KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust 2024-NQM3 (NRMLT 2024-NQM3)
KBRA has assigned preliminary ratings to 8 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2024-NQM3, a $272.5 million non-prime RMBS transaction sponsored by Rithm Capital Corp (NYSE: RITM). The transaction is backed by 538 residential mortgages, with NewRez originating 71.4% and Champions Funding, originating 12.2% of the loans.
The loan pool features borrowers with a weighted average original credit score of 751 and a weighted average original loan-to-value ratio of 72.0%. The portfolio consists predominantly of fixed-rate mortgages (99.7%), with a small portion of adjustable-rate mortgages (0.3%). Approximately 7.7% of the pool has an initial interest-only period, and the loans are seasoned approximately one month.
KBRA ha assegnato valutazioni preliminari a 8 classi di note garantite da mutui della New Residential Mortgage Loan Trust 2024-NQM3, una transazione RMBS non-prime del valore di 272,5 milioni di dollari sponsorizzata da Rithm Capital Corp (NYSE: RITM). La transazione è supportata da 538 mutui residenziali, con NewRez che origina il 71,4% e Champions Funding che origina il 12,2% dei prestiti.
Il pool di prestiti presenta mutuatari con un punteggio di credito originale medio ponderato di 751 e un rapporto loan-to-value originale medio ponderato del 72,0%. Il portafoglio è composto prevalentemente da mutui a tasso fisso (99,7%), con una piccola porzione di mutui a tasso variabile (0,3%). Circa il 7,7% del pool ha un periodo iniziale di solo interessi, e i prestiti hanno una durata media di circa un mese.
KBRA ha asignado calificaciones preliminares a 8 clases de notas respaldadas por hipotecas del New Residential Mortgage Loan Trust 2024-NQM3, una transacción RMBS no prime de 272.5 millones de dólares patrocinada por Rithm Capital Corp (NYSE: RITM). La transacción está respaldada por 538 hipotecas residenciales, con NewRez originando el 71.4% y Champions Funding originando el 12.2% de los préstamos.
El grupo de préstamos cuenta con prestatarios con un puntaje de crédito original promedio ponderado de 751 y una relación préstamo-valor original promedio ponderado del 72.0%. El portafolio consiste predominantemente en hipotecas a tasa fija (99.7%), con una pequeña porción de hipotecas a tasa ajustable (0.3%). Aproximadamente el 7.7% del grupo tiene un período inicial solo de intereses, y los préstamos tienen un envejecimiento aproximado de un mes.
KBRA는 New Residential Mortgage Loan Trust 2024-NQM3의 8개 클래스의 모기지 유가증권에 대해 예비 등급을 부여했습니다. 이는 Rithm Capital Corp (NYSE: RITM)가 후원하는 2억 7250만 달러 규모의 비프라임 RMBS 거래입니다. 이 거래는 538개의 주택 담보 대출로 구성되며, NewRez가 71.4%, Champions Funding가 12.2%의 대출을 Originating합니다.
대출 풀은 가중 평균 원래 신용 점수가 751이고 가중 평균 원래 담보 가치 비율이 72.0%인 차용인으로 구성됩니다. 포트폴리오는 고정 금리 담보 대출(99.7%)로 주로 구성되며, 소량의 변동 금리 담보 대출(0.3%)을 포함합니다. 풀의 약 7.7%는 초기 이자만 지불하는 기간을 가지며, 대출은 약 한 달 정도 경과한 상태입니다.
KBRA a attribué des notations préliminaires à 8 classes de titres adossés à des hypotheken du New Residential Mortgage Loan Trust 2024-NQM3, une transaction RMBS non-prime de 272,5 millions de dollars sponsorisée par Rithm Capital Corp (NYSE: RITM). La transaction est soutenue par 538 prêts hypothécaires résidentiels, NewRez ayant originairement 71,4 % et Champions Funding 12,2 % des prêts.
Le pool de prêts présente des emprunteurs avec un score de crédit d'origine moyen pondéré de 751 et un ratio prêt-valeur d'origine moyen pondéré de 72,0%. Le portefeuille est composé principalement d'hypothèques à taux fixe (99,7%), avec une petite partie d'hypothèques à taux ajustable (0,3%). Environ 7,7 % du pool possède une période initiale de paiement d'intérêts uniquement, et les prêts ont une ancienneté d'environ un mois.
KBRA hat vorläufige Ratings für 8 Klassen von hypothekenbesicherten Anleihen aus dem New Residential Mortgage Loan Trust 2024-NQM3 vergeben, einer 272,5 Millionen Dollar schweren Non-Prime-RMBS-Transaktion, die von Rithm Capital Corp (NYSE: RITM) gesponsert wird. Die Transaktion wird durch 538 Wohnhypotheken unterstützt, wobei NewRez 71,4% und Champions Funding 12,2% der Darlehen vermittelt.
Der Darlehenspool weist Kreditnehmer mit einem gewichteten durchschnittlichen ursprünglichen Kredit-Score von 751 und einem gewichteten durchschnittlichen ursprünglichen Beleihungsauslauf von 72,0% auf. Das Portfolio besteht überwiegend aus Festzinsdarlehen (99,7%), mit einem kleinen Anteil an variablen Zinssätzen (0,3%). Etwa 7,7% des Pools haben eine anfängliche Zinszahlungsphase, und die Darlehen sind durchschnittlich etwa einen Monat alt.
- High-quality borrower profile with weighted average credit score of 751
- Conservative loan-to-value ratio of 72.0%
- Strong portfolio composition with 99.7% fixed-rate mortgages
- 7.7% of loans have interest-only period, potentially increasing default risk
Insights
This mortgage-backed securities (MBS) issuance represents a significant transaction for Rithm Capital Corp, with a
The predominantly fixed-rate mortgage composition (
This securitization allows Rithm to recycle capital and generate fee income, supporting their business model as a mortgage REIT. The preliminary KBRA ratings will likely facilitate investor interest and marketability of the securities.
NRMLT 2024-NQM3 is collateralized by a pool of 538 residential mortgages. Borrowers in NRMLT 2024-NQM3 possess a non-zero WA original credit score of 751 and exhibit a weighted average (WA) original loan-to-value (LTV) and a WA combined LTV (CLTV) of
KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our
To access ratings and relevant documents, click here.
Click here to view the report.
Methodologies
-
RMBS:
U.S. RMBS Rating Methodology - Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the
Doc ID: 1007097
View source version on businesswire.com: https://www.businesswire.com/news/home/20241203430656/en/
Analytical Contacts
Minxi Qiu, Director (Lead Analyst)
+1 646-731-1263
minxi.qiu@kbra.com
Colleen Kelley, Senior Analyst
+1 646-731-1389
colleen.kelley@kbra.com
Edward DeVito, Senior Managing Director (Rating Committee Chair)
+1 646-731-2319
edward.devito@kbra.com
Business Development Contact
Daniel Stallone, Managing Director
+1 646-731-1308
daniel.stallone@kbra.com
Source: Kroll Bond Rating Agency, LLC
FAQ
What is the total value of Rithm Capital's NRMLT 2024-NQM3 mortgage-backed securities offering?
How many residential mortgages are included in RITM's NRMLT 2024-NQM3 trust?
What is the weighted average credit score of borrowers in RITM's NRMLT 2024-NQM3 pool?
What percentage of loans in RITM's NRMLT 2024-NQM3 are fixed-rate mortgages?
