Rithm closes non-QM securitization, issues $500M debt offering
Rithm
Capital
announced
this
week
the
closing
of
a
$504
million
securitization
backed
by
nonqualified
mortgages
(non-QMs)
serviced
by
its
subsidiary
Newrez,
along
with
the
issuance
of
$500
million
in
debt.
In
2025,
Rithm
closed
three
securitizations
of
non-QM
loans
—
a
product
that
has
gained
popularity
amid
a
challenging
mortgage
market.
Non-QM
loans
are
for
borrowers
who
do
not
have
traditional
income
sources,
such
as
self-employed
individuals,
freelancers
and
gig
workers.
In
total,
the
company
has
issued
23
deals
with
$7.7
billion
in
unpaid
principal
balance.
The
latest
issuance
consists
of
1,039
residential
mortgages,
with
an
average
credit
score
of
750
and
a
loan-to-value
ratio
of
70.
Sanjeev
Khanna,
managing
director
at
Rithm
Capital,
said
that
the
transaction
shows
the
“scale
of
our
residential
mortgage
origination
and
servicing
platform,
and
strength
of
our
portfolio
—
all
of
which
are
rooted
in
our
synergies
with
Newrez.”
Barclays
structured
the
deal.
It
joined
BMO
Capital
Markets,
Deutsche
Bank
Securities,
Goldman
Sachs,
Morgan
Stanley,
Nomura
and
Wells
Fargo
as
bookrunners.
On
the
debt
front,
Rithm
announced
a
$500
million
issuance
of
senior
unsecured
notes
due
in
2030,
which
will
be
offered
only
to
qualified
investors.
The
company
has
priced
the
offering
at
8%.
A
portion
of
the
proceeds
will
be
used
to
redeem
outstanding
notes
at
6.25%
due
in
2025,
with
the
remainder
allocated
to
general
corporate
purposes,
including
the
repayment
of
other
debts. The
offering
is
expected
to
close
on
June
20.
Other
companies
that
recently
announced
debt
offerings
—
primarily
for
the
purpose
of
refinancing
existing
debt
—
include
Rocket
Companies, PennyMac
Mortgage
Investment
Trust
and
loanDepot.
