Business Insider's personal finance team compared Mr. Cooper to the best mortgage lenders and found it to be a standard lender.
Mr. Cooper Mortgage has many positive customer reviews online and offers lower-than-average mortgage rates. But this lender only offers a handful of loan types, and you can't explore its rates online. It's average fees are also on the high end.
620
3%
Conforming, FHA, VA, jumbo, home equity loan
- Has an underwritten preapproval option
- Low average rates
- Only offers a handful of mortgage types
- Ranks low in customer satisfaction, according to J.D. Power
- Can’t see personalized rates online
- High average fees
Mr. Cooper may be a good choice for borrowers looking for a smooth refinance process or low mortgage rates, but its loan options are limited and you can't explore personalized rates online.
Mr. Cooper Mortgage- Lends in all 50 states
- Minimum credit score and down payment displayed are for conforming mortgages
Understanding Mr. Cooper
Nationwide Lending and Servicing
Mr. Cooper is an online mortgage lender that lends in all 50 U.S. states and Washington, DC. To get a mortgage with Mr. Cooper, you'll need to either start an application online or talk to a loan officer over the phone.
It also services many loans, so even if you don't initially get your mortgage through Mr. Cooper, it's possible you could end up having your servicing transferred to this company. This means you'd make your monthly mortgage payments to Mr. Cooper, rather than your original lender.
Mr. Cooper Loan Options
Mr. Cooper offers the following types of mortgages:
Mr. Cooper Mortgage Interest Rates and Fees
Based on our review of Home Mortgage Disclosure Act data, Mr. Cooper's interest rates are lower on average compared to other lenders. However, its fees are on the high end.
In 2023, the average borrower getting a conventional mortgage with this lender paid $7,090 in origination charges, according to HMDA data. Origination charges include fees charged by the lender as well as optional costs like discount points, which cost money up front in exchange for a lower rate.
Mr. Cooper doesn't display any sample rates online, so to get an idea of what the lender's current rates are, you'll need to talk to a loan officer or start an application.
Mr. Cooper Overall Lender Rating
Loan Types: 3 out of 5
Most borrowers will likely find Mr. Cooper's loan options sufficient, since it offers all of the most popular types of mortgages: conventional loans (conforming and jumbo), FHA loans, and VA loans. It also has home equity loans.
But if you're looking for a USDA loan or a more niche type of mortgage, you'll need to search elsewhere.
Affordability: 3 out of 5
You may be able to get a lower-than-average rate with this lender, and you can get a conforming loan with as little as 3% down. But its average fees are on the high end.
Customer Satisfaction: 3.1 out of 5
Mr. Cooper ranks low on J.D. Power's 2024 Primary Mortgage Origination Satisfaction Study, which measures customer satisfaction. However, on its Trustpilot page, it has a 4.2 out of 5 stars, based on over 6,000 customer ratings.
Trustworthiness: 4.5 out of 5
Mr. Cooper has a A+ rating from the Better Business Bureau. The BBB evaluates companies by looking at responses to customer complaints, honesty in advertising, and transparency about business practices
In December 2023, Mr. Cooper announced that it had experienced a cyber security "incident" in late October during which an unauthorized party was able to obtain customers' personal information. In response, the lender has offered current and former customers two years of free credit monitoring and identity protection services.
Mr. Cooper Pros and Cons
Pros
- Offers an underwritten preapproval called Verified Approval, which is stronger than a typical preapproval
- Low average rates
Offers a Verified Approval Option
Mr. Cooper offers a Verified Approval, which works like a mortgage preapproval but gives borrowers a greater degree of certainty that they qualify for the amount on their preapproval letter.
With a Verified Approval, you'll provide the necessary documentation, such as paystubs or tax returns, and an underwriter will look over your application to ensure you're getting an accurate estimate of what you can be approved for.
Cons
- Limited mortgage options
- Ranks low in J.D. Power's 2024 US Mortgage Origination Satisfaction Study
- You'll need to talk to a loan officer to get personalized rates
- High average fees
Mortgage Offerings Are Relatively Basic
Mr. Cooper doesn't have a wide variety of loan options, so if you're looking for a less common mortgage type, you won't find it here. It also doesn't provide a lot of information about its loans or rates online, so you'll need to talk to a loan officer if you have questions or want to see rate quotes.
What Borrowers Are Saying About Mr. Cooper
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Mr. Cooper.
Overall, most of the customer reviews online are positive, though there are some complaints from those whose mortgages are serviced by Mr. Cooper that they've had issues with the company.
Quick, Easy Refinance
Many previous Mr. Cooper borrowers noted that they had smooth refinance processes through this lender, and that they were able to close relatively quickly. If you're looking for a good mortgage refinance lender, you might want to consider getting a quote from Mr. Cooper.
Helpful and Knowledgeable Loan Officers
We saw many positive reviews from borrowers who were very satisfied with their loan officers. A loan officer is the professional who guides you through the mortgage application and closing process, and having a good, communicative one is vital to a successful transaction.
Issues With Servicing
Many of the online complaints about Mr. Cooper come not from people who chose to get their mortgages from this lender, but people who had the servicing to their existing loans purchased by Mr. Cooper, meaning they now make their monthly payments to Mr. Cooper. Some of these people say they've had issues with getting in touch with customer service reps or experienced errors with their mortgage payments.
Compare Mr. Cooper
Mr. Cooper vs. Sage Mortgage
Sage Mortgage is an online-only mortgage lender that offers conforming, FHA, VA, and jumbo loans. Like Mr. Cooper, Sage Mortgage's average rates are on the low end. Sage's average fees are a bit high, but they're lower than Mr. Cooper's average fees.
If you want to tap into your home's equity, Mr. Cooper will likely be the better choice thanks to its home equity loans (though you can get a cash-out refinance with Sage Mortgage).
Mr. Cooper vs. Fairway Independent Mortgage Corporation
Fairway Independent Mortgage offers a strong variety of mortgage options to choose from, including renovation loans, reverse mortgages, and physician loans. It also has physical branches throughout the country, so you might like this lender if you want an in-person or completely remote process.
However, Fairway's average rates are a bit high.
Fairway Independent Mortgage Corporation Review
Mr. Cooper FAQs
Yes, Mr. Cooper is a legitimate mortgage lender that lends in all 50 states.
Yes, Mr. Cooper used to be known as Nationstar. The company rebranded to Mr. Cooper in 2017.
No, Mr. Cooper doesn't currently offer HELOCs. It does offer home equity loans.
Mr. Cooper has lower-than-average mortgage rates, according to the latest federal data. To get a customized rate, you'll need to talk to a loan officer.
You'll need at least a 620 credit score to get a conforming mortgage with Mr. Cooper.
Mr. Cooper has many positive customer reviews, and many borrowers have good experiences with this company as both a lender and servicer. But we have seen a few complaints about its servicing. Unfortunately, there's not much a borrower can do if they don't like their mortgage servicer.
Why You Should Trust Us: How We Reviewed Mr. Cooper
To review Mr. Cooper, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
