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
  • No USDA loans

Mr. Cooper overview

Mr. Cooper is a non-bank mortgage originator and servicer that operates throughout the U.S. The lender, 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, along with free 45-day rate-locks. The lender also offers a “Close on Time Guarantee” for those purchasing a new home with a conventional loan. Borrowers moving within 50 miles of their current home might also qualify for the lender’s Zero Dollar Move program, which covers relocation costs.


Mr. Cooper is good for:

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


Mr. Cooper loan types offered

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

Breakdown of Mr. Cooper score: 4.1 out of 5 stars

  • 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.

Affordability: 3 out of 5 stars

While Mr. Cooper’s advertised rates are lower than national averages, there is a catch: They all include paying for discount points that could add up to sizable upfront costs for borrowers. Additionally, Mr. Cooper charges lender fees and application fees. However, the lender will pay your moving expenses if you’re relocating within 50 miles of your current address (with some limitations), which can make a difference for your bottom line.

Availability: 4.8 out of 5 stars

Mr. Cooper offers loan types that cater to most borrowers, and the lender is licensed to lend throughout the U.S., Puerto Rico and the U.S. Virgin Islands. The lender’s on-time closing guarantee is also helpful in making sure you’ll hit your moving deadline. 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 lender’s mobile app.

Borrower experience: 4.7 out of 5 stars

With nearly 4 million customers across the country, Mr. Cooper is in the top 15 of all mortgage originators and the top five of mortgage servicers. Mr. Cooper’s mobile app sets it apart as a digital-first company that makes it convenient to apply online, monitor your application status and make monthly payments. An online chat feature on the lender’s website makes communication easy, too. Borrowers who prefer the phone can contact the company at 833-685-2565 during customer service hours Monday through Saturday.

Reputation

While the company has favorable reviews on Trustpilot, it’s important to note that Mr. Cooper’s reputation has some blemishes. The lender’s track record with the Better Business Bureau includes more than 1,200 complaints in the past year. Additionally, Mr. Cooper scored 800 in J.D. Power’s most recent satisfaction study of mortgage origination companies – well below the industry average of 851. The lender also underperforms when it comes to mortgage servicing: Mr. Cooper earned a 770 in J.D. Power’s most recent study – 17 points below the industry average.

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

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