KBRA Assigns Preliminary Ratings To Non-QM Offering VERUS 2022-6 – NMP Skip to main content

KBRA Assigns Preliminary Ratings To Non-QM Offering VERUS 2022-6

Jun 16, 2022
KBRA New Logo

The $524.5 million non-prime RMBS  transaction consists of mortgages originated by various lenders, including Castle Mortgage.

KBRA has assigned preliminary ratings to four classes of mortgage pass-through notes from Verus Securitization Trust 2022-6 (Verus 2022-6), a $524.5 million non-prime residential mortgage-backed securities (RMBS) transaction.

Verus 2022-6 is a $524.5 million non-prime RMBS  transaction sponsored by VMC Asset Pooler LLC. VMC Asset Pooler, and Verus Mortgage Capital are affiliates of Invictus Capital Partners, a real estate credit-focused alternative asset manager. 

The underlying collateral, comprising 973 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Borrowers in the subject pool possess a non-zero weighted average (WA) original credit score of 734 and exhibit moderate equity in each mortgaged property, with WA loan-to-value (LTV) and combined LTV (CLTV) ratios of 71.9%.

The collateral consists of mortgages originated by various lenders, only one of which comprises more than 10% of the pool (Castle Mortgage Corp.). All loans in the transaction will be serviced by New Rez LLC d/b/a Shellpoint Mortgage Servicing, and Fay Servicing LLC.

The mortgage loans, seasoned approximately 3 months, include both fixed-rate mortgages (FRMs; 90.5%) and adjustable-rate mortgages (ARMs 9.5%). Additionally, approximately 22.5% of the pool has an initial interest-only period. Approximately 58.5% of the loans were categorized as non-qualified mortgages (Non-QM) under the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule. The remaining loans were exempt from the ATR/QM rule due to being originated for business purposes (41.5%).

KBRA assigned preliminary ratings as follows:

  • A-1: AAA
  • A-2: AA+
  • A-3: A
  • M-1: BBB-
  • B-1, B-2, B-3, A-IO-S, XS, DA, R: Not rated.

KBRA said its rating approach incorporated loan-level analysis of the mortgage pool through its KBRA RMBS Credit Model, 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. 

You can read the full report at www.kbra.com (registration required).

About the author
David Krechevsky was an editor at NMP.
Published
Jun 16, 2022
More from
Non-QM
DSCR Lending Keeps Gaining Ground as Investor Purchases Slow

As investor purchases decline, DSCR loans capture a growing share of Non-QM lending, creating opportunities for brokers who understand the differences between lender programs

Nov 11, 2026
Better's Mortgage Volume Rises 15%, But Losses Persist

Better is targeting a bigger share of wholesale lending, with plans to expand into Non-QM and conventional mortgages

Nov 10, 2026
New Integration Aims to Cut Construction Loan Draw Delays

Sitewire and Nexys connect loan origination with budget reviews and inspections, aiming to speed draw approvals and improve oversight for private lenders

Nov 10, 2026
Mortgage Locks Plunge 19% Despite Rate Relief, ARM Share Hits New High

October's sharp decline in lending activity points to a tougher purchase market, even as borrowers turn to ARMs, FHA, and Non-QM financing

Nov 10, 2026
How To Win Real Estate Investors, And Keep Them Coming Back

NMP Ignite speakers share strategies for building lasting investor relationships, overcoming financing challenges, and generating repeat business

Nov 06, 2026
ResiCentral Expands Non-QM Lending With 90% LTV, 55% DTI Options

New Advantage program offers more flexibility for borrowers with past credit events, self-employed buyers using bank statements, and real estate investors

Nov 06, 2026