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:
- Variety of loan types.
- Ease of application.
- Rates and fees.
- Rate transparency.
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: variety of loan types, ease of application, rates and fees, and rate transparency. Each category constitutes 25% of the lender’s overall score. 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
Variety of loan types
- Purchase.
- Refinance.
- Fixed.
- Adjustable.
- Home Equity Loan (HEL), Home Equity Line of Credit (HELOC) or renovation mortgages.
Lenders get credit for each loan type offered. The more loan types a lender offers, the better the score, as it means more options for consumers.
Ease of application
Rates and fees
Rate transparency
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