KBRA Rates Non-QM Offering NRMLT 2022-NQM5 – NMP Skip to main content

KBRA Rates Non-QM Offering NRMLT 2022-NQM5

Sep 28, 2022
Rithm Capital Corp.

The preliminary ratings are for mortgage-backed notes, with all loans originated by NewRez LLC or Caliber Home Loans.

KBRA said Wednesday it has assigned preliminary ratings to six classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2022-NQM5 (NRMLT 2022-NQM5), a $262.3 million non-prime residential mortgage-backed securities (RMBS) transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.). 

All of the underlying mortgages in the subject pool were originated, directly or via correspondent, by NewRez LLC (10.7%) or Caliber Home Loans (89.3%), both of which are subsidiaries of Rithm Capital. In addition, all loans will be serviced by NewRez LLC d/b/a Shellpoint Mortgage Servicing.

The underlying collateral, comprising 529 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 751 and exhibit modest equity in each mortgaged property, with WA loan-to-value (LTV) and combined LTV (CLTV) ratios of 71% each.

Approximately 71% of the loans were designated as Non-QM, as they do not benefit from safe harbor legal protections and are potentially at heightened risk of litigation-related losses, KBRA said. The remaining loans (29%) were categorized as exempt from the Ability-To-Repay/Qualified Mortgage rule, as those loans were originated for business purposes on investment properties.

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, XS-1, XS-2, A-IO-S, R: Not rated.

KBRA said its 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. 

The full report is available at www.kbra.com (registration required).

About the author
David Krechevsky was an editor at NMP.
Published
Sep 28, 2022
More from
Non-QM
ResiCentral Expands Non-QM Lineup With Same-Day Income Qualification

New Apex and Optimum programs combine multiple documentation options with faster income analysis for self-employed, investor, and other non-W-2 borrowers

Jul 10, 2026
Finance Of America Sees Growing Demand For Second-Lien Reverse Mortgages

HomeSafe Second expands into four additional markets, giving loan officers another option for equity-rich homeowners who want to preserve low-rate first mortgages

Jul 08, 2026
Figure’s Prefunded Deal Shifts Rate Risk From Originators To Bond Investors

Originators get a locked exit in a private-credit market hungry for funding certainty

Jul 03, 2026
How To Qualify Self-Employed Borrowers When Tax Returns Fall Short

A practical guide to using bank statement loans for borrowers whose cash flow isn't reflected on their tax returns

Jul 01, 2026
Untapped Home Equity Creates Opportunity For Alternative-Doc HELOCs

New Home Equity Gap Index estimates U.S. homeowners hold $11 trillion in available equity as some Non-QM lenders expand options for self-employed borrowers

Jun 26, 2026
Non-QM Moves From Backup Plan To Broker Strategy

74.5% of brokers report growing Non-QM volume in their business, according to a new A&D Mortgage survey

Jun 24, 2026