The increasingly public rivalry between NEXA Lending CEO Mike Kortas and loanDepot took another turn Thursday, with Kortas using Instagram to encourage the lender's loan officers to join his brokerage while criticizing the company's stock performance, litigation strategy, and wholesale ambitions.
In a post directed at "loanDepot Loan Officers," Kortas offered what he described as one year of NEXA100 membership, a signing bonus, and additional incentives for originators willing to consider joining NEXA.
"We will give you NEXA100 for 1 year and a signing bonus," Kortas wrote. "Plus all of this if you just talk to any NEXA Loan Officer."
The post promotes what Kortas describes as NEXA's advantages, including higher compensation, a broader product lineup, residual income opportunities, and greater control over customer relationships.
Kortas also urged loanDepot loan officers to "stop risking a sinking ship," arguing they would be better served moving to a brokerage model.
Latest Chapter In An Ongoing Dispute
Thursday's recruiting pitch marks the latest public exchange between Kortas and loanDepot, a dispute that has expanded beyond the courtroom and into social media.
Earlier this year, loanDepot filed a federal lawsuit against NEXA, alleging that two former loanDepot loan officers improperly retained confidential customer information and trade secrets after joining the brokerage.
Kortas has repeatedly denied the allegations. Following the lawsuit, he publicly criticized loanDepot's claims and said NEXA was evaluating legal action of its own.
More recently, NEXA resolved litigation between Kortas and former co-owner Mat Grella, making Kortas the company's sole owner. At the time, Kortas said the resolution would allow the company to focus on growth, technology, and recruiting.
Thursday's post suggests recruiting remains a central part of that strategy.
loanDepot has maintained in court filings that its lawsuit seeks to protect confidential customer information and trade secrets that it alleges were improperly retained by former employees.
Recruiting Message Targets Wholesale Push
In addition to promoting NEXA's compensation model, Kortas also argued that loanDepot's efforts to re-enter the wholesale mortgage channel conflicted with its ongoing litigation against NEXA.
"They want to get back into wholesale but are stupid enough to sue the largest brokers for the exact things they are actually guilty of," Kortas wrote. "They are literally the bully of mortgage."
Public recruiting campaigns are not unusual in the mortgage industry, but direct appeals from one CEO aimed at a named competitor's workforce are relatively uncommon — particularly when tied to the competitor's stock performance, litigation, and business strategy.
Kortas also referenced loanDepot's recent share-price performance, writing that the company was "at risk of being delisted."
loanDepot shares have traded around the New York Stock Exchange's $1 minimum listing threshold in recent weeks, but it does not appear on the NYSE's current list of noncompliant issuers, and NMP found no public disclosure indicating the company has received a notice of noncompliance from the exchange. Under exchange rules, companies that fall below certain listing standards are generally provided an opportunity to regain compliance before delisting is considered.
Why It Matters
Recruiting has always been competitive in the mortgage business, but it's rarely this public.
Kortas didn't just promote NEXA — he used a competitor's stock performance, legal battle, and wholesale strategy as part of his recruiting pitch. It's another sign that the fight for experienced loan officers is expanding beyond recruiters and private conversations and increasingly playing out in public.
Whether the tactic persuades loanDepot originators to make a move remains to be seen. But in an industry where production is hard to find and top talent remains in demand, it's clear that the battle for loan officers is becoming just as visible as the competition for borrowers.
loanDepot declined to comment.
