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finder.com’s rating: 3.5 / 5.0
★★★★★
Nationstar Mortgage rebranded itself in August 2017 and has since been doing business as Mr. Cooper. The mortgage provider has a small suite of home loans available and boasts a couple of money-saving programs. But dubious customer experiences and former questionable practices make Mr. Cooper a risky choice.
Conventional: 620
Minimum credit score
5%
Minimum down payment (Conventional)
Available in all states
State availability
Loan products offered | Conventional, Jumbo, FHA, VA, Refinance |
---|---|
Minimum credit score | Conventional: 620 |
Minimum down payment (Conventional) | 5% |
State availability | Available in all states |
NMLS # | 2119 |
Mr. Cooper is not currently available on Finder
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Mr. Cooper’s footprint is where it truly stands out. The lender offers its mortgage products in many US territories that other lenders of its size can’t or won’t reach. Other than that, Mr. Cooper’s offerings are fairly standard, with no specialty mortgage products.
More importantly, Mr. Cooper has two government actions and a current Consumer Financial Protection Bureau (CFPB) investigation underway, which makes it hard to recommend the lender.
The Consumer Financial Protection Bureau (CFPB) issued a warning statement about Mr. Cooper on April 27, 2021. Recent complaints state that Mr. Cooper has been debiting borrowers’ bank accounts multiple times, resulting in duplicate payments, overdraft fees and other losses.
While it’s still investigating these withdrawals, the CFPB states that it will attempt to resolve the situation quickly. If Mr. Cooper services your mortgage, monitor your bank accounts and report any duplicate payments to Mr. Cooper. Or you can directly submit complaints to the CFPB’s website.
Qualifying for a loan with Mr. Cooper depends on various factors, including your creditworthiness, your debt-to-income ratio and your home’s loan-to-value ratio.
The type of loan you want also plays a factor. For example, FHA requires a 3.5% minimum down payment for its loans, while a VA loan may require no down payment to borrowers who qualify.
This lender doesn’t provide specific outlines for these requirements, but you can apply for prequalification before submitting a full mortgage application.
Mr. Cooper doesn’t provide an official documents list, but you’ll want to gather the following information before you apply:
Loans can carry different fees based on what type you’re applying for, but there are some general fees you can expect to pay throughout the process.
Start your application process with Mr. Cooper online or over the phone.
Find a few other options with Mr. Cooper, including:
This lender offers a pretty standard set of mortgage options with no specialty loans or mortgage programs geared towards first-time borrowers. But if you’re applying for a conventional mortgage, Mr. Cooper’s Close On Time Guarantee may be attractive to you.
But with its slim selection of loans and less-than-transparent pricing, you may prefer to go with another lender.
For a greater array of mortgages, Draper & Kramer Mortgage, Guaranteed Rate, North American Savings Bank and Stearns Lending offer an impressive range of options for borrowers of all types, overwhelmingly positive customer reviews and in some cases, greater underwriting flexibility.
Or, if you want to minimize interactions with a loan officer, save on fees and get faster preapproval, consider a 100% digital lender like Better or Beeline. Neither charge origination fees, and you can apply online 24/7 to get a preapproval letter that you can use to negotiate with sellers.
Compare top brands by home loan type, state availability and credit score. Select See rates to get a personalized quote today.
As of August 2022, the Better Business Bureau (BBB) profile for Mr. Cooper doesn’t paint a good picture of the company. Mr. Cooper has closed 1,607 complaints over the last three years, and out of 496 customer reviews, it scores 1.11 out of 5 stars. It’s not accredited and holds a B+ ranking from the BBB for two government actions taken against it.
Reviews on Trustpilot rate Mr. Cooper fairly well. With 2,263 reviews, the lender earned a TrustScore of 4.4 out of 5 stars.
Mr. Cooper, formerly Nationstar Mortgage, is a mortgage provider based in Dallas, Texas. Several settlements and government actions against Mr. Cooper were resolved in 2018, including suits by the California Department of Business Oversight and New York Department of Financial Services — as well as a fine by the state of Massachusetts. But in addition to the current CFPB investigation, the lender has had two government actions taken against it in the last two years.
In December 2020, Mr. Cooper/Nationstar was required to pay $73 million in redress to its loan customers and $1.5 million in fines to the CFPB for causing what CFPB called “substantial harm” to over 40,000 borrowers.
Complaints included mishandled loan modifications, unlawful foreclosures, failing to make tax payments from borrower escrow accounts and refusing to terminate private mortgage insurance after it was no longer required. Representatives from Mr. Cooper acknowledged the issues and claimed that management took steps to address the problems during the investigation.
In March 2021, the New York Attorney General’s office settled with Champion Mortgage, the division of Mr. Cooper/Nationstar that handles reverse mortgages, after allegations that the servicer gave misleading information to borrowers who were at risk of losing their homes. Champion agreed to pay $500,000 to a program in New York designed to protect senior citizens who have reverse mortgages.