Achieve announces the close of $170.1M HELOC securitization

SAN MATEO, Calif., May 9, 2024 — Achieve, the leader in digital personal finance, announces the May 8 close of a AAA-rated securitization backed by $170.1 million in newly originated home equity lines of credit (HELOCs).

The securitization, ACHM Trust 2024-HE1, consists of three classes of rated notes and two classes of unrated notes backed by 3,066 HELOCs originated by Achieve Home Loans. The deal is the fourth successful securitization of HELOCs originated by Achieve.

At the March 31, 2024, cutoff date, the HELOCs in the portfolio had a weighted average loan age of approximately 3 months, a total unpaid principal balance of approximately $170.1 million, and a total original principal balance of approximately $173.6 million. Kroll Bond Rating Agency rated the securitization’s Class A, Class B and Class C fixed-rate notes AAA (sf), A- (sf) and BBB- (sf), respectively. The Class D and Class XS notes were not rated. Jefferies served as sole initial purchaser for the transaction.

The transaction features overcollateralization and other layers of credit enhancement, as well as a pro rata payment schedule across the Class A, Class B and Class C Notes. This structure is designed to allow for higher-cost subordinate debt to pay off sooner than in a deal with a sequential payment structure.

“Closing this fourth HELOC securitization in less than 18 months is a testament to the strong demand that we continue to see from both HELOC borrowers and capital markets investors for Achieve’s differentiated approach to home equity lending,” said Andrew Housser, Co-Founder and Co-CEO of Achieve.

Achieve’s HELOCs are designed to help homeowners with unsecured debt reduce the burden of high interest rates by using a portion of their home’s available equity to consolidate their debt and lower their payments. Each HELOC is fixed-rate and fully amortizing, which eliminates the uncertainty and risk of payment shock that traditional HELOCs present to consumers via variable rates, interest-only periods, or balloon payments.

To qualify for Achieve’s debt consolidation HELOC, borrowers must be able to save at least $200 per month compared to their previous unsecured debt payments. Since Achieve Home Loans launched in 2019, HELOC borrowers have saved an average of over $650 per month compared to their previous unsecured debt payments.

The HELOCs are fully drawn at origination and carry a 10- or 15-year term that includes a five-year draw period. In most cases, the HELOCs are secured by a junior lien on the homeowner’s primary residence, although a small portion of HELOCs hold a first-lien position. Achieve works with its members to conduct a comprehensive financial assessment during the application process. A thorough collateral valuation process helps ensure the HELOCs are originated with low combined loan-to-value ratios that preserve an ample cushion of remaining home equity. Achieve believes this better enables its members to address their immediate financial needs without jeopardizing their opportunity to build long-term wealth via their home.

“While many mortgage originators have recently moved into home equity lending as a result of an interest rate environment that’s not conducive to traditional refinancing, the Achieve HELOC is unique in that it was purposefully designed to help consumers consolidate debt and save money,” said Kyle Enright, President of Lending at Achieve.

Prior securitizations of Achieve HELOCs include a $175 million deal that closed on Nov. 29, 2022, a $152.7 million deal that closed January 31, 2023 and a $173.6 million deal that closed Oct. 18. In addition, Achieve or its affiliates have sponsored 19 personal loan securitizations, with cumulative issuances across all Achieve-affiliated securitizations totaling over $5.6 billion and total loan originations through the Achieve Personal Loans platform and Achieve Home Loans is approximately $11 billion.

This press release is for informational purposes only and is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (“Securities Act”), or the securities laws of any jurisdiction. The notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act.

About Achieve

Achieve, THE digital personal finance company, helps everyday people get on, and stay on, the path to a better financial future. Achieve pairs proprietary data and analytics with personalized support to offer personal loans, home equity loans and debt resolution, along with financial tips and education and a free mobile app, Achieve MoLO (Money Left Over). Achieve has 2,500 dedicated teammates across the country with hubs in Arizona, California, Florida and Texas. Achieve is frequently recognized as a Best Place to Work.

Achieve refers to the global organization and may denote one or more affiliates of Achieve Company, including Achieve.com (NMLS ID #138464); Achieve Home Loans, Equal Housing Lender (NMLS ID #1810501); Achieve Personal Loans (NMLS ID #227977); Achieve Resolution (NMLS ID # 1248929) and Freedom Financial Asset Management (CRD #170229).