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Mr. Cooper Mortgage Review 2024

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At a glance

Mr. Cooper

Editor's take

Mr. Cooper is a large national mortgage lender with a slick website, plenty of loan options and a special focus on FHA loans and first-time homebuyers. Its Mortgage Markdown incentive cuts your interest rate by 1 percent for the first year of your loan, while its RateSwap promise helps you save on refinancing. It hasn’t had the best feedback from customers, however — and that was before a security breach in 2023 compromised the personal data of nearly 15 million borrowers.

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4.6
Rating: 4.6 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, FHA, VA, refinancing and more

Credit Good

Min. credit score required

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

Location

Nationwide availability

All U.S. states

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Min. down payment

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

At a glance

Mr. Cooper

4.6

Rating: 4.6 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, FHA, VA, refinancing and more

Location

Nationwide Availability

All U.S. states

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 lender and servicer that operates throughout the U.S. The lender, formerly Nationstar, 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 touts a “Close on Time Guarantee” for those purchasing a new home with a conventional loan.
 
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Bankrate insight

In December 2023, cyber attackers gained access to information about 14.7 million Mr. Cooper borrowers. In response, Mr. Cooper offered borrowers two years of free credit monitoring and identity protection services through TransUnion.
 

Pros and cons of Mr. Cooper

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

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    Slick app to track loan status and make payments

Cons
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    No branch locations

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    No USDA loans

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    Cyber breach in 2023 just the latest red flag around customer service

Our Editor’s Take on Mr. Cooper

Mr. Cooper is a large national mortgage lender with a slick website, plenty of loan options and a special focus on FHA loans and first-time homebuyers. Its Mortgage Markdown incentive cuts your interest rate by 1 percent for the first year of your loan, while its RateSwap promise helps you save on refinancing. It hasn’t had the best feedback from customers, however — and that was before a security breach in 2023 compromised the personal data of nearly 15 million borrowers.

How Bankrate scored Mr. Cooper

  • 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: This lender operates nationwide and in some U.S. territories. It 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 lower marks for customer satisfaction.

Affordability: 10/10

While Mr. Cooper’s advertised rates are lower than Bankrate’s national averages (as of this review), those rates include discount points that could add up to sizable upfront costs. Additionally, this lender charges some fees.

Availability: 10/10

Mr. Cooper provides conventional loans as well as some government-backed 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: 7.3/10

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 1,600 complaints in the past three years, and it came in below average in J.D. Power’s latest customer satisfaction study of large mortgage originators. As far as your experience working with Mr. Cooper, however, its digital tools are top-notch, and include an app that allows you to check in on your application throughout the process. Unlike many lenders with 30- or 60-day preapproval windows, Mr. Cooper’s preapproval lasts for 120 days, and its VerifiedApproval offering generates an approval letter when you’re ready to make an offer on a home. In addition, the lender’s StreetSmarts tool allows you to browse listings and set up property alerts, which could aid you in your home search.

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Bankrate staff insights

"Mr. Cooper has been a relatively easy lender to work with. I like its website a lot. Each year, it sends me a short video explaining any upcoming changes to my monthly payment because of changes to escrow. This helps me plan my budget. I do wish their customer service and accessibility were better. The service is generally fine --- and our loan officer was relatively quick to process our refinance a few years ago --- but I don't usually walk away from our conversations feeling like a valued customer. Additionally, this lender can be hard to get ahold of, largely from a complex IVR and longer wait times."

- Bankrate staffer

"My loan was sold to Mr. Cooper. The transition process was relatively seamless, as I was able to get a new login and immediately see my loan information (not the case for other times my loan was transferred). I had a recent frustration, though, where the portal to view documents was down for an extended period of time (about 24 hours). Typically you wouldn't need access to this, but I was doing my taxes and needed a specific statement only available in this section. It occurred on a weekend about a month before Tax Day, which seems like a time many people would be doing their taxes and needing access to this."

- Bankrate staffer

Learn more: How to choose a mortgage lender

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Images courtesy of Mr. Cooper as of 4/1/2024. Note: Depending on method of contact, your individual credit profile and other circumstances, your experience might differ.

How to apply for a mortgage with Mr. Cooper

You can apply for a mortgage with Mr. Cooper online or by phone at 855-235-0991. 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.)

Learn more: How to get a mortgage

Refinancing with Mr. Cooper

Mr. Cooper offers both rate-and-term and cash-out refinancing options. If you refinance within three years of obtaining your loan, it’ll waive the origination fee, which equates to a savings of up to $1,500. (Note: This promotion is only for loans locked by June 30, 2024.)

Learn more: When should you refinance your mortgage?

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. (Note: This promotion is only for loans locked by June 30, 2024.)

Close On Time Guarantee

The Mr. Cooper Close On Time Guarantee helps ensure your 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.

RateSwap

The RateSwap program from Mr. Cooper gives you at least one reason to get a mortgage now: You’ll be able to refinance it later — within three years — without paying an origination fee. (Note: This promotion is only for loans locked by June 30, 2024.)

Compare Mr. Cooper to other lenders

Mr. Cooper

Rating: 4.6 stars out of 5
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4.6

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Old National Bank
Rating: 4.6 stars out of 5
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4.6

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Read full review
Veterans United Home Loans
Rating: 4.9 stars out of 5
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4.9

Bankrate Score
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Read full review

Loans offered

Conventional, FHA, VA, refinancing and more

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing

Min. credit score required

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

Min. credit score required

620 for conventional loans, 640 for FHA loans, 680 for VA loans

Min. credit score required

620 for conventional loans, 620 for VA loans

Down payment

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

Down payment

Undisclosed

Down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans

Nationwide availability

All U.S. states

Nationwide availability

All U.S. states

Nationwide availability

All U.S. states