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Mr. Cooper Mortgage Review 2023

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At a glance

Mr. Cooper

Editor's take

Mr. Cooper is a large national lender with a special focus on FHA loans and first-time buyers. The lender ranks in the Top 10 nationally for volume of FHA mortgages originated. As you’d expect of a big player, Mr. Cooper has a slick website and plenty of loan options. One caveat: The lender routinely ranks poorly in customer satisfaction surveys.

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4.8
Rating: 4.8 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

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

Credit Good

Min. credit score required

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

Location

Nationwide availability

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

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Min. down payment

3% for conventional conforming loans, 3.5% for FHA loans, none for VA loans

At a glance

Mr. Cooper

4.8

Rating: 4.8 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

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

Location

Nationwide Availability

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

Credit Good

Min. credit score required

620 for conventional loans, 580 for FHA loans, 600 for VA 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.
 
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Bankrate insight

Mr. Cooper's 1% Mortgage Markdown program is aimed at helping borrowers cope with the recent rise in mortgage rates. It reduces your loan's interest rate by a full percentage point for the first year.
 

Pros and cons of Mr. Cooper

Pros
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    Available in all states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands

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    Electronic submission of loan documents

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    Dedicated and non-dedicated loans so lender can customize terms

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    Easy-to-use app that allows borrowers to check application status and make payments

Cons
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    Fees for services, including loan origination, rate lock and underwriting

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    No branch locations

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    No USDA loans

Our Editor’s Take on Mr. Cooper

Mr. Cooper is a large national lender with a special focus on FHA loans and first-time buyers. The lender ranks in the Top 10 nationally for volume of FHA mortgages originated. As you’d expect of a big player, Mr. Cooper has a slick website and plenty of loan options. One caveat: The lender routinely ranks poorly in customer satisfaction surveys.

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: This lender’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 nationally 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 gives the lender low marks for customer satisfaction.

Affordability: 5/5

Loan cost is a deciding factor for many borrowers.  The affordability nature of loans differ from lender to lender, so comparing costs is key. While Mr. Cooper’s advertised rates are lower than national averages, there is a catch: They assume 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 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. Also, Mr. Cooper doesn’t charge a fee for rate locks or underwriting.

Availability: 4.8/5

Availability factors 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

Customer experience factors can help you know what to expect when you work with a specific lender. While the lender 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, its digital tools are topnotch.

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 company’s process is similar to other online lenders’. Here are some tips for streamlining the process:

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.

Gather personal and financial documents. With any lender, you must supply documentation proving your income, assets and debts. These documents typically include:

  • Pay stubs from at least the past 30 days
  • W-2s from the past two years
  • Proof of any other income sources (such as bonuses or commissions, child support or rental revenue)
  • Account statements, including checking, CDs and retirement savings, from at least the past two months
  • Documents detailing any loans you currently have
  • Letters explaining any new loans you’ve taken out recently
  • Letters from anyone giving you a gift to use for a down payment
  • Court records if you’re recently divorced or dealt with something like bankruptcy or foreclosure
  • Contact info for your landlords if the lender wants to verify payment
  • ID (such as a driver’s license or passport), so lenders can verify your identity and that you’re a U.S. citizen. Foreign nationals can get financing, but it’s much more complicated.

Those who are self-employed might also need to include additional information and undergo an income audit. This might include asking an accountant to verify your income is stable by speaking with customers; reviewing business records, like P&L statements; or taking other steps.

Provide details about the property. If it’s a purchase mortgage, you’ll need to supply the address of the home you’re buying and submit to an appraisal. If you’re refinancing, you may or may not need an appraisal.

Refinancing with Mr. Cooper

Mr. Cooper refinances existing mortgages, and its refi process is similar to the purchase process. Before you start, think about your goals. Are you refinancing to adjust your current mortgage’s rate and term? Do you want to tap into 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 or via its call center.

Frequently asked questions about Mr. Cooper

How is Mr. Cooper’s digital mortgage experience?

The lender’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, they're the same. 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.

Compare Mr. Cooper to other lenders

Mr. Cooper

Rating: 4.8 stars out of 5
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4.8

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LoanDepot
Rating: 4.4 stars out of 5
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4.4

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Read full review
Rocket Mortgage
Rating: 4.5 stars out of 5
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4.5

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Read full review

Loans offered

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

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity loan; investment property; flex-term

Min. credit score required

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

Min. credit score required

620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans

Min. credit score required

620 for conventional loans, 680 for jumbo loans, 580 for FHA loans, 580 for VA loans

Down payment

3% for conventional conforming loans, 3.5% for FHA loans, none for VA loans

Down payment

3.5% for FHA loans

Down payment

3% for conventional conforming loans, 3.5% for FHA loan, none for VA loans, 10%-15% for jumbo loans

Nationwide availability

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

Nationwide availability

Available in all U.S. states

Nationwide availability

Available in all U.S. states