KBRA Assigns Preliminary Ratings To OBX 2022-NQM3 – NMP Skip to main content

KBRA Assigns Preliminary Ratings To OBX 2022-NQM3

Mar 16, 2022
KBRA New Logo

The $315.8 million non-prime RMBS transaction is comprised of 518 residential mortgages, including 58.5% that are non-QM loans.

New York-based ratings agency KBRA has assigned preliminary ratings to six classes of mortgage pass-through notes from OBX 2022-NQM3 Trust (OBX 2022-NQM3), a $315.8 million non-prime RMBS transaction. 

The underlying collateral, comprising 518 residential mortgages, is characterized by a notable concentration of alternative income documentation (86%). With respect to the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule, approximately 58.5% of the loans were categorized as non-qualified mortgages (non-QM). The remaining loans (41.5%) were categorized as QM: Safe Harbor (2.4%), QM: Rebuttable Presumption (0.2%), or exempt from the ATR/QM rule (38.9%) due to being originated for business purposes (i.e., investment properties).

KBRA assigned preliminary ratings as follows:

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

KBRA said the transaction contains loans which it generally considers to be non-prime due to certain loan or borrower characteristics that include borrowers with blemished credit history and the use of bank statements and other forms of alternative documentation to document income.

OBX 2022-NQM3 is sponsored by Onslow Bay Financial LLC. Onslow Bay was formed in July 2013 and operates as a wholly owned subsidiary of Hatteras Financial Corp., which was acquired in July 2016 by Annaly Capital Management Inc. Annaly purchases all residential whole loans through Onslow Bay. The company purchases a mix of agency-eligible, prime jumbo, and expanded/non-prime collateral.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its U.S. RMBS Mortgage Default and Loss 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. 

Read KBRA’s full report here (registration required).

About the author
David Krechevsky was an editor at NMP.
Published
Mar 16, 2022
More from
Non-QM
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
Home Equity Lending Could Overtake Non-QM In 2027

Lenders report rising second-lien production as homeowners protect low first-mortgage rates

Nov 04, 2026
UWM Expands VantageScore Into Non-Agency Lending

Wholesale lender adds credit-score flexibility to select jumbo, bank statement, investor, and home equity products

Nov 02, 2026
Behind The Non-QM Numbers: How Experienced Originators Choose The Right Income-Documentation Path

How choosing the right income-documentation method upfront can help originators avoid costly delays, underwriting setbacks, and missed opportunities in Non-QM lending

Oct 30, 2026
Beeline Announces Job Cuts While Pursuing Non-QM Growth

The lender is targeting $3 million in annual savings after forecasting its strongest revenue since 2021, with a bank statement loan promotion approaching its Oct. 31 lock deadline

Oct 26, 2026