KBRA Assigns Preliminary Ratings to OBX 2025-NQM13 Trust
11 Jul 2025 | New York
KBRA assigns preliminary ratings to six classes of mortgage-backed notes from OBX 2025-NQM13 Trust, a $662.7 million non-prime RMBS transaction. The underlying collateral, comprising 1,208 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 92.8% and 7.2% of the pool, respectively. A majority of the loans are either classified as non-qualified mortgages (Non-QM; 47.2%) or exempt (42.9%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. There were no originators comprising over 10% of the pool.
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.
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