attacking them.

    Having not only built successful and profitable companies, the team that represents the Five Fathoms always treated their shareholders, employees and partners fairly. Notice I used the term partners - not clients. One admirable part of many previous business models produced by the Five Fathoms is their ability to grow only when their partners grow. They base part of their success on your success.

    I'm pretty sure that those previously at Abode and now at Canadiana would have paid out what was owed had they been able to make that call. We all know that regardless of how huge this industry is, one bad move can be detrimental to your reputation. The Five Fathoms would not have brought someone on board that has a history of failing to deliver. It would not profit them in anyway.

    I personally believe the wrong picture is being painted and Canadiana Financial is being prematurely and unfairly judged.

    Give them the opportunity to show their true roots. The Five Fathom's deserve it.

    I'm not a broker, nor a lender and am not on any payroll directly or indirectly related to the Five Fathom's. I'm just trying to perceive things from a neutral position.

    If you want what you're owed; AND YOU ARE DEFINITELY OWED! Go after those that didn't pay you. I've been in that position and there's nothing good about it. Realistically, you'll most likely have to swallow the loss and should spend your time building your business instead of dwelling on not being compensated when you rightly deserved it. Time is money and time not well spent decreases your revenue opportunities.

    On another note, I don't agree with comments being removed from this site as everyone has the right to state their opinion (without personally attacking any individuals). I hope you take a second and see things from my perspective. I've done the same whilst reading your comments.

    Sincerely,


    My 2 Cents.
  • Positive | 06 Apr 2010, 04:01 AM Agree 0
    How many of you have needed a second chance in life or dealt with a client who needed one? I am guessing all of us.

    Canadiana is clearly a new company with only one similarity with Abode, the management team. Don’t they need jobs? Don’t they deserve a second chance? They also have families to feed. Who are we to tear them apart in a situation that was beyond their control? They are good people who want to provide a great service in this industry. Their reputations are on the line and I am positive they will do everything to save their reputations, including paying finder’s fees and former employees.
  • The Cold Hard Facts | 07 Apr 2010, 01:04 AM Agree 0
    Absolutely amazing – these are the same people that screwed up their last publicly trading company (Abode) – now a private company has hired them. To do what? Where’s their track record, other than what we have just witnessed in the collapse of Abode. How long do you think it will take for them to screw this one up? My thinking is that they better watch them very closely. No consciences – just balls ( you, too, Pamela)! They wrote us a bad cheque for fees earned – I expect it did not come out of their personal accounts. How soon do you think it will take them to start writing bad cheques with this startup – not long methinks. Losers are losers no matter where they are and what title they have. I won’t give this company (Canadianathe time of day and frankly am thinking of personally suing their personal asses off. Go get a job. I wonder if they came as a package. Garbage sticks to garbage. I also wonder if Five Fathom Partners Inc is a blind trust as they are clearly blind as bats to hire these actors. Don't come calling on my door. Mike, Pamela and Joe, this is for you………………..
  • unknown | 07 Apr 2010, 06:32 AM Agree 0
    putting aside market volatility, mike and co mismanaged the company. i suspect they were using abode as a atm machine and spending money like crazy without a plan on how to generate any revenue.
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