Mr. Cooper FHA Loans Review


Rating: 8.1 / 10 (Excellent)
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Mr. Cooper, formerly Nationstar Mortgage LLC, is a Texas-based home loan provider that offers traditional mortgages, cash out refinances, FHA loans, FHA streamline loans, HARP loans, VA loans, and jumbo loans. Alongside this wide variety of options, the company also offers a wealth of online educational materials and calculators in order to help consumers decide on the best home loan fit for themselves. Mr. Cooper was founded in 1997 and has an A- grade with the BBB.

How is Mr. Cooper rated?

Breakdown

8/10
Loan Specifics
9/10
Customer Experience
8/10
Lender Reputation

Overall Rating: 8.1 / 10 (Excellent)

The change from Nationstar Mortgage LLC to Mr. Cooper is accompanied by a more relaxed, user-centric mortgage experience. This is particularly evident on the company's revamped website, which is chock-full of online tools and calculators, advice, educational materials, and overall customer support. Mr. Cooper's online app also makes it extremely easy for existing customers to manage their accounts and even have access to an official FICO score from one of the big 3 credit bureaus (although which one is not specified). However, the application process has not made the transition to a 100% digital experience. Potential customers cannot get a quote online and must submit their email and phone to be contacted by an agent. There is also a lack of overall information on the specifics of Mr. Cooper's FHA mortgages. Finally, though the company has had its fair share of complaints under its previous incarnation, the customer experience since changing to Mr. Cooper seems to be, by and large, more positive.

Mr. Cooper Loan Specifics

Types of FHA Loans Offered

FHA Fixed Rate 15 Year
FHA Fixed Rate 30-Year
FHA Adjustable Rate Mortgage (ARM)
FHA Jumbo Fixed Rate
FHA Hybrid
FHA Bridge/Relocation Loan
FHA Home Improvement 203(k)
FHA Self Employed

Key FHA Loan Facts

Minimum FICO Score
580
Non-Traditional Credit History Considered
No

Loan Specifics - 8 / 10

In terms of loan offerings, it's not clear what types of FHA loans Mr. Cooper offers beyond the traditional fixed rate options. The company requires the typical HUD-defined qualifications such as a 3.5% down payment with a 580 credit score. Mortgages for credit scores below this will likely require higher percentage down payments and different LTV requirements. Mr. Cooper requires customers to speak directly with loan officers before handing out any specifics on the details of their FHA loans. Hence, we recommend you take a look at HUD's website directly to see loan limits and terms as they vary by state.

Mr. Cooper Customer Experience

Customer Experience - 8.5 / 10

As previously mentioned, Mr. Cooper will not provide you with an online quote or application. Prospective customers must fill out a brief questionnaire and provide their phone and email. By doing this you consent to have representatives of Mr. Cooper contact you via email, text, or phone. Furthermore, there's a chance this communication will be automatically generated. The company also makes no guarantees or estimate of decision time or loan closing time, as this is effected by a number of factors and including the state of residence. However, Mr. Cooper provides existing customers with a host of useful features. These include a very robust online account management platform, no transaction fees, a handy mobile app that features swipe to pay, and a home rewards credit card. But perhaps most useful is the Mr. Cooper app allows primary borrowers to monitor their official FICO score for free.

Online Features

Online Application
No
FHA Mortgage Calculator
Yes
Online Quote
No

Decision Time

Not Stated

Loan Closing Time

Not Stated

Mr. Cooper Lender Reputation

Lender Reputation - 7.5 / 10

When under the name Nationstar Mortgage LLC, Mr. Cooper had 12 NMLS regulatory actions since 2016 and a large number of consumer complaints lodged with the Consumer Financial Protection Bureau and the BBB. Customers main problems seemed to center around difficulty in communication. The rebranding as Mr. Cooper is accompanied by a renewed focus on customer service and an improving of overall customer experience, especially online and via mobile app. In recent years the company has gone to great lengths to enhance communication and access. In light of this, Mr. Cooper's customer assistance hours are longer than most FHA mortgage lenders we evaluate.

Key Reputational Facts

Year Founded
1997
BBB Rating
A-
Number of BBB Positive Reviews
23
Number of BBB Negative Reviews
137
Date Collected
2018-01-24

Complaints & Actions

Nationwide Mortgage Licensing System ID
2119
Nationwide Mortgage Regulatory Actions
12
NMLS Collection Date
2018-01-23
CFPB Total Mortgage Complaints
17,409
CFPB Collection Date
2018-01-23

Company Profile

Full Name
Mr. Cooper FHA Loans
Company Website
Headquarters
8950 Cypress Waters Boulevard, Coppell, TX, 75019

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  • 3 types of 203(b) FHA loans available
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