Key facts
- NEXA CEO Mike Kortas has launched a new mortgage servicing company named evoLend.
- evoLend is approved to service loans backed by Fannie Mae, Freddie Mac, and Ginnie Mae.
- The company's primary goal is to enhance borrower relationships for NEXA loan officers.
- Tammy Richards has been appointed as the CEO of evoLend.
- Kortas plans to offer evoLend's services to other brokers and companies in the future.
- Kortas aims for evoLend to service $2 billion in loans within its first year.
Mike Kortas, founder and CEO of NEXA, has launched evoLend, a new company entering the mortgage servicing sector. Approved to service loans for Fannie Mae, Freddie Mac, and Ginnie Mae, evoLend is designed to provide NEXA loan officers with a competitive advantage by maintaining their connection with borrowers after a loan is funded.
Kortas stated that the traditional mortgage servicing model often disconnects loan officers from borrowers once a loan is sold, limiting opportunities for future business. evoLend aims to address this by offering tools and data to help loan officers stay engaged throughout the life of a loan, with potential future integrations for servicing information and payoff data, subject to regulatory compliance.
Tammy Richards has been appointed CEO of evoLend, overseeing its technology, operations, and servicing platform. While her transition from NEXA's chief strategy officer role is ongoing, Richards emphasized evoLend's focus on compliance, technology, and long-term value for loan officers.
Todd Bitter, national sales director at NEXA, explained that in NEXA's non-delegated correspondent model, the company funds loans which lenders then underwrite and typically buy. evoLend's establishment allows NEXA to offer its partners the option to service these loans, either through full servicing agreements or subservicing arrangements.
Kortas is launching evoLend into a competitive market, noting recent transactions among major players like Rocket Companies and Mr. Cooper Group. He plans to offer evoLend's services to other brokers and companies, exploring various business models including owning mortgage servicing rights (MSRs) or acting as a subservicer. Even when evoLend does not service the loan directly, it plans to use API integrations to access servicing data, allowing loan officers to monitor payoff activity.
While no companies have officially signed on, Kortas anticipates Pennymac will be the first partner. He has secured sufficient cash reserves to service billions of dollars, with a first-year goal of $2 billion in serviced loans. Kortas also recently acquired the for-sale-by-owner platform FSBO.com, which will operate independently but benefit NEXA through lead aggregation. Kortas confirmed he solely owns evoLend, which will operate independently of NEXA.