Is Newrez a Real Company? Exploring the Legitimacy of This Mortgage Lender

Newrez is indeed a real mortgage company that provides lending services across the United States With over 4000 employees and licenses to operate in all 50 states, Newrez handles billions in mortgage loans each year However, some homebuyers still have questions about Newrez’s legitimacy as a lender. This article will examine key facts about Newrez to help you determine if it is the right mortgage provider for your home purchase or refinance.

Background of Newrez

The mortgage companies American Advisors Group and Security National Mortgage merged to form Newrez in 2013. The new company chose the name “Newrez” to reflect its focus on using new technology to change the mortgage process.

Headquartered in Fort Washington, Pennsylvania, Newrez handles a full spectrum of mortgage loans including purchases, refinances, reverse mortgages, and more. It is currently licensed to lend in all 50 states and has over 4000 employees nationwide.

As one of the larger non-bank mortgage lenders in America, Newrez originates and services billions in home loans each year. In 2021 alone, it loaned over $75 billion for over 150,000 borrowers. The company handles loans for a range of credit profiles from ideal borrowers to specialty loans for those with past credit challenges.

Newrez is a Real, Legitimate Mortgage Company

Given its large lending volume and national presence, Newrez is undoubtedly a real company. Here are some of the top facts confirming Newrez is a legitimate mortgage lender:

• Licensed to Operate in All States: Newrez holds active licenses to operate as a mortgage lender and servicer in every U.S. state. You can look up their license information through the NMLS database.

• Rated by Top Industry Analysts: Newrez is rated and reviewed by trusted industry sources like J.D. Power, Moody’s, and S&P Global. It earns strong ratings for financial stability.

• Member of Top Industry Groups: Newrez is a member of the Mortgage Bankers Association, National Mortgage Professional Magazine, and other key industry groups. Membership requires meeting strict standards.

• Positive Reviews and Complaint Resolution: At the BBB, Newrez earns an A+ rating with customers praising their professionalism. They resolve most complaints through the BBB process.

• Secure Website and Contact Info: Newrez has a real working website with secure encryption, company history, and multiple ways to contact them including phone, email, and physical address.

• Lots of Mortgage Products: Because Newrez is a real lender, it has a lot of real mortgage programs, not just one. These loans have low rates: FHA, VA, USDA, jumbo, fixed-rate, and ARM.

How Newrez Compares to Other Mortgage Lenders

Given confirmation that Newrez is legitimate, how does it compare to other big lenders? Here are some key contrasts:

• Newrez is not a bank, but its competitors, such as Wells Fargo and Chase, are banks that offer mortgages. This gives Newrez more lending flexibility but less financial stability.

• Newrez is a lender that was started in 2013 and doesn’t have as long of a history as some other lenders. But its newer systems can mean faster, more tech-enabled service.

• Newrez specializes in mortgages only while banks offer other products like accounts, credit cards, and investments. Newrez’s focus on just home loans can translate to better service.

• Newrez earns positive ratings for customer service and loan experience while big banks often have lower scores and more frequent complaints.

• Newrez’s loan options are competitive but megabanks may offer more niches like physician loans or better specialty loans rates.

Should You Get a Mortgage with Newrez?

Now that you know Newrez is legitimate, is it the right lender for your mortgage? Here are some key factors to consider:

• Your Credit Profile: Newrez welcomes a broad range of credit but may not offer the very lowest or highest rates for special credit situations.

• Loan Program Needs: Review Newrez’s loan programs to ensure they offer the specific products you need like VA, FHA, jumbo, or niche loans.

• Interest Rates and Fees: Get rate quotes from Newrez and other lenders to compare pricing. Look at both rates and total origination fees/closing costs.

• Ease of Process: Research reviews and complaints to gauge customers’ experiences with Newrez’s application process, documentation, and underwriting.

• Servicing Reputation: For pre-approvals, consider Newrez’s reputation on servicing existing loans, not just originating new ones.

Doing your homework on the above factors will help you decide if picking trusted lender Newrez for your next mortgage makes sense. You can rest assured they are a real and legitimate option for financing your home.