Rithm Capital Launches $502.1 Million Non-Prime RMBS Transaction
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: Businesswire
- Transaction Size: Rithm Capital Corp. has launched a $502.1 million non-prime RMBS transaction, NRMLT 2026-NQM1, indicating the company's ongoing expansion in the real estate investment trust sector, which is expected to enhance its market competitiveness.
- Loan Sources: The underlying mortgages for this transaction are primarily sourced from NewRez LLC (52.6%) and Caliber Home Loans Inc. (27.4%), reflecting Rithm Capital's strategic diversification in loan sources aimed at reducing risk and increasing returns.
- Credit Scores and LTV: Borrowers in NRMLT 2026-NQM1 possess an average credit score of 758, with both loan-to-value (LTV) and combined LTV (CLTV) at 72.2%, indicating a high credit quality among borrowers that helps bolster investor confidence.
- Rating Methodology: KBRA's rating approach involved a loan-level analysis using its Residential Asset Loss Model (REALM), along with third-party due diligence results and cash flow modeling, ensuring the accuracy and transparency of the ratings, thereby enhancing market trust in the transaction.
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Analyst Views on RITM
Wall Street analysts forecast RITM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RITM is 14.92 USD with a low forecast of 14.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 11.920
Low
14.00
Averages
14.92
High
16.00
Current: 11.920
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.
Rithm Capital Deepens Partnership with Valon Technologies
- Strategic Partnership Deepening: Rithm Capital is deepening its partnership with Valon Technologies, having been an early investor that supported Valon's growth and the development of ValonOS, which is expected to significantly enhance Newrez's servicing capabilities for over 4 million homeowners and strengthen its market competitiveness.
- Technology Innovation Application: Newrez plans to deploy ValonOS, an AI-native operating system, starting in 2027, which will optimize mortgage servicing processes, reduce service costs, and enhance customer experience, marking a modernization effort in the mortgage industry.
- Market Potential Unleashed: Rithm CEO Michael Nierenberg highlighted that ValonOS will bring operational efficiency and scalability to Newrez, potentially transforming the $13 trillion mortgage servicing market and creating long-term value.
- Customer Experience Enhancement: The collaboration between Newrez and Valon aims to provide a seamless mortgage servicing experience for over 4 million homeowners, leveraging advanced technology and deep operational expertise to boost customer satisfaction and drive business growth.
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Rithm Partners with Valon to Transform Mortgage Servicing
- Strategic Partnership Deepens: Rithm Capital announces an enhanced partnership with Valon Technologies, planning to deploy ValonOS to over 4 million Newrez homeowners by 2027, aiming to significantly reduce servicing costs and improve mortgage servicing efficiency through advanced technology.
- Leading Technological Innovation: ValonOS, an AI-native operating system, is set to modernize the $13 trillion mortgage servicing industry, with Rithm leveraging its deep investment insights alongside Newrez's leadership to drive widespread adoption of this technology.
- Significant Market Potential: As an early investor in Valon, Rithm has witnessed its evolution from concept to critical technology, reflecting confidence in Valon's future growth, which is expected to provide Newrez clients with a more seamless service experience and enhance market competitiveness.
- Raising Industry Standards: Newrez President Baron Silverstein emphasizes that this partnership will elevate innovation standards in the mortgage industry, combining technology with operational expertise to deliver a more intuitive servicing experience for over 4 million homeowners.
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