Rithm Capital Corp. announced this week that it had closed a $878 million mortgage servicing rights (MSR) backed securitized note in a single tranche, making it the largest nonrecourse MSR debt issuance ever.

The parent company of national mortgage lender Newrez, Rithm Capital is an asset manager focused on real estate and financial services. Its latest debt issuance dwarfs the company’s previous $461 million MSR-backed note from last year, which was the first nonrecourse deal of its kind, according to Rithm.

Nonrecourse debt refers to a loan in which the lender can only pursue the loan’s collateral in the event of a default and cannot seek compensation through other means. While it is a common form of lending in commercial real estate deals, the scale of Rithm’s securitization in this week’s transaction is unprecedented.

The MSRs used in Rithm’s $878 million note have the backing of Freddie Mac, according to National Mortgage News.

“The success of this transaction demonstrates strong confidence in our growing platform, as well as our capability to provide new high-quality mortgage servicing solutions,” said Michael Nierenberg, Rithm Capital’s president and CEO, in a press release. “We are committed to further solidifying Rithm’s leadership in the sector and expanding access to this emerging asset class.”