Mr.
Cooper is one of the
largest non-bank mortgage servicers in the U.S. The company was founded in 1994
and is headquartered in Dallas. According to Bloomberg, the company changed its
name in 2006 from Centex Credit Corporation to Nationstar Mortgage, LLC.
In late 2017, the company rebranded to to its current setup.
Mr.
Cooper provides only
mortgages and loans — it doesn’t offer any banking, investment or other
financial products. It does, however, offer a wide range of mortgage products,
including fixed-rate mortgages, adjustable-rate mortgages, FHA streamline and
regular loans, VA home loans and interest rate reduction refinance (IRRRL)
loans, and jumbo loans. The company website states that Mr. Cooper serves
3.8 million customers and is a top-15 loan originator in the U.S, as of September
2019.
What
is Mr. Cooper?
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.
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.
What
Kind of Mortgage Can I Get With Mr. Cooper?
In the words of Mr. Cooper, “your loan
shouldn’t be one size fits all. It should be the one size that fits you.” True
to that statement, the company offers an extensive range of loan options to fit
almost every buyer’s needs.
Fixed-rate mortgage: Mr. Cooper offers fixed-rate
mortgages in 10-, 15-, 20-, or 30-year terms. The interest rate does not change
for the duration of the loan — your rate is locked in. The fixed-rate mortgage
is a dependable home loan option, as you know exactly what you’re getting. The
steady monthly payments with a fixed-rate mortgage can make it easier to budget
and is ideal for those planning to stay put for a long time.
Adjustable-rate mortgage: Also known as an ARM, this mortgage
option has an introductory rate period of three, five or 10 years where the
interest rate is fixed. After the introductory period expires, the interest
rate will change each year depending on national rate indexes. Your loan terms
will specify a maximum interest rate that your loan cannot exceed.
Federal Housing Administration (FHA)
loan: This
government-insured loan may be a good option if you have limited income and
funds for a down payment, and/or a lower credit score. SmartAsset put together
a comprehensive guide to FHA loan qualifications if you want to take a deeper
dive. You can put as little as 3.5% down when you get an FHA loan from Mr.
Cooper. Mortgage insurance and an escrow account are required for this type of
loan.
FHA Streamline loan: If you already have an FHA loan and
want to refinance to a lower payment, you have this option at Mr. Cooper.
Streamline refinancing is a quicker process with simple document requirements,
but does involve fees.
Veterans Affairs (VA) loan: These mortgages are backed by the
Department of Veterans Affairs. If you are a current or former member of the
U.S. military, you may be eligible for this mortgage. You can find out more
about VA loans on the government site. With Mr. Cooper you can get a VA
loan with a fixed-rate mortgage.
VA Interest Rate Reduction Refinance
loan (IRRRL): If
you already have a VA loan, the IRRRL is a way to lower your monthly payment.
However, it does require a funding fee to execute.
Jumbo loan: If you need to borrow a home loan
that exceeds the particular conforming loan limit in the area in which you are
buying, you will be in the market for what is known as a jumbo loan. In most of
the United States, jumbo loans are ones that are greater than $548,250.
However, in some counties with pricey real estate, the conforming loan limit is
as high as $822,375, meaning that buyers can take out mortgages up to that
amount before their mortgage is a considered a jumbo loan.
What
are the requirements for Qualifying for a loan with Mr. Cooper?
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.
The loan offerings at Mr. Cooper Mortgage are
straightforward, and the lender's requirements line up with industry standards.
For an FHA loan, you will need 3.5% down and
a credit score of at least 580. FHA loans are also available to borrowers with
a credit score as low as 500 provided they can make a higher down payment, at
the discretion of the lender.
The VA loan program does not require eligible
borrowers to have a down payment. Mr. Cooper requires a 600 credit score for a
VA loan.
For a conventional loan, Mr. Cooper Mortgage
requires a credit score of 620. You will need a down payment of at least 3%. If
your down payment is less than 20%, you will need to pay private mortgage
insurance premiums.
It's a good idea to keep your debt-to-income
ratio under 50%, but this ratio can vary for Mr. Cooper customers, so it's
worth checking with them to see what they can offer you.
This lender doesn’t provide specific outlines
for these requirements, but you can apply for prequalification before
submitting a full mortgage application.
Documentation required for Qualifying for a
loan with Mr. Cooper
Mr. Cooper doesn’t provide an official
documents list, but you’ll want to gather the following information before you
apply:
Pay stubs for the past two months
W-2s for the past two years
Tax returns for the past two years
Balance statements on bank and investment
accounts for at least the past month
Statements of existing debt
Mortgage or rental payment history for the
past year
Proof of additional assets or down payment
gifts
Costs
and fees of Mr. Cooper
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.
Points.
You’ll see certain fees calculated as points, including the origination fee.
One point is equal to 1% of the loan amount, so an origination fee of two
points on a $300,000 loan would be $6,000.
Application.
Outside of the origination fee, you could pay an application fee to cover document
processing and an underwriting fee for evaluating your application and making a
determination on it.
Third-party. A
third party may conduct an appraisal and require you to pay the fee. You may
also get pushed toward the title services, which includes the title search and
getting title insurance.
Ongoing.
Insurance and taxes are the two biggest ongoing costs, and you may be required
to open up an escrow account to stay on top of them.
How
to apply for a mortgage with Mr. Cooper?
Start your application process with Mr.
Cooper online or over the phone.
Go to the Mr. Cooper website and select
Buy/Sell a Home.
Select Pre-Qualify Now, then choose the
option that best fits your situation — either Get Prequalified, Get Started or
Apply Now.
Step through questions about the property
you’re looking for and select Next at the end of each page.
Enter your personal information, contact
information, and answer personal questions. Select Next at the end of each
page.
Answer employment and financial questions and
select Submit.
Wait for a Mr. Cooper representative to
contact you to discuss your options.
What
types of mortgages can I get through Mr. Cooper?
Conventional
FHA
VA
USDA
Jumbo
This company accepts mortgage refinance
applications.
Other
mortgage products Mr. Cooper offers
Find a few other options with Mr. Cooper,
including:
Conventional refinancing. Lower your monthly
mortgage payments and reduce your interest over the life of your loan by
refinancing.
FHA Streamline refinancing. Get your FHA loan
refinanced and potentially lower your monthly payments.
VA Interest Rate Reduction Refinance Loan
(IRRRL). A refinancing option for existing VA loans that doesn’t require credit
underwriting. But you’ll pay a funding fee.
How
are Mr. Cooper's refinance rates?
Mr. Cooper's refinance rates are competitive.
They trend at or below the national average. When we checked, Mr. Cooper's
lowest interest rate for a refinance mortgage was below the national average.
Like all mortgage lenders, Mr. Cooper reserves the lowest rate for the best
applicants, and you'll also have to pay mortgage discount points to get the
best rate. Mortgage discount points are prepaid interest. You'll pay a fee
upfront and the lender will reduce the interest rate for the life of the loan.
How is Mr. Cooper rated as a
mortgage company?
Cooper has a B-
rating with the Better Business Bureau, but it is not accredited. In
2021, the Consumer Financial Protection Bureau received 786 mortgage-related
complaints about Mr. Cooper. The most common were related to trouble during the
payment process and application process and struggling to make payments.
What type of lender is Mr. Cooper?
Mortgage
lender
Does Mr. Cooper have a prepayment
penalty?
Cooper will cover a borrower's first
principal-and-interest payment if they don't close a purchase loan on time.
After closing, some borrowers choose to sell their home, refinance, or pay off
the balance. If you decide to do so, you
won't have to worry about a prepayment penalty.
What is the phone number for
Mr. Cooper??
888-480-2432.
Does
Mr. Cooper take debit card payments?
Mr. Cooper do not accept debit or credit card payments at this time. Mr. Cooper accept payments from checking, saving, and money market accounts, as well as checks, money orders, and cashier's checks.
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