KBRA Assigns Preliminary Ratings to Santander Mortgage Asset Receivable Trust 2025-NQM2 (SAN 2025-NQM2)

KBRA assigns preliminary ratings to eight classes of mortgage-backed notes from Santander Mortgage Asset Receivable Trust 2025-NQM2 (SAN 2025-NQM2), a $288.6 million non-prime RMBS transaction. The underlying collateral, comprised of 679 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. Approximately 58.4% 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 (34.6%) 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 (15.4%), with no other originator composing of more than 10% of the transaction. Additionally, the pool includes loans purchased by Onslow Bay Financial LLC (36.7%) and SG Capital Partners, LLC (15.9%), that were previously aggregated from 92 different originators.

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publications

• SAN 2025-NQM2 Tear Sheet
• RMBS KCAT

Methodologies

• RMBS: U.S. RMBS Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1009340

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