HousingWireHousingWire
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.
