Non-QM

The notes are expected to pay coupons of 4.94% on notes in the A1FCF tranche, rated AAA from KBRA and Fitch Ratings, to 6.78% on the B1 notes.

A significant portion of the loans in the pool by balance, 44.5%, are designated at non-QM, according to DBRS, adding that about 50% of the loans in the pool were made to investors for business purposes.

The terms of NRMLT 2025-NQM7 will not allow it to advance principal and interest on loans that are delinquent by 180 days or more.

If cumulative loss or a delinquency trigger event is in effect, then the deal will distribute principal among the class A notes before any principal allocation the class M1 or class B certificates.