KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust 2024-NQM2 (NRMLT 2024-NQM2)
5 Sep 2024 | New York
KBRA assigns preliminary ratings to 8 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2024-NQM2 (NRMLT 2024-NQM2), a $723.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were originated by NewRez LLC (49.7%), American Heritage Lending (13.2%), and LendSure Mortgage Corporation (12.2%). In addition, all loans will be serviced by NewRez LLC d/b/a Shellpoint Mortgage Servicing.
NRMLT 2024-NQM2 is collateralized by a pool of 1,511 residential mortgages. Borrowers in NRMLT 2024-NQM2 possess a non-zero WA original credit score of 748 and exhibit a weighted average (WA) original loan-to-value (LTV) and a WA combined LTV (CLTV) of 72.7%. The loans are seasoned approximately five months and include both fixed-rate mortgages (FRMs; 99.7%) and adjustable-rate mortgages (0.3%). Approximately 9.2% of the pool has an initial interest-only period.
KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), 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. This analysis is further described in our U.S. RMBS Rating Methodology.
To access rating and relevant documents, click here.
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