Fitch To Rate BRAVO Residential Funding Trust Non-QM Offering – NMP Skip to main content

Fitch To Rate BRAVO Residential Funding Trust Non-QM Offering

Aug 30, 2022
Fitch Ratings New logo.

BRAVO 2022-NQM3 notes are supported by 920 loans with a total interest-bearing balance of approximately $387 million. 

Fitch Ratings said this week it expects to rate the residential mortgage-backed notes to be issued by BRAVO Residential Funding Trust 2022-NQM3 (BRAVO 2022-NQM3).

The notes are supported by 920 loans with a total interest-bearing balance of approximately $387 million as of the cutoff date. There is also roughly $879,000 of non-interest-bearing deferred amounts whose payments or losses will be used solely to pay down or write off the class FB notes.

Loans in the pool were originated by multiple originators, and are serviced by Acra Lending, Rushmore Loan Management Services LLC, and AmWest Funding Corp.

Fitch said it expects to rate the notes as follows:

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

The pool comprises 58% of loans treated as owner-occupied, while 42% were treated as an investor property or second home (includes loans to foreign nationals or loans where the residency status was not provided). Of the loans, 55.1% are designated as a nonqualified mortgage (Non-QM) loan, while the Ability to Repay Rule (ATR) does not apply to 42%. Lastly, 2.3% of the loans are 30 days' delinquent as of the cutoff date, while 10.1% are current but have experienced a delinquency within the past 24 months.

Approximately 87% of the pool were underwritten to less than full documentation, and 39.3% were underwritten to a 12-month 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, 35% comprise a DSCR or property cash flow-focused product, 2.2% are a Written Verification of Employment (WVOE) product, and the remaining are a mix of other alternative documentation products. Separately, 35 loans were originated to foreign nationals.

You can read the full report at www.fitchratings.com.

About the author
David Krechevsky was an editor at NMP.
Published
Aug 30, 2022
More from
Non-QM
NMP Deal Desk: Kind Lending Highlights How Asset Utilization Can Help Qualify More Non-QM Borrowers

Kind Lending executives discussed how asset depletion works, which borrowers may benefit most, and why brokers should take a closer look at borrowers with significant assets but non-traditional income

Jun 17, 2026
Private Lender Arixa Tops $8B In Originations

Private lender points to growing demand for construction and renovation financing as banks remain selective

Jun 17, 2026
eRESI Rolls Out AI Guideline Search For Non-QM Lending

Correspondent sellers will receive complimentary access to Guideline Guru's platform, allowing real-time searches of eRESI underwriting guidelines and instant AI-generated answers

Jun 16, 2026
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