Mr. Cooper Mortgage Review 2022

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At a glance

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4.1

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Bankrate Score

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Loans offered

Conventional, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; investment property
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Nationwide availability

Available in all U.S. states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands
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Min. credit score required

620 for conventional loans; 580 for FHA loans; 600 for VA loans

Pros and cons

Pros

  • Available in all states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands
  • Electronic submission of loan documents
  • Dedicated and non-dedicated loans so lender can customize terms
  • Easy-to-use app that allows borrowers to check application status and make payments

Cons

  • Fees for services, including loan origination, rate lock and underwriting
  • No branch locations

Mr. Cooper overview

Mr. Cooper is a non-bank mortgage originator and servicer that operates throughout the U.S. The company, formerly Nationstar, was founded in 1994 and is headquartered in Coppell, Texas. Mr. Cooper offers a number of mortgage options, including low-down payment conventional loans, investment property loans and FHA and VA loans. The lender also offers a “Close on Time Guarantee” for those purchasing a new home with a conventional loan. If the lender causes the closing to be delayed, it’ll send a check equal to the borrower’s full first month’s mortgage principal and interest payment.

Good for

Borrowers looking for an online process, an easy-to-use app and a wide variety of mortgage options

Loan types

  • Conventional
  • FHA
  • VA
  • Fixed-rate
  • Adjustable-rate
  • Rate-and-term, cash-out and streamline refinancing
  • Investment property

Lender fees

Mr. Cooper’s lender fees vary by loan type. In general, origination fees on typical conventional conforming loans are $1,295. Prospective borrowers can get estimates of fees and rates based on inputs (property information, down payment, credit score and other factors) via the Mr. Cooper website.

Rates

Mr. Cooper posts daily mortgage rates on its website, which are sample rates as of the date and time shown.

Reputation

Mr. Cooper has a Trustpilot rating of 4.5 out of five stars, or “Excellent.” Mr. Cooper ranked below-average in J.D. Power rankings for U.S. Primary Mortgage Origination Satisfaction. Its score of 800 lagged the industry average of 851.

Mr. Cooper has run afoul of regulators on several occasions. In late 2020, the Consumer Financial Protection Bureau (CFPB) announced a multimillion-dollar order to settle claims Mr. Cooper “violated multiple federal consumer financial laws, causing substantial harm to the borrowers whose mortgages it serviced, including distressed homeowners.” At the same time, Mr. Cooper, PNC Bank and U.S. Bank also settled with the U.S. Department of Justice for similar servicing issues.

In April 2021, the CFPB announced it would be taking action in response to “unauthorized duplicate-payment drafts by Mr. Cooper [that] appear to have resulted in hundreds of thousands of consumers’ bank accounts being debited for multiples of their mortgage payments. Affected consumers have reported being charged overdraft fees and likely suffered additional harm as a result of these unauthorized withdrawals.”

Online services

Mr. Cooper doesn’t have brick-and-mortar locations. If you borrow with this lender, you’ll do so through a call center, its website or app. The lender’s website offers tips and educational articles about the home-buying and mortgage-lending process, and its easy-to-use app allows borrowers to check the status of their application and make payments. Mr. Cooper also offers prequalifications and verified approval online. Once you’re under contract, the lender communicates via online channels and by phone, text and emails throughout the process.

Minimum borrower requirements

Mr. Cooper abides by the conforming loan requirements for mortgages approved by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, as well as those backed by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).

While VA loans (available to military veterans, active servicemembers and their families) sometimes offer no-down payment options, the other types of loans require a minimum down payment: 3 percent for conventional loans and 3.5 percent for FHA loans.

For a conventional loan with Mr. Cooper, borrowers typically need a credit score of at least 620; for FHA loans, 580 in most cases; and for VA loans, 600.

Refinancing with Mr. Cooper

Mr. Cooper offers refinancing; you can apply through the lender’s website or via its call center.

Not sure if Mr. Cooper is right for you? Consider these alternatives

Breakdown of Mr. Cooper overall review score

  • Affordability: 3/5
  • Availability: 4.8/5
  • Borrower experience: 4.7/5

Review methodology

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.

Written by
Jeff Ostrowski
Senior mortgage reporter
Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he wrote about real estate and the economy for the Palm Beach Post and the South Florida Business Journal.
Edited by
Mortgage editor