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KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust 2026-NQM5 (NRMLT 2026-NQM5)

  • KBRA assigned preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM5 (NRMLT 2026-NQM5), a $471.1 million non-prime RMBS transaction.
  • The transaction is sponsored by Rithm Capital Corp. (NYSE: RITM), a publicly traded REIT formerly known as New Residential Investment Corp.
  • Primary mortgage originators in the pool are NewRez LLC (47.4%) & Champions Funding, LLC (21.2%), with NewRez LLC servicing all loans.
  • The collateral pool consists of 834 residential mortgages seasoned for approximately two months.
  • Borrowers in the pool have a weighted average original credit score of 752, a weighted average original LTV of 72.5%, & a weighted average combined LTV of 72.5%.
  • KBRA utilized its Residential Asset Loss Model (REALM), third-party due diligence, cash flow modeling, & legal structure reviews to determine the ratings.
  • Full rating reports, methodologies, & disclosures are available via links provided in the original text & at www.kbra.com.
  • Analytical contacts for the rating action include Minxi Qiu (Lead Analyst), Bianca Rexach (Associate Director), & Sharif Mahdavian (Rating Committee Chair).