Mr. Cooper Mortgage Review

About Mr. Cooper

Mr. Cooper

Mr. Cooper, headquartered in Dallas, Texas, is the third largest home loan servicer in the country and a leading home loan lender, and we’re on a journey to become the most customer-centric company in the industry. We’re focused on providing homeowners with products and tools that put their home, rather than their loan, at the center and help homeowners better understand how to use their home as an asset to strengthen their personal balance sheets. With experience spanning more than 20 years, Mr. Cooper is focused on delivering a variety of servicing and lending products, services and technologies to make the home loan process more rewarding and less worrisome.


Working with Mr. Cooper

Mr. Cooper makes loans to buyers in all 50 states, the District of Columbia, Puerto Rico, Guam and the Virgin Islands. But it doesn’t have any consumer-facing offices, which means all applications are completed online or by phone.

Mr. Cooper can lend to borrowers with credit scores of at least 580 for FHA and 620 for conventional loans. The company permits manual underwriting on government-backed loans, which may allow more flexibility to approve borrowers who have extenuating financial circumstances.

Mr. Cooper offers loans for a variety of property types, including:

  • Single-family homes
  • Multi-family homes (2-4 units, not for commercial purposes)
  • Condominiums
  • Townhouses

Depending on the situation, Mr. Cooper may make loans for investment properties, second homes, vacation homes or primary residences.


Mr. Cooper products

Mr. Cooper has a large variety of product offerings that suit many different circumstances.

Purchase

Refinance

Home equity


The mortgage application process

How to apply. Mr. Cooper’s focus on a needs-based consultative process means customers must start by speaking on the phone with a mortgage professional to help determine what loan option is best for them.
Disclosure process. Once that phone call is complete and the application process has begun, borrowers can use the company’s Digital Loan Tracker to follow the status of their application and learn which documents they need to submit. Further, borrowers can use a cell phone, laptop or tablet camera to upload necessary documents, making the loan process faster and easier. In addition, disclosures can be downloaded from the Digital Loan Tracker and e-signed.
Submitting loan for approval/locking in rate. Once Mr. Cooper receives an intent to proceed, customers can lock the rate whenever they choose.
Final approval. Appraisals are then ordered by Mr. Cooper, and a single point of contact coordinates the application and final approval. This contact uses the company’s technology to further streamline the procedure, which can knock days off the process.
Closing. After final approval, it’s time for closing. This starts with processors scheduling closing with a settlement agent or mobile notary at a time and location chosen by the borrower. In special cases, when expedited funding is required, the closing may be arranged just before the final approval is submitted.

Communication during the process

When getting pre-qualified or initially applying for a Mr. Cooper mortgage, borrowers will first talk to a mortgage professional. From the initial loan application all the way through submitting for final approval, borrowers can call their mortgage professional and consult their dashboard for updates and information.

Once the application moves through to processing and underwriting, the borrower will be assigned another contact. Borrowers will rely on this individual all the way through closing, but they will also communicate with their original mortgage professional for any activities that require a licensed individual.

When it comes to available methods of communication, Mr. Cooper tries to be very flexible, offering a variety of options, including video chat, email and phone. Borrowers can also check their Digital Loan Tracker to keep up with any outstanding documentation needs.


Pros and cons of a Mr. Cooper mortgage

Pros

  • Bank statement loan approval for self-employed borrowers: It can be difficult for self-employed borrowers to find lenders that will evaluate their creditworthiness with bank statements, making Mr. Cooper’s non-qualified mortgages a valuable option.
  • Needs-based analysis with mortgage professional: One of the reasons borrowers need to communicate by phone, at least initially, is it is a better medium for the company’s comprehensive needs-based analysis.
  • Wide range of home equity and refinance products: Mr. Cooper’s needs-based analysis is complemented by a variety of product options for all buyers, including those looking to refinance or extract equity.
  • Detailed website: Mr. Cooper’s website is filled with detailed, step-by-step resources on the process of homebuying, making it a great tool for both new homebuyers and experienced homeowners.

Cons

  • Phone call required: Borrowers who want a completely digital experience might be disappointed in the need for an initial phone conversation.
  • No branches to visit: Some people may crave a digital experience, but others want a face-to-face meeting with a mortgage professional. Those who want to do business in person will find themselves out of luck, as Mr. Cooper doesn’t have any consumer-facing branches.
  • No mortgages for manufactured homes: Borrowers who need a mortgage for a manufactured home should look to another company.

Editorial Note: Parts of this article were reviewed by a lender to ensure accuracy prior to publication. The overall conclusions, recommendations and opinions are the author’s alone.

The information in this article is accurate as of the date of publishing.