Top perks
Award-winning mobile app
Mr. Cooper Mortgage's mobile app keeps borrowers updated on each stage of the loan process and helps users manage their mortgage loan.
1% Mortgage Markdown
Mr. Cooper Mortgage offers a discount for borrowers called the 1% Mortgage Markdown. It is a lender-paid temporary buydown program that lowers the monthly payment by a full percentage point for the first year. Savings start immediately and borrowers are not responsible for paying the reduced portion of principal and interest.
RateSwap
Mr. Cooper Mortgage's RateSwap lets homeowners buy a home now and Mr. Cooper Mortgage will waive the origination fees (up to $1,500) on a refinance within 39 months of the purchase loan's lock date.
Mr. Cooper Mortgage's other numerous perks
Mr. Cooper Mortgage's perks offer an all-in-one toolkit for home buyers. Mr. Cooper Mortgage connects home buyers with local real estate agents from trusted firms like Century 21 and Coldwell Banker. Another perk is the Close On Time Guarantee, where it guarantees a loan will close on time, or the first month's mortgage payment (principal and interest) will be paid by the lender. Mr. Cooper Mortgage also offers real-time interest rates, personalized mortgage options, and a 45-day lock, where borrowers can get peace of mind by locking in a rate and not worrying about it going up.
What could be improved
No physical branches
Mr. Cooper Mortgage is an online-only lender with no physical branches. If borrowers want to speak with a representative face to face, then Mr. Cooper Mortgage may not be for them. In addition, borrowers must call or contact Mr. Cooper Mortgage online to get personalized mortgage rates.
Below average customer service ratings
Mr. Cooper Mortgage states that it will set you up with a dedicated mortgage professional to help guide you through the process. You'd think this would mean a higher customer service score. However, according to the 2023 J.D. Power U.S. Mortgage Servicer Satisfaction Study, Mr. Cooper's customer service was ranked toward the bottom at No. 23 out of 31, receiving a score of 577 out of 1,000. The industry average was 607.
In addition, according to the 2023 J.D. Power U.S. Mortgage Origination Satisfaction Study, Mr. Cooper Mortgage was ranked third from the bottom at No. 20 of 27, receiving a score of 707 out of 1,000. The industry average was 730.
Though potentially useful, Mr. Cooper's mobile app has suffered in recent ratings. The app scores a 4.8 on the App Store and a 3.7 on Google Play. Frequent complaints concern autopay and trouble logging in.
In 2020, the Consumer Financial Protection Bureau filed a complaint against Nationstar, formerly known as Mr. Cooper Mortgage, alleging unlawful foreclosures on borrowers with loan modifications between 2012 and 2016. Additionally, in 2021, Mr. Cooper Mortgage's reverse mortgage servicing division, Champion, reached a settlement with the New York Attorney General over allegations of inadequate borrower information disclosure, potentially leading to foreclosure risks.
Also in 2021, the CFPB initiated an investigation into an incident involving Mr. Cooper Mortgage's duplicate withdrawals from thousands of customers' bank accounts, attributed to an electronic payments vendor issue. Mr. Cooper Mortgage has assured affected customers that they will not be held responsible for any related fees, as the lender cooperated with the impacted banks to address the error and mitigate its impact.
Not all loan types offered
While Mr. Cooper Mortgage offers a wide range of mortgage products, it does not offer USDA loans.