Bravo 2025-NQM8 priced $565M non-QM RMBS

Bravo 2025-NQM8 priced $565M non-QM RMBS

Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to the Bravo 2025-NQM8 non-qualified mortgage-backed securities (RMBS) transaction. The $565.7 million RMBS, collateralized by a pool of 1,230 residential mortgages, includes a mix of fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs), with FRMs making up 92.7% and ARMs 7.3% of the pool, respectively. Notably, a significant portion of the loans (24.2%) are classified as non-qualified mortgages (Non-QM), while 49.5% are exempt from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule [1].

KBRA's rating approach involved a comprehensive analysis, including loan-level assessment through its Residential Asset Loss Model (REALM), third-party loan file due diligence, cash flow modeling, reviews of key transaction parties, and an evaluation of the transaction's legal structure and documentation. These factors were considered in the context of KBRA's U.S. RMBS Rating Methodology [1].

The preliminary ratings and relevant documents can be accessed via KBRA's official website. For further details, investors and financial professionals are encouraged to refer to the full rating report and the methodologies outlined by KBRA [1].

References:
[1] https://www.morningstar.com/news/business-wire/20250822339226/kbra-assigns-preliminary-ratings-to-bravo-residential-funding-trust-2025-nqm8-bravo-2025-nqm8