About
Mr. Cooper is a mortgage lender that operates throughout the U.S. The company was founded in 1994 and is headquartered in Coppell, Texas.
In August 2017, the lender was relaunched as Mr. Cooper from Nationstar Mortgage Holdings. Mr. Cooper then acquired another lender, Pacific Union Financial, in early 2019, significantly expanding its reach as a nonbank mortgage originator.
It offers several mortgage loan products, including low down payment conventional, investment property, and FHA and VA loans. The lender also provides a “Close on Time Guarantee” for those purchasing a new home with a conventional loan. If the lender causes the closing to be delayed, it will send a check equal to the borrower’s entire first month’s mortgage principal and interest payment. Additionally, Mr. Cooper offers loan services to other businesses (B2B lending).
The company also provides digital tools and resources to help customers manage their mortgages and finances, such as an online account portal, mobile app, and financial wellness platform. Mr. Cooper is committed to providing personalized service and transparent communication to its customers, and has received numerous awards and recognition for its customer satisfaction and industry leadership.
Trustpilot’s rate is 4.4 out of 5. According to the Forbes advisor, it is one of the Best Online Mortgage Lenders 2022, with a rate of 4.0 out of 5.
Key Features
Some key features of Mr. Cooper mortgage company include:
- Multiple Mortgage Options. Mr. Cooper offers a wide range of mortgage options to cater to the varying needs of its customers. The company offers conventional, FHA, VA, and jumbo loans, as well as refinancing options.
- Online Tools and Resources. Mr. Cooper provides a range of digital tools and resources to help customers manage their mortgages and finances. These tools include an online account portal, mobile app, and financial wellness platform.
- Personalized Service. Mr. Cooper is committed to providing personalized service and transparent communication to its customers. The company assigns a dedicated mortgage professional to each customer to provide one-on-one guidance and support throughout the mortgage process.
- Customer Satisfaction. Mr. Cooper has received numerous awards and recognition for its customer satisfaction and industry leadership. The company has consistently ranked high in customer satisfaction surveys and has been recognized as a top mortgage servicer by J.D. Power.
- Affordable Payment Options. Mr. Cooper provides affordable payment options to help customers manage their mortgage payments. The company offers a bi-weekly payment option, which can help customers pay off their mortgage faster and save money on interest payments.
Pros and Сons
Pros
- Wide range of loan products. Mr. Cooper offers a variety of loan products, including conventional, FHA, VA, and USDA loans, as well as jumbo and fixed-rate mortgages. This means that borrowers have a range of options to choose from to meet their individual needs.
- Competitive interest rates. Mr. Cooper offers competitive interest rates on its loan products, which can help borrowers save money over the life of the loan.
- Customer service. Mr. Cooper has received high marks for customer service, with J.D. Power ranking it as a top mortgage servicer in its annual customer satisfaction survey.
- Online platform. Mr. Cooper has an online platform for loan applications and account management, which can be convenient for borrowers who prefer to manage their loan and make payments online.
- Educational resources. Mr. Cooper offers a variety of educational resources on its website, including articles and videos on home buying and mortgage lending, which can be helpful for borrowers who are new to the process.
Cons
- Limited branch locations. Mr. Cooper operates primarily as an online lender and mortgage servicer, which means it may not be the best option for borrowers who prefer to work with a local lender in person
- Fees. Mr. Cooper charges some fees for its loan products, such as an application fee and a loan origination fee, which can add to the overall cost of the loan.
- Customer service wait times. While Mr. Cooper has received high marks for customer service, some customers have reported long wait times on the phone or via chat when trying to get in touch with a representative.
- Credit score requirements. Like many lenders, Mr. Cooper has credit score requirements for its loan products, which may make it difficult for borrowers with lower credit scores to qualify.
- Limited loan options for self-employed borrowers. Mr. Cooper may not be the best option for self-employed borrowers, as it requires significant documentation of income and may not offer as many loan options for these borrowers.
Products
Mr. Cooper mortgage company offers various mortgage products, including:
- Conventional Loans. Mr. Cooper offers conventional loans with fixed and adjustable interest rates, flexible repayment terms, and down payment options as low as 3%.
- FHA Loans. Mr. Cooper provides FHA loans that are insured by the Federal Housing Administration, with lower down payment requirements and more flexible credit score requirements.
- VA Loans. Mr. Cooper offers VA loans to eligible veterans, active-duty military personnel, and their spouses, with no down payment requirements and lower interest rates.
- Jumbo Loans. Mr. Cooper provides jumbo loans for home purchases that exceed the conforming loan limit, with flexible terms and competitive interest rates.
- Refinance Loans. Mr. Cooper offers various refinancing options, including rate-and-term refinancing, cash-out refinancing, and streamline refinancing for FHA and VA loans.
- Home Equity Loans. Mr. Cooper provides home equity loans to customers who want to borrow against the equity in their homes to finance major expenses, such as home improvements, college tuition, or debt consolidation.
- Home Improvement Loans. Mr. Cooper offers home improvement loans to customers who want to finance home renovations and repairs, with flexible repayment terms and competitive interest rates.
Reliability
Mr. Cooper is a reliable mortgage company, with a reputation for providing quality service and transparent communication. The company has been in the mortgage business for over 25 years and has served millions of customers. Mr. Cooper is one of the largest non-bank mortgage servicers in the United States, with over $500 billion in loan servicing. The company is committed to providing personalized service and support to its customers, with a dedicated mortgage professional assigned to each customer. Mr. Cooper also provides digital tools and resources to help customers manage their mortgages and finances, including an online account portal, mobile app, and financial wellness platform. The company has received numerous awards and recognition for its customer satisfaction and industry leadership, including being ranked as a top mortgage servicer by J.D. Power. Overall, Mr. Cooper is a reliable and trustworthy mortgage company that is dedicated to helping customers achieve their homeownership goals.
Funding a Loan
Mr. Cooper mortgage company funds loans through a variety of sources, including its own funds, lines of credit from other financial institutions, and mortgage-backed securities (MBS). When a customer applies for a loan, Mr. Cooper reviews the application and determines the loan amount and terms based on the customer's credit history, income, and other factors. If the loan is approved, Mr. Cooper funds the loan by providing the necessary funds to the customer's chosen settlement agent or attorney. The customer then signs the loan documents, and the loan is recorded with the appropriate county or state recorder's office. After the loan is funded, Mr. Cooper may service the loan by collecting monthly payments, managing escrow accounts, and providing customer support. In some cases, Mr. Cooper may sell the loan to another investor, such as a government-sponsored enterprise or a private investor, while retaining the right to service the loan.
Pre-approval time can vary depending on the loan’s type, but it typically takes between one and three days. Closing time is an average of 30-45 days.
Additional Services
In addition to its mortgage products, Mr. Cooper offers a range of additional services to help customers manage their mortgages and finances, including:
- Online Account Management. Mr. Cooper provides an online account portal that allows customers to view their mortgage information, make payments, and manage their accounts.
- Mobile App. Mr. Cooper offers a mobile app that allows customers to access their mortgage information, make payments, and manage their accounts from their mobile devices.
- Financial Wellness Platform. Mr. Cooper provides a financial wellness platform called "Mr. Cooper with Home Intelligence" that offers tools and resources to help customers manage their finances, build savings, and achieve their financial goals.
- Home Rewards. Mr. Cooper offers a program called "Home Rewards" that allows customers to earn cash back when they buy or sell a home through a participating real estate agent.
- Insurance Services. Mr. Cooper offers home insurance and other insurance services through its subsidiary, Xome Insurance Services.
- Real Estate Services. Mr. Cooper provides real estate services through its subsidiary, Xome, which offers a range of services, including real estate brokerage, title and escrow, and auction services.
Terms and conditions
Mr. Cooper provides conventional and government-insured mortgages, such as FHA and VA loans. Like some other lenders, it offers down payments as little as 3% on conventional loans and 3.5% on FHA loans, which may be very beneficial to first-time home purchasers.
Mr. Cooper also offers credit score flexibility. FHA minimum is 580 while VA is 600. The lender may use unconventional credit data with manual underwriting to increase FHA applicants' chances of qualifying.
Mr. Cooper offers 30-year and 15-year conventional loans for fixed-rate mortgages (FRM) and adjustable-rate mortgage loans (ARM), FHA, and VA loan rates every day. These rates assume a 740 credit score, two discount points, and a 30% down payment. So not everyone can get the lowest rates. The company's website can always get information about the current loan amount, interest rate, APR, and loan duration.
Mr. Cooper also offers FHA and VA loan refinancing. By applying for an FHA Streamline Loan, you can refinance your existing mortgage loan to a new, lower interest rate. With VA IRRRL (Interest Rate Reduction Refinance Loan), you may be able to refinance your VA loan to reduce your interest rate.
Mr. Cooper customers may get a purchase loan discount. Existing clients obtaining a purchase loan may be eligible for a 0.5% credit to buy discount points. This is $500 per $100,000 funded.
Borrowers can lock in a mortgage rate for 90 days and pay to extend it. Mr. Cooper closes loans in 30-45 days and guarantees them. Mr. Cooper will pay a borrower's first principal-and-interest payment if they don't close on time.
Besides typical mortgages, the company provides cash-out debt consolidation refinancing options to consolidate high-interest debts. Credit cards, medical expenses, taxes, personal and payday loans, or student loans can all be combined into a single new mortgage loan with a cheaper interest rate.
Mr. Cooper vs Quicken Loans
Mr. Cooper and Quicken Loans are both well-known mortgage companies that offer a variety of loan products and services to borrowers. Here are some key differences between the two companies:
- Loan Products. Mr. Cooper offers a range of loan products, including conventional, FHA, VA, and USDA loans, as well as jumbo and fixed-rate mortgages. Quicken Loans also offers a variety of loan options, including conventional, FHA, VA, and jumbo loans, as well as adjustable-rate and fixed-rate mortgages.
- Servicing. Mr. Cooper is primarily a mortgage servicer, meaning that it services loans for a variety of investors, including Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). Quicken Loans also services loans, but the majority of its business is focused on loan origination.
- Technology. Quicken Loans has developed its own online platform, Rocket Mortgage, which allows borrowers to apply for and manage their mortgage loans entirely online. Mr. Cooper also has an online platform for loan applications and account management, but it does not offer the same level of automation as Rocket Mortgage.
- Customer Service. Both Mr. Cooper and Quicken Loans have received high marks for customer service, with Mr. Cooper ranking as a top mortgage servicer in J.D. Power's annual customer satisfaction survey and Quicken Loans consistently ranking as the top mortgage originator.
- Availability. Mr. Cooper is available in all 50 states, while Quicken Loans is not licensed in every state.
Ultimately, the best mortgage company for you will depend on your individual needs and preferences. It is recommended that you compare multiple lenders and loan options to find the best fit for your financial situation.
Mr. Cooper vs PennyMac
Mr. Cooper and PennyMac are both mortgage companies that offer a range of loan products and services to borrowers. Here are some key differences between the two companies:
- Loan Products. Mr. Cooper offers a variety of loan products, including conventional, FHA, VA, and USDA loans, as well as jumbo and fixed-rate mortgages. PennyMac offers similar loan products, including conventional, FHA, VA, and jumbo loans, as well as adjustable-rate and fixed-rate mortgages.
- Servicing. Mr. Cooper is primarily a mortgage servicer, meaning that it services loans for a variety of investors, including Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). PennyMac also services loans for a variety of investors, but it also offers a number of its own proprietary loan products.
- Technology. Mr. Cooper has an online platform for loan applications and account management, but it does not offer the same level of automation as some other lenders, such as Quicken Loans. PennyMac offers an online platform for loan applications and account management, but its technology is not as advanced as Quicken Loans or other digital-focused lenders.
- Customer Service. Both Mr. Cooper and PennyMac have received high marks for customer service, with Mr. Cooper ranking as a top mortgage servicer in J.D. Power's annual customer satisfaction survey and PennyMac earning high marks for its loan servicing.
- Availability. Mr. Cooper is available in all 50 states, while PennyMac is licensed in 49 states (excluding New York).
Ultimately, the best mortgage company for you will depend on your individual needs and preferences. It is recommended that you compare multiple lenders and loan options to find the best fit for your financial situation.
Mr. Cooper vs Rocket Mortgage
Mr. Cooper and Rocket Mortgage are both popular mortgage companies that offer a range of loan products and services to borrowers. Here are some key differences between the two companies:
- Loan Products. Mr. Cooper offers a variety of loan products, including conventional, FHA, VA, and USDA loans, as well as jumbo and fixed-rate mortgages. Rocket Mortgage offers similar loan products, including conventional, FHA, VA, and jumbo loans, as well as adjustable-rate and fixed-rate mortgages.
- Servicing. Mr. Cooper is primarily a mortgage servicer, meaning that it services loans for a variety of investors, including Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). Rocket Mortgage primarily focuses on loan origination, but it does offer some loan servicing options.
- Technology. Rocket Mortgage has developed its own online platform that allows borrowers to apply for and manage their mortgage loans entirely online. Mr. Cooper also has an online platform for loan applications and account management, but it does not offer the same level of automation as Rocket Mortgage.
- Customer Service. Both Mr. Cooper and Rocket Mortgage have received high marks for customer service, with Mr. Cooper ranking as a top mortgage servicer in J.D. Power's annual customer satisfaction survey and Rocket Mortgage earning high marks for its online customer experience.
- Availability. Mr. Cooper is available in all 50 states, while Rocket Mortgage is available in all states except for New York.
Ultimately, the best mortgage company for you will depend on your individual needs and preferences. It is recommended that you compare multiple lenders and loan options to find the best fit for your financial situation.
Mr. Cooper vs Mutual of Omaha Mortage
Mr. Cooper and Mutual of Omaha Mortgage are both mortgage companies that offer a range of loan products and services to borrowers. Here are some key differences between the two companies:
- Loan Products. Mr. Cooper offers a variety of loan products, including conventional, FHA, VA, and USDA loans, as well as jumbo and fixed-rate mortgages. Mutual of Omaha Mortgage offers similar loan products, including conventional, FHA, VA, and jumbo loans, as well as reverse mortgages.
- Servicing. Mr. Cooper is primarily a mortgage servicer, meaning that it services loans for a variety of investors, including Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). Mutual of Omaha Mortgage primarily focuses on loan origination, but it does offer some loan servicing options.
- Technology. Mr. Cooper has an online platform for loan applications and account management, but it does not offer the same level of automation as some other lenders, such as Rocket Mortgage. Mutual of Omaha Mortgage also has an online platform for loan applications and account management, but its technology is not as advanced as Rocket Mortgage or other digital-focused lenders.
- Customer Service. Both Mr. Cooper and Mutual of Omaha Mortgage have received high marks for customer service, with Mr. Cooper ranking as a top mortgage servicer in J.D. Power's annual customer satisfaction survey and Mutual of Omaha Mortgage earning high marks for its loan origination process.
- Availability. Mr. Cooper is available in all 50 states, while Mutual of Omaha Mortgage is licensed in 49 states (excluding New York).
Ultimately, the best mortgage company for you will depend on your individual needs and preferences. It is recommended that you compare multiple lenders and loan options to find the best fit for your financial situation.