Mr. Cooper Mortgagee Clause

For homeowners with a mortgage, understanding the ins and outs of their mortgage terms, including the clauses and policies, is crucial. One key element that many borrowers often overlook is the mortgagee clause. This article provides an in-depth look at the “Mr. Cooper Mortgagee Clause” to help you understand its significance in your homeowners’ insurance policy and mortgage agreement.

What is a Mortgagee Clause?

Before delving into the specifics of the Mr. Cooper mortgagee clause, let’s first explain what a mortgagee clause is. A mortgagee clause is a provision included in a homeowners’ insurance policy, protecting the lender’s financial interests in the property. Essentially, it ensures that the lender, or the “mortgagee,” receives insurance payments in case of substantial property damage or destruction.

Who is Mr. Cooper?

Mr. Cooper is one of the largest mortgage loan servicers in the United States. The company, originally known as Nationstar Mortgage, rebranded to Mr. Cooper in August 2017 to represent its customer-centric approach. Mr. Cooper manages a vast range of mortgages, providing services to homeowners across the nation.

The Mr. Cooper Mortgagee Clause

The Mr. Cooper mortgagee clause is designed to protect the interests of Mr. Cooper as the loan servicer. It ensures that if the home insured under the policy is damaged or destroyed, the insurance payout will go to Mr. Cooper (as the mortgagee), either to repair the property or to pay off the mortgage.

This clause is especially important because, as the loan servicer, Mr. Cooper has a vested interest in ensuring that the property is insured adequately. If a catastrophic event occurs and the borrower cannot afford to repair the house or pay off the loan, the clause guarantees that the insurance payout will cover these costs.

Understanding the Clause’s Importance

The importance of the Mr. Cooper Mortgagee Clause cannot be overstated for both the borrower and the lender. Here’s why:

For the Lender

Without this clause, the lender would be at risk of significant financial loss. For instance, if a home was destroyed and the homeowner defaulted on their mortgage payments, the lender could lose the entire unpaid balance of the loan. The mortgagee clause assures the lender that it can recover its investment, regardless of the borrower’s actions after a loss.

For the Borrower

For borrowers, understanding the mortgagee clause is crucial to prevent potential disputes with the lender. Since the clause designates the lender as the payee, insurance claim payments go directly to the lender, not the homeowner. It’s essential for homeowners to be aware of this, as it can sometimes lead to misunderstandings about where claim payments have been sent.

Mr. Cooper Mortgagee Clause Details

While specific information about your Mr. Cooper Mortgagee Clause should be acquired directly from your mortgage paperwork or Mr. Cooper’s customer service, as of the last update in 2021, the details are typically as follows:

Mr. Cooper Its Successors and/or Assigns P.O. Box 650783 Dallas, TX 75265-0783

These details may change over time, so it’s crucial to confirm them when setting up or updating your homeowners’ insurance.


The Mr. Cooper Mortgagee Clause is a critical component of the protection that lenders need when offering mortgages. As a borrower, understanding this clause ensures you know where your insurance payouts go and why. Remember, mortgage contracts and insurance policies can be complex, so it’s essential to ask questions and understand the fine print before signing any documents.

By Christine Mayle