KBRA Assigns Preliminary Ratings To Barclays Mortgage Loan Trust Non-QM Transaction – NMP Skip to main content

KBRA Assigns Preliminary Ratings To Barclays Mortgage Loan Trust Non-QM Transaction

Aug 25, 2022
KBRA New Logo

The $255.3 million non-prime residential mortgage-backed securities transaction is sponsored by Sutton Funding LLC. 

KBRA has assigned preliminary ratings to six classes of mortgage pass-through notes from Barclays Mortgage Loan Trust 2022-NQM1 (BARC 2022-NQM1).

The $255.3 million non-prime residential mortgage-backed securities (RMBS) transaction is sponsored by Sutton Funding LLC. 

The underlying collateral comprises 718 residential mortgages and is characterized by a notable concentration (96.2%) of loans underwritten with low-to-moderate original loan-to-value (LTV) ratios and non-traditional income documentation. 

The collateral consists primarily of mortgages originated by Carrington Mortgage Services LLC (79.3%) and purchased by Invigorate Finance. 

The mortgage loans, seasoned approximately eight months, include both fixed-rate mortgages (FRMs; 94%) and adjustable-rate mortgages (ARMs 6%). Additionally, approximately 2.6% of the pool has an initial interest-only period. 

Approximately 48% of the loans were categorized as non-qualified mortgages (Non-QM) under the Ability-toRepay/Qualified Mortgage (ATR/QM) rule. The remaining loans were either QM Rebuttable Presumption or Higher Priced QM (0.8%) or exempt from the ATR/QM rule due to being originated for business purposes (51.2%).

KBRA assigned the preliminary 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, A-IO-S, X, R: Not rated.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its RMBS Credit Model, an examination of the results from third-party loan file due diligence performed at the time of origination of the loans, 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. 

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

About the author
David Krechevsky was an editor at NMP.
Published
Aug 25, 2022
More from
Non-QM
Investor Homebuying Slows, Small Buyers Claim Biggest Share In 15 Years

Smaller investors accounted for 66.2% of investor purchases in the first half of 2026 and relied on cash much less often than mega-investors

Oct 22, 2026
For The Love Of Mortgage

Nearly four decades in lending have reinforced a veteran’s conviction: lasting success comes from solving borrower problems, adapting, and earning trust

Oct 21, 2026
The Non-QM Opportunity Beyond The Rate Conversation

For business owners and investors, purchase price, negotiating power, and cash flow can create reasons to buy before rates fall

Oct 21, 2026
Carrington, Newfi Stress Non-QM Staying Power

Both lenders point to financial strength and continued investment in broker partnerships amid rising rates, even while Non-QM production grows

Oct 14, 2026
Non-QM Locks Defy September Slowdown, ARM Share Hits Seven-Year High

Non-QM lock volume rose 8% from August while overall activity declined, and adjustable-rate loans captured their largest share since Optimal Blue’s tracking began in 2019

Oct 13, 2026
Conventional Credit Tightens While Non-QM Gains Ground

Lenders pulled back on cash-out refinance and investor loan offerings in September, even as non-agency programs continued to support the jumbo market, and Non-QM lending gained market share

Oct 09, 2026