Ratings Methodology for Mortgage Lenders
NerdWallet’s overall ratings for mortgage lenders are evaluated against four major categories. A raw score is produced for each of the following:
- Rates and fees.
- Ease of application.
- Rate transparency.
- Variety of loan types.
Data collection and review process
We collect information from lenders and verify it through interviews and on lender websites. We also use the Home Mortgage Disclosure Act, or HMDA, for origination fee and average interest rate data.
Then, we rate the lenders on a scale of 1 to 5 on the following criteria: rates and fees, ease of application, rate transparency and variety of loan types. Each category constitutes a portion of the lender’s overall score. Lenders’ raw scores may receive bonuses for programs or policies that expand homeownership opportunities. Their raw scores may be penalized in cases of recent regulatory action for violations that harmed mortgage consumers. These scores generate ratings from 1 star (poor) to 5 stars (excellent). An average score of 4.5 to 5 points earns 5 stars; an average score of 4 to 4.49 points earns 4.5 stars; an average score of 3.5 to 3.99 points earns 4 stars; and so on.
Information updates
The review team
Rates and fees
Variety of loan types
- Purchase and refinance.
- Fixed and adjustable.
- FHA, VA and/or USDA.
- Home equity loan (HEL) and/or home equity line of credit (HELOC).
- Construction-to-permanent and/or renovation mortgages.
The more loan types a lender offers, the better the score, as it means more options for consumers.
Ease of application
Rate transparency
Bonuses and penalties
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