NEXA CEO Mike Kortas Entices loanDepot Loan Officers Amid Lawsuit and Financial Woes

A public dispute between mortgage lenders loanDepot and NEXA Lending has intensified, with NEXA CEO Mike Kortas directly appealing to loanDepot's loan officers to switch companies. In a pointed social media post, Kortas extended an offer of a year's NEXA100 membership, a signing bonus, and other incentives to originators currently employed by loanDepot. This recruitment drive is framed against a backdrop of significant criticism of loanDepot's business practices and financial health.

Kortas lauded NEXA's compensation structure, competitive pricing, diverse product offerings, and residual income opportunities, positioning them as superior alternatives to what he described as loanDepot's precarious situation. He specifically targeted loanDepot's financial performance, its wholesale lending strategy, and its ongoing litigation against mortgage brokerages. To underscore his points, Kortas shared a screenshot illustrating loanDepot's stock performance, which showed the shares trading at a mere $0.97 on July 30th. This figure represented a substantial daily decline of 30.51% and a staggering 96.9% drop from the company's all-time high, a stark indicator of its market struggles.

Describing loanDepot as a "sinking ship" and a "Bad Company" (a deliberate play on words referencing the company's name), Kortas warned of potential delisting and a halt in its cash flow. He further accused loanDepot of hypocrisy, stating, "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 characterized loanDepot as "the bully of mortgage," urging loan officers to seek refuge with NEXA.

Adding further weight to the criticism, Kortas linked in the comments section to an open letter penned by Randian Capital, a retail activist investment firm, addressed to loanDepot's board of directors. This letter urged the board to formally explore strategic alternatives, including a potential sale of the company, citing declining share prices and persistent financial losses. The letter suggested that a sale might be the most effective avenue for shareholders to realize fair value and for CEO Anthony Hsieh to pursue personal interests. It emphasized the board's obligation to shareholders to present a clear plan for maximizing value after years of "significant value destruction."

loanDepot's financial performance in the first quarter of the year further substantiated these concerns. The company reported a net loss of $54.9 million, with revenue declining to $286.4 million against expenses totaling $341.5 million. This financial context highlights the pressures loanDepot faces, both from competitors like NEXA and from its investors, regarding its strategic direction and market viability.