Mr. Cooper

Mr. Cooper

 4.5/5 (479 ratings)
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Mr. Cooper
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About Mr. Cooper

Mr. Cooper is a nonbank mortgage lender and a registered service mark of Nationstar Mortgage (NMLS #2119). It offers conventional and government-backed purchase and refinance loans and publishes its current rates online every day. It also provides convenient calculators to help you figure out how much you can afford to borrow, how much house you can afford and how much you can save by refinancing. Mr. Cooper is licensed to operate in all 50 states as well as Washington, D.C., Guam, Puerto Rico and the U.S. Virgin Islands.

Overall Satisfaction Rating

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Pros

  • Online pre-qualification tool takes minutes
  • Online loan tracking
  • On-time closing guarantee
  • Pays local moving costs in some areas

Cons

  • No locations for in-person service
  • No USDA loans

Bottom Line

Mr. Cooper generally offers competitive interest rates on home purchase and refinance loans. You can apply for a mortgage, see rates and monitor your application online through Mr. Cooper’s website.

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Rated with 5 stars
Verified

I had a really great experience with Mr. Cooper, and I’ll continue to use them. My original loan got transferred to them, and after the end of my first loan, I used them for my se...

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Rated with 5 stars
Verified

I was assigned a loan coordinator in a very timely manner. … He quickly took ownership of the loan processing through to the point of setting up the closing, which was very conven...

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Rates

Mr. Cooper publishes its current rates for 15- and 30-year fixed-rate conventional loans and 30-year fixed FHA loans on its website. These rates are updated daily, given that mortgage rates are always changing.

From 2019 to 2021, the company’s average rates for home purchase loans have been slightly higher than the national average. In 2021, the average rate for homebuyers who went through Mr. Cooper was 0.06% higher than the national average.

Mr. Cooper average home purchase rate vs. national average

YearDifference from national average
2021+0.06%
2020+0.35%
2019+0.36%
Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

Mr. Cooper offers fixed-rate loans and adjustable-rate loans. Because mortgage rates have been higher than normal in 2022, many borrowers are now considering adjustable-rate mortgages. These loans typically have a set interest rate for the first three to 10 years of the loan, but the rate continually resets once that period is over.

When rates are lower, it often makes sense to go with a fixed-rate loan so you can lock in an ideal rate. However, when rates are higher, it might make sense to go with an adjustable-rate loan, especially if you can sell or refinance before your rate begins to change.

As you search for a mortgage company and compare rates, be aware of the difference between an interest rate and an annual percentage rate (APR). An APR is a better measure of the total cost of a loan because it includes not just your interest rate but also additional fees, such as discount points, loan origination fees and other charges.

Application process

Mr. Cooper does not have local branches, but it offers online tools and access to your loan agent online and by phone. You can apply online, and Mr. Cooper offers several other features to help in the homebuying, mortgage application and closing processes, like

  • Pre-qualification within minutes for most borrowers
  • Agent Assurance, which connects you with local real estate agents
  • The StreetSmarts house searching tool
  • The Mr. Cooper mobile app for accessing loan documents, making mortgage payments and accessing financial education materials
  • A digital loan tracker that lets you follow the process from application to closing
  • The Close On Time Guarantee, which covers your first month’s mortgage payment if Mr. Cooper misses your scheduled closing date
  • The Zero Dollar Move program, which pays for your move (up to 50 miles) if you buy a home with a Mr. Cooper loan

Mr. Cooper application features

FeaturesAvailability
Online application
Mobile document uploadX
Physical branchesX
Publishes minimum rate on website
Rate lock45 days
Pre-qualification (no hard credit pull)
Certified approval letter

Loan types

Mr. Cooper offers both home purchase loans and refinance loans, and they are available with fixed or adjustable rates.

Conventional loans have made up the majority of Mr. Cooper’s originations during 2020 and 2021, according to Home Mortgage Disclosure Act data submitted by Nationstar Mortgage. However, the company also originates FHA purchase loans, FHA streamline refinance loans, VA purchase loans and VA IRRRLs (interest rate reduction refinance loans).

Mr. Cooper doesn’t offer USDA loans. If you’re interested in a USDA loan, check out our guide on USDA-approved lenders.

In 2021, Mr. Cooper closed on 4,842 home purchase loans out of a total of 6,641 home purchase applications (73%).

Loan applications for home purchases only by year

202120202019
Home purchase applications6,6417,21619,299
Home purchase loans closed4,8424,49712,806
Home purchase applications denied4111,2613,270
Home purchase preapprovals denied000
Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

Refinancing

More than half of the mortgages originated by Mr. Cooper in 2021 and 2021 were rate-and-term refinance loans, with cash-out refinances being its second most popular option.

During the same years, only about 3% of loans originated by Mr. Cooper were home purchase loans. This trend toward refinancing was common in the industry; because rates were so low in 2020 and 2021, many homeowners opted to refinance.

Home purchase vs. refinance loans by year

202120202019
Home purchase loans2.77%3.13%15.69%
Refinance loans62.63%74.75%41.11%
Cash-out refinance34.47%21.95%42.97%
Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

Requirements

Mr. Cooper does not publish specific requirements for borrowers, but representatives told us the lender follows loan requirements from Fannie Mae and Freddie Mac for conventional loans.

Conventional mortgages that conform to these standards typically require a credit score of at least 620, a down payment of at least 3% and a debt-to-income (DTI) ratio of 45% or lower. Nonconforming conventional loans, like jumbo loans, often have different requirements, though.

Government-backed loans, like FHA and VA loans, generally have less strict requirements than conventional loans. You can get approved for an FHA loan with a credit score as low as 500, but you need a score of 580 or higher to qualify for a 3.5% down payment. You can get a VA loan with no down payment.

If you’re unsure of whether you can afford a loan, Mr. Cooper does offer calculators to estimate how much house you can afford, potential mortgage payments, the cost of renting versus buying and how much you could save by refinancing.

National mortgage requirements by type

Min. credit scoreMin. down paymentCompare with other lenders
ConventionalTypically 620Typically 3%Mortgage lenders
FHA5003.5% with 580 credit scoreFHA lenders
VASet by lender (often 580)0%VA lenders

Cost and fees

Mr. Cooper does not publish its fees online. However, according to a Mr. Cooper representative, origination fees on typical conventional conforming loans are $1,500. Additional fees vary based on your type of loan, your down payment amount, the type of property and other factors.

If you apply, the company is legally required to send you a Loan Estimate within three business days of receiving your loan application. This document shows your estimated interest rate, closing costs and monthly payment amount.

FAQ

How does Mr. Cooper work?

You can start the preapproval process with Mr. Cooper by calling or filling out a form online. Once you provide details about your identity and finances, Mr. Cooper does a soft credit check and provides a preapproval letter showing an amount you generally qualify to borrow. If you’re further along in the process and ready to make an offer, you should seek “verified approval,” which requires a more detailed check of your income and assets and gives you an approval letter to show the seller. Once your offer is accepted, you formally apply for a loan and lock in your interest rate.

Is Mr. Cooper legit?

Mr. Cooper is one of the largest mortgage originators in the U.S. and had 3.9 million customers around the country as of March 2022, according to investor information provided by the company.

Where is Mr. Cooper available?

Mr. Cooper is licensed in all 50 states, Washington, D.C., and several U.S. territories, including Guam, Puerto Rico and the U.S. Virgin Islands.

Mr. Cooper Reviews

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How do I know I can trust these reviews about Mr. Cooper?
  • 4,190,212 reviews on ConsumerAffairs are verified.
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  • We use intelligent software that helps us maintain the integrity of reviews.
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Page 1 Reviews 0 - 5
Rated with 5 stars
Verified Reviewer Verified Buyer
Original review: Dec. 3, 2022

When I talked to Mr. Cooper, they were very personable and knowledgeable. They were quick the first couple of times. This last one was a little longer. But they do what they say and say what they do, and I found that to be completely easy to follow. I've done three different things with them, and it's been fabulous. The first person in line goes over some basic information and talks to you for a good 15 minutes to figure out what you want, what your background is, and what your financial situation is. You go online, set up your account and the paperwork is done through that which makes it easy. You're not running out to the mailbox and trying to find time to do that when you're busy with many other things. They notify you through an email that you have a new form to read and sign, and you go in and you read and sign it. It can't get much simpler than that.

My bank merged and became Truist and I've done nothing but fight with them since they merged. With Mr. Cooper, it was very pleasant to have a website that I could get on, number one, and understand, number two. If I had any questions, I just shot off an email to whatever stage I was in at that point and whoever was doing that point. I would ask them a question and they always took the time to answer. We talked about options. The first guy I talked to was absolutely lovely in each of the three cases. At any point, I could go back to them and say, "I'm not happy with this," or, "I had no reason to do that," or, "I'm confused about that." They knew what they were talking about. I worked with somebody else in a different company and I had people lie to me before. With Mr. Cooper, I've never caught them in any way shadowing or misrepresenting anything.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Oct. 26, 2022

    When I bought the house a long time ago, we went with Nationstar Mortgage. Since then, they have contacted me about refinancing, and I refinanced with them. They've changed their name, but with our refinances, it's always been with Mr. Cooper because I've been pleased with their service. The application process moved swiftly and didn’t have a big problem. It's too bad they can't plug into the information they already had, but other than that, it's been a seamless process. It took between one and two months, which wasn’t very long. It's so effortless now. This is the 12th house I've owned, and I’ve had houses all over the country. I remember back when it took a long time to go through this process, and I was always going in to see the agent and the title company.

    Mr. Cooper helped us acquire the house and get some money out of it. Having to go through the process has been a good experience, and I would recommend it to anyone else. I liked working with Mr. Cooper and I liked the people that I dealt with. There was an officer that the mortgage was assigned to, then there was somebody who handled all the paperwork with this. I only talked to the guy who was assigned the mortgage twice, but the lady who had handled the processing, that I talked to many times, was very good. I had an unusual thing wherein a couple of times, I've had people calling, representing themselves as from Nationstar, trying to get the business from Mr. Cooper. I didn't understand where that came from, but after I told them not to call back, they didn't.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Sept. 3, 2022

    The application process with Mr. Cooper was extremely easy. They communicated very well and answered all the questions I had. It was all good. My credit score shot up 60 points since we did that, because of the open debt available with credit cards and we paid it down. I could have qualified for a much better rate had I waited a few more months and paid those down prior to the refinance. So that part I was a little disappointed about, but not really their fault. I definitely recommend them.

    However, recently, I got a letter from State Farm Insurance about lapsing unpaid flood insurance from FEMA. I called Mr. Cooper about it a few days ago. It seemed like they didn't have knowledge of the previous loan. I had trouble convincing her so much that I got her on a three-way call with State Farm, so that I didn't have to be the go-between from phone call to phone call.

    During the call, she was telling the lady that she wasn't sure how my loan got to them. She didn't realize that I had a previous loan with them. She was blaming the insurance lapse on the insurance coming to Mr. Cooper. I had to explain to her a few times that I was with them already and just switched to a new loan number. They had the flood insurance covered, and they moved it to a new loan and dropped the ball paying it. The insurance is about to be dropped. She asked the agent for information on the coverage amount limits, the amount of the money due, the date due, a few things like that. While we were on the phone, she went ahead and took care of it. She told the agent that the check’s been cut and it's on its way.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: June 15, 2022

    Mr. Cooper was good. Both the reps, Jason and Cheryl, did an awesome job. I worked with Cheryl and she did all of our stuff and was pretty much the loan processor all the way till closing. She took care of everything and answered questions and phone calls. We were doing everything on our end to get Mr. Cooper everything they needed as quickly as possible. As soon as anybody needed anything, we were jumping on it and getting it done. It was a quick process and we closed fast, but we could've closed a little faster if underwriting was more precise and a little faster to do their part. If they need something, they should give us a chance to reply back.

    From the time underwriting told Cheryl what we needed, we got it back to that lady within 45 minutes and we still had to wait two more days for her to finish signing off. First it was, "Oh, well, she had to step out, she had to do this, she had to do that. So, she left." The next day, we checked back that morning, then we were told, "Well, there's other stuff in front." I said, "You just asked for questions on our stuff and it was the last thing you're working on." We waited all day long, and then Cheryl finally got ahold of the underwriting lady at 3:00 and said, "Hey, just checking on the status." She said, "Oh, it's in line right now." It took her 10 minutes and we got a response back.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: May 30, 2022

    This lady, Mary, was very good. She said, “Oh, let's look at it. Well, you do qualify.” I said, “How come I’ve never been. I’ve been wanting to do this.” The process is such that everything is taken into consideration, not just one single thing, like I had. I told her I had experience filing the application online, asked me questions. It took a while because I had to go and look for documents. I was very positive. She was very positive as well. And she said it would go to underwriters. I have the app on my phone. She also said I should expect messages and respond to those. And whatever they ask for, like paycheck stubs, I should send them.

    She responds on time so that it drag out the time. Everything seemed to go well but all of a sudden, there was a halt somewhere. I thought it wouldn't go through. I called, and a lot of times, there were no responses and no feedback. I couldn't get anybody. I did the calls, but Mr. Cooper would respond to me via email. At some point I felt frustrated that they were not answering or returning my calls. But they did what they needed to, so I'm satisfied. I also wanted to take out some money. I wasn't able to get how much I wanted but I was able to get an amount that would suffice. And it picked up again. It dragged on for a while and the appraisal was done and they said I didn't qualify for a conventional loan. It would remain an FHA loan. But I could take out some money. It took longer than I anticipated.

    The rate was 2 point something. It slowly crept up at that time, but Mary locked it in for me until a certain date. And I knew the date was fast approaching and that the interest rate was going up. I wondered what would happen. But she assured me that they would extend it. She did what she did, and I was happy with the terms and new rates. I now started working with a new person. Mary was the one that initiated it and she was very good. But they were all good. I was happy it worked out well.

    4 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Jan. 20, 2023

    I was on a forbearance plan due to an illness. I was told I didn’t have to pay until that was up, but I still paid a little bit monthly. I had always been a good customer and always paid on time. Even though I was on the forbearance plan, I still paid as much as I could monthly yet they still reported me to the credit companies. You can’t just change your mortgage company without changing your rate so you’re stuck with a company who doesn’t care whether they ruin your credit or not.

    Mr. Cooper response
    I appreciate you informing us of your experience. It is my goal to make every attempt to resolve your concerns to the best of my ability. I will follow up privately with a resolution to your concerns.
    LaQuinte Proby

    Community Manager

    You are welcome to call our escalations line at 888-509-2432. Since it's a small team, we are here Monday - Friday from 8 am - 5 pm CST. If there's something I can assist you with, I'm happy to help - you can email me at Social.Media@Mrcooper.com. Thanks!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Jan. 19, 2023

    The application process was very easy. My employment records were all accessible by my social, and Mr. Cooper didn't need very many documents. I found it all in a timely manner, and it turned over really quick. The first person that I talked to was expedient, but she was taking some time off in a few days, so that might have helped with how efficient she was. Still, it was good. I was done with her within a week, then I waited another week for everything to be finalized.

    There was one confusion on the notary that was coming out. A guy texted me to confirm a time, and I said, “That time doesn't work for me.” I offered a different time, and he said, “That actually works better for me anyways. I will let the company know.” Two days later, I got a text from someone else to confirm an appointment. I said, “Wait. I already have an appointment with someone else. So, who's actually coming to my house and when?” Except for that one part, everything was straightforward. That might have been the notary company as well. I don't have anybody right now looking for mortgages, but I would definitely recommend Mr. Cooper. I just moved back to my small hometown, and everyone here goes through a local bank ‘cause they like supporting local businesses.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Jan. 19, 2023

    We refinanced our loan to get cash out for home projects, and the process was relatively easy. We had a bunch of stuff, so it was just mostly emailing our attachments to our provider. We had one hiccup with the portal though. It wouldn't take one of the documents, so we had to email the person and they uploaded it to the portal. It wasn't a hassle at all, and the reps were very good. They were quick to respond and thorough on explaining the whole situation. We got to increase the value of the house as well. That was nice. Overall, I'd recommend the company because we've had no bad interactions with them.

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    Resolution In ProgressRated with 2 stars
    Verified Reviewer Verified Buyer
    Original review: Jan. 19, 2023

    I needed some cash and in the end, I got what I wanted out of Mr. Cooper. Their communication was okay. The biggest problem I had with them was their privacy was lacking. They use the last four digits of your Social Security as a password. They didn't seem to be too concerned about privacy at all.

    Mr. Cooper response
    I appreciate you informing us of your experience. It is my goal to make every attempt to resolve your concerns to the best of my ability. I will follow up privately with a resolution to your concerns.
    Kalie Ezenwa

    Community Manager

    You are welcome to call our escalations line at 888-509-2432. Since it's a small team, we are here Monday - Friday from 8 am - 5 pm CST. If there's something I can assist you with, I'm happy to help - you can email me at Social.Media@Mrcooper.com. Thanks!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Jan. 19, 2023

    When I started talking to Mr. Cooper's loan officer, he was easy to work with and the rate was good at the time. Also, the process went through quickly. Rates have gone up a lot. But give the loan officer a call and see what he can do for you. He was good.

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    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page. Specific sources for this article include:
    1. Federal Financial Institutions Examination Council, “HMDA Data Publication.” Accessed July 13, 2022.

    Mr. Cooper Company Information

    Social media:
    Company Name:
    Mr. Cooper
    Company Type:
    Public
    Address:
    8950 Cypress Waters Blvd
    City:
    Dallas
    State/Province:
    TX
    Postal Code:
    75019
    Country:
    United States
    Website:
    www.mrcooper.com

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