Mr. Cooper Review: Is It the Right Mortgage Option for You?

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Mr. Cooper is the largest online-only mortgage lender. It offers a quick verified approval for its customers. Unlike a basic standard approval, a verified approval is stronger than other lenders since you’re required to submit financial documents that are reviewed by an underwriter. Mr. Cooper is ideal for tech-savvy customers with its payment tracking and account statements that are viewable online. Financial calculators are also available to calculate mortgages and refinances.

In March 2025, Rocket Mortgage announced that it will acquire Mr. Cooper by the end of this year. This news may be a welcome announcement for existing customers since Mr. Cooper received a low rating in the 2024 J.D. Power’s Mortgage Satisfaction Survey. Mr. Cooper received 577 out of 1,000 points, which is lower than the industry standard average of 606. By comparison, Rocket Mortgage took the top spot in the same study, receiving 713 out of 1,000 points.

In addition, in 2024, Mr. Cooper settled a class action lawsuit for $3.6 million for charging customers illegal fees. In October 2023, a cyberattack affected Mr. Cooper’s 14 million customers, exposing sensitive information.

How the Mr. Cooper Mortgage Process Works

Take a look at the application process and speed of preapproval with Mr. Cooper’s mortgage loan. 

Application process 

You can apply at the Mr. Cooper website. You can also call 1-844-638-1019 to start the application process. 

Speed of preapproval

Once basic financial information is entered, you’ll receive a quick preapproval. You can receive this information within minutes. In addition, you may also receive a verified approval through an underwriter. This could take up to four hours. 

How documents are submitted

The following documents are required for the approval process: 

• W-2 and 1099 forms from the past two years 
• Recent pay stubs 
• Bank statements and investment account summaries 
• Federal income tax returns 
• Proof of additional income source

These can be submitted via online upload or in person (very few locations). 

Level of customer support  

There are several ways to contact customer service at Mr. Cooper. Check out all of the ways: 

Phone support. Call 1-833- 685-2566 to talk to a representative at Mr. Cooper. The customer service hours are from Monday to Thursday: 7 a.m. to 8 p.m. CST, Friday from 7 a.m. to 7 p.m. CST and Saturday 8 a.m. to 12 p.m. CST. Mr. Cooper isn’t available over the phone on Sundays.

24/7 Live chat. For immediate assistance, Mr. Cooper provides a 24/7 live chat feature on its website.

Via mail. For payment mailing or inquiries, you can contact Mr. Cooper via mail: P.O. Box 650783, Dallas, TX 75265-0783. 

Mobile App. You can contact Mr. Cooper via mobile app. You can make payments, view account information and statements. 

Pros and Cons of Mr. Cooper Guidelines

Mr. Cooper offers a fully online mortgage application and servicing process, but its in-person services are limited. Here are other pros and cons about a Mr. Cooper mortgage to keep in mind:

Pros

• Available in all 50 states. Mr. Cooper’s mortgage loans are available in all 50 states. 
• User-friendly app and payment tracking system. The app allows borrowers to monitor loan status and track payments. 
• Useful tools. Mr. Cooper offers online calculators for refinancing and mortgages. 
• Verified approval. Mr. Cooper offers verified approval within hours, giving house hunters more credibility when making an offer. 
• Multiple loan options. A variety of loan options is available including conventional, FHA loans, VA and jumbo loans. 

Cons

• No USDA loan. Mr. Cooper doesn’t offer USDA loans. 
• Limited in-person services. Mr. Cooper is primarily an online servicer for mortgages. 
• Previous unlawful servicing history. In 2024, Mr. Cooper agreed to pay a $3.6 million cash settlement for charging customers illegal fees.

Mr. Cooper Loan Options

Mr. Cooper has several loan choices, including conventional, FHA, VA and jumbo loans. Take a look at this list to find the right fit for you: 

Conventional loans  

Mr. Cooper offers a couple of conventional mortgages — fixed rate and adjustable rate. The fixed rate mortgage has the following features: 

Fixed Rate Loans

• The interest rate doesn’t change for the life of the loan.
• The loan requires a minimum down payment of at least 3%.
• If you can make a down payment of 20% and meet other factors, you may not have to pay mortgage insurance. 
• The loan terms can be 15 or 30 years.
• Fixed rate loans have predictable monthly payments.
• Fixed rate loans tend to have less paperwork than FHA or VA loans.
• Best for: A fixed-rate loan is best for homebuyers who prefer to stay in their home over a long period of time.

Adjustable Rate Loans 

• The interest rate may change during the life of the loan.
• There’s an interest rate cap on how high the interest rate can go.
• Best for: An adjustable rate loan is best for buyers who plan to sell or refinance before the rate adjusts.

FHA

A Federal Housing Administration (FHA) loan is backed by the government. Here are the key features:

• An FHA has easier credit qualification than other loans.
• The down payment for an FHA loan is as low as 3.5%.
• Mortgage insurance is required on an FHA loan.
• An FHA loans requires the borrowers to set up an escrow account. 
• Best for: An FHA loan is best for homebuyers with lower credit scores.

VA

If you’re a current or former military member, you’re eligible for a Veterans Administration (VA) loan. Check out the highlights of this loan: 

• There’s no down payment required on a VA loan.
• A VA loan doesn’t require private mortgage insurance.
• The interest rates are generally competitive on VA loans.
• A VA loan is only available for primary residences.  
• Best for: The VA loan is best for eligible veterans, active-duty service members and their families.

Jumbo loans

Jumbo loans are available for larger properties. The highlights include: 

• A jumbo loan is available for fixed or variable interest.
• With a Mr. Cooper jumbo loan, you can borrow up to $2.5 million based on different factors.
• A jumbo loan is available for primary homes or secondary homes. 
• Best for: A jumbo loan is suitable for people who want high-value properties.

Refinance options 

Mr. Cooper has several refinance options including cash-out refinance, rate-and-term refinance, FHA streamline refinance and VA Interest Rate Reduction Refinance Loan. 

• Cash-out refinance allows homeowners to tap into their home equity for refinancing for a higher amount and then taking the difference in cash.
• Rate-and-term refinance allows borrowers to adjust their loan’s interest rate, term, or both, potentially reducing monthly payments or shortening the loan duration.
• Best for: Refinance options are best for homeowners who want to tap into their equity.

Mr. Cooper vs. Other Mortgage Lenders

How does Mr. Cooper stack up against other mortgage lenders? 

Who Should Consider a Mr. Cooper mortgage?

If you’re looking for a fully online mortgage experience, Mr. Cooper might be a good fit for you.

Best for:

• Homebuyers in all 50 states 
• Tech-savvy borrowers
• Borrowers who want quick approvals

Not ideal for:

• Rural buyers wanting USDA loans
• Customers seeking in-person services

What Real Customers Say About Mr. Cooper

Take a look at ratings and reviews about Mr. Cooper from Zillow and J.D. Power. 

Zillow

Out of 141 reviews, Zillow rates Mr. Cooper 4.38 out of 5 stars. Reviews are mixed with one customer saying, “We had an excellent experience with the whole Mr. Cooper team! Helping us through the process and responding so quickly to questions.” Another customer had a less favorable response and said, “I’ve been having an issue for the better part of a year where my payment will be charged back saying ‘improper account information’ even though the app and site (I’ve tried both) are linked directly to my account.”

J.D. Power

In the 2023 J.D. Power’s Mortgage Servicer Satisfaction Study Mr. Cooper scored 577, which is below industry standards. In the J.D. Power’s 2024 Mortgage Origination Satisfaction Study, Mr. Cooper scored 659. 

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