NEXA makes 'strategic investment' in Copper Ridge Ventures

NEXA Lending entered into what it described as a "strategic investment and phased acquisition agreement" with Copper Ridge Ventures.

Copper Ridge Ventures is a holding company for mortgage joint ventures owned by Tim Owens. NEXA noted its president, Geri Farr, and Tammy Richards, its chief strategy officer, have had a relationship with Owens for many years.

Both Farr and Richards joined NEXA last fall.

"We have the platform, the technology, the infrastructure, and the people to help strong operators scale faster," NEXA CEO Mike Kortas said in a press release. "Copper Ridge Ventures gives us an opportunity to continue expanding our joint venture strategy with a team that understands the market and knows how to grow."

In an interview, Farr reiterated statements made by Kortas in the past, that NEXA is "absolutely not" moving into retail. "We remain 100% committed to the wholesale broker channel."

If anything, the transaction, which has already closed, reaffirms this commitment.

NEXA will provide support to Copper Ridge Ventures in marketing, information technology, licensing, processing, human resources, compliance and operational infrastructure.

"By leveraging NEXA's centralized technology, compliance, and operational resources, CRV is well-positioned to expand our joint venture footprint and enhance the support we provide to our partners and clients," Owens said. The deal will allow it to expand its joint venture footprint.

Copper Ridge's joint ventures are with mortgage brokers and real estate brokerages. This is a totally new line for NEXA, and it differs from the mortgage brokerage franchisor model, which Motto Mortgage, a unit of Remax, uses, Farr said.

"Historically joint ventures have been dominated by large depositories and retail lenders due to heavy compliance and infrastructure requirements, so I feel like the NEXA-CRV model democratizes this by providing independent loan officers and real estate professionals with a fully compliant framework to partner and grow," she said.

It is called a phased acquisition because while Owens right now is the majority owner of Copper Ridge. It will eventually come under NEXA's ownership, Farr added.

This deal is also totally separate from Kortas' plans to acquire a mortgage servicer. It will be a standalone entity not affiliated with NEXA but will be able to provide financial incentives and business intelligence regarding the mortgage servicing rights its originators create.