Barclays Capital and Achieve secure $226 million through a Home Equity Line of Credit (HELOC) securitization deal.
Achieve Secures $266 Million for Home Equity Line of Credit Securitization
Achieve, a digital personal finance leader, has announced the successful closure of a $266 million securitization of home equity lines of credit (HELOCs) on August 14, 2021. This marks the company's second HELOC securitization of 2022 and seventh overall, with a cumulative HELOC securitization volume of over $1.36 billion.
The securitization, ACHM Trust 2025-HE2, is backed by over 3,300 HELOCs originated by Achieve Home Loans. Barclays served as sole structuring agent and lead bookrunner, Jefferies served as joint bookrunner, and Guggenheim Securities and Performance Trust each served as a co-manager for the transaction. Sutton Funding LLC, an affiliate of Barclays Capital Inc., co-sponsored the deal.
The HELOCs are designed to help homeowners consolidate debts, fund home renovations, and manage large purchases. They are fully drawn at origination and carry terms of 10, 15, 20, or 30 years, including a five-year draw period and no prepayment penalty for the life of the loan. Achieve's HELOCs are fixed-rate and fully amortizing, eliminating the risk of payment shock associated with traditional HELOCs.
Borrowers who consolidate debt with an Achieve HELOC save an average of around $800 per month compared to their previous debt payments. The HELOCs in the portfolio had a weighted average seasoning of two months, a total unpaid principal balance of approximately $226 million, and a total original principal balance of approximately $229 million as of the June 30, 2025 cutoff date.
Andrew Housser, co-founder and co-CEO of Achieve, stated that this transaction reflects investor confidence in Achieve's HELOC platform. Kyle Enright, president of lending at Achieve, added that this latest deal delivered a higher advance rate than prior deals and introduced deeper credit bond classes to meet strong investor demand, resulting in a more efficient overall structure.
The deal also features overcollateralization and other layers of credit enhancement. DBRS Morningstar assigned the following ratings to the notes: Class A: AAA (sf); Class B: AA (low) (sf); Class C: A (low) (sf); Class D: BBB (low) (sf); Class E: BB (low) (sf); and Class F: B (low) (sf).
Achieve has a strong track record in the personal loan market, with total loan originations through the Achieve Personal Loans platform and Achieve Home Loans exceeding $14 billion. Achieve or its affiliates have sponsored 22 personal loan securitizations, with cumulative issuances totaling over $7 billion.
This securitization is part of Achieve's ongoing efforts to provide innovative financial solutions to its customers while maintaining a strong focus on credit quality and risk management. The company conducts a comprehensive financial assessment during the application process and ensures low combined loan-to-value ratios to preserve home equity. Achieve's HELOCs are secured by a junior lien on the homeowner's primary residence, with a small portion holding a first-lien position.
Overall, the successful securitization of $266 million in HELOCs demonstrates Achieve's continued growth and investor confidence in its HELOC platform.
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