KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust 2025-NQM1 (NRMLT 2025-NQM1)
KBRA has assigned preliminary ratings to 8 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM1, a $308.0 million non-prime RMBS transaction sponsored by Rithm Capital Corp (NYSE: RITM). The transaction is backed by 583 residential mortgages, with NewRez originating 57.5% and Champions Funding, originating 31.3% of the loans.
The loan pool features borrowers with a weighted average original credit score of 755 and weighted average original LTV and CLTV of 71.7%. The portfolio consists of 99.9% fixed-rate mortgages and 0.1% adjustable-rate mortgages, with 5.8% having an initial interest-only period. The loans are approximately one month seasoned and will be serviced by NewRez d/b/a Shellpoint Mortgage Servicing.
KBRA ha assegnato valutazioni preliminari a 8 classi di note garantite da mutui del New Residential Mortgage Loan Trust 2025-NQM1, una transazione RMBS non-prime di 308,0 milioni di dollari sponsorizzata da Rithm Capital Corp (NYSE: RITM). La transazione è sostenuta da 583 mutui residenziali, con NewRez che origina il 57,5% e Champions Funding che origina il 31,3% dei prestiti.
Il pool di prestiti presenta mutuatari con un punteggio di credito medio ponderato originale di 755 e una percentuale media ponderata di LTV e CLTV del 71,7%. Il portafoglio è composto dal 99,9% di mutui a tasso fisso e dallo 0,1% di mutui a tasso variabile, con il 5,8% che ha un periodo iniziale di solo interesse. I prestiti hanno circa un mese di anzianità e saranno gestiti da NewRez d/b/a Shellpoint Mortgage Servicing.
KBRA ha asignado calificaciones preliminares a 8 clases de notas respaldadas por hipotecas del New Residential Mortgage Loan Trust 2025-NQM1, una transacción RMBS no-prime de 308,0 millones de dólares patrocinada por Rithm Capital Corp (NYSE: RITM). La transacción está respaldada por 583 hipotecas residenciales, con NewRez originando el 57,5% y Champions Funding, originando el 31,3% de los préstamos.
El conjunto de préstamos cuenta con prestatarios que tienen una calificación de crédito promedio ponderada original de 755 y una relación promedio ponderada de LTV y CLTV del 71,7%. La cartera consiste en un 99,9% de hipotecas a tasa fija y un 0,1% de hipotecas a tasa ajustable, con un 5,8% que tiene un período inicial de solo interés. Los préstamos tienen aproximadamente un mes de antigüedad y serán administrados por NewRez d/b/a Shellpoint Mortgage Servicing.
KBRA는 New Residential Mortgage Loan Trust 2025-NQM1의 8개 클래스의 주택담보대출 채권에 대해 초기 등급을 부여했습니다. 이 비프라임 RMBS 거래는 Rithm Capital Corp (NYSE: RITM)가 후원하여 3억 8백만 달러 규모입니다. 이번 거래는 583건의 주택담보대출로 뒷받침되며, NewRez가 57.5%를, Champions Funding이 31.3%를 차지합니다.
대출 풀은 평균 신용 점수 755와 LTV 및 CLTV의 평균 비율이 71.7%인 차용자로 구성되어 있습니다. 포트폴리오는 99.9% 고정금리 모기지와 0.1% 변동금리 모기지로 구성되며, 이 중 5.8%는 초기 이자 전액 납부 기간을 가지고 있습니다. 대출은 약 한 달간의 경과이 있으며, NewRez d/b/a Shellpoint Mortgage Servicing에 의해 서비스됩니다.
KBRA a attribué des notations préliminaires à 8 classes de titres adossés à des hypothèques du New Residential Mortgage Loan Trust 2025-NQM1, une opération RMBS non-prime de 308,0 millions de dollars parrainée par Rithm Capital Corp (NYSE: RITM). L'opération est soutenue par 583 hypothèques résidentielles, NewRez en originant 57,5% et Champions Funding, 31,3% des prêts.
Le pool de prêts présente des emprunteurs avec un score de crédit moyen pondéré initial de 755 et un LTV et CLTV moyen pondéré de 71,7%. Le portefeuille se compose de 99,9% d'hypothèques à taux fixe et de 0,1% d'hypothèques à taux variable, avec 5,8% ayant une période initiale de seulement intérêt. Les prêts ont un ancienneté d'environ un mois et seront gérés par NewRez d/b/a Shellpoint Mortgage Servicing.
KBRA hat vorläufige Bewertungen für 8 Klassen von hypothekenbesicherten Anleihen des New Residential Mortgage Loan Trust 2025-NQM1 vergeben, einer 308,0 Millionen Dollar schweren Non-Prime RMBS-Transaktion, die von Rithm Capital Corp (NYSE: RITM) unterstützt wird. Die Transaktion wird durch 583 Wohnhypotheken gesichert, wobei NewRez 57,5% und Champions Funding 31,3% der Darlehen originieren.
Der Darlehenspool weist Kreditnehmer mit einem gewogenen durchschnittlichen ursprünglichen Kredit-Score von 755 und einem gewogenen durchschnittlichen ursprünglichen LTV und CLTV von 71,7% auf. Das Portfolio besteht zu 99,9% aus Festzinsdarlehen und zu 0,1% aus variabel verzinsten Darlehen, wobei 5,8% eine anfängliche Zinsnurbestellungsphase haben. Die Darlehen haben eine Vorlaufzeit von etwa einem Monat und werden von NewRez d/b/a Shellpoint Mortgage Servicing verwaltet.
- High average borrower credit quality with 755 WA credit score
- Conservative LTV/CLTV ratios at 71.7%
- Predominantly fixed-rate mortgage composition (99.9%)
- interest-only exposure at 5.8% of pool
- New loan pool with seasoning (one month)
- Non-prime RMBS transaction carrying inherent higher risk
Insights
This
Several key aspects warrant attention: First, the originator concentration with NewRez (
The minimal presence of interest-only loans (
For investors, this transaction represents RITM's ability to: 1) Generate fee income through origination and servicing 2) Create and sell securities at attractive spreads 3) Maintain strong credit quality in their securitization program. The transaction's structure and collateral characteristics suggest potential for strong performance, which could positively impact RITM's future securitization capabilities and overall profitability.
NRMLT 2025-NQM1 is collateralized by a pool of 583 residential mortgages. Borrowers in NRMLT 2025-NQM1 possess a non-zero WA original credit score of 755 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.
Related Publications
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), one of the major credit rating agencies (CRA), is a full-service CRA registered with the
Doc ID: 1007714
View source version on businesswire.com: https://www.businesswire.com/news/home/20250127082515/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
Patrick Gervais, Managing Director (Rating Committee Chair)
+1 646-731-2426
patrick.gervais@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 RITM's NRMLT 2025-NQM1 mortgage-backed securities offering?
What is the average credit score of borrowers in RITM's NRMLT 2025-NQM1 pool?
What percentage of loans in RITM's NRMLT 2025-NQM1 are fixed-rate mortgages?
What is the weighted average loan-to-value ratio in RITM's NRMLT 2025-NQM1 trust?
Who are the main loan originators for RITM's NRMLT 2025-NQM1 trust?
