KBRA Assigns Ratings to Santander Mortgage Asset Receivable Trust 2025-NQM2 (SAN 2025-NQM2)
16 May 2025 | New York
KBRA assigns ratings to eight classes of mortgage-backed notes from Santander Mortgage Asset Receivable Trust 2025-NQM2 (SAN 2025-NQM2), a $288.0 million RMBS transaction is collateralized by a pool of 677 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs), making up 95.0% and 5.0% of the pool, respectively. Approximately 58.3% of the loans were exempt from the ATR/QM rule due to being originated for business purposes or by a CDFI. The remaining portions of the pool were categorized as QM: Safe Harbor (APOR) (6.0%), non-qualified mortgages (Non-QM) under the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule (34.7%) or categorized as QM: Rebuttable Presumption (APOR) (0.9%). In addition, 1.1% of the pool are closed-end loans with second lien priority underwritten with various documentation levels.
The largest originators in the pool include HomeXpress Mortgage Corp. (16.4%) and Champions Funding LLC (15.2%), with no other originator composing of more than 10% of the transaction. Additionally, the pool includes loans purchased by Onslow Bay Financial LLC (36.8%) and SG Capital Partners, LLC (16.0%), that were previously aggregated from 92 different originators.
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