Newrez Mortgage Review 2025: A Deep Dive into the Lender's Performance and Customer Satisfaction

Newrez, a nonbank lender based in Fort Washington, Pennsylvania, has been making waves in the mortgage industry with its diverse loan offerings and flexible guidelines. As we approach the midpoint of 2025, let's take a closer look at Newrez's performance, customer satisfaction, and the factors driving its competitiveness in the market.

Mortgage Origination Volume and Loan Types

In 2025, Newrez's mortgage origination volume shifted across different loan types, with notable changes in FHA and VA loans compared to previous years. According to the provided information, FHA loans accounted for over a quarter of Newrez's origination volume in 2025, indicating a significant increase in popularity for these loans. This trend can be attributed to the lower down payment requirements and more lenient credit score requirements associated with FHA loans, making them an attractive option for first-time homebuyers and those with lower credit scores.

In contrast, VA loans, which are designed for military veterans and their families, accounted for approximately 12% of Newrez's total mortgage volume in 2025. This percentage is lower than the 15% share of VA loans in the overall mortgage market, suggesting that Newrez may not be as focused on catering to the veteran population as some other lenders. However, it is essential to note that the VA loan market is highly competitive, with many lenders offering specialized VA loan products and services.

Customer Satisfaction Ratings

Newrez's customer satisfaction ratings are significantly below average, as indicated by J.D. Power's 2024 survey. To improve in this area, the company should focus on the following key factors:

1. Transparency in mortgage rates: Unlike many other lenders, Newrez does not publish any advertised rates or examples on its website. This lack of transparency can be frustrating for potential borrowers who want to easily compare rates. To improve transparency, Newrez could start publishing mortgage rates on its website, allowing customers to better understand their options and make informed decisions.
2. Improve communication and customer service: Newrez's online chat is not available for customer service, which can be inconvenient for borrowers who prefer digital communication. To enhance customer service, Newrez could invest in improving its online communication channels, such as offering live chat support or providing more comprehensive FAQs and resources on its website.
3. Address concerns related to servicing: Newrez's servicing arm, Shellpoint Mortgage, is currently involved in a class action lawsuit alleging improper inspection fees. To address these concerns and improve customer satisfaction, Newrez should ensure that its servicing practices are fair, transparent, and in compliance with relevant regulations. The company could also consider providing more information and resources to borrowers about the servicing process, helping them understand their rights and responsibilities.
4. Offer competitive loan products: While Newrez offers a wide range of loan products, some competitors provide more specialized options, such as USDA mortgages. To attract more customers and improve satisfaction, Newrez could consider expanding its loan offerings to include more specialized products or improving the terms and conditions of its existing loans.
5. Invest in employee training and development: Newrez's middle management exhibits lower experience averages compared to peers, which could contribute to lower customer satisfaction. To address this, Newrez could invest in training and development programs for its employees, helping them better understand customer needs and provide more personalized service.

Impact of Lack of Transparency in Mortgage Rates

Newrez's lack of transparency in mortgage rates can negatively impact its competitiveness in the market for several reasons. First, without published rates, potential borrowers may find it more difficult to compare Newrez's offerings with those of other lenders. This lack of transparency can make it harder for Newrez to attract borrowers who are shopping around for the best rates. For example, according to the 2024 J.D. Power survey, Newrez ranked significantly below average in mortgage origination satisfaction, which could be partly attributed to its lack of rate transparency.

Second, without advertised rates, borrowers may be less likely to trust Newrez, as they cannot easily verify the rates they are being quoted. This lack of trust can lead to a higher likelihood of borrowers choosing a more transparent lender, further impacting Newrez's competitiveness.

Third, Newrez's lack of transparency in mortgage rates may also make it more difficult for the company to attract and retain loan officers. Loan officers who are unable to provide clear and competitive rates to potential borrowers may struggle to meet their sales targets, leading to lower job satisfaction and potentially higher turnover rates.

In conclusion, Newrez's lack of transparency in mortgage rates can negatively impact its competitiveness in the market by making it more difficult for potential borrowers to compare rates, leading to a lack of trust, and potentially impacting the company's ability to attract and retain loan officers. While other lenders, such as Freedom Mortgage and Pennymac, also lack upfront interest rate disclosures on their websites, Newrez's lack of published rates could put it at a disadvantage compared to competitors that do offer transparent rate information.

As Newrez continues to grow and adapt to the changing mortgage landscape, addressing the key factors driving customer satisfaction and improving transparency in mortgage rates will be crucial for the lender to maintain its competitiveness and attract more borrowers. By focusing on these areas, Newrez can work towards enhancing its customer satisfaction ratings and providing a better experience for its borrowers.