"Can someone explain this program to me like I'm five?," quipped one broker in a Facebook group for mortgage originators. Other commenters thought the company's program was "too good to be true."

This may have been in part due to the lack of specifics included in Nexa's press release announcing the program, or it may have stemmed from disbelief over how a company can launch such a program and stay in business. 

Whatever the case may be, CEO Mike Kortas likes the attention the program is getting – good and confusing – and hopes the hype will help his brokerage grow into a 5,000 strong team by mid-2025. (There are currently 2,580 sponsored loan officers, according to the Nationwide Multistate Licensing System.)

Prior to introduction of the program, out of the 275 basis points received on a loan, 220 basis points would go to the LO and 55 basis points would go to Nexa. The Nexa100 program makes it so that 220 basis points goes to the LO, while 55 basis points goes to a separate account to cover their expenses, such as marketing costs and more, Kortas explains.

"Loan officers receive their normal comp and then we credit the rest to a ledger for purposes of business growth," said Kortas. "Mortgage laws must be followed in regards to loan officer compensation."

Some brokers have called the program "gimmicky," because in reality 100% of the commission does not entirely land in an LOs pocket. Stakeholders have also been critical regarding how Nexa can stay afloat with the roll out of this product, especially in such a challenging lending environment. 

To stay in the Nexa100 program, which is currently open to everyone until July 31, loan officers must recruit others, or at least make an attempt to, says Kortas. "The condition is that in order to continue to get it, you must help me grow. And the only thing that I require is that you have one loan officer that you recruited to the organization," he said.

Kortas said he is able to take some of the loss stemming from his program because his company siphons from other money sources, such as his insurance business, which LOs use, and charter jet business, to keep things afloat. Nexa's hangar business has recently gotten attention due to a spat between Kortas and his former partner Mat Grella. 

Kortas also notes his company has an "aggressive tax strategy," which saves the company money. "I don't have to worry about that. I can pay my loan officers more. They'll end up paying taxes," the Nexa CEO said.

But what isn't mentioned about the Nexa100 program in its announcement, according to a company employee who requested to be anonymous, is that it is only open to those LOs who do correspondent lending.

The Nexa employee notes the brokerage is partnering with three correspondent lenders: United Wholesale Mortgage, Equity Prime Mortgage and MLB Mortgage for this program. And that thus far, the roll out has been allegedly tumultuous.

"Nexa has struggled with the training on it because moving to correspondent lending is a different origination style, there's different rules to it," they said. "The company has struggled with instructing their LOs on how to do these types of loans, so there's been a lot of growing pains in the last month or so."

Kortas confirmed that the company is using the mentioned companies for non-delegated correspondent lending. 

"There are no growing pains to correspondent more than growing pains for massive growth. We manage the growth well but there will always be speedbumps. We are fast to respond to them," he added.

Kortas said feedback from the general public has been that the product is "smoke and mirrors" and that he "must be patting the rates."

"My rates are the exact same rates as any other mortgage broker at these lenders, we have tier one ranges. It's the same exact rates as a pure broker," the Nexa CEO said. "When you don't understand something, you attack it. And that's normal in human history. That's what you do."