The nation’s largest mortgage broker, NEXA Mortgage, now offers its loan officers, branch managers, and team leaders a new compensation plan, titled NEXA100. The program, which took effect May 1, allows for NEXA’s loan officers to keep up to 100% of their commission splits, without any per-file fees or other hidden fees.
“NEXA100 is the most competitive game changer in the mortgage loan industry,” said NEXA founder and CEO Mike Kortas. “It gives our loan officers a shot at making 100 percent of the loan commission, including a reinvestment into their business. And the greatest thing about NEXA100? Our loan officers will still be giving our clients the best mortgage rates in the industry.”
Previously, NEXA had a compensation rate of 220 to 275 basis points (bps), and offered loan officers 100% commission split in three specific instances; when a branch closed over $2 million in mortgage loans, an individual originated over $3 million, and a partner brought in 20 people. But, as of May 1, the broker company became a non-delegated correspondent lender, allowing for a more flexible commission structure, according to website whynexa.us by NEXA loan officer, Rick Schmille. Now loan officers can earn from 75 bps to over 300 bps per closed loan.
The press release stipulates that compensation rules must be obeyed per all agreements, and 100% of the commission split to the loan officer can only be obtained when fees to the loan officer are factored in, including money that goes to marketing and other costs for the loan officer.
In a video posted to Facebook on April 30, Kortas addressed those wondering how he could afford to pay out 100% commission splits among the more than 2,500 NEXA-affiliated loan officers spread across the nation.
“First and foremost, there’s a lot more ways to make volume than any mortgage broker generally knows. But you have to have extreme volume to be able to do it,” Kortas said in the video. “Because when we do our revenue share model and somebody leaves NEXA, those downlines don’t contract. Those become NEXA’s spot. So NEXA has hundreds of spots all over the place. We actually make more money when someone leaves the company sometimes. Because of that, we make enough off our downline that we don’t need to collect anything.”
NEXA loan officers will continue to have access to the company’s revenue share program, in which NEXA loan originators earn 10 bps every time a new loan officer they recruited originates a loan.
“Nobody can explain how good a company is better than a loan officer at that company,” Kortas said. “So, we don’t hire recruiters; what we do is give away the profits to the recruiting loan officers so that they can recruit other loan officers directly.”
“We’re announcing the NEXA100 program because we are going to double in size from 2,500 to 5,000 loan officers by the end of 2025,” Kortas added.
Jason DuPont, branch manager and NEXA executive partner, said, “NEXA100 is about giving our teams of loan officers and branch managers trust. Our teams will get up to 100 percent of NEXA revenue so they can grow their businesses on their own. We can only do that because of our deep knowledge of revenue origination and cutting-edge techniques.”
Michael Neill, director of correspondent lending at NEXA, added: “This is probably the boldest program we’ve launched because it goes against the fear that, if you give too much of the split to loan officers, you do not have anything left to run the company. We don’t believe that.”
