Non-prime RMBS are bonds made by pooling home loans that come from borrowers with weaker credit histories, smaller down payments, or other loan features that raise the chance of missed payments. Think of buying a mixed crate of fruit where some pieces are more likely to spoil: these securities can offer higher yields but are more sensitive to housing market stress and borrower defaults, so investors weigh greater return against greater risk.
loan-to-value (ltv)financial
Loan-to-value (LTV) is the ratio of a loan amount to the value of the asset used as collateral, expressed as a percentage; for example, a $80,000 loan on a $100,000 property has an LTV of 80%. It matters to investors because higher LTVs mean greater risk of loss if the asset falls in value—like borrowing most of the price of a car, leaving little buffer—so lenders charge higher rates or restrict lending, affecting credit availability and borrower default risk.
combined ltv (cltv)financial
Combined loan-to-value (CLTV) measures the total amount owed across all loans secured by a single property divided by that property's current market value. Investors use it to gauge how much of the asset is financed and how much price decline the collateral can absorb—higher CLTV means less cushion before debt exceeds value, raising default and loss risk. It influences lender pricing, recovery prospects and the risk profile of mortgage-backed or real-estate-related investments.
residential asset loss model (realm)technical
A residential asset loss model (REALM) is a computerized tool that estimates how much value homes and other residential properties could lose after events like storms, floods, fires or long-term hazards. For investors, it works like a weather forecast for money: it translates physical damage and repair costs into likely financial losses, helping to price risk, set insurance reserves, and stress-test real estate portfolios or mortgage-backed securities.
asset-backedfinancial
Asset-backed describes a loan, bond, or security that is supported by a specific pool of tangible or financial items—such as loans, receivables, leases, or property—that can be sold or collected to pay investors if the borrower can’t. Think of it like a loan tied to collateral: if payments stop, the assets provide a safety net, which changes the investment’s risk, expected return, and how regulators treat it.
due diligencefinancial
Due diligence is the careful investigation and analysis someone conducts before making a decision, such as investing money or entering into an agreement. It’s like researching thoroughly before buying a used car to ensure it’s in good condition; this helps prevent surprises and makes informed choices. For investors, due diligence reduces risk by verifying details and understanding what they’re getting into.
Cash flow modeling is creating a forward-looking estimate of the actual cash a business will receive and spend, based on assumptions about sales, costs, capital projects and borrowing. For investors it’s like projecting a household budget to see whether there will be enough money to pay bills, fund growth or return cash to owners; it reveals short-term survival risk, financing needs and supports valuation decisions.
esg factorsfinancial
ESG factors are a set of environmental, social and governance issues investors look at like a company’s sustainability and behavior report card — for example its pollution, treatment of workers, or board oversight. They matter because these non-financial factors can affect a firm’s long‑term costs, reputation and legal risks, so incorporating them helps investors judge whether a company is likely to deliver steady returns or face avoidable setbacks.
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NEW YORK--(BUSINESS WIRE)--
KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM6 (NRMLT 2026-NQM6), a $490.1 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 primarily originated by NewRez LLC (62.7%). In addition, all loans will be serviced by NewRez LLC.
NRMLT 2026-NQM6 is collateralized by a pool of 930 residential mortgages seasoned approximately two months. Borrowers in NRMLT 2026-NQM6 possess a non-zero WA original credit score of 755 and exhibit a weighted average (WA) original loan-to-value (LTV) of 71.8% and a WA combined LTV (CLTV) of 71.8%.
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 ratings and relevant documents, click here.
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. 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.
