Business Insider's personal finance team compared Newrez to the best mortgage lenders and found its offerings to be fairly standard, though we think it falls short when it comes to its customer service.
Newrez mortgages are a solid option for nontraditional borrowers thanks to the lender's "Smart Series" mortgages, which include three non-qualifying mortgage (non-QM) options for self-employed borrowers, real estate investors, and those with a rocky credit history. But this lender ranks low in customer satisfaction and lacks rate transparency.
620
3%
Conforming, FHA, VA, non-QM, Home equity loans
- Non-QM loans for nontraditional borrowers
- Flexible credit requirements on its SmartEdge mortgage
- Low customer satisfaction ratings
- Lacks transparency around rates
- Loan options are somewhat limited
Newrez is a solid option for nontraditional borrowers thanks to its "Smart Series" mortgages, which include three unique non-qualifying mortgage (non-QM) options for self-employed borrowers, real estate investors, and those with a rocky credit history.
- Available in all 50 states and Washington, D.C.
- Minimum credit score and down payment displayed are for conforming mortgages
Understanding Newrez
Does Newrez Lend Nationwide?
Newrez is an online-only mortgage lender that's available in all 50 states and Washington, D.C. You can get started with this lender over the phone or online.
Newrez Loan Options
Newrez offers the following types of mortgages:
Here's how Newrez's non-QM options work:
- SmartSelf loans let self-employed borrowers use bank statements or assets in lieu of traditional W-2s to show income
- SmartEdge loans enable borrowers with recent negative events on their credit reports to get a mortgage sooner than they could with a conforming loan
- SmartVest loans are for real estate investors. They require less documentation and let borrowers leverage equity in current real estate investments or cash flow from the property being purchased to qualify
Newrez Mortgage Interest Rates and Fees
According to our review of Home Mortgage Disclosure Act data, Newrez's mortgage rates are around average compared to other lenders.
In 2023, conventional loan borrowers who got a purchase loan with the lender paid an average of $4,650 in origination charges, according to HMDA data. This is around average compared to other lenders.
Newrez Overall Lender Rating
Loan Types: 4 out of 5
Newrez offers a good range of mortgages that should meet most borrowers' needs, including non-QM options and a home equity loan.
Affordability: 4 out of 5
Newrez has multiple government-backed mortgage options, which are often more affordable and easier to qualify for than conventional loans. It has a non-QM loan for borrowers with recent negative credit events as well.
Customer Satisfaction: 2.10 out of 5
On WalletHub, Newrez has a 3.2 out of 5-star rating, based on over 3,500 online customer reviews.
In the J.D. Power 2024 Mortgage Origination Satisfaction Study, NewRez ranked low.
Trustworthiness: 5 out of 5
Newrez has an A+ rating from the Better Business Bureau. The BBB measures trustworthiness based on response to customer complaints, honesty in advertising, and transparency about business practices. Newrez has no recent public scandals.
Newrez Pros and Cons
Pros
- Non-QM mortgages offer flexibility for nontraditional borrowers
- SmartEdge mortgage has shorter seasoning requirements for bankruptcies and foreclosures
Newrez Has Good Options for Self-Employed Borrowers and Investors
Thanks to its non-QM loan options, you might have an easier time qualifying with Newrez than other lenders if you own your own business or are looking to purchase an investment property.
Many times, these types of borrowers are able to afford a mortgage but have a hard time showing it with the traditional mortgage application process. Non-QM loans, which allow alternative means of proving income, can make getting a mortgage easier for these individuals. However, these types of mortgages typically have significantly higher rates.
Cons
- Doesn't provide sample rates online
- Ranks low in customer satisfaction
- Doesn't offer USDA loans or HELOCs
Newrez Lacks Rates Transparency
Many lenders offer the ability to explore their current rates online without having to talk to someone or submit an application first. But Newrez doesn't display any current rates on its website. If you want to know what rate you might pay with this lender, you'll need to talk to a loan officer over the phone or start an application online to get a quote.
What Borrowers Are Saying About Newrez
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Newrez's mortgage process.
Some Complaints of Spotty Communication, Poor Servicing Experience With Newrez
It's difficult to get a sense of what recent Newrez borrowers think of this lender because many online reviews are from mortgage holders who had their servicing transferred to Newrez.
When your mortgage's servicing is sold to a different company, it just means that you'll make your monthly payments to the new company rather than the one you initially got your loan from. This is a common occurrence and typically isn't a big transition for borrowers, but some appear to have issues with Newrez's servicing. We saw many complaints claiming that it is difficult to get ahold of customer service representatives and that they've had issues with their escrow accounts.
The reviews and comments we looked at that were from recent borrowers who got their mortgage from Newrez were a mix of positive and negative. Some complained of poor communication from the professionals they worked with, while others said they had a smooth experience. If customer service is important to you, you might want to opt for a different lender.
How Newrez Compares
Newrez vs. NASB Mortgage
NASB is a strong choice for non-QM loans and ranks high in customer satisfaction. NASB is based in Kansas City, Missouri, but it lends nationwide. Its offerings include multiple options for self-employed borrowers, real estate investors, and those with recent negative credit events. NASB's average fees are relatively low, but its rates are on the high end.
Newrez vs. Rocket Mortgage
Rocket Mortgage is one of the best mortgage refinance lenders and is a good choice for those who want a simple, convenient online borrowing process. It ranked high in J.D. Power's 2024 study, so borrowers can expect a positive customer service experience.
But Rocket Mortgage's offerings are fairly basic, with no flexible credit requirements or options for alternative methods of approval.
Newrez FAQs
Newrez is a real mortgage lender that offers both traditional and non-QM loans.
Newrez is owned by Rithm Capital, a real estate investment trust. Newrez was founded in 2008 and is headquartered in Pennsylvania.
If you originally got your mortgage with a different lender but recently received a notice saying that your loan has been transferred to Newrez, this means that your original lender has sold the loan's servicing rights to Newrez. This is fairly common, and all it means is that you'll make payments to Newrez going forward instead of your original lender.
Newrez's mortgage rates are around average compared to other lenders, based on our review of publicly available data.
You can get a mortgage directly through Newrez, but it also has a wholesale business that sells mortgages through brokers. Mortgage brokers help you compare many different loan options at once, so you may have an easier time finding the best deal.
Why You Should Trust Us: How We Reviewed Newrez
To review Newrez's mortgage offerings, 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.
