Fitch Expects To Rate BRAVO Residential Funding Trust 2023-NQM1 – NMP Skip to main content

Fitch Expects To Rate BRAVO Residential Funding Trust 2023-NQM1

Jan 20, 2023
Fitch Ratings

Loans in the pool were originated primarily by Acra Lending and LoanStream Mortgage.

Fitch Ratings said Thursday it expects to rate the residential mortgage-backed notes to be issued by BRAVO Residential Funding Trust 2023-NQM1 (BRAVO 2023-NQM1).

The notes are supported by 788 loans with a total interest-bearing balance of approximately $365 million. Loans in the pool were originated primarily by Acra Lending and LoanStream Mortgage, with the remainder coming from multiple originators. The loans are serviced by Acra and Rushmore Loan Management Services LLC.

The 788 loans are seasoned approximately 11 months in aggregate, calculated as the difference between the origination date and the cutoff date. The borrowers have a moderate credit profile — a 725 model FICO score and a 47% debt-to-income ratio (DTI), which includes mapping for debt service coverage ratio (DSCR) loans — and leverage, as evidenced by a 74% sustainable loan-to-value ratio (sLTV). 

The pool comprises 53% of loans treated as owner-occupied, while 47% were treated as an investor property or second home, which includes loans to foreign nationals or loans where the residency status was not provided (five foreign nationals and 35 loans where residency was not available).

Of the loans, 57.3% are designated as a non-QM loan, while the Ability to Repay Rule (ATR) does not apply for 42%. Lastly, 1.6% of the loans are 30 days' delinquent as of the cutoff date, while 3.7% are current but have experienced a delinquency or had missing pay string data within the past 24 months.

Approximately 91% of the pool loans were underwritten to less than full documentation, and 49% were underwritten to a 12- or 24-month bank statement program for verifying income, which is not consistent with Appendix Q standards and Fitch's view of a full documentation program.

Additionally, 33% of loans comprise a DSCR or property cash flow-focused product, 3.2% are a CPA or Profit and Loss (PnL) product and the remaining is a mix of other alternative documentation products. Separately, five loans were originated to foreign nationals and 35 were unable to confirm residency.

Fitch said it expects to assign rates as follows:

  • A-1: AAA (sf)
  • A-2: AA (sf)
  • A-3: A (sf)
  • M-1: BBB (sf)
  • B-1: BB (sf)
  • B-2: B (sf)
  • B-3, AIOS, FB, R, SA, XS: Not rated

The full report is available at www.fitchratings.com.

About the author
David Krechevsky was an editor at NMP.
Published
Jan 20, 2023
More from
Non-QM
Will Artificial Intelligence Finally Crack The Non-QM Cost Problem?

As Non-QM lending grows, AI is helping lenders reduce the manual work that has long driven higher origination costs

Jun 10, 2026
Non-QM Share Climbs To 9% As Conforming Market Shrinks

Non-QM loans reached 9% of lock volume in May while adjustable-rate mortgages climbed to 11% and conforming share remained below 50%

Jun 10, 2026
Lendmire Expands DSCR Lending Platform Amid Five-Year High In Investor Home Purchases

The Non-QM-focused brokerage is broadening wholesale lender partnerships and short-term rental financing options while investor-driven DSCR demand continues rising

May 22, 2026
MortgageOne TPO Launches ARIVE Integration, Expands Alternative Lending Push With New CDFI Product

Wholesale lender expands broker workflow access while rolling out no-income-doc Pathway product geared toward underserved borrowers

May 21, 2026
Planet Expands Non-Agency Push As Q1 Origination Volume Jumps 53%

Servicing growth, recapture strategies, and correspondent expansion continue fueling Planet’s integrated mortgage platform model

May 21, 2026
Not Your Conforming Comfort Zone

Non-Agency originations could reach $500 billion this year. Are you ready to tap in?

May 20, 2026