Mr. Cooper Mortgage Review: Rates, Fees, & Terms

Disclaimer: This post contains references to products from one or more of our advertisers. We may receive compensation (at no cost to you) when you click on links to those products. Read our Disclaimer Policy for more information.

Mr. Cooper is a digital mortgage lender that holds the distinction of being the largest nonbank home loan servicer in the United States.

This “Top 15” loan originator boasts perks like its Xome partnership, digital lending tools, and knowledgeable loan officers.

However, Mr. Cooper’s rates and fees trend higher than those of other lenders. And if you’re looking for an online mortgage lender without recent regulatory entanglement, Mr. Cooper can’t clear that bar.

Online Lender
Mr. Cooper Mortgages
  • NMLS#
  • Min. Credit Score
  • Learn More
  • Mortgage Details

Mr. Cooper Mortgage Pros and Cons


  • Available in all 50 states, Puerto Rico, and the U.S. Virgin Islands
  • Offers manual underwriting for special circumstances
  • Considers alternative credit data for some borrowers
  • Snazzy online portal and digital app to manage application and payments
  • Can save on closing costs by working with Xome real estate partners
  • Close-on-Time Guarantee


  • Myriad fees including origination, rate lock, and underwriting fees
  • No branch locations or online application
  • No USDA loans, home equity loans, or HELOCs
  • Site doesn’t disclose rates or fees upfront online

Mr. Cooper Mortgage Overview

As the largest nonbank mortgage originator and servicer in the United States, Mr. Cooper is a common name in the mortgage world.

The mortgage lender is renowned for features like its Close-On-Time Guarantee and top-notch educational tools.

And, because of its lack of physical branches, everything occurs online – though this doesn’t always lead to an expedited closing time.

Eligible borrowers can get prequalified in just minutes by reaching out to a loan officer by phone.

And once you’re under contract, Mr. Cooper simplifies the mortgage process with its online application tracking tools, phone, text, and email-based support, and mobile app.

How Do Mr. Cooper Mortgages Work?

To get a Mr. Cooper mortgage, you have to start by filling out a contact form online or calling a loan officer directly.

If you’re just after a rate quote, the officer may conduct a soft credit check to point you toward the best loan programs. Then, when you apply for a mortgage, Mr. Cooper will pull your full credit report to see what you qualify for.

At that point, you can access Mr. Cooper’s online portal or mobile apps to track your loan, manage your to-do list, and complete the underwriting process digitally.

Loan officers are standing by 6 days a week to walk you through any troublesome steps. And when you’re ready, you can schedule your closing date and conduct the process entirely online.

What Types of Mortgages Does Mr. Cooper Offer?

Mr. Cooper originates a large number of mortgage products, including:

Plus, eligible low-income borrowers can participate in Freddie Mac’s Home Possible or Fannie Mae’s HomeReady programs.

That said, Mr. Cooper doesn’t offer USDA loans or more niche products.

Mr. Cooper Mortgage Rates and Fees

Mr. Cooper doesn’t post its current rates online, as it considers interest rates only one piece of the lending puzzle. Instead, rate-seekers will be directed toward a contact form.

But historically, Mr. Cooper’s mortgage rates trend a little higher than the national average and most other major lenders.

The same is true of its conventional loan origination fees: New Jersey borrowers pay a $1,220 application fee, while borrowers in other regions pay a flat $995 origination fee.

How to Qualify for a Mr. Cooper Mortgage

Mr. Cooper also doesn’t post most of its qualification requirements online. That said, the lender typically follows the conforming requirements set by Fannie Mae and Freddie Mac, as well as the respective government agencies. Manual underwriting is also available on some loans to increase your chance of qualifying.

For conventional loans, Mr. Cooper notes borrowers usually need 5% down and a 620 credit score.

Government-backed home loans typically require 0-3.5% down, with credit requirements ranging from 580 to 600. For larger loans, borrowers may need a credit score up to 700, or 680 for non-QM loans.

Mr. Cooper Mortgage Features and Benefits

Partnership with Xome

If you’re looking to sell your current home in the mortgage process, you can connect with a realtor through Mr. Cooper Real Estate Rewards.

This program is run by the StreetSmarts network which is managed by Mr. Cooper’s Xome affiliate.

Eligible borrowers will get a discounted commission for selling their home with a matched realtor.

Plus, borrowers in most states can also qualify for a buyer’s bonus credit “potentially” worth thousands, according to Mr. Cooper.

Online Mortgage Experience

One of Mr. Cooper’s strong suits is its online mortgage experience. Borrowers can browse the website for tips on the homebuying process, check the status of their application, and track your mortgage to-dos.

When the time comes, Mr. Cooper also makes it easy to e-sign your disclosures and closing papers. And after closing, you can use their website or app to:

  • View your balance and home equity
  • Make payments
  • See detailed information on your neighborhood’s home value trends

Close-On-Time Guarantee

Another perk Mr. Cooper offers is its “Close-On-Time Guarantee.”

If your home loan doesn’t close on or before your contracted closing date due to a delay on Mr. Cooper’s part, it will pay your first mortgage bill. (Principal and interest!)

Nationwide Availability

Mr. Cooper doesn’t operate any in-person branches. But it makes up for it with its beyond-nationwide availability, as the lender also services Puerto Rico and the U.S. Virgin Islands.

Mr. Cooper Drawbacks

No Online Application Process

Despite the top-notch quality of its online forms, Mr. Cooper doesn’t allow borrowers to apply online.

Instead, you’re directed to a contact form, after which a loan officer reaches out to start the application by phone.

Lack of Rate Transparency

Mr. Cooper doesn’t provide sample mortgage rates online, nor does it allow you to rate shop without providing your personal information.

If you want a rate quote, you’ll need to call or submit your contact information.

Recent Regulatory Action

Unfortunately, Mr. Cooper has seen its fair share of regulatory action in the last two years.

The lender was fined $81 million after the Consumer Financial Protection Bureau (CFPB) levied heavy charges.

The bureau claimed that Mr. Cooper “violated multiple federal consumer financial laws, causing substantial harm to the borrowers whose mortgages it serviced, including distressed homeowners.”

At the same time, Mr. Cooper settled with the U.S. Department of Justice for similar charges, including:

  • Unlawful foreclosures
  • Missing tax payments from escrow accounts
  • And failing to quit PMI collections once borrowers met conditions

Then, in April 2021, the CFPB announced further action against Mr. Cooper after the lender was found making “unauthorized duplicate payment drafts” that “resulted in hundreds of thousands of consumers’ bank accounts being debited for multiples of their mortgage payments.”

How Does Mr. Cooper Compare to Other Lenders?

#1. Mr. Cooper vs. Rocket Mortgage

Rocket Mortgage is an online-only lender licensed to lend nationwide. It offers perks like near-instant preapprovals, 90-day rate locks, and e-closing from the comfort of your living room.

Plus, with flexible DTI ratio requirements on some loans, borrowers with more debt can still qualify for a loan that meets their needs.

That said, Rocket Mortgage is unusually lacking in a few areas. To start, it doesn’t offer second mortgages or foreclosure purchase loans. Plus, its longer-than-average closing time may not suit borrowers in a hurry to get into their new home.

>> More: Rocket Mortgage Review

#2. Better Mortgage vs. Mr. Cooper Mortgages is an online-only lender that originates loans in 46 states. It offers lightning-fast preapprovals, underwriting for borrowers with unusual sources of income, and no origination, underwriting, or application fees.

And with its Better Real Estate program and Price Guarantee, borrowers can snag up to $3,000 in savings upfront.

That said, while Better serves a wide population, its geographic range leaves out a few states.

Plus, its loan menu is fairly basic, which may limit borrowers who need certain low-income or specialty mortgages.

And with no physical branches whatsoever, borrowers who prefer the face-to-face mortgage experience will have to find another lender.

>> More: Better Mortgage Review

#3. NASB Mortgage vs. Mr. Cooper

North American Savings Bank is a mortgage originator that operates out of its Kansas City, Missouri headquarters.

The lender provides a robust menu of conventional, government-backed, and specialty loans nationwide. And if you need an all-in-one lending and banking solution, NASB has you covered!

However, NASB limits some of its loan products to the Kansas City area. Moreover, it doesn’t offer USDA, home equity, or home improvement mortgages.

And unusually for a mortgage lender, NASB lacks the technological capability to track your application from start to close.

>> More: NASB Mortgage Review

#4. Mr. Cooper Home Loans vs. New American Funding Mortgage

New American Funding is a family-owned lender that operates in 48 states and Washington, D.C.

They service a hefty product menu of conventional, government, reverse, and jumbo loans. And unlike some of their competitors, they even offer HELOCs.

New American Funding prides itself on delivering products to underserved communities, including Hispanic and Black buyers and families.

The lender is also happy to work with those who require financial assistance, have nontraditional credit histories, or need manual underwriting to qualify for a loan.

>> More: New American Funding Mortgage Review

What Credit Score Do You Need for Mr. Cooper Mortgages?

Mr. Cooper requires different credit scores depending on the type of loan you need. Government-backed loans require a credit score between 580 and 600, while conventional loan borrowers need at least a 620. Non-QM and jumbo loans have higher requirements in the 680-700 range.

Is Mr. Cooper a Direct Mortgage Lender?

Mr. Cooper is a non-bank mortgage originator and servicer.

Is Mr. Cooper a Good Place to Get a Mortgage?

Mr. Cooper may be a good lender if you:

  • Need a loan in Puerto Rico or the U.S. Virgin Islands
  • Would benefit from manual underwriting
  • Want to use alternative credit data to qualify for a loan

But if you’re after a second mortgage or USDA loan, you’ll have to look elsewhere.

How Do Mr. Cooper Mortgage Rates Compare to the National Average?

Mr. Cooper’s interest rates trend a little higher than the national average. However, the lender originates a number of loans for lower-credit borrowers, which may skew its rates toward the higher end.

Is Mr. Cooper Reputable?

Mr. Cooper has tangled with regulators several times in recent years. In December 2020, the lender was ordered to pay 81 million dollars for illicit activities such as unlawful foreclosures, missing tax payments, and failing to terminate PMI when borrowers met their conditions. And in April 2021, Mr. Cooper once again found itself in hot water for “unauthorized duplicate payment drafts” from its customers’ bank accounts.

Bottom Line: Mr. Cooper Mortgage Review

Mr. Cooper brings a lot to the table, including beyond-nationwide availability, manual underwriting, and its Close-on-Time Guarantee.

And with its online portal and digital apps, you can manage your application and mortgage payments wherever you are.

That said, Mr. Cooper also has a few drawbacks to consider. Notably among these include borrowers’ inability to start the application online and its recent regulatory action.

Plus, its lack of rate transparency and poor treatment of customers leave something to be desired.



Jordan Blansit
Jordan Blansit

Jordan Blansit is a Senior Writer, Researcher, & Product Analyst for SimpleMoneyLyfe with an inexplicable predilection for mortgages, investing, and personal finance. When she’s not click-clacketing from the comfort of her living room, you can find her in the California Redwoods or Oregon Siskiyous. Jordan’s areas of expertise are mortgages, personal loans, credit cards, and investing.