PRPM is returning to securitized another mixed batch of mortgages with agency kickouts, performing and reperforming loans, raising $354.3 million through the 2026-RCF5 series.
The so-called scratch and dent collateral account for 65% of the pool full range of underlying home loans includes recently originated, seasoned, fixed- and adjustable-rate, senior- and second-lien, fully amortizing and interest-only mortgages.
Despite the variety of loans in the pool, the vast majority of assets are considered qualified mortgages, with only 10.9% considered non-QM, according to Fitch Ratings.
Their collateral is composed primarily of single-family properties, but includes planned-unit developments, condominiums, multifamily residential properties, manufactured housing and mixed-use properties.
PRPM, 2026-RCF5 will sell the notes through a series of six tranches of class A, M and B notes, according to Fitch. All the notes have a legal final maturity date of August 2056, the rating agency said.
Interest rates on the A1 notes were not clear at press time, but rates on the rest of the tranches in the structure, rated AA- through BB-, are expected to pay rates of 5.75%, according to the rating agency.
PRPM's sequential-payment structure, which will confer subordination. Also, the transaction will not advance principal or interest on delinquent loans. Credit enhancement includes overcollateralization, Fitch said.
The notes rated AAA, AA-, A-, BBB- and BB- benefit from credit enhancement levels of 31.8%, 2.45%, 16.00%, 11.25% and 7.35%, respectively, the rating agency said. Fitch did not assign a rating to the class B notes but says that tranche has a credit enhancement level of 5.00%, the rating agency said.
Nomura is the deal's underwriter, the rating agency said.
Various originators extended the loans, including SN Servicing and Newrez, but no single company accounts for more than 10% of the pool, Fitch said. The companies will also service their respective loans, with SN Servicing handling 73.0% of the loans; Newrez following with 10.3%; Fay Servicing 9.5%; and Rocket Mortgage servicing 7.2%, Fitch said.
