Achieve closes $261.5 million HELOC securitization

Achieve has closed a $261.5 million securitization of newly originated home equity lines of credit (HELOCs), its first of 2026 and ninth overall, the company announced Friday.

The transaction is backed by 3,129 HELOCs. As of June 30, the cutoff date for the securitization, the pool had a total unpaid principal balance of about $261.5 million and a total credit line of about $276.5 million, with a weighted average seasoning of three months. The weighted average combined loan-to-value ratio, including borrowers’ first-lien mortgages, was 65.67%.

“This transaction reflects the continued strength of Achieve’s HELOC platform and the confidence institutional investors have in the quality of the assets we originate,” Achieve co-founder and co-CEO Andrew Housser said in a statement.

The HELOCs in the pool are fixed-rate and fully amortizing. The lines are fully drawn at origination and offered with 10- to 30-year terms that include a five-year draw period. There are no prepayment penalties. In April, Achieve lowered its best available fixed-rate APR to 5.875% for qualifying borrowers, according to the company.

Most of the HELOCs are secured by junior liens on primary residences, although a small share are in first-lien positions. Achieve said it conducts a comprehensive financial assessment and thorough collateral valuation process to target low combined LTV ratios and preserve an equity cushion for borrowers.

The securitization shows continued demand for HELOC-backed bonds even as high interest rates and weak affordability weigh on first-mortgage originations. The product is positioned for uses such as unsecured debt consolidation, home renovations and the funding of large purchases, or a combination of these needs.

The structure includes six classes of rated mortgage-backed notes and three classes of unrated notes. The deal incorporates subordination, excess interest, a reserve account and other layers of credit enhancement. S&P Global Ratings and Morningstar DBRS assigned ratings across the classes.

Achieve’s cumulative HELOC securitization volume exceeds $1.7 billion.

The deal was co-sponsored by Achieve and Canyon Partners LLC. Deutsche Bank Securities served as structuring agent and lead bookrunner, with Barclays and Jefferies as joint bookrunners and Guggenheim and Texas Capital acting as co-managers.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.