Mr. Cooper is the newly branded consumer arm for the mortgage servicing and originations operation of Nationstar Mortgage. As one of the largest non-bank lenders, Mr. Cooper offers a wide variety of options for new borrowers and refinancers alike, with a couple bells and whistles thrown in to set themselves apart.
Mr. Cooper’s branding has a friendly, conversational tone, a departure from the more staid look and feel of traditional financial institutions and even of its own parent company.
The rebrand is an effort to improve the experience for their customers and grab more of the market share while also retaining existing clients.
Mr. Cooper Snapshot
- New borrowers can start their application online, but will have to eventually call in to complete it. The good news is that Mr. Cooper’s customer service hours are longer than traditional brick-and-mortar banks on Mondays through Thursdays.
- Borrowers will find a wide range of loan options, from standard and adjustable-rate loans to VA, FHA and even jumbo loans.
- Credit score requirements begin at 620 and are even lower for some loans, such as FHA loans.
- Available in all states except Hawaii and Alaska.
What it offers
With competitive rates and a wide range of options for consumers, Mr. Cooper is a strong player in the market today. For people who want to buy a home, they offer traditional fixed-rate loans with terms that go from less than ten years to thirty years. You can also get an adjustable-rate mortgage and even a jumbo mortgage, which is a larger loan that can exceed $2 million.
Mr. Cooper also offers government-backed loans, including FHA and VA loans, in addition to a VA Interest Rate Reduction Refinance Loan (IRRRL). This helps people with VA loans refinance to get a lower rate.
Customers who make payments online won’t have to pay any service fees. However, if you wish to pay by phone you could end up being charged up to $19 per transaction.
Another unique product is Mr. Cooper’s Home Rewards Mastercard, only available to Mr. Cooper customers. Every 2,500 points you accrue on the card becomes a $25 payment against your loan’s principal.
Minimum borrower requirements
For most loans, Mr. Cooper’s qualifying credit score is 620 and, although it varies, the ideal minimum down payment is about 20 percent.
However, for FHA loans these numbers are greatly reduced. Applicants must have a 580 FICO score, just 3.5 percent of the down payment and purchase both up-front as well as monthly mortgage insurance
How to apply
Applicants can start their application online, but will need to talk to a Mr. Cooper agent via phone to finalize the deal.
What fees you will pay
Mr. Cooper charges a flat-rate origination fee. Unlike most lenders instead of paying a percentage of the total borrowed amount, the borrower pays a fixed rate regardless of the loan amount. However, this rate varies by loan type.
There is also a mortgage application fee. Title searches, inspections, surveys, and other services can either be provided by Mr. Cooper or a third party, which gives borrowers a chance to compare prices.
Borrowers will also have the option to buy down the rate at closing.
Mr. Cooper offers a rewards credit card that allows you to apply points to your principal.
The customer service center is based in the United States and has long hours, starting from 7 a.m. until 8 p.m. CST Monday through Thursday; 7 a.m. to 6 p.m. CST on Fridays and 8 a.m. to 2 p.m. CST on Saturdays.
People who might not qualify for conforming loans can explore government-backed options, like VA and FHA loans.
There are no brick-and-mortar locations, which can be a drawback for people who prefer face-to-face interaction.
Some information is not available online, such as loan origination fee costs as well as minimum credit score requirements, which can slow down comparison shopping for some folks.
What people are saying
There are consistent positive reviews about Mr. Cooper’s customer service performance. On Consumer Affairs, customers sings the lender’s praises when it comes to explaining products and walking them through application processes as well as other necessary paperwork.
Some of the common problems reported include inconsistent pricing, whereby customer service representatives quoted different fees for the same service at different times. There have also been several complaints about payments not being recorded or being lost, setting off a domino effect of late-payment fees and customers having to scramble to get the problem sorted out.
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