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Mortgage Broker News | 05 Apr 2010, 12:00 AM Agree 0
Brokers who are owed finder's fees from Abode Mortgage Corporation won't be getting paid, the lender disclosed to CMP.
  • Kevin Power | 06 Apr 2010, 02:23 AM Agree 0
    I think it will be very difficult to convince brokerages and brokers to support the new company started by the previous management of Abode.
  • Shawn | 06 Apr 2010, 02:33 AM Agree 0
    any broker who decides to deal with Canadiana gets what they deserve. Hey Phantom 5, pay what you owe instead of shafting your business partners.
  • James Shinners | 06 Apr 2010, 02:34 AM Agree 0
    Talk about biting off your nose to spite your face. Maybe they should change their name to Ajoke!
  • Happy Broker | 06 Apr 2010, 02:42 AM Agree 0
    Not sure what this article is about, but I have been paid.
  • FJ | 06 Apr 2010, 02:58 AM Agree 0
    This type of thing happens ALL the time (brokers and agents getting shortchanged for commissions). Thus courts (including those who've given pronouncements at the court of appeal level) have taken a tough stance on the sanctity of such monies.

    I'd be exploring the possibility of suing all the directors of this firm personally for inducing breach of contract, explore the tracing and quasi-contract doctrines and under the premise that this is a breach of a of constructive trust. I'd sew the claim neatly together, have the court issue it, and serve it on each of the directors personally, making sure I gave each my very best personal regards.

    If anyone reading this is familiar with tracing and quasi-contract, they'll know how powerful such actions can potentially be. I'd be asking that the court "disgorge" from the company and or/its directors not only the commission owing to the brokers, but also all profits made with broker referrals. They, in my opinion, have no right to those profits without first paying the remuneration to the agents responsible for giving them that business.

    The message that reverberates from so doing is that you don't rip off brokers... aside, of course, from the fact that once the directors get personally sued with a PROPER claim that can be made against a corporate director, they may have a whole different outlook on the issue of the finders fees.
  • Betty Talbot | 06 Apr 2010, 02:59 AM Agree 0
    I also have rec'd payment for 3 deals that closed last year with Abode....
  • AB Broker | 06 Apr 2010, 03:12 AM Agree 0
    It's these types of lenders/operating principles that give our industry a bad rap. It's about time we clean it up. There are many other lenders we can support without have to send a deal into these jokers.
  • Money In The Bank | 06 Apr 2010, 03:17 AM Agree 0
    Hmmmmm...strange article??? I've recieved word that the monies owed to me will be in my bank account Friday. Maybe Abode didn't pay per say...but maybe we should be handing out credit to the directors of Canadiana as I am certain that they had a huge hand in the payments going out.
  • Another Happy Broker | 06 Apr 2010, 03:35 AM Agree 0
    From what I know, the new management took responsible to paid the brokers, but you don't get volume bonus. We got paid with all our deals, and we will continue on supporting the new management because they keep their promise to us. We got the same email that they won't pay but 2 weeks later we got a call saying that we will be compensate despite that news about Abode won't pay. The operation is under the new company, new team, you need to do your research about who they are and contact the new management, they are very nice people. If you want to get pay, call them up. We got our money last week.
  • not paid | 06 Apr 2010, 04:06 AM Agree 0
    It would appear that Abode/Canadian has decided to pay some brokers but not other brokers. Why else would they say "sorry but we cant pay the brokers" but then pay people like the brokers in this comment section. I am a broker who hasnt got paid so I guess I'm just not a valuable broker like the others brokers who got there broker fees paid.
  • Editor | 06 Apr 2010, 04:09 AM Agree 0
    Thank you for your comments. We are waiting for further comment from Abode and will update this story when we have more information.
  • Very Satisfied | 06 Apr 2010, 07:44 AM Agree 0
    They have made good on everything they promised me. I will be supporting Canadiana all the way.
  • bob | 07 Apr 2010, 01:45 AM Agree 0
    Abode is gone and dead- reborn under a new name called Canadiana with the previous management. They will pay who they want to do business with and not pay others. They are part of the Paradigm Quest family like originator Merix and now Canadiana sourcing volume from brokers.

    They are unregulated and therefore have no fixed capital requirements. For example Paradigm Quest funds the mortgages for Merix but your finders fees are owed by Merix not Paradigm so you are exposed to an accounting game which is being expanding further with Canadiana. Be careful where you send your deals as Merix and Canadiana are not the lender. Merix has the liability but not the asset - how secure are your trailer fees and finders fees under this model.... i would be concerned with this model even if Boris and Joe D are great guys as they are dependent on a third party for payment on the mortgages. this is my understanding of the model.....
  • playing favorites | 07 Apr 2010, 02:19 AM Agree 0
    To those brokers who are so amug that they got paid: you should have some compassion for those who didn't make the preferred selection. Nor should you support a company who deals in such a dirty fashion. Also its Finders not VB so you still got screwed
  • AB Mortgage Broker | 07 Apr 2010, 02:20 AM Agree 0
    I don't subscribe to Bob's theory,in fact, First National, MCAP and others, don't lend their own money either. The company isn't the issue here, it's the operating principles. Abode could have have opened it's doors for business, but the principles chose otherwise.
  • not bob | 07 Apr 2010, 02:28 AM Agree 0
    I second AB Mortgage Broker.
  • bob | 07 Apr 2010, 03:20 AM Agree 0
    I think my point was not expressed correctly. My issue was not with where the money to lend originates as much as it was where the origination lies.

    Merix and Canadiana (I assume) will leverage the underwriting, funding and servicing of Paradigm Quest. When the company was set up they seperated the liability of origination costs (broker fees, volume bonus, trailer fees) essentially all the liabilities into Merix and now Canadiana and moved the asset (the mortgage, servicing etc) into Paradigm Quest. It is the structure that leaves the broker exposed as for example could Paradigm Quest be sold without Merix to a company that has its own origination. You would be at the good grace of the new lender to honour the Merix commitments and debt obligation. It is a risk that is not present at First National and MCAP I believe from their structure although I believe their servicing is a separate entity inside the parent company. Maybe if you are dealing with these lenders you have the same protection as a regulated entity but look what happened to the MI brokers when GMAC (unregulated) shut down.
    The benefit of dealing with a regulated company is that the companies would be monitored as one and you would have more protection than the Merix model. I think though it is extremely important for all brokers to deal with lenders who support the industry exclusively as in a rising rate market it will be easy for the banks to create 2 tier rate structures (one for the branches and one for the broker) to gain back market share.
  • in the dark | 07 Apr 2010, 03:24 AM Agree 0
    Personally I think Merix is great to deal with,regulated or not. but Bob has me curious about regulated lenders. Who is regulated then?
  • too much time | 07 Apr 2010, 06:26 AM Agree 0
    People will always find a way to work the system unregulated or not. That is not the issue here.
    1. Brokers funding deals and not getting paid
    2. Announcing this gorious new co. called Canadiana into mortgage broker world where they stiffed everyone
    3. Lying about the connection to Merix until someone exposed the registration on the previous site
    4. Posting blogs that brokers shouldn't whine aboubt their commissions just work harder
    5. Selectively paying some companies while leaving others to hang. At the same time saying"sorry no commission"
  • not bob | 07 Apr 2010, 11:27 PM Agree 0
    Bob, you have your facts incorrect.
  • not bob | 07 Apr 2010, 11:31 PM Agree 0
    continued... Bob, the liability of paying originators lies with Paradigm and the wholesaler (the same folks who own and service the assets) Where do you think the deposits come from? When MERIX first launched the deposits said "paradigm" before they changed the name on it. Paradigm is a full service BPO for all the brands they service. This is getting old, but I cant sit by and watch people post information that isn't correct.
  • AB Mortgage Broker | 08 Apr 2010, 01:11 AM Agree 0
    Thank you not bob for setting the record straight. I too have a hard time with posting of inaccurate information.
  • AB Mortgage Broker | 08 Apr 2010, 01:24 AM Agree 0
    To compare Merix to Canadiana is simply crazy! I don't recall Merix pulling the plug and bailing on their supporters, no matter how big or small, and that's the big difference. One operates ethically and the other does not! To support a company or it's principles with unethical morals, is to high five the originator who passes fraudulent paper. I think I speak for everyone when I say, the industry needs to be cleaned up!!
  • J | 08 Apr 2010, 04:52 AM Agree 0
    I did receive the money that Joe had said that Canadiana would pay. The article is correct, that Abode won't pay commissions. It is the new company (Canadiana) that is paying the commissions. I have discussed this with a number of different people in the industry including a staff member who was at Abode and the gist that I got from it was that the people who are forming the new management team are good people who were victimized by losing their funding source as well as having a very shady ownership group at Abode who (I heard secondhand) raided the company and took everything they could. Speaking to someone else who has been in the industry a long time I learned out that the "5 Fathom Partners" were all heavyweights in the mortgage industry with good reputations and that he thought they were going to be a formidable competitor in the industry. The management team that came from Abode made it a condition of their coming on board that all the deals that Abode didn't pay would have to be paid by Canadiana. I asked Joe for clarification about the brokers being paid and he said Abode owed money to 93 brokers and that all of them were being paid by Canadiana. It seems like some haven't been paid yet from above and I don't know what that is about. I suppose they should try and reach Canadiana...or maybe their cheque is still in the mail? Or some people say they are owed money because they like to stir the pot? And Paradigm Quest is just a servicing company...they also are behind DLC white label product and many others also. Most likely they are just providing service for Canadiana. Despite getting paid, I am still angry with the ownership group at Abode because they truly did stiff all the brokers and left they their management team and staff out to dry with tarnished reputations. However, I got paid for the business I gave them in some way and this new company sounds pretty strong from the people I have spoken to, and Abode was much more make-sense lending than most lenders which really helped me, and my understanding is that the same will be the case with the new I will do business with the new company.
  • Dumb & Dumber | 08 Apr 2010, 10:14 AM Agree 0
    Just what the Canadian mortgage broker community needs - yet another "A" lender to send deals to. Personally, I'm all A'd out. Everyone wants your A business and they all have, pretty much, the same underwriting criteria. So why would anyone follow the same management team with a different name with such a stigma. Why take the risk? As well, it's my understanding that there are former employees who are owed money for their expenses. Money out of their own pockets. The key to a relationship with a lender usually happens through your relationship with your BDM. If you're BDM didn't get paid his expenses I'd be unwilling to support the same management team under a different name especially after they decided to pay some "elite" brokers who they still want to do business with. An employee who spent their own money, out of their own pocket with the understanding that they would be reimbursed by their employer should be paid, in my opinion, even before brokers who are owed commissions as that's out of pocket money - this isn't how you treat someone whom you employ. To sum it up, I have no respect for a company that would take advantage of an employee like that and wouldn't ever deal with them unless they cleared this up. The old saying of, "how you do anything is how you do everything" comes to mind. Maybe the management team needs to think on that one and remember that brokers are very loyal and the black eye they've got now is going to follow them around for a very, very, very long time. Is the bad press worth not paying your loyal employees back?
  • J | 10 Apr 2010, 06:41 AM Agree 0
    There is a lot of ambiguous complaints above...I have been paid myself, but I would like to know, is there anyone out there left who completed a deal with abode who has received no compensation for it from either Abode or Canadiana? Further, have you heard from anyone about getting paid if you haven't? A lot of the negative comments above don't seem to indicate if they are actually owed money but appear to be assuming that other brokers have been stiffed while some have been paid, and I would like to understand if there is an issue, I can bring it up with them myself if there is.
  • not a chosen one | 12 Apr 2010, 01:30 PM Agree 0
    some of the former Abode BDM's have been paid some severance... expenses, NO!... wonder if not all brokers will be paid, only the chosen few that provided many mortgages to Abode. What about the extra 10bps when a preferred agent/office attained a Joe D set benchmanrk of $10 million funded, will that be paid????????
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