Figure Lending and TPG Mortgage Investment Trust are sponsoring a securitization of home equity lines of credit (HELOC), raising about $354.4 million through the FIGRE Trust 2026-HE9.
The notes will be issued off of a pool of 3,525 first- and junior-lien revolving HELOCs that were recently originated, according to ratings analysts at Morningstar DBRS.
The transaction will repay investors on the 25th of each month, or the next business day, and the notes have a stated final maturity date of July 2056, DBRS said. FIGRE Trust will follow a sequential payment order after fees and expenses, the rating agency said.
The Loan Store originated the largest portion of the underlying asset pool, 40.9%, while Figure, Loandepot and West Lending Capital 14.3%, 12.4% and 10.9%, respectively, DBRS said. All other originators accounted for less than 10% of the originations in the pool, the rating agency said.
Figure Lending is the servicer, seller and administrator, while Cornerstone is the subservicer on the deal, and Northpointe Bank is the backup servicer, according to the rating agency.
FIGRE Trust, series 2026-HE9, has a cutoff date of July 31, 2026, and the deal has an expected closing date of Aug. 25, 2026.
As a collection of HELOCs, the collateral pool, with five months' seasoning, is fully exempt from the Consumer Financial Protection Bureau's Ability-to-Repay (ATR) rules, DBRS said.
The class A notes, rated AAA and issuing the bulk of the outstanding notes, $220.5 million, enjoys a credit enhancement level of 32.45%, according to DBRS.
Classes B, C, D, E, and F benefit from credit enhancement levels of 19.70%, 12.30%, 8.60%, 4.85% and 1.60%, respectively.
After the class A notes, DBRA assigns ratings ranging from (P) AA (low) (sf) on the class B notes to (P) B (low) (sf) on the class E notes, according to the rating agency.
