Mr. Cooper Mortgage Review 2023

How Bankrate scored Mr. Cooper

To determine Mr. Cooper’s Bankrate Score, Bankrate’s editorial team rated it and other 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.). We derived its overall score by considering three basic factors.

• Affordability: Mr. Cooper’s rates appear low at first glance, but they include discount points which you’ll need to pay upfront if you want the savings.
• Availability: Mr. Cooper operates nationwide and offers a range of loan products, including options for investors.
• Borrower experience: Mr. Cooper funnels much of the application process onto its website and app. J.D. Power has given the lender low marks for customer satisfaction.

• Methodology

  Bankrate's expert editorial team collects lender information through a variety of methods. We contact lenders directly, and we also turn to regulatory filings and to assessments by third parties. Our research takes into account three main factors – affordability, availability and borrower experience.

  Bankrate's reporters and editors have decades of experience covering the mortgage industry. They're skilled at gathering information through interviews and by scouring regulatory filings. Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Here's how we assess each of the categories:

  • Affordability. Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) a lender's lowest advertised annual percentage rate (APR) based on Bankrate's sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors and 2) established-customer discounts or incentive pricing, when applicable.
  • Availability. Another factor is how quickly your loan application will be approved, and how many loan programs the lender offers. So we evaluate approval and closing timelines and diversity of loan products.
  • Customer experience. Finally, we delve into what it's like to deal with the lender as a consumer. We look at the lender's application process and availability of customer service support. We also consider the results of J.D. Power's 2022 Mortgage Origination Satisfaction Survey.

  Bankrate's editorial team confirms the accuracy of data at the time of publication. Our team is dedicated to maintaining the timeliness of information – the mortgage industry is changing constantly, so we regularly revisit these reviews to update them.

  Bankrate's methodology page spells out our rating process in greater detail.

  Our editorial team confirms the accuracy of data at the time of publication and is dedicated to maintaining the timeliness of information.

Affordability: 5/5

Affordability differs from lender to lender, so comparing costs is key. While Mr. Cooper’s advertised rates are lower than national averages, there’s a catch: The lender assumes you’ll pay discount points that could add up to sizable upfront costs. Additionally, Mr. Cooper charges lender fees and application fees. However, the lender doesn’t charge a fee for rate locks or underwriting.

Availability: 4.8/5

This factor can make the overall mortgage application process smoother or more challenging. Mr. Cooper provides conventional loans as well as some government-insured loans (FHA and VA), along with options to refinance your existing mortgage. The lender is licensed to lend throughout the U.S., Puerto Rico and the U.S. Virgin Islands.

Borrower experience: 4.7/5

Know what to expect when you work with a specific lender. While Mr. Cooper has favorable reviews on Trustpilot, it’s important to note its reputation has some blemishes: The lender’s track record with the Better Business Bureau includes more than 3,000 complaints in the past three years, and it ranks near the bottom in J.D. Power’s customer satisfaction study of large mortgage originators. As far as your experience working with Mr. Cooper, however, its digital tools are top-notch.

How to apply for a mortgage with Mr. Cooper

You can apply for a purchase loan or a refinance on Mr. Cooper’s website. The lender’s process is similar to that of other online lenders. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Mr. Cooper

Mr. Cooper can help you refinance your existing mortgage. Before you start, think about your goals. Are you refinancing to adjust your current mortgage rate and term? Do you want to tap home equity? Do you want to change loan programs, such as refinancing out of an FHA loan into a conventional mortgage? Once you’ve settled on those details, you can apply through the lender’s website.

Special programs offered by Mr. Cooper

1% Mortgage Markdown Program

Mr. Cooper’s 1% Mortgage Markdown Program offers a rate buydown to help borrowers cope with the sharp increase in mortgage rates. This program reduces your loan’s interest rate by a full percentage point for the first year.

Close On Time Guarantee

The Mr. Cooper Close On Time Guarantee assures those buying a property with a Mr. Cooper mortgage that the home loan will close on or before the contract closing date. If not, you’ll get a check equal to your first month’s principal and interest payment.

Frequently asked questions about Mr. Cooper

How is Mr. Cooper’s digital mortgage experience?

Mr. Cooper’s mobile app makes it convenient to apply online, monitor your application status and make monthly payments. If you prefer, you can contact the lender at 833-685-2565 during customer service hours Monday through Saturday. You won’t be able to meet with a loan officer at a branch location, however. Instead, all your communication will be via call center, website or the app.

Is Mr. Cooper the same as Nationstar Mortgage?

Yes. Mr. Cooper, a publicly traded company, bought Nationstar Mortgage in 2016. Mr. Cooper officially retired the Nationstar brand name in 2017. In its latest annual report, Mr. Cooper refers to Nationstar Mortgage as an operating subsidiary.