Key facts
- NEXA CEO Mike Kortas is recruiting loan officers from loanDepot, offering incentives.
- Kortas criticized loanDepot's stock performance, financial results, and wholesale strategy.
- loanDepot is currently involved in a lawsuit against NEXA, alleging trade secret misappropriation.
- An activist firm has called for loanDepot's board to explore strategic alternatives, including a sale.
- loanDepot reported a first-quarter net loss of $54.9 million.
NEXA Lending CEO Mike Kortas has publicly urged loanDepot loan officers to join his company, escalating a feud between the two mortgage firms amid ongoing litigation. Kortas posted on social media, offering incentives such as a year of NEXA100 membership and a signing bonus to loanDepot originators.
In his post, Kortas promoted NEXA's compensation, pricing, product offerings, and residual income opportunities, while simultaneously criticizing loanDepot's financial performance, wholesale strategy, and its lawsuit against mortgage brokerages. He shared a screenshot showing loanDepot's stock trading at $0.97 per share on July 30, a 30.51% drop for the day and a 96.9% decline from its all-time high, warning that the company was at risk of delisting.
Kortas also linked to an open letter from activist investment firm Randian Capital, which advised loanDepot's board to explore strategic alternatives, including a potential sale, due to declining share prices and continued losses. The letter suggested a sale could be the best way for shareholders to realize fair value.
loanDepot reported a first-quarter net loss of $54.9 million, with revenue at $286.4 million and expenses at $341.5 million. Despite the financial results, loanDepot CEO Anthony Hsieh characterized the quarter positively, citing market share growth and a partnership with Figure. CFO David Hayes noted "continued progress toward sustainable profitability."
loanDepot declined to comment on Kortas' post. The recruitment drive follows a lawsuit filed earlier this year by loanDepot against NEXA, alleging misappropriation of trade secrets and confidential customer data, and aiding former loanDepot employees in taking proprietary information. Kortas has denied these claims, stating that NEXA and loanDepot have separate business models and that he would defend his loan officers.
Despite its stock performance, loanDepot has seen growth in its loan officer count, gaining 316 and losing 202 between April 27 and July 27, according to RETR data. Only two of these loan officers moved to NEXA, while loanDepot gained two from NEXA. loanDepot also announced plans to open a new corporate center in Miami in September to house support teams and fulfillment staff.