KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust 2025-NQM7 (NRMLT 2025-NQM7)

Core Viewpoint - KBRA has assigned preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM7, a $493.7 million non-prime RMBS transaction sponsored by Rithm Capital Corp [1]. Group 1: Transaction Overview - NRMLT 2025-NQM7 is backed by a pool of 915 residential mortgages, with borrowers having a weighted average (WA) original credit score of 757 and a WA original loan-to-value (LTV) of 72.2% [2]. - The loans in this pool are primarily fixed-rate mortgages (99.3%) and have been seasoned for approximately four months, with about 10.6% of the pool featuring an initial interest-only period [2]. Group 2: Rating Methodology - KBRA's rating approach involved a loan-level analysis using its Residential Asset Loss Model (REALM), third-party loan file due diligence, cash flow modeling of the transaction's payment structure, and reviews of key transaction parties [3].