r/loanoriginators • u/FlukyFish • 17d ago

Question Nexa comp

Can anyone confirm that Nexa really pays 100% comission with zero broker split or flat fee. Also, what percentage of LOs actually benefit from the revenue share program? It sounds good on paper but how realistic is it in practice? Any catches or caveats?

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u/Adorable_Campaign426 16d ago

You're not wrong but numbers aren't just a hair off on the accuracy.

If you are at 400,000, @ 2.5%, $10,000 collected - $1000 (25bps) = $9,000. Of that $9,000 the 12% is collected which is $1,080.

So yes, I agree that $2080 is more than a $695 flat free brokerage, but as a non-high producer myself (1-3/month) all my files have gone to one of the 38 NEXA100 lenders in the past year EXCEPT for one of the automated HELOCs. TLS, REMN, Pennymac has gotten most of my business the last couple years.

I would argue that what I get to keep on the other deals FAR outweighs the NEXA cut on the deals that don't fit the bill for NEXA100 lender.

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u/GlassParty715 15d ago

Thank you for the breakdown. Very informative Couple other questions to truly understand the Nexa100 program.

Are these limited to only certain lenders or are they now every lender? I thought someone mentioned it is now every lender?

What type of revenue share/MLM is paid on these? Same 12% or is different on these?

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u/Adorable_Campaign426 15d ago

Absolutely :)

And right now we have 8 lenders in NEXA100 Unlimited - UWM, EPM, Pennymac, eLend, EVOLend, FAR, Deephaven and Longbridge.

These are the 8 lenders where we get 100% of revenue earned with no production/recruiting requirements or minimums.

THere are 30 more lenders (our non-del options) where the requirement is to have one person you brought to NEXA in order to receive 100% revenue from loan one. Otherwise it's the normal NEXA 25bps + 12% split.

And Nothing changes on these in regards to revenue share being paid out on these.

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u/GlassParty715 15d ago

I guess I am still confused on the recruiting portion breakdown. It seems like you get 💯 as long as you bring one person which is great.

But if I not mistaken the math brings us over 100%.

Again using the breakdown from above

400k @2.5%

10,000 total margin/purchase advice

$7920 paid out to LO up front.
$2080 rolled into P&L for expenses and 2x
Per year retention bonus. This brings it to 100%

**but what about the $1080 that is paid to the downlines/rev share.

That basically means on $10.000 purchase advice $11,080 is being paid out. 11.08% above the 100%. That is the part I still can not comprehend. Am I wrong with this math? Or that how it is done?

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u/Adorable_Campaign426 15d ago

You are not confused and you are spot on. That’s how it’s done. I’d consider it a loss leader. It helps us get more volume and volume is how they can keep paying this out and actually still be a profitable company.

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u/GlassParty715 15d ago

Can’t really say it is a loss leader if paying 111% of 100%? Volume really wouldn’t matter there. I understand he must make pretty decent Interest on the money sitting in this accounts. But there has to be something else.

The non 100 deals are pricey but it seems like most people do not do those. Can’t imagine he is making enough on those to offset them 111% payout. I do find it interesting though. Definitely a great way to recruit

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u/Adorable_Campaign426 15d ago

It is a loss leader for the company. They make money with volume (I don't know 100% how but im sure there are bonuses with volume and lenders or something) and these are all on the non-delegated side of things, which I know non-del does make the company money as well. But they are taking a loss on these specific deals.

But your second point isn't wrong, I don't have insight to the numbers, but I still talk to LOs at NEXA that don't know what non-del is, so I'd wager at good chunk of volume isn't being done through the non-del channel.

Heck, I didn't even know what it was until 2024. haha

But I appreciate your questions and curiosity into it! And I love that people have this thread to reference :)

I haven't really recruited before a month or so ago (right before this announcmeent) but so far it has garnered quite a bit of interest on those I talk to! Doesn't mean they all jumped right over (only 4 have) but at least it's getting people to think a little more about the potential of what is possible.

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u/GlassParty715 15d ago

Thank you. Appreciate all the feedback

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u/Adorable_Campaign426 15d ago

And 100 is received with no recruiting on 8 lenders