Achieve, Jefferies close $253.2M HELOC securitization

SAN MATEO, Calif., Oct. 22, 2024 — Achieve, the leader in digital personal finance, announces the Oct. 11 close of a AAA-rated securitization backed by approximately $253.2 million in newly originated home equity lines of credit (HELOCs).

The securitization, ACHM Trust 2024-HE2, consists of three classes of rated notes and two classes of unrated notes backed by over 4,200 HELOCs originated by Achieve Home Loans. The deal was sponsored by Achieve and Jefferies LLC, and is the fifth securitization of HELOCs originated by Achieve.

At the August 31, 2024, cutoff date, the HELOCs in the portfolio had a weighted average loan age of approximately three months, a total unpaid principal balance of approximately $253.1 million, and a total original principal balance of approximately $256.4 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 structuring agent and lead bookrunner, Barclays served as joint book runner and CRB Securities and Guggenheim Securities each served as a co-manager 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.

“The successful close of this transaction comes at a pivotal time for Achieve, as we recently crossed $1 billion in HELOC originations, helping nearly 20,000 homeowners access their home equity in a consumer-friendly manner,” said Kyle Enright, President of Lending at Achieve.

Achieve’s HELOCs are designed to help homeowners use a portion of their home’s equity to consolidate unsecured debts, or better manage the expense of an upcoming large purchase. The HELOCs are 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 2019, borrowers who consolidate debt with an Achieve HELOC have saved an average of nearly $800 per month compared to their previous 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.

“The significant increase in dollar volume of this securitization reflects strong demand for our HELOC program by homeowners and investors alike,” said Andrew Housser, Co-Founder and Co-CEO of Achieve.

The securitization follows four securitizations of Achieve HELOCs: a $170.1 million deal that closed on May 8, 2024; a $173.6 million deal that closed Oct. 18, 2023; a $152.7 million deal that closed January 31, 2023; and a $175 million deal that closed on Nov. 29, 2022. In addition, Achieve or its affiliates have sponsored 20 personal loan securitizations, with cumulative issuances across all Achieve-affiliated securitizations totaling over $6.2 billion and total loan originations through the Achieve Personal Loans platform and Achieve Home Loans is over $12 billion.

For more information about Achieve HELOCs, visit: achieve.com/home-equity-loan

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, debt resolution and debt consolidation, along with financial tips and education and free mobile apps: Achieve MoLO® (Money Left Over) and Achieve GOOD™ (Get Out Of Debt). 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).