Mr. Cooper Mortgage Review 2021
Mr. Cooper is the largest nonbank home loan servicer in the U.S. (the third largest overall), as well as a top 15 loan originator.
Headquartered in Dallas, Mr. Cooper serves 3.8 million customers. The company, which was formerly known as Nationstar Mortgage, has been in business since 1994.
Mr. Cooper is part of Mr. Cooper Group Inc., which also includes Xome, a real estate services company.
- The Mr. Cooper app keeps you updated on each stage of the loan process, lets you manage payments online.
- If you work with Mr. Cooper’s real estate partners at Xome, you can potentially save on closing costs.
- Mr. Cooper offers a “Close on Time Guarantee” – if the home loan doesn’t close on or before the contract closing date the company is responsible for a delay, it will pay your first mortgage bill.
- The lender doesn’t offer U.S. Department of Agriculture loans, home equity loans or home equity lines of credit.
- The site doesn’t disclose details about rates or fees upfront.
Mr. Cooper offers most major home loan options, including:
- Fixed-rate adjustable-rate mortgages
- Conventional mortgages
- Federal Housing Administration mortgages
- Veterans Affairs mortgages
- Jumbo mortgages
For homeowners, Mr. Cooper also offers:
- Mortgage refinancing
- FHA refinancing
- VA refinancing
Anyone interested in buying or refinancing a home can begin working with Mr. Cooper by giving the company a call or filling out an online questionnaire to request a call back. Borrowers can also get prequalified online.
Once you connect, the mortgage professional will go over your loan options be able to generate quotes provide specifics for you. If you initiate an application, most of it can be managed tracked online or via a mobile app.
Mr. Cooper has a flat $995 origination fee (except in New Jersey, which has a $1,220 application fee).
Buyers in most states who use Mr. Cooper’s Real Estate Rewards program, which connects buyers with local real estate agents, may receive a Buyer’s Bonus Credit.
Mr. Cooper generally follows the guidelines that Fannie Mae, Freddie Mac, the FHA other programs set forth.
Minimum credit scores for Mr. Cooper applicants are in line with what’s required by the respective loan programs:
- For FHA/VA loans: 580 minimum FICO credit score
- For conventional loans: 620 minimum FICO credit score
Mr. Cooper operates in all 50 states.
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Mr. Cooper received 3.8 out of 5 stars from U.S. News & World Report. This rating is calculated based on the lender’s affordability, eligibility criteria for potential borrowers customer service. The average rating for lenders in the mortgage loans category is 4.3 stars.
Mr. Cooper has a B- rating with the Better Business Bureau, but it is not accredited.
In 2020, the Consumer Financial Protection Bureau received 1,244 mortgage-related complaints about Nationstar, Mr. Cooper’s parent company. The most common were related to trouble during the payment process. Nationstar provided the CFPB with a timely response in all instances.
In December 2020, the CFPB settled with Nationstar, requiring the company to pay $81 million in redress to more than 40,000 harmed borrowers, in addition to more than $6 million in fees penalties. The CFPB alleged that, between January 2012 December 2015, Nationstar violated multiple federal consumer finance laws, including foreclosing on borrowers unlawfully, missing tax payments from borrower escrow accounts, failing to terminate private mortgage insurance once conditions had been met.
Mr. Cooper offers customer service that is completely U.S.-based. Customers can send questions anytime via a secure message center on the site. Or they can call customer service Monday through Thursday from 7 a.m. to 8 p.m., Friday from 7 a.m. to 7 p.m. Saturday from 8 a.m. to 12 p.m., all Central Time.
The application process is completely digital telephone-based since Mr. Cooper does not have any brick-and-mortar locations. Online features include digital disclosure delivery, e-signing a loan tracker with status updates on the mobile app. Borrowers can also make monthly loan payments using the app.