Achieve Home Loans is sponsoring a securitization of revenue from first- and second-lien home equity lines of credit (HELOC) loan, raising $210.9 million through the transaction ACHM Trust 2025-HE1.

Known as ACHM 2025-HE1, the deal offers notes through classes A, B, C and D notes, as well as XS, AIOS and PT tranches, according to Kroll Bond Rating Agency. Achieve also originated the 3,307 loans in the pool, which are all fixed-rate mortgages with a five-year initial draw window and fully amortizing terms, primarily 10 years.

In a big change from the trust’s two previous deals, U.S. citizens accounted for only 14.8% of the borrowers in the pool, down from the 90-percentage range, but the residency of 85.0% of the pool was considered “other” or unknown.

Barclays Capital and Jefferies are initial note purchasers and managers on the deal, according to KBRA and Asset Securitization Report’s deal database.

Achieve Home Loans is the servicer, while Shellpoint Mortgage Servicing is on the deal as the subservicer. Originators used traditional, full documentation on the entire pool.

ACHM 2025-HE1 will repay notes using a pro-rata, sequential pay structure that must satisfy an overcollateralization test, and cumulative loss and delinquency triggers, KBRA said. If the overcollateralization amount stays above the target level and both performance triggers are satisfied, then the transaction will pay funds to classes A, B and C notes on a pro-rata basis, up to the principal distribution amount, KBRA said.

If the OC amount falls below the overcollateralization floor, or either performance trigger fails, class A, B and C notes will be paid down sequentially, KBRA said.

Although the classes A, B and C notes will repay interest sequentially, payments to those are prioritized before any of the other notes are paid down, according to the rating agency. The deal also benefits from a reserve account, fully funded and kept replenished by the waterfall mechanism in the deal, KBRA said.

Although the HELOCs are technically exempt from Ability to Repay rules, the loans show the characteristics of adhering to those rules, KBRA said. Borrowers on average had balances of $63,788, with weighted average (WA) coupons of 12.1%. Also on a WA basis, original FICO scores came in at 712, and the debts have WA original loan-to-value ratios of 68.1%, the rating agency said.

KBRA assigns AAA, A and BBB to classes A, B and C.