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What to Ask Before Joining a Mortgage Company: 12 Questions Every LO Needs Answered

Most loan officers evaluate a new company based on the recruiter's pitch. These 12 questions cut through the sales talk and get to the numbers, culture, and fine print that actually matter.

Most LOs never ask question #4 — and regret it

Why These 12 Questions Matter

  • Changing mortgage companies is a major career decision — but most LOs only ask surface-level questions
  • Recruiters are incentivized to sell you on the platform — that's their job
  • Your job is to ask the questions that reveal the real comp structure, real lender access, and real support
  • These 12 questions apply whether you're evaluating NEXA Lending, a retail lender, or any other platform

The 12 Questions

Question 1: What is the exact comp formula — in writing?

  • Get the actual bps you earn, what the company deducts, and any conditions
  • "We pay great comp" is not an answer — ask for the specific formula
  • Red flag: reluctance to put comp in writing before you join
  • What to look for: NEXA example — 275 bps gross, 25 bps overhead, 12% profit (returned via NEXA100)

Question 2: What percentage of origination revenue do I actually keep?

  • Calculate it yourself: what does the company charge the borrower, and what do you keep?
  • Example: if the company charges 225 bps and pays you 100 bps, you're keeping 44%
  • At NEXA on NEXA100: you keep ~91% of gross margin (250 of 275 bps)
  • Most retail LOs are keeping 40-60% without realizing it

Question 3: How many wholesale lenders do I have access to?

  • If it's a retail lender: the answer is zero — you're limited to their products
  • If it's a broker platform: get the actual number and ask which lenders are available for your state
  • Why it matters: more lenders = better rate options for clients = more competitive = more referrals
  • NEXA: 299 wholesale lenders

Question 4: What are the clawback provisions if I leave?

  • Signing bonuses almost always have clawback clauses — typically 12-24 months
  • Some companies also claw back comp on loans that close after you leave
  • Ask for the exact clawback terms in writing before accepting any bonus
  • Red flag: "don't worry about that" or vague answers

Question 5: What support do I actually get — and who pays for it?

  • Ask specifically: dedicated processor? Marketing support? CRM? Technology?
  • Then ask: what does that cost me? Some "support" is deducted from your comp
  • At NEXA: 45 dedicated LO support coaches, included in the 25 bps overhead
  • Compare: at a retail lender, "support" often means you share a processor with 20 other LOs

Question 6: Is there a base salary, draw, or is it 100% commission?

  • Important for new LOs or anyone transitioning pipelines
  • Draw accounts: are they forgivable or do you owe it back if you don't produce?
  • Some "base salaries" are actually advances against future commission — know the difference

Question 7: Can I see the rate sheet right now — and how does it compare?

  • For broker platforms: pull a live rate from UWM or PennyMac and compare to what they show you
  • For retail lenders: ask them to price a specific loan scenario and compare to market
  • Rate competitiveness directly affects your close rate and referral partner relationships
  • Red flag: "you'll see rates when you're onboarded" — that's a test drive, not transparency

Question 8: What happens to my pipeline if I leave?

  • Ask specifically: do loans I've originated belong to me or the company?
  • Get clarity on which loans can move with you if you transition
  • Ask about any "non-solicitation" of borrowers — can you tell your own clients where you moved?
  • Red flag: "all loans become company property upon termination"

Question 9: Is there a non-compete, and what does it actually say?

  • Non-competes in mortgage are limited or unenforceable in many states — but some exist
  • Ask for the actual contract language, not a verbal summary
  • Have an employment attorney review before signing anything with a non-compete
  • Note: broker platforms like NEXA generally don't have traditional non-competes

Question 10: What is the revenue share or referral program — exactly?

  • If the company offers revenue share: get the actual percentages, how many levels, and qualifications
  • Ask: is it inheritable? Does it continue during disability?
  • At NEXA: revenue share is paid as 1099 to LLC, inheritable, continues during illness/injury
  • Red flag: vague promises about "team building" income without specific numbers

Question 11: How long does onboarding take and when will I close my first loan?

  • Realistic timeline matters — 4 weeks of no income during transition is real money
  • Ask: what is the average time from signing paperwork to first loan funded?
  • At NEXA: typically 2-4 weeks from start to first loan funded
  • Ask for references — talk to LOs who recently onboarded

Question 12: Can I talk to 3 LOs who joined in the last 6 months?

  • The most important due diligence question most LOs never ask
  • A company willing to connect you with recent joiners is confident in their experience
  • Ask specific questions: what surprised you (good and bad)? Would you do it again? What's the support actually like?
  • Red flag: any hesitation or inability to provide references

Watch Out for These Red Flags

  • Comp not in writing before you join
  • Vague answers about clawback provisions
  • Signing bonuses with 24-month clawback
  • "You'll see the rates once you're licensed with us"
  • Reluctance to provide recent joiner references
  • Non-compete language you haven't reviewed
  • "Support" that costs additional bps beyond what's disclosed

How NEXA Lending Answers These Questions

If you're evaluating NEXA Lending specifically, here's how they stack up on the 12 key questions:

Transparent Comp Formula

275 bps gross, 25 bps overhead, 12% profit via NEXA100 — all in writing before you join

Revenue Split

~91% of gross margin on NEXA100 (250 of 275 bps) — significantly higher than retail

Lender Access

299 wholesale lenders available — gives you rate options most retail platforms can't match

Support

45 dedicated LO support coaches, included in the 25 bps overhead — not an add-on cost

Non-Compete

No traditional non-compete — you have the freedom to move without legal restrictions

Onboarding

Typically 2-4 weeks from paperwork to first loan funded — minimal pipeline transition time

Frequently Asked Questions

1. What questions should I ask before joining a mortgage company?
Ask about comp formula in writing, percentage of revenue you keep, lender access, clawback provisions, support details, salary vs. commission structure, rate sheets, pipeline ownership, non-competes, revenue share programs, onboarding timelines, and references from recent joiners. These 12 questions cover the big financial and operational issues most LOs miss.
2. How do I evaluate a mortgage company's comp structure?
Get the exact basis points you earn, what the company deducts, and calculate your net percentage of origination revenue. For example, if the company charges the borrower 225 bps and pays you 100 bps, you're keeping only 44%. Compare that to market and understand what support (if any) is bundled into the deductions.
3. What is a signing bonus clawback in mortgage?
A clawback is a provision that requires you to repay part or all of a signing bonus if you leave within a certain period — typically 12-24 months. Some companies also claw back comp on loans that close after you leave. Always get the exact clawback terms in writing before accepting any bonus.
4. How do I know if a mortgage company's rates are competitive?
Pull live rates from major competitors like Wholesale Mortgage or PennyMac and compare them directly to what the company offers. Rate competitiveness directly affects your close rate, client satisfaction, and referral partner relationships. Red flag: if they won't show you rates before onboarding.
5. What is a non-compete in mortgage and should I be worried?
A non-compete restricts where you can work after leaving. Non-competes in mortgage are limited or unenforceable in many states, but they do exist. Always have an employment attorney review the actual contract language — don't rely on the recruiter's verbal summary. Broker platforms like NEXA generally don't have traditional non-competes.
6. How do I check references before joining a mortgage company?
Ask the company to connect you directly with 3 loan officers who joined in the last 6 months. Ask them about surprises (good and bad), whether they'd do it again, what the support actually feels like day-to-day, and if they'd recommend the move. Red flag: hesitation or inability to provide references.
7. What should a loan officer look for in a broker platform?
Look for transparent, written comp; access to many wholesale lenders (300+ is strong); dedicated support included in overhead; competitive rates; clear onboarding timelines; and recent joiner references. Broker platforms give you control and flexibility that retail lenders can't offer.
8. How does NEXA Lending compare to other mortgage companies on these questions?
NEXA offers transparent comp (275 bps gross with 25 bps overhead), access to 299 wholesale lenders, 45 dedicated support coaches, no traditional non-compete, inheritable revenue share, and 2-4 week onboarding. They're competitive on all 12 dimensions, especially for LOs who value transparency and support.

Want Me to Answer All 12 Questions for NEXA Lending?

Book a free 20-minute call. I'll go through every one of these questions specifically for NEXA — comp formula, lender access, onboarding timeline, recent joiner references — no sales pitch, just answers.

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