Mr. Cooper Mortgage Review 2025
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- 50+ mortgage lenders reviewed and rated by our team of experts.
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Our Take
3.5
Mr. Cooper, a lender and loan servicer, stands out for having the lowest conventional mortgage credit score requirement among lenders surveyed by NerdWallet. However, recent issues have damaged consumer trust. In September 2025, Mr. Cooper stockholders approved a merger with Rocket Mortgage, following FHFA clearance for Rocket to acquire the lender in August.
Pros
- Reported average time to close is 30 days, faster than the industry average of 42 days.
- Has a mobile app that customers can use to manage their mortgage.
- Offers a temporary buydown program that lowers the mortgage rate by 1% for the first year.
Cons
- Settled a lawsuit for violating mortgage servicing laws, causing some borrowers to lose their homes.
- Does not offer home equity products for new customers.
- Origination fees are on the high side, according to the latest federal data.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
 Visit Lenderat NBKC at NBKC | 620 | 3% | Visit Lenderat NBKC at NBKC |
 Visit Lenderat New American Funding at New American Funding | 580 | N/A | Visit Lenderat New American Funding at New American Funding |
 Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC | 580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
 4.0 Visit Lenderat GO Mortgage at GO Mortgage | 620 | 3% | Visit Lenderat GO Mortgage at GO Mortgage |
 Visit Lenderat Veterans United at Veterans United | 620 | 0% | Visit Lenderat Veterans United at Veterans United |
Full Review
At a glance: Mr. Cooper mortgage options
Mr. Cooper is a nonbank lender based in Dallas, Texas. Mr. Cooper is licensed in all 50 states, plus Washington, D.C., Guam and the U.S. Virgin Islands.
Mr. Cooper offers standard mortgages and a few specialty loans, though home equity loans and lines of credit aren’t available for new customers. Borrowers also won’t find renovation loans.
🏠 Common mortgages
Conventional loans (fixed and adjustable)
Refinancing
Jumbo loans
FHA loans (purchase and refinance)
VA loans (purchase and refinance)
🔑 Specialty loans
Loans for second homes
Loans for self-employed borrowers
💵 Home equity • Cash-out refinancing
» MORE: How to choose a mortgage lender
Mr. Cooper special offers and discounts
Mr. Cooper offers a number of features that may appeal to prospective customers. These things stood out in our research.
StreetSmarts tool: Borrowers can browse listings and set up property alerts.
Close On Time Guarantee: If the loan doesn’t close on time, Mr. Cooper will reimburse the first month’s mortgage payment for eligible borrowers.
1% Mortgage Markdown: A temporary buydown program that reduces the mortgage interest rate by 1% for the first year for eligible borrowers.
RateSwap: Eligible borrowers who get a mortgage through Mr. Cooper can earn a credit up to $1,500 toward a future refinance.
What mortgages does Mr. Cooper specialize in?
A lender’s experience with your loan type can make a big difference. We looked at the latest federal data to find the types of mortgages Mr. Cooper handles most often.
By far, the most common type of mortgage from Mr. Cooper is cash-out refinances. These accounted for 60% of the lender’s total originations last year.
Most of Mr. Cooper’s mortgages are conventional, though government loans made up about a third of Mr. Cooper’s originations in 2024.
How we score Mr. Cooper
Each year, NerdWallet writers and editors dig into the latest data and independent research on mortgage lending. Then, we rate lenders based on categories that matter most to mortgage borrowers.
Mr. Cooper has a NerdWallet home loans rating of 3.5 stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience | |
Overall star rating |
Ah, so you’re the “read the fine print” type? We got you. Here’s how our scoring rubric works.
Average mortgage rates and fees (30%)
We review federal data (as reported by the lenders) and analyze mortgage lenders’ average fees and interest rates across all loan types. Lenders with the lowest average costs get the highest star ratings. Keep in mind: Loans that are easier to qualify for, like FHA loans, usually have higher rates and fees because lenders see them as a higher risk. Pro tip: Paying some fees upfront can sometimes lower your interest rate.
Mortgage rate transparency (25%)
We look at how easy it is to compare mortgage rates online. Lenders get higher transparency ratings if they show sample rates on their website. (Not all lenders do!) The best ratings go to lenders that offer interactive tools that let you customize a rate quote on your own.
Variety of loan types (25%)
There’s no one-size-fits-all mortgage. Lenders earn top ratings in this category when they offer a large variety of mortgage types. The more variety, the higher their score. A lender earns points for purchase and refinance; fixed and adjustable rates; FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to work with this lender? Top-rated lenders offer helpful features like online applications, multiple ways to get support, a user-friendly mobile app and clear updates about the loan closing timeline.
Mr. Cooper bonus points and penalties
Mr. Cooper earned bonus points for offering mortgages to borrowers with credit scores below 600. The lender also lost points for mortgage servicing violations that harmed consumers.
Mr. Cooper reputation and customer experience
NerdWallet’s star ratings look at objective factors like rates, fees and loan options. To give you a sense of what the borrower experience is really like, we pulled the latest customer satisfaction scores from J.D. Power and Zillow, and we contacted the lender’s customer support.
2024 J.D. Power U.S. Mortgage Origination Satisfaction Study
659
out of 1,000
Well below-average satisfaction score: average = 727.
Mortgage origination covers the application through closing.
2025 J.D. Power U.S. Mortgage Servicing Satisfaction Study
564
out of 1,000
Below-average satisfaction score: average = 596.
A mortgage servicer handles loan payments.
Zillow Mortgage Lender Customer Rating
4.78
out of 5
Average rating as of the date of publication. Rating reflects more than 3,000 customer reviews.
Potential concerns about Mr. Cooper
In January 2025, Mr. Cooper agreed to pay $5.8 million in a class action lawsuit alleging that the lender mishandled mortgages it acquired for servicing between 2011 and 2017. Since the case was just settled within the past year, it qualifies for a scoring penalty according to our rubrics, and we deducted points from Mr. Cooper’s overall score.
🚩 The Nerdy details: How penalties work
Our writers research recent headlines and highlight any red flags here. Not all concerns affect a lender’s star rating — only actions that directly harmed consumers. A lender loses points when its mortgage business was the subject of regulatory action and fined $1 million or more. The scoring penalty remains for up to one year after the fine was paid.
Mr. Cooper customer service options
Here’s how you can get in touch with Mr. Cooper.
Ways to reach Mr. Cooper
Physical branches . . . . . . 🚫 Phone support . . . . . . . . . ✅ Mobile app . . . . . . . . . . . . ✅ Online chat (bot) . . . . . . . ✅ Online chat (human) . . . . ✅
» MORE: How to apply for a mortgage
🤓 Our Nerds say... try the chat feature
Taylor Getler, lead writer, mortgages
Borrowers can reach Mr. Cooper customer service over the phone or via the live chat feature on the lender’s site. Mr. Cooper does not have physical branches. When we tried the live chat, a bot asked us what type of loan we were looking for before immediately connecting us with the appropriate agent.
Alternatives to a Mr. Cooper mortgage
Our biggest tip: Get offers from at least three different mortgage lenders. Comparison shopping can save you thousands of dollars. You can get rate quotes yourself, or work with a mortgage broker to shop around on your behalf.
Homeowners looking for a lender experienced in cash-out refinancing might try Carrington, which also originated a high-volume of cash-out refinances, according to the latest federal data. Borrowers who need a lender with flexible credit requirements can explore PrimeLending, which reported a minimum credit score of 580.
Finally, prospective buyers who are put off by Mr. Cooper’s poor customer experience score could explore Bank of America, which earns high customer satisfaction marks for both origination and servicing.
» MORE: Best cash-out refinance lenders
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: average mortgage rates and origination fees, rate transparency to consumers, variety of loan types (purchase, refinance, fixed and adjustable, for example) and customer experience. Among the factors we consider in these categories are: options to apply for home loans online, typical time to close, mobile app experience, level of detail about mortgage rates on lender websites, and NerdWallet’s own analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These and other items inform detailed rubrics, which generate ratings from 1 star (poor) to 5 stars (excellent). Read more about how we rate mortgage lenders here.
