KBRA Assigns Preliminary Ratings to Santander Mortgage Asset Receivable Trust 2025-NQM2 (SAN 2025-NQM2)
8 May 2025 | New York
KBRA assigns preliminary ratings to eight classes of mortgage-backed notes from Santander Mortgage Asset Receivable Trust 2025-NQM2 (SAN 2025-NQM2), a $288.6 million non-prime RMBS transaction. The underlying collateral, comprised of 679 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Approximately 58.4% of the loans were exempt from the ATR/QM rule due to being originated for business purposes or by a CDFI. The remaining portions of the pool were categorized as QM: Safe Harbor (APOR) (6.0%), non-qualified mortgages (Non-QM) under the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule (34.6%) or categorized as QM: Rebuttable Presumption (APOR) (0.9%). In addition, 1.1% of the pool are closed-end loans with second lien priority underwritten with various documentation levels.
The largest originators in the pool include HomeXpress Mortgage Corp. (16.4%) and Champions Funding LLC (15.4%), with no other originator composing of more than 10% of the transaction. Additionally, the pool includes loans purchased by Onslow Bay Financial LLC (36.7%) and SG Capital Partners, LLC (15.9%), that were previously aggregated from 92 different originators.
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