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About Newrez
Newrez (NMLS #3013) is a mortgage lender that originates conventional and government-backed loans, including VA and FHA loans. In 2022, Newrez, doing business as Shellpoint Mortgage Servicing, agreed to a $500,000 settlement in a class-action lawsuit regarding misleading mortgage statements.
Pros & Cons
- Licensed in all 50 states
- Online application process
- Smartphone app available
- 40-year non-qualified loan option
- Does not publish starting rates
- Above-average rates in recent years
- Pre-qualification tool may not produce a rate quote
Rates
Newrez does not publish its current rates, but Home Mortgage Disclosure Act data shows its average rates for home purchase loans were slightly higher than the national average from 2019 to 2021. To see what rate Newrez would offer you, you’ll need to complete its pre-qualification process.
Newrez average home purchase rate vs. national average
| Year | Difference from national average |
|---|---|
| 2021 | +0.04% |
| 2020 | +0.11% |
| 2019 | +0.25% |
Newrez offers both fixed- and adjustable-rate loans. An adjustable-rate mortgage (ARM) has a fixed rate for a set period of time, and then it periodically adjusts through the remainder of the loan term. When it resets, it changes in accordance with a benchmark interest rate; so, if the benchmark interest rate is higher than the ARM’s initial rate, the monthly payments should go up.
Most borrowers like the predictable payments and security of a fixed-rate loan. But there are times when an adjustable loan makes sense. If you plan to refinance the loan or sell your home before the introductory period is over, you may save money with an ARM. Your loan officer can help you find the right loan for your short- and long-term goals.
Application process
Newrez’s QuickQuote pre-qualification only takes about five minutes. It asks a few very general questions about your estimated purchase price, down payment amount and some other personal details.
However, the QuickQuote name is a bit misleading — completing the form isn't necessarily enough to get a quote. Once you’re done, you may be asked to move on to the next step in the application process or to reach out to a loan consultant for a quote.
The next step in the Newrez mortgage application is to create an account and begin submitting documents to the portal. You will also be able to check the status of your loan application and access key information here.
Newrez application features
| Features | Availability |
|---|---|
| Online application | |
| Mobile document upload | |
| Physical branches | Undisclosed |
| Publishes minimum rate on website | X |
| Rate lock | Undisclosed |
| Pre-qualification (no hard credit pull) | |
| Certified approval letter |
Loan types
Newrez offers conventional loans (with both fixed and adjustable rates) and government-backed loans (including FHA loans and VA loans). However, it doesn’t offer jumbo loans or USDA loans.
In 2021, it closed 15,904 loans out of 22,771 applications (about 70%), and its denial rate was in line with the national average (around 8%).
Loan applications for home purchases only by year
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Home purchase applications | 22,771 | 15,041 | 16,880 |
| Home purchase loans closed | 15,904 | 9,498 | 11,095 |
| Home purchase applications denied | 1,859 | 1,868 | 1,275 |
| Home purchase preapprovals denied | 0 | 0 | 0 |
In September 2022, Newrez also introduced a 40-year non-qualified mortgage that offers a fixed rate and interest-only payments for the first 10 years before adjusting to a 30-year, fixed-rate loan with monthly interest and principal payments. This type of loan is designed for borrowers who may have trouble getting traditional loans.
Refinancing
Even before rates hit historic lows in 2020 and 2021, about 68% of all Newrez’s closed loans were refinances. In 2021, though, refinancing accounted for roughly 88% of its closed loans, reflecting an industry-wide trend. Nearly all lenders saw consumer demand for refinancing spike in this period as low interest rates spurred borrowers to try to lock in lower rates and save money.
That trend is not likely to continue, though. Mortgage rates rose throughout most of 2022, so fewer borrowers are expected to refinance. Refinancing can still be worthwhile if you can lower your interest rate by 1% or more, but be sure to take closing costs into account when you weigh your options.
Home purchase vs. refinance loans by year
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Home purchase loans | 11.61% | 11.18% | 31.73% |
| Refinance loans | 61.39% | 69.62% | 38.40% |
| Cash-out refinance | 26.69% | 19.01% | 29.63% |
Requirements
Newrez doesn’t publish all of its requirements for borrowers, but we’ve collected what’s available and included some general information below to help you set your expectations.
Newrez requires you to have a credit score of 580 or higher for an FHA loan. For a VA loan, you need to have a score of 600 or higher to avoid making a down payment. If you can make a 5% down payment, the credit score requirement drops to 560, though.
Newrez doesn’t specify its requirements for conventional loans, but you typically need a credit score of at least 620 and a down payment of at least 3%. (Most down payments on conventional loans are higher.)
National mortgage requirements by type
| Min. credit score | Min. down payment | Compare with other lenders | |
|---|---|---|---|
| Conventional | Typically 620 | Typically 3% | Mortgage lenders |
| FHA | 500 | 3.5% with 580 credit score | FHA lenders |
| VA | Set by lender (often 580) | 0% | VA lenders |
For other loan types, read our guides on jumbo loans, home equity loans, HELOCs and USDA loans.
Costs and fees
Newrez publishes a partial list of its fees, which is more than most lenders offer but not enough to accurately predict your closing costs ahead of time. In total, closing costs for a home purchase generally equal 2% to 5% of the loan amount. Closing costs may include lender fees, appraisal fees, real estate taxes, attorney fees and mortgage insurance premiums.
You won’t have to pick a lender with no information, though. After your application has been received, you’ll get a Loan Estimate that itemizes what your closing costs should be. You’ll also get a Closing Disclosure later on with the final totals for your costs and fees.
FAQ
What is Newrez?
Newrez is a nonbank mortgage lender that is licensed nationwide. It offers conventional and government-backed loan products, and you can use the Newrez app to upload documents and keep up with your loan’s progress.
Is Newrez legit?
Newrez is an operating company of Rithm Capital (formerly New Residential Investment Corp.). Newrez has been in business since 2008, and it originated $97.6 billion in loans in 2021.
In 2022, Newrez, doing business as Shellpoint Mortgage Servicing, agreed to a $500,000 settlement in a class-action lawsuit over misleading mortgage statements, though it did not admit wrongdoing.
Where is Newrez available?
Newrez is licensed in all 50 states, Washington, D.C., and several U.S. territories.
Newrez Reviews
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- 4,568,520 reviews on ConsumerAffairs are verified.
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- We use intelligent software that helps us maintain the integrity of reviews.
- Our moderators read all reviews to verify quality and helpfulness.
Reviewed Nov. 11, 2024
I inherited my mother's house in February of 2023. I lost my job in December of 2023 when the loan was sold to NewRez. I immediately asked them for a deferral payment. In April they filed foreclosure. Then decided to have me apply for deferral. Here we are in November, they have set a sale date and said they never received my paperwork.... LIES! I have emails to prove documents were sent. They are shady. I filed a complaint with Consumer Financial Bureau who is investigating. In the meantime, I have other help in the works. I do not want to deal with them. They are crooks!
Reviewed Sept. 13, 2024
Since my loan management was sold to Newrez it has been nothing but a nightmare. I have an adjustable HELOC that should fluctuate as interest rates go up and go down. All it’s done is gone up and never readjusted to the lowered interest over the last several months. I continue to pay a high rate and nobody will contact me, tell me what’s going on. It’s been a month since my first inquiry after several calls into customer service. I’ve requested call backs several times from someone in authority with no help…. Would someone from Newrex contact me?? Also they owe me money for the overpayments last few months as rates have steadily gone down…
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Reviewed Aug. 31, 2024
I have purchased several houses through the years and have excellent credit. When I went to close with NewRez, they had incorrect information I had pointed out prior to the signing. They hire a local "person" that does the closing and they cannot correct anything. This stalled my closing. I have been with them for several years and when I need to contact them it is impossible. There are many choices - DO NOT use NewRez and/or Loan Care. They are one in the same. AWFUL!
Reviewed May 8, 2024
Avoid NewRez / Shellpoint if at all possible. They purchased my condo mortgage and after a couple of years with no apparent problems, sent me letters saying they needed insurance information or would purchase a ‘hazard’ policy on my behalf. I sent in the required documentation, which they should have already had from the insurance companies (Homeowner policy plus HOA). Long story short, they ignored my policies, bought insurance, opened an escrow account, won’t properly apply my payments, and are threatening foreclosure. This was happening for close to 3 months before I even knew about it because of how slow they were to communicate.
When I found out, just after the Holidays, I tried to sort it out with them. Have re-provided everything, called a half dozen times, spent countless hours of my life, yet still no joy. All I get from them are threats, collections calls, and the occasional letter saying “because of the complexity of your matter it may take longer to resolve”. Meantime, they’ve hit my credit rating (multiple times over a 2 day period) and continue to harass me. If you have any problems with them at all, you’ll likely need a lawyer to fix it. That’s my next step, alas.
Reviewed March 12, 2024
Back on January 21st of 2024, I called Newrez mortgage company to inform them that on Feb 16th 2024 our homeowners insurance would be changing to a different company. I told them not to pay the current company and emailed them the bill from the new company. They said they would put a note in the file and would only pay the company I directed them to. Feb 8th 2024 I got an email from newrez telling me they had paid the company I had instructed them not to, of course this email was an automatic email sent after business hours, so I could not call them that day. Feb 9th 2024 I called them to find out why they had the wrong company, how they were going to get that money back, and when they would pay the correct company.
1) I was informed that no matter what notes are in a file, no matter what the homeowner says its policy to pay bills they receive no matter who they are from. So even if you go thru all the steps you need to, make those calls, talk to them they are going to do whatever they want. 2) They then informed me that I would be responsible for getting that payment back from the homeowners insurance company and there was nothing they could do to assist, they told me that the payment was sent as part of a "batch" payment there for they could not stop the check or get it refunded to them. 3) They told me that they would put a note on file to pay the current homeowners insurance (current homeowners insurance bill was due 2/16/24 and they didn't pay it until feb 21st 2024 putting my coverage in jeopardy all together).
After this call I went ahead and called the homeowners insurance company I had already canceled to find out how I could get my almost 4,145.58 payment back so that I could put it back into escrow, they told me they had not yet received the payment so there was nothing they could do at that point. I received an email from that insurance company saying they had gotten my payment on 2/19/24. Feb 20th 2024 - I called that insurance company again to find out how I would get that payment back, they told me they would send it out right away, after waiting for that payment to arrive for 2 weeks I called them again. March 5th 2024- The insurance company informed me that they don't have the money. That in fact despite what they told me on Feb 9th 2024 they did cancel the check and it never cleared with the insurance company.
March 5th 2024- I called Newrez again, to find out where my $4,145.58 was, the lady on the phone could not tell me where my money is, or who even has it. I expressed concern that if that money was not returned to my escrow account my mortgage payment would go up, the only thing she could tell me was if it went up I could request a special escrow review, This does not help me find my money, my first call back on Jan 21st of 2024 should have prevented all of this from happening but now where we are in march and my money is just gone, and no one can give me any answers. She said she was putting in a request for this to be handled and I that I would be getting a call by the end of the week (which would have been March 8th 2024). I have never gotten that call, I have never gotten a check.
March 12th 2024, I get an email from newrez saying my mortgage payment is going up to cover the escrow shortage, the escrow shortage they caused, the escrow shortage that should not be there, not only have a paid extra into escrow every single month, but I also lowered the insurance premium by $1,827.85. I reviewed all my statements. Feb 1st there was 5,106.27 in escrow account. Feb 9th taxes were paid leaving 4082.60 in the escrow account. Feb 21st the correct insurance company was paid leaving 1764.60 in the escrow account. March 1st 2024 I paid in 576.51 into escrow. My escrow balance should be $2341.11, They show $23.17, and no one can help me figure out where the $2,317.94 that should be in there has gone.
Reviewed Aug. 23, 2023
I began a refi with NewRez/PHH, my current mortgage company. After 4 long months, cost of appraisal - $600., repair to house trim- $1200; extension to hot water tank - $300; paid additional bills to prove they were up to date - $600.00 we finally satisfied the appraisal demands with underwriter. (never heard to this) but ok onward. We are now with paperwork and income verification which was a lot of repeated proof after 1 month. 3 months of bank statements, tax forms, check stubs, retirement award letters and more tax forms. They come back and say show us proof that you paid your last bill even though they could see it on the bank statements. This went on for another month. Our credit score is at a 670, but because it is low we need more proof. What? Why? How? Ok we continue to provide proof and get the news that government loans are strict and will not approve with 1 late in 12 months.
I explained this was a bank error, bank sent an apology accepting responsibility, but not NewRez/PHH. They changed it over to a conventional loan and here go another 2 months and start all over. I have not heard back from them since the start of conventional loan started. This was 7 days ago. Out of money, and deeper in debt than we started. DO NOT USE THIS COMPANY.
Reviewed June 7, 2023
As you can see by the vast majority of reviews, this is an extremely horrible company. If you can refinance with another company, it will definitely be worth it. The CSR's at this company are complete idiots and do not care one bit about customer service, as do their "supervisors". They say the lines are recorded, but by the way they all talk to customers, I would say that is an outright lie.
It extremely difficult to self service your loan, and when you call in, you would have an easier time getting the code for the vault at Fort Knox. They make it as difficult as possible to go through the process of verification, and you have to say the same things multiple times. There is no consistency among CSR's and you will get a different story from each and every one of them that you talk to. They will outright lie to you and call you a liar when you call them out on it. By all means possible, try to go with another company if your mortgage gets sold to these ridiculous people. The extra money it costs will definitely be worth not having the headache of dealing with this company.
Reviewed Oct. 20, 2022
I was assigned to this company when I refinanced my mortgage in January of 2022. In the time since I have had no problems of any kind. I do my business with them strictly online so I have never reached out to them and can't comment on their customer service.
Sources
- Federal Financial Institutions Examination Council, “ HMDA Data Publication .” Accessed July 6, 2022.
- Top Class Actions, “ Shellpoint Mortgage Servicing misleading statements $500K class action lawsuit settlement .” Accessed September 28, 2022.
- HousingWire, “ NewRez debuts 40-year non-QM mortgage product. .” Accessed September 28, 2022.
Newrez Company Information
- Company Name:
- Newrez
- Website:
- www.newrez.com
