From bankruptcy to mortgage industry billionaire (and beyond): Stephen Smith isn’t slowing down

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Mortgage magnate doesn’t foresee a cataclysmic housing industry crash in 2023. Read more

Now that ritual is over as his paper’s cryptic crossword cryptically has disappeared, upsetting many fans, though few, if any, could be an answer in a Canadian-business themed puzzle. Potential clues: name the mortgage industry titan who can quote Jane Austen’s classic Pride and Prejudice from memory; write computer code; skipped two grades as a kid; went bankrupt in his 30s; and has his name on the marquee of a top university business school.

Dressed in a blue blazer, but no tie, with trendy striped socks peeking out from his grey pant legs, Smith is refreshingly candid in laying his feelings bare. Ask him a question, and he thinks deeply upon it. He doesn’t betray any whiff of pretension, presenting instead as a polite, regular Joe, albeit one with an anything-but-typical story to tell.After getting an engineering degree at Queen’s University in Kingston, Ont.

Moray Tawse knows that story well because he is part of it. He and Smith co-founded First National Financial Corp. in 1988. The company is now the country’s largest non-bank mortgage lender and Smith is executive chairman. Underwriting agreements needed to be typed out in the 1980s, then retyped when interest rates changed. The process was cumbersome and slow, a drain on productivity for a startup that had five employees, including its two founders, working in an office that was so cramped the door wouldn’t close.

If that all sounds just a little bit remarkable, it really isn’t, not when you understand that Smith goes all in when he applies himself to something. Take backcountry skiing. It is not a sport for the faint of heart or the weekend hacker. He didn’t even ski until he was in his late 30s. Now, he flies out West four times a winter to rip it up on the slopes with his younger peers.Article content

. The red-hot housing market has gone cold. Home prices are falling and could drop further, and every pundit this side of Bay Street is predicting a recession in the new year.

 

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