Damian Diaz is suing the brokerage for allegedly not paying himself and others compensation including minimum and overtime wages and remote work expenses. Nexa wants to fight the case in a federal forum, attempting to elevate the complaint from a San Diego courthouse. 

A California state judge in May ordered Nexa to pay over $13,000 in monetary sanctions over a discovery dispute. The Chandler, Arizona-based brokerage the following day filed documents in a California federal court to move the case there, its second such attempt since Diaz filed his lawsuit in San Diego in 2022. 

Attorney Matthew R. Miller of San Diego-based Miller Law Firm, on behalf of Diaz, said an investigation has found other workers who haven't been fairly compensated by Nexa, leaving the lender to profit at workers' expense. 

"Since the filing of the complaint, Nexa has made several legal maneuvers which appear to be designed only to conceal the discovery of those negatively impacted workers and the damage Nexa has caused to them," wrote Miller in an emailed statement.

Nexa didn't return requests for comment. 

The brokerage originated close to $6 billion in loan volume last year, co-founder and CEO Mike Kortas has stated. The company has 2,263 sponsored LOs according to Nationwide Multistate Licensing System records. Nexa also rolled out a 100% commission program in May.

Another former loan officer is suing Nexa for similar claims in a Los Angeles court. That suit, which Nexa also unsuccessfully attempted to elevate to federal court, remains pending.

Diaz, according to his suit, worked for Nexa between 2020 to 2022 out of his Southern California residence, working less than half of his time outside of his home office. The LO contends himself and others were misclassified as exempt outside salespersons, a dispute at the center of other industry wage complaints.

Plaintiffs haven't specified the damages they're seeking, but Nexa in one case filing suggested they exceed $18 million for Diaz and others. The lender calculated that figure in an attempt to meet a threshold to try the case in federal court.

Nexa also argues the case should be tried under the federal court's Class Action Fairness Act subject matter jurisdiction. Plaintiffs say there's no class action representative given developments in state court.

A California judge earlier this year granted Nexa's motion to compel arbitration for Diaz's personal claims, but left other claims under the Private Attorneys General Act intact. PAGA is a California law allowing workers to seek civil penalties from defendants on behalf of themselves, others and for the state. 

The sides are awaiting a federal judge's ruling on Diaz's motion to remand the case to state court.

San Diego-based Cornerstone First Mortgage is also facing a minimum wage class action complaint from one of its current LOs. The lawsuit by April Shakoor-Delgado seeks overtime pay allegedly owed since 2021, and remote work reimbursements for Illinois-based workers since 2019. 

Similar to Diaz's suit, Shakoor-Delgado says Cornerstone failed to reimburse expenses such as internet and cell phone bills. The lawsuit states there are more than 100 potential class members, and doesn't specify damages sought. 

Attorneys for Cornerstone and Shakoor-Delgado didn't respond to requests for comment.

Cornerstone originated over $675 million in loan volume last year, according to Home Mortgage DIsclosure Act Data. The company also has 350 sponsored LOs according to current NMLS data. 

Professionals have filed numerous wage suits against mortgage players in recent years, with some cases concluding via settlement. Rocket Mortgage and United Wholesale Mortgage in the past two years each reached multimillion dollar settlements to close such claims.

CrossCountry Mortgage is also facing newer, separate overtime wage and remote work cost claims. A federal judge last December dismissed a previous Fair Labor Standards Act case against the Ohio-based industry giant, granting the lender's request to send the case to arbitration.