Cision PR Newswire

Program expansion comes as Achieve crosses $1 billion threshold in funded HELOCs and nearly $700 million in securitization volume

SAN MATEO, Calif., Nov. 12, 2024 /PRNewswire/ -- Achieve, the leader in digital personal finance, is expanding its home equity line of credit (HELOC) program to allow for loan amounts of up to $300,000 and new repayment terms of 20 and 30 years.

Achieve's HELOCs will continue to deliver their unique consumer-centric features, including fixed interest rates, fully amortizing payments and a prompt origination and funding process that allows consumers to be funded in as little as 10 days. Since 2019, Achieve has helped nearly 20,000 homeowners access over $1 billion in home equity.

"When we launched our HELOC offering five years ago, there hadn't been much innovation in home equity lending since before the Great Recession. We set out to change that by developing a program that emphasized consumer-friendly features and credit quality that would earn the confidence of both homeowners and capital markets investors," said Achieve President of Lending Kyle Enright. "These latest program enhancements will provide more flexibility and choice for homeowners seeking to access their home equity, while continuing to allow them to do so in an easy-to-understand and responsible manner."

HELOC balances increased by $4 billion in the second quarter of 2024, according to the Federal Reserve Bank of New York. It's the ninth consecutive quarterly increase in HELOC activity and brings total outstanding balances to approximately $380 billion. Homeowners have gained trillions of dollars' worth of home equity over the past few years, but many are reluctant to give up the ultra-low first-lien mortgages rates they obtained during and immediately after the pandemic to access that wealth with a traditional cash-out refinance.

Nationwide, three in five current mortgage borrowers have an interest rate below 4%, according to Consumer Financial Protection Bureau estimates. That means even with the Federal Reserve's recent interest rate cut, the majority of borrowers still cannot obtain a lower interest rate through a traditional refinance mortgage. Meanwhile, the surge in HELOC activity comes as overall household debt is also at an all-time high of $17.8 trillion and consumers are contending with a historic surge in inflation and higher interest rates on credit cards and other debt.

Achieve's HELOCs are designed to help homeowners use a portion of their home's equity to consolidate unsecured debts, pay for home renovations, better manage the expense of an upcoming large purchase — or a combination of the three. 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. Along with adding longer terms and higher maximum HELOC amounts, Achieve has adjusted some of its underwriting criteria to ensure appropriate risk management for Achieve and its borrowers and investors.

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.

For homeowners using an Achieve HELOC exclusively for debt consolidation, 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 close to $800 per month compared to their previous debt payments.

"We're proud of our track record helping homeowners improve their financial situation," said Enright. "By expanding our HELOC offerings, we'll be able to help even more homeowners get on the path to a better financial future."

The HELOCs are fully drawn at origination and carry a 10-, 15-, 20- or 30-year term that includes a five-year draw period. For homeowners still repaying a first-lien mortgage, Achieve's HELOCs are secured by a junior lien on the homeowner's primary residence, subject to certain credit and loan-to-value requirements. Achieve's HELOCs are also available to homeowners who do not have an existing primary mortgage, in which case the HELOC holds the first-lien position.

"While many traditional mortgage lenders recently started offering HELOCs to offset refinance volume they lost to the run of high interest rates, Achieve was ahead of the trend because we saw an opportunity to help homeowners address their most significant financial pain points," said Achieve Co-Founder and Co-CEO Andrew Housser. "We've spent years building our knowledge and understanding of the HELOC market and using that expertise to create differentiated credit models that make us uniquely qualified to serve our members."

Achieve's robust and award-winning securitization platform will remain a key facet of the company's HELOC strategy. Since the first precedent-setting securitization backed by Achieve HELOCs in November 2022, five AAA-rated deals have closed, totaling over $920 million in issuance. The most recent securitization, ACHM Trust 2024-HE2, closed Oct. 11.

"In addition to leading the HELOC renaissance and providing homeowners with a new opportunity to access their home equity, our pioneering securitization activities have revived investor demand and confidence in a once-dormant segment of the capital markets," said Housser. "We believe the latest enhancements to Achieve's HELOC program will continue in that tradition and further strengthen the American housing economy."

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

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).

Contact
Erica Bigley
Vice President
Corporate Communications
ebigley@achieve.com
415-710-9006

Austin Kilgore
Director
Corporate Communications
akilgore@achieve.com
214-908-5097

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SOURCE Achieve