KBRA Assigns Preliminary Ratings to A&D Mortgage Trust 2026-NQM2

The $602.7 million non-prime RMBS transaction is sponsored by Atlas A&D Opportunity Fund III LP.

Published on Feb. 22, 2026

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KBRA has assigned preliminary ratings to 10 classes of mortgage pass-through certificates from ADMT 2026-NQM2, a $602.7 million non-prime residential mortgage-backed securities (RMBS) transaction. The underlying collateral comprises 1,793 residential mortgages, with a significant concentration of loans underwritten using alternative income documentation. Borrowers in the subject pool have a non-zero weighted average original credit score of 748 and exhibit notable equity in each mortgaged property, with a weighted average combined LTV ratio of 68.6%.

Why it matters

This transaction represents the latest in a series of non-prime RMBS deals, which have seen increased activity in recent years as lenders seek to cater to borrowers who may not qualify for traditional mortgage products. The preliminary ratings from KBRA provide an independent assessment of the credit quality and risk profile of the securitized mortgage loans, which is important information for investors considering participation in the deal.

The details

The ADMT 2026-NQM2 transaction is sponsored by Atlas A&D Opportunity Fund III LP, with the majority of the loans being originated by A&D Mortgage, LLC or one of its qualified correspondents. KBRA's rating approach incorporated loan-level analysis, an examination of third-party loan file due diligence, cash flow modeling, reviews of key transaction parties, and an assessment of the transaction's legal structure and documentation.

  • The ADMT 2026-NQM2 transaction was assigned preliminary ratings on February 18, 2026.

The players

KBRA

Kroll Bond Rating Agency, LLC, one of the major credit rating agencies, is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO.

Atlas A&D Opportunity Fund III LP

The sponsor of the ADMT 2026-NQM2 transaction.

A&D Mortgage, LLC

The majority originator of the loans underlying the ADMT 2026-NQM2 transaction.

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What’s next

KBRA will continue to monitor the performance of the ADMT 2026-NQM2 transaction and may take rating actions, such as upgrades or downgrades, based on its ongoing surveillance.

The takeaway

The ADMT 2026-NQM2 transaction represents the latest in a series of non-prime RMBS deals, which have seen increased activity as lenders seek to cater to borrowers who may not qualify for traditional mortgage products. The preliminary ratings from KBRA provide an independent assessment of the credit quality and risk profile of the securitized mortgage loans, which is important information for investors considering participation in the deal.