Key facts
- Achieve closed a $261.5 million securitization of home equity lines of credit (HELOCs).
- The securitization, ACHM Trust 2026-HE1, is backed by 3,129 newly originated loans.
- The weighted average combined loan-to-value ratio for the HELOCs was 65.67%.
- The HELOCs are fixed-rate, fully amortizing, and offered with 10- to 30-year terms.
- S&P Global Ratings and Morningstar DBRS assigned ratings to the securitization's notes.
Achieve has successfully closed a $261.5 million securitization of home equity lines of credit (HELOCs), marking its first such transaction of 2026 and ninth overall. The deal, known as ACHM Trust 2026-HE1, is backed by 3,129 newly originated HELOCs. As of June 30, the pool had a total unpaid principal balance of approximately $261.5 million and a total credit line of about $276.5 million, with an average seasoning of three months. The weighted average combined loan-to-value ratio, which includes borrowers' first-lien mortgages, stood at 65.67%.
Andrew Housser, Achieve's co-founder and co-CEO, stated that the transaction highlights the strength of Achieve's HELOC platform and investor confidence in the quality of its originated assets. The HELOCs in the pool feature fixed rates and are fully amortizing, with terms ranging from 10 to 30 years, including a five-year draw period and no prepayment penalties. Achieve had previously lowered its best available fixed-rate APR to 5.875% for eligible borrowers in April.
Most of the HELOCs are secured by junior liens on primary residences, with a small portion in first-lien positions. Achieve emphasizes its rigorous financial assessment and collateral valuation processes to maintain low combined LTV ratios and preserve an equity cushion for borrowers. The securitization demonstrates continued investor demand for HELOC-backed bonds despite high interest rates and affordability challenges impacting first-mortgage originations. These HELOCs are suitable for purposes such as unsecured debt consolidation, home renovations, and funding large purchases.
The securitization structure comprises six classes of rated mortgage-backed notes and three classes of unrated notes, incorporating credit enhancements like subordination, excess interest, and a reserve account. Both S&P Global Ratings and Morningstar DBRS assigned ratings to the various note classes. Achieve's total HELOC securitization volume now exceeds $1.7 billion. The deal was co-sponsored by Achieve and Canyon Partners LLC, with Deutsche Bank Securities serving as structuring agent and lead bookrunner, supported by Barclays and Jefferies as joint bookrunners, and Guggenheim and Texas Capital as co-managers.