Fitch Ratings has assigned final ratings to residential mortgage-backed certificates to be issued by PRPM 2022-NQM1 Trust, Mortgage Pass-Through Certificates, Series 2022-NQM1 (PRPM 2022-NQM1 Trust).
The certificates are supported by 668 loans with a balance of $319.43 million as of the cut-off date. This will be the first PRPM transaction rated by Fitch, though it is PRPM’s sixth transaction in 2022.
Sprout Mortgage LLC originated 43.2% of the loans, Nexera Holding LLC doing business as Newfi Lending originated 27.2% of the loans, while the remaining 29.6% of the loans were originated by other third-party originators.
The certificates are secured by a pool of fixed- and adjustable-rate mortgage loans (some of which have an initial interest-only period) that are primarily fully amortizing, with original terms to maturity of primarily 30 to 40 years and are secured by first liens primarily on one- to four-family residential properties, units in planned unit developments, condominiums, mixed-use properties, townhouses and 5-20 unit multi-family properties.
The loans include 30.6% that are classified as non-qualified mortgages (Non-QM) as defined by the Ability to Repay (ATR) rule (the rule); the remaining 69.4% are exempt from the rule as they are investment properties.
Fitch assigned the final ratings 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, XS, A-IO-S, R, R: Not rated.
Servis One Inc., d/b/a BSI Financial Services, will service 61.6% of the loans in the pool, while NewRez LLC d/b/a Shellpoint Mortgage Servicing will service 31.1%. The remaining 7.3% will be serviced by Fay Servicing LLC.
The full report is available at www.fitchratings.com.
