NEXA Mortgage, The nation’s largest mortgage broker this week Independent Mortgage Professionals Association (Aime), industry groups say they have failed to address bullying and lack proper governance.
Controversial CEO and co-founder Mike Cortas, who himself is no stranger to starting an online scrap, said he and other community members, including small brokers and AIME leaders, are criticizing him and his The company said it was attacking loan officers on social media.
Cortas claims that he asked AIME to set up an ethics committee a year ago, but was rejected.
“I have been pleading for a long time to create an ethics committee to maintain what the community is known for,” Cortas said. We are working on it,’ and I keep offering to give all the resources to help them.
In response, an AIME spokesperson said the industry association maintains “a dedicated ethics committee, established in early 2022 and composed of five members.” (review of AIME website No mention of an ethics committee was found. )
Cortas said NEXA, which has about 1,900 loan officers nationwide, is not an AIME sponsor, but supports its activities and events. Cortas said he was personally severing ties as a VIP member.When asked what would happen to LO membership, Cortas said it was up to LO if they wanted to remain as members. .
As an example of the attacks he has taken, Kortas said on Wednesday, Sept. epoch lending.
Wade posted: He later said, “I know there are a lot of great people at NEXA who don’t like the direction they’ve taken.”
The post had over 70 reactions and about 280 comments by the morning of Friday, September 9th.
In a statement to HousingWire, Wade said Epoch has a public moratorium on hiring LOs currently working in the broker channel. However, he said it provides “a safe place where NEXA’s LOs can seek confidential advice without fear of bullying, harassment, and/or lawsuits.”
AIME said the accusations of bullying by members of the organization, including the partnership’s volunteer vice president, were “unfounded.”
In a statement provided to HousingWire, AIME said, “Any threats, insulting comments or vulgar language directed at any member of our team will not be tolerated and will be removed from our community.
Cortas himself has also attacked some members of the broker community, saying this is to protect his business and LO.
Two months ago he posted on LinkedIn: U Mortgage“He says he’s only recruiting retail, which is clearly a lie, based on what you see here.”
This post showed graphics showing the origins of LO for NEXA Mortgage and UMortgage. This includes other brokers, retailers and new LOs. The figure suggests that the majority of LO came to his UMortgage from other brokers, while most of NEXA’s LO came from retailers. The post did not cite any sources.
“He is not a leader in the BROKER community and cannot be trusted. I am the CEO of the largest broker in the country and know his lies firsthand,” Kortas wrote in the post.
(the umbrella fell As chairman of AIME in October 2020, following backlash from lewd and sexist remarks he made in a video about Austin Niemiek’s wife, Rocket Pro TPOKatie Sweeney’s name is CEO of AIME Mark Summers becomes president. )
In a statement to HousingWire, Casa wrote that UMortgage is encouraging loan originators to support AIME.
Kortas also complained that AIME refused to provide a copy of the bylaws when requested. The bylaws are revised regularly each year and will be available when the 2023 membership structure is announced in the coming weeks, according to industry associations.
NEXA founded by Kortas in 2017is a fast growing mortgage brokerage company. At the end of 2018, he had 42 loan officers at his brokerage, and by the end of 2020, he had grown to just over 800 in total. By September 9, 2022: That number was 1,871according to National multi-state licensing system (NMLS). According to NMLS data, the company has 230 sales offices.
Prior to the 2008 housing crisis, mortgage brokers accounted for nearly 50% of originations. After the crisis, his reputation was tarnished and market share dipped into his single digits, but less than six years later, he began to climb phenomenally.
The broker channel accounted for just under 15% of the market share from April to June, compared with retail at 61% and correspondent at 25%. Inside Mortgage Finance(IMF) analysis of first liens. The data showed that the broker made $94 billion in the second quarter, down 16% from the first quarter.
AIME’s goal is to drive the market share of the wholesale channel beyond 25% after 2022.A trade group strongly endorsed by channel leaders United Wholesale Mortgageclaims to have over 65,000 members.