Information
KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM1 (NRMLT 2026-NQM1), a $502.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp.
Original sourceAI Summary
KBRA assigns preliminary ratings to RITM's RMBS transaction worth $502 million. Mortgages in this pool show strong credit scores and low LTV ratios. 31.7% of collateralized loans were previously securitized in another trust. Rating approach involved extensive loan-level analysis and cash flow modeling. Rithem Capital is positioned well in the non-prime market segment.
Sentiment Rationale
The assignment of positive ratings implies confidence in the asset's performance. Historically, successful RMBS transactions have lifted share prices.
Trading Thesis
The immediate announcement can lead to increased investor interest and potential price appreciation. Recent similar announcements led to quick market reactions.
Market-Moving
- KBRA assigns preliminary ratings to RITM's RMBS transaction worth $502 million.
- Mortgages in this pool show strong credit scores and low LTV ratios.
- 31.7% of collateralized loans were previously securitized in another trust.
Key Facts
- KBRA assigns preliminary ratings to RITM's RMBS transaction worth $502 million.
- Mortgages in this pool show strong credit scores and low LTV ratios.
- 31.7% of collateralized loans were previously securitized in another trust.
- Rating approach involved extensive loan-level analysis and cash flow modeling.
- Rithem Capital is positioned well in the non-prime market segment.
Companies Mentioned
- NRZ (NRZ)
- NLY (NLY)
- PMT (PMT)
Corporate Developments
The ratings directly signal market confidence in RITM’s mortgage-backed securities, influencing stock performance.
KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM1 (NRMLT 2026-NQM1), a $502.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE:RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were primarily originated by NewRez LLC (52.6%) and Caliber Home Loans Inc, LLC (27.4%). In addition, all loans will be serviced by NewRez LLC.
NRMLT 2026-NQM1 is collateralized by a pool of 1,014 residential mortgages, of which 31.7% were originally securitized in NRMLT 2022-NQM5 which has been called. Borrowers in NRMLT 2026-NQM1 possess a non-zero WA original credit score of 758 and exhibit a weighted average (WA) original loan-to-value (LTV) of 72.2% and a WA combined LTV (CLTV) of 72.2%. The loans are seasoned approximately 15 months, 31.7% of the pool is seasoned over 2 years.
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 U.S. RMBS Rating Methodology.
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 U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Doc ID: 1013044
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Analytical Contacts
Minxi Qiu, Director (Lead Analyst)
+1 646-731-1263
minxi.qiu@kbra.com
Bianca Rexach, Associate Director
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bianca.rexach@kbra.com
Sharif Mahdavian, Managing Director (Rating Committee Chair)
+1 646-731-2301
sharif.mahdavian@kbra.com
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