Mr. Cooper (Nationstar) Mortgage Review for 2020

Mr. Cooper offers mortgage loans for home purchases and refinancing. Find out if Mr. Cooper is the best mortgage lender for you.

Lending flexibility 4.0
Customer service 3.5
Ease of application 2.5
Online experience 4.0
Minimum down payment 5%
Minimum credit score 580
Loan Products Offered

Fixed-rate mortgage
Adjustable-rate mortgage
FHA mortgage
VA mortgage

Best Features

  • Available in all 50 states
  • May help borrowers with challenging credit histories
  • After applying, you can upload documents online

Drawbacks

  • Mortgage rates are on the higher end, on average
  • No online application
  • No brick-and-mortar branches

Overview

Mr. Cooper — formerly called Nationstar Mortgage — offers home purchase loans and mortgage refinancing in all 50 states.

Borrowers can access conventional, FHA, and VA mortgages through Mr. Cooper. The company does not offer USDA loans or any other niche products.

As for mortgage rates and fees, Mr. Cooper looks a bit more expensive than other major lenders on average.

However, interest rates vary a lot by customer. If you compare personalized mortgage rates and fees from a few different mortgage companies, you might find that Mr. Cooper is the most affordable option for you.


Mr. Cooper mortgage rates 

Looking at average interest rates from 2019 (the most recent data available), Mr. Cooper appears to have higher mortgage rates than other major lenders. 

Average 30-year mortgage rates at major lenders

 
Mr. Cooper
Wells Fargo 
Quicken Loans
Chase
Average 30-Year Interest Rate, 20191
4.44% 4.22% 4.16% 4.22%
Monthly P&I Payment*
$1,006 $980 $973 $980
Median Loan Costs, 2019
$5,450 $3,484 $5,075 $3,440
Median Origination Charge, 2019
$1,475 $1,199 $2,085 $1,279

But, it’s important to remember that rates vary by customer.

In addition, Mr. Cooper may be willing to help applicants with credit scores below 600. And helping lots of lower-credit borrowers can skew a company’s average rates higher. 

If you’re thinking about getting a mortgage from Mr. Cooper, make sure to compare rates from a few other lenders so you know you’re getting the best deal. 

Average rate and fee data were sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).

*Monthly principal and interest payment based on a $250,000 home price, with 20% down, at each company’s average 30-year interest rate for 2019. Your own rate and monthly payment will vary.

Verify your new rate (Dec 3rd, 2020)

Mr. Cooper mortgage review for 2020

Aside from its rates and fees, here’s what borrowers should know about Mr. Cooper.

  • Mr. Cooper has an “A” rating from the Better Business Bureau
  • The company seems to receive more customer complaints than other major lenders; however, many of those complaints have to do with Mr. Cooper’s loan servicing branch (which is not the one you’ll deal with if you’re applying for a mortgage)
  • There’s no option to apply online. But after submitting an application, there are options to upload documents and track your loan status online

It seems a bit odd that a company with a good mobile app and online services doesn’t offer web-based applications.

To be fair, the company says that talking directly with a loan officer helps customers find the best type of mortgage. But if you really want an all-online process, this might not be the company for you.

One potential benefit of working with Mr. Cooper is the company’s Close-On-Time Guarantee.

This guarantee states that “If your closing is delayed because of something on our end, we’ll cover your first month’s mortgage payment (principal and interest).”

In addition, Mr. Cooper customers might be able to take advantage of the Mr. Cooper Real Estate Rewards program. The company says home buyers can “potentially save thousands” on real estate agents’ fees and through a buyers’ bonus credit.

But to access those savings, you have to use an agent within the company’s StreetSmarts network, which is managed by Mr. Cooper affiliate Xome.

Working with Mr. Cooper (Nationstar Mortgage) 

As we mentioned, you have to go through a loan officer to begin and complete your application. And you have to do that by phone or email, because there are no branches open to the public.

When you get a rate quote from Mr. Cooper, your loan officer may carry out a “soft” credit check to get a feel for your credit score and point you toward the right loan program. But such checks don’t affect your score.

Only when you submit a full loan application will a “hard” credit check be carried out.

Once your application is out of the way, the process becomes more 21st century.

You can securely upload your supporting documentation and monitor your application’s progress from any device, including your smartphone.

And speaking of that, Mr. Cooper says its nifty app has won awards. Indeed, you can even prequalify using it.

This app also lets you monitor your application’s progress 24/7. And, after closing, you can use it to manage your home loan.

Mr. Cooper customer service reviews

Relative to the number of customers it has, this company gets more complaints filed against it with the Consumer Financial Protection Bureau than some of its peers.

As for Mr. Cooper’s customer reviews, these seem to be mixed.

For example, on the day this was written, 87% of reviews on Trustpilot rated Mr. Cooper either “excellent” (77%) or “great.” But other forums have less kind customer reviews.

Company
Mortgage Originations 2019
CFPB Complaints 2019
Complaints Per 1,000 Mortgages
2020 JD Power Rating
Mr. Cooper
223,000 161 0.72 832/1,000
Wells Fargo
1,026,800 342 0.33 840/1,000
Quicken Loans
774,900 187 0.24 883/1,000
Chase
527,600 188 0.36 860/1,000

It’s worth noting that a big part of Mr. Cooper’s business is “servicing” loans. This involves collecting monthly payments and conducting the day-to-day management of loans.

Often, the mortgages Mr. Cooper services were originated by other lenders — and mortgage servicing is an area that frequently creates ill will.

So the complaint numbers above might not be as applicable to borrowers applying for a new loan through Mr. Cooper.

But one thing you may want to ask is whether your mortgage will be serviced by Mr. Cooper or sold to another servicing company after it’s closed. Because this could affect your satisfaction with the company long-term.

Mortgage loan products at Mr. Cooper

Mr. Cooper offers a useful but not especially wide range of loans. Where available, you can opt for an adjustable-rate mortgage (ARM) or a fixed-rate one.

The home loans Mr. Cooper offers include:

  • Conventional loans — You’ll likely need a credit score of 620 or higher and a down payment of at least 5% to get a conventional loan with Mr. Cooper. If you have 20%, you won’t pay for mortgage insurance
  • HomeReady & Home Possible loans — These loan programs backed by Fannie Mae and Freddie Mac typically allow down payments starting at 3% and are geared toward lower-income or first-time home buyers. A home buyer education course is usually required
  • FHA loans — Backed by the Federal Housing Administration and available to those with somewhat damaged credit. You need a down payment of 3.5%. Look out for expensive mortgage insurance
  • VA loans — Almost exclusively for veterans and those still serving in the armed forces, VA loans offer zero down payment, no continuing mortgage insurance, and low rates. Mr. Cooper requires a credit score of 600 or higher for a VA loan

Mr. Cooper doesn’t offer USDA loans, so if you need one of those, you’ll have to look elsewhere.

Refinancing with Mr. Cooper

Mr. Cooper offers conventional, FHA, and VA refinancing in addition to its home purchase loans.

Homeowners with a current FHA or VA mortgage may qualify for Streamline Refinancing. These low-doc refinance programs let you get a lower rate and payment more easily than other refinance options.

Mr. Cooper also offers conventional and FHA cash-out refinances. But to get one of these, you’ll need a credit score of at least 660.

Where can I get a mortgage with Mr. Cooper? 

Mr. Cooper is licensed in all 50 states and Washington DC. So it can lend pretty much anywhere.

But it doesn’t have branches that are open to the public. So you’re going to interact with its people through email, online, and over the phone.

When you’re ready to apply, you can either call or complete a callback form on the website.

Mr. Cooper suggests that getting personal advice from an expert should more effectively guide prospective borrowers toward the right choice of mortgage product.

Is Mr. Cooper the best mortgage lender for me? 

Is Mr. Cooper the best mortgage lender for you? Well, that depends more on you than the lender itself.

If Mr. Cooper offers the type of loan you need, it might be a contender.

But as always, you’ll want to compare rates and fees from a few different companies.

Looking at the costs on your Loan Estimates side by side is the surest way to know which lender can offer you the best deal on your mortgage.

Verify your new rate (Dec 3rd, 2020)

Compare to These Lenders

Minimum down payment: 3%
Minimum credit score: 580
Minimum down payment: 3%
Minimum credit score: 620
Minimum down payment: 3%
Minimum credit score: 620

Sources:

  1. Average mortgage rates and fees sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act. Rates and fees shown reflect the previous year’s data and may not align with today’s mortgage rates
  2. Monthly principal and interest payments calculated using TheMortgageReports.com mortgage calculator. Payments shown are based on a $200,000 loan amount and assume a “very good” credit score. Property taxes and homeowners insurance are not included. Your own monthly payment will vary
  3. Number of mortgage originations for the previous year sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act
  4. CFPB Complaints reflect the number of mortgage origination or closing-related complaints filed with the Consumer Financial Protection Bureau for the previous year
  5. Complaints per 1000 mortgages reflect the number of official complaints filed against a lender with the CFPB for the previous year, compared to the lender’s total number of mortgage originations for the previous year
  6. JD Power Rating reflects the company’s customer satisfaction score according to JD Power’s most recent Primary Mortgage Origination Satisfaction Study. Survey respondents score their lenders in four areas: application/approval process, communication, loan closing, and loan offerings