07/15/2025 – 05:24 PM
NEW YORK–(BUSINESS WIRE)– Kroll Bond Rating Agency (KBRA) has issued preliminary ratings for eight classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM4 (NRMLT 2025-NQM4). This $488.4 million non-prime RMBS transaction is sponsored by Rithm Capital Corp. (NYSE: RITM), the publicly traded real estate investment trust (REIT). Portfolio mortgages originated primarily from NewRez LLC, accounting for 35.8%, and Champions Funding, LLC, contributing 25.7%. Servicing will be handled by Shellpoint Mortgage Servicing, a division of NewRez LLC.
The NRMLT 2025-NQM4 collateral comprises a pool of 938 residential mortgages. What’s driving the ratings? The borrowers within this pool have a weighted average original credit score of 752, alongside a weighted average original loan-to-value (LTV) ratio of 70.1% and a combined LTV (CLTV) of 70.2%. These loans, seasoned for approximately two months, are structured entirely as fixed-rate mortgages (FRMs), with approximately 6.6% featuring an initial interest-only period.
KBRA’s analytical approach leveraged its Residential Asset Loss Model (REALM) to conduct a detailed loan-level analysis of the mortgage pool. This included a comprehensive examination of third-party loan file due diligence outcomes, cash flow modeling to understand the transaction’s payment structure, assessments of the critical parties involved, and an evaluation of the transaction’s legal framework. More details on this analysis are available in KBRA’s U.S. RMBS Rating Methodology.
For ratings and related documents, click here.
To view the report, click here.
Related Publications
Methodologies
Disclosures
According to KBRA, further insights into the key credit considerations, sensitivity analyses, and potential impacts of ESG factors on these credit ratings are detailed in the full rating report referenced earlier.
Further details concerning the underlying material sources, methodologies, including models and sensitivity analyses, employed in determining these credit ratings can be found in the Information Disclosure Forms available here.
Understanding the meaning of each rating category is available here.
Additional disclosures tied to this rating action are accessible within the Information Disclosure Forms mentioned above. Further information regarding KBRA policies, methodologies, rating scales, and disclosures can be found at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA), is registered with the U.S. Securities and Exchange Commission as an NRSRO and is considered to be one of the major credit rating agencies (CRA). Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Doc ID: 1010386
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Analytical Contacts
Minxi Qiu, Director (Lead Analyst)
+1 646-731-1263
[email protected]
Colleen Kelley, Senior Analyst
+1 646-731-1389
[email protected]
Sharif Mahdavian, Managing Director (Rating Committee Chair)
+1 646-731-2301
[email protected]
Business Development Contact
Daniel Stallone, Managing Director
+1 646-731-1308
[email protected]
Source: Kroll Bond Rating Agency, LLC
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