KBRA Assigns Preliminary Ratings to NRMLT 2026-NQM5
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy RITM?
Source: Newsfilter
- Transaction Size: KBRA has assigned preliminary ratings to NRMLT 2026-NQM5, a $471.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp., indicating increased activity in the non-prime RMBS market that may attract more investor interest.
- Loan Originators: The underlying mortgages are primarily originated by NewRez LLC (47.4%) and Champions Funding, LLC (21.2%), highlighting the significance of these lenders in the non-prime market, which could influence future lending strategies.
- Credit Quality: Borrowers in NRMLT 2026-NQM5 possess an average original credit score of 752, with both loan-to-value (LTV) and combined LTV (CLTV) at 72.5%, suggesting relatively high credit quality that may enhance investor confidence.
- Rating Methodology: KBRA's rating approach involved loan-level analysis through its Residential Asset Loss Model (REALM), alongside third-party due diligence results and cash flow modeling, ensuring accuracy and transparency in ratings, thereby bolstering market trust in its assessments.
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Analyst Views on RITM
Wall Street analysts forecast RITM stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 9.960
Low
14.00
Averages
14.92
High
16.00
Current: 9.960
Low
14.00
Averages
14.92
High
16.00
About RITM
Rithm Capital Corp. is a global asset manager focused on real estate, credit and financial services. The Company makes direct investments and operates several wholly-owned operating businesses. Its segments include Origination and Servicing, Investment Portfolio, Residential Transitional Lending and Asset Management. The Company's businesses include Sculptor Capital Management, Inc., an alternative asset manager, as well as Newrez LLC and Genesis Capital LLC, mortgage origination and servicing platforms. Sculptor Capital Management, Inc. provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. Genesis Capital LLC specializes in originating and managing a portfolio of primarily short-term business purpose mortgage loans to fund single-family and multi-family real estate developers with construction, renovation and bridge loans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
KBRA Assigns Preliminary Ratings to NRMLT 2026-NQM5
- Transaction Size: KBRA has assigned preliminary ratings to NRMLT 2026-NQM5, a $471.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp., indicating increased activity in the non-prime RMBS market that may attract more investor interest.
- Loan Originators: The underlying mortgages are primarily originated by NewRez LLC (47.4%) and Champions Funding, LLC (21.2%), highlighting the significance of these lenders in the non-prime market, which could influence future lending strategies.
- Credit Quality: Borrowers in NRMLT 2026-NQM5 possess an average original credit score of 752, with both loan-to-value (LTV) and combined LTV (CLTV) at 72.5%, suggesting relatively high credit quality that may enhance investor confidence.
- Rating Methodology: KBRA's rating approach involved loan-level analysis through its Residential Asset Loss Model (REALM), alongside third-party due diligence results and cash flow modeling, ensuring accuracy and transparency in ratings, thereby bolstering market trust in its assessments.
See More
Rithm Capital Rated Among Cheapest High Dividend Stocks
- Price Rating Downgrade: Piper Sandler has lowered Rithm Capital's price target from $15 to $14 while maintaining an Overweight rating, reflecting a cautious outlook on the mortgage market that may affect investor confidence.
- Mortgage Market Volatility: The first quarter has been described as a 'tale of two halves', with mortgage rates improving steadily to 5.98% in February, but recently rising back to nearly 6.38% due to market volatility, indicating uncertainty in the sector.
- Application Data Trends: Although mortgage applications rose 18% sequentially during a typically slower quarter, they have begun to slow in recent weeks, suggesting that market demand may be impacted by rate fluctuations, which could affect Rithm's business performance.
- Market Environment Impact: Piper Sandler noted that the volatility in the mortgage market is linked to the Iran war and changing inflation expectations, which could negatively influence Rithm Capital's investment strategies and future earnings.
See More
Multiple Companies Announce Quarterly Cash Dividends
- F&M Bank Dividend Growth: F&M Bank's Board approved a quarterly cash dividend of $0.23 per share, reflecting a 4% year-over-year increase, which indicates the company's stable financial performance with total assets of $3.43 billion, likely enhancing shareholder confidence and attracting more investors.
- InterDigital Regular Dividend: InterDigital announced a quarterly cash dividend of $0.70 per share, payable on April 22, 2026, showcasing the company's ongoing profitability in the wireless and video technology sectors, which may enhance its market appeal.
- THOR Industries Dividend Approval: THOR Industries' Board approved a quarterly cash dividend of $0.52 per share, indicating the company's commitment to returning value to shareholders amidst stable financial conditions, which is expected to strengthen investor trust.
- CMC Dividend Increase: CMC declared a quarterly cash dividend of $0.20 per share, an 11% increase from the previous month, marking its 246th consecutive dividend, demonstrating strong profitability and commitment to shareholders, which may further boost market confidence.
See More
Rithm Capital Declares Q1 2026 Dividends
- Consistent Dividend Payments: Rithm Capital announced a common stock dividend of $0.25 per share for Q1 2026, marking the 52nd consecutive quarterly dividend since its founding in 2013, reflecting the company's earnings stability and disciplined capital allocation approach.
- Preferred Stock Dividend Details: The company declared dividends for its Series A, B, C, D, E, and F preferred stocks for Q1 2026, with Series A at $0.6005114, Series B at $0.5904989, Series C at $0.5490274, Series D at $0.4375000, Series E at $0.5468750, and Series F at $0.6927083, showcasing flexibility in its diversified financing structure.
- Payment Schedule: The common stock dividend will be paid on April 30, 2026, while preferred stock dividends are scheduled for May 15, 2026, ensuring stable cash flow for shareholders and enhancing investor confidence.
- Market Positioning and Strategy: As a global alternative asset manager, Rithm Capital leverages its extensive experience in managing credit and real estate assets, combined with an innovative corporate culture, to capitalize on opportunities amid market volatility and drive long-term growth.
See More
Rithm Capital Declines for Seven Consecutive Days
- Declining Trend: Rithm Capital's stock closed down 0.39% at $9.03 on Thursday, marking its seventh consecutive trading day of losses, with an overall decline of 8.76%, significantly underperforming the S&P 500 Index's 2.31% drop.
- Poor Annual Performance: Since the beginning of 2025, RITM's stock has fallen 16.97%, compared to a mere 3.22% decline in the S&P 500 Index, indicating a weak market position that could undermine investor confidence.
- Successful Transition: Despite the downward pressure, Rithm Capital is successfully transitioning from a mortgage REIT to a diversified global alternative asset manager, with an expected 19% return on equity in FY25 and normalized EPS of $0.74, exceeding consensus estimates by over 23%.
- Analyst Optimism: Wall Street analysts have rated RITM stock as a Buy, while Seeking Alpha analysts issued a bullish Buy rating of 4 out of 5, reflecting confidence in the company's future growth prospects.
See More
KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust
- Rating Assignment: KBRA has assigned preliminary ratings to 10 classes of the $496.3 million non-prime RMBS transaction New Residential Mortgage Loan Trust 2026-NQM4, sponsored by Rithm Capital Corp., indicating market confidence in this transaction.
- Loan Characteristics: The transaction is backed by a pool of 916 residential mortgages, with borrowers exhibiting an average credit score of 757 and both loan-to-value (LTV) and combined LTV (CLTV) at 71.4%, reflecting strong credit quality and moderate leverage among borrowers.
- Analytical Approach: KBRA's rating methodology incorporates loan-level analysis through its Residential Asset Loss Model (REALM) and cash flow modeling, ensuring the accuracy and reliability of the ratings assigned to the mortgage pool.
- Market Impact: This rating provides transparency for investors regarding the New Residential Mortgage Loan Trust, potentially attracting more participants to the non-prime RMBS market and further driving growth in this sector.
See More
KBRA Assigns Preliminary Ratings to NRMLT 2026-NQM5
- Transaction Size: KBRA has assigned preliminary ratings to NRMLT 2026-NQM5, a $471.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp., indicating increased activity in the non-prime RMBS market that may attract more investor interest.
- Loan Originators: The underlying mortgages are primarily originated by NewRez LLC (47.4%) and Champions Funding, LLC (21.2%), highlighting the significance of these lenders in the non-prime market, which could influence future lending strategies.
- Credit Quality: Borrowers in NRMLT 2026-NQM5 possess an average original credit score of 752, with both loan-to-value (LTV) and combined LTV (CLTV) at 72.5%, suggesting relatively high credit quality that may enhance investor confidence.
- Rating Methodology: KBRA's rating approach involved loan-level analysis through its Residential Asset Loss Model (REALM), alongside third-party due diligence results and cash flow modeling, ensuring accuracy and transparency in ratings, thereby bolstering market trust in its assessments.
See More
Rithm Capital Rated Among Cheapest High Dividend Stocks
- Price Rating Downgrade: Piper Sandler has lowered Rithm Capital's price target from $15 to $14 while maintaining an Overweight rating, reflecting a cautious outlook on the mortgage market that may affect investor confidence.
- Mortgage Market Volatility: The first quarter has been described as a 'tale of two halves', with mortgage rates improving steadily to 5.98% in February, but recently rising back to nearly 6.38% due to market volatility, indicating uncertainty in the sector.
- Application Data Trends: Although mortgage applications rose 18% sequentially during a typically slower quarter, they have begun to slow in recent weeks, suggesting that market demand may be impacted by rate fluctuations, which could affect Rithm's business performance.
- Market Environment Impact: Piper Sandler noted that the volatility in the mortgage market is linked to the Iran war and changing inflation expectations, which could negatively influence Rithm Capital's investment strategies and future earnings.
See More
Multiple Companies Announce Quarterly Cash Dividends
- F&M Bank Dividend Growth: F&M Bank's Board approved a quarterly cash dividend of $0.23 per share, reflecting a 4% year-over-year increase, which indicates the company's stable financial performance with total assets of $3.43 billion, likely enhancing shareholder confidence and attracting more investors.
- InterDigital Regular Dividend: InterDigital announced a quarterly cash dividend of $0.70 per share, payable on April 22, 2026, showcasing the company's ongoing profitability in the wireless and video technology sectors, which may enhance its market appeal.
- THOR Industries Dividend Approval: THOR Industries' Board approved a quarterly cash dividend of $0.52 per share, indicating the company's commitment to returning value to shareholders amidst stable financial conditions, which is expected to strengthen investor trust.
- CMC Dividend Increase: CMC declared a quarterly cash dividend of $0.20 per share, an 11% increase from the previous month, marking its 246th consecutive dividend, demonstrating strong profitability and commitment to shareholders, which may further boost market confidence.
See More
Rithm Capital Declares Q1 2026 Dividends
- Consistent Dividend Payments: Rithm Capital announced a common stock dividend of $0.25 per share for Q1 2026, marking the 52nd consecutive quarterly dividend since its founding in 2013, reflecting the company's earnings stability and disciplined capital allocation approach.
- Preferred Stock Dividend Details: The company declared dividends for its Series A, B, C, D, E, and F preferred stocks for Q1 2026, with Series A at $0.6005114, Series B at $0.5904989, Series C at $0.5490274, Series D at $0.4375000, Series E at $0.5468750, and Series F at $0.6927083, showcasing flexibility in its diversified financing structure.
- Payment Schedule: The common stock dividend will be paid on April 30, 2026, while preferred stock dividends are scheduled for May 15, 2026, ensuring stable cash flow for shareholders and enhancing investor confidence.
- Market Positioning and Strategy: As a global alternative asset manager, Rithm Capital leverages its extensive experience in managing credit and real estate assets, combined with an innovative corporate culture, to capitalize on opportunities amid market volatility and drive long-term growth.
See More
Rithm Capital Declines for Seven Consecutive Days
- Declining Trend: Rithm Capital's stock closed down 0.39% at $9.03 on Thursday, marking its seventh consecutive trading day of losses, with an overall decline of 8.76%, significantly underperforming the S&P 500 Index's 2.31% drop.
- Poor Annual Performance: Since the beginning of 2025, RITM's stock has fallen 16.97%, compared to a mere 3.22% decline in the S&P 500 Index, indicating a weak market position that could undermine investor confidence.
- Successful Transition: Despite the downward pressure, Rithm Capital is successfully transitioning from a mortgage REIT to a diversified global alternative asset manager, with an expected 19% return on equity in FY25 and normalized EPS of $0.74, exceeding consensus estimates by over 23%.
- Analyst Optimism: Wall Street analysts have rated RITM stock as a Buy, while Seeking Alpha analysts issued a bullish Buy rating of 4 out of 5, reflecting confidence in the company's future growth prospects.
See More
KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust
- Rating Assignment: KBRA has assigned preliminary ratings to 10 classes of the $496.3 million non-prime RMBS transaction New Residential Mortgage Loan Trust 2026-NQM4, sponsored by Rithm Capital Corp., indicating market confidence in this transaction.
- Loan Characteristics: The transaction is backed by a pool of 916 residential mortgages, with borrowers exhibiting an average credit score of 757 and both loan-to-value (LTV) and combined LTV (CLTV) at 71.4%, reflecting strong credit quality and moderate leverage among borrowers.
- Analytical Approach: KBRA's rating methodology incorporates loan-level analysis through its Residential Asset Loss Model (REALM) and cash flow modeling, ensuring the accuracy and reliability of the ratings assigned to the mortgage pool.
- Market Impact: This rating provides transparency for investors regarding the New Residential Mortgage Loan Trust, potentially attracting more participants to the non-prime RMBS market and further driving growth in this sector.
See More
