KBRA Releases Research – NQM Redemption Momentum Builds as Execution Window Opens
KBRA releases research that examines the upcoming pipeline of non-qualified mortgage (NQM) transactions, which could provide a meaningful source of seasoned, performing, and at- or above-market rate collateral to an already active NQM market. The report also covers the issuers' recent success in capitalizing on securitizing called collateral, as well as securitization spreads, callable collateral weighted average coupons (WAC), and seasoned loan performance.
Key Takeaways
Some issuers have started to realize these opportunities, with at least 12 standalone transactions, as of April 2026, totaling approximately $5.2 billion issued in 2025 and 2026 that have included loans from called securitizations.
As of April 2026, VERUS has been the most active issuer of recycled collateral transactions, accounting for approximately $2.3 billion across five deals since 2025. OBX and GSMBS were the next most active, with each totaling about $0.9 billion across two deals. Q1 2026 represents the most active period to date for these transactions.
