Mr. Cooper mortgage loan at a glance
- Conventional loans: Yes
- FHA loans: Yes
- VA loans: Yes
- Refinancing: Yes
- Jumbo loans: No
- Adjustable rates: Yes (3/1, 5/1, 10/1)
- Fixed rates: Yes
Mr. Cooper, formerly Nationstar Mortgage, is a Dallas-based mortgage lender offering digital tools, a mobile app and an on-time closing day guarantee. Like many other lenders, Mr. Cooper offers conventional and government-backed mortgages including VA and FHA purchase loans and refinances. But this lender also has what it calls its “perks” — including a closing day guarantee and an offer to pay for qualifying local moves.
Pros
- Variety of mortgage and refinance options
- The lender may guarantee your closing date (conditions apply)
- If you move within 50 miles, Mr. Cooper may cover the cost within approved zip codes
Cons
- You must contact the lender for a custom mortgage rate quote
- Prequalification requires talking to a representative
- Targeted in a 2020 complaint by the Consumer Financial Protection Bureau for deceptive and unfair business practices as Nationstar Mortgage, LLC from 2012 to 2016.
7 things to know about a Mr. Cooper mortgage loan
1. Guaranteed closing dates
If your offer is accepted on a home and you settle on a closing date, Mr. Cooper guarantees your closing process will happen on time (with qualifying conditions). If the loan does not close on time, Mr. Cooper may offer to pay an amount equal to the principal and interest of your first monthly mortgage payment. This payment is offered in the form of a check sent to you — it is not applied to your mortgage balance.
Conditions apply, including a requirement that you apply for the mortgage electronically, and provide all necessary documentation within 24 hours of applying (or within 24 hours of request by the lender). This offer does not apply to FHA, VA or other “non-conventional” mortgages.
2. Moving expenses
If you are approved for a Mr. Cooper mortgage and your move is less than 50 miles away from your current address, the lender may offer pay expenses related to your move.
Note that this offer is only good in certain zip codes — you can enter your zip code on the company’s website to find out if you qualify.
3. Tools and calculators
Mr. Cooper offers a few digital tools, including mortgage calculators, to help you work through your financial decisions. The lender’s mobile app helps you monitor your mortgage application from start to finish — and once your application is complete, you can use the app for things like accessing your loan information and viewing detailed information about your property, for example.
On Mr. Cooper’s website, you can use its online loan calculator to figure out how much your monthly mortgage payment might be, if you’re thinking about getting a home loan — or how much to expect in savings from certain kinds of refinance loans.
4. Prequalification requires assistance
If you’re interested in getting prequalified for a mortgage with Mr. Cooper, you’ll get started by filling out a form on the lender’s website with some preliminary info. A representative will contact you for next steps.
5. Generic mortgage interest rate information
Mr. Cooper does post sample mortgage rates on its website, but they are specifically for refinance of a $400,000 single-family home in California. Those posted rates assume a credit score of at least 740 and include mortgage points.
These rates may not be accurate for the average customer. You’ll have to contact the lender for a customized rate quote.
6. No physical locations
There are no branch locations listed on the company’s website — if you need to get in touch with the lender, you’ll have to call customer service. Current customers can sign into the online messaging center.
7. Legal trouble for ‘harming’ borrowers
The Consumer Financial Protection Bureau (CFPB) filed a complaint against the lender in 2020 when it was known as Nationstar Mortgage. The CFPB alleged Nationstar Mortgage violated “multiple federal consumer financial laws,” causing “substantial harm” to borrowers, including distressed homeowners.
A proposed judgment called for Mr. Cooper to pay $73 million to some 40,000 harmed borrowers, and an additional $1.5 million penalty to the CFPB. The proposed judgment was accepted and entered by the court in December 2020.
Who is a Mr. Cooper loan good for?
Mr. Cooper offers a variety of mortgage options, including conventional loans, VA loans, FHA loans and refinancing. You can also choose between fixed-rate or adjustable rate options.
This lender may be worth considering if you are worried about potential delays in getting to closing day. Once you’ve locked in a closing date, the Mr. Cooper “close on time” guarantee may bring you some peace of mind.
Terms and conditions will apply, including the “within 24 hours” response time required from you for certain portions of the loan process. It’s important to read the fine print.
How to apply for a Mr. Cooper mortgage
If you’re interested in buying a home through Mr. Cooper, you can start by getting prequalified online. Once you’ve filled out the online form, a representative will contact you to discuss your options.
From there, you’d have the option to lock in an interest rate for 45 days at no additional cost.
Not sure if Mr. Cooper is right for you? Consider these alternatives.
If you want to compare rates with several lenders or your application is denied, keep in mind that you have a window of time where multiple hard credit inquiries by lenders only count as one for your credit scores. You typically have 14 days — though it could be longer depending on the scoring model.
- Freedom Mortgage: Freedom Mortgage offers a variety of mortgage options plus buyer-friendly tools like a home affordability calculator and mortgage education.
- Better Mortgage: Better Mortgage’s home purchasing options could be a good choice.