Figure Lending Will Securitize $321 Million in HELOCs
Homeowners with these loans should know that their debt is being packaged into mortgage-backed securities.
Updated on Sept. 23, 2026 in Residential
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Figure Lending plans to securitize 3,169 home equity lines of credit (HELOCs) totaling $321 million by September 2026. This transaction will involve packaging individual home loans into mortgage-backed notes for investors.
Why it matters
Securitization is a standard financial process that pools individual home loans to provide liquidity to lenders, allowing them to fund more credit products. For borrowers, this change in ownership structure does not alter the terms or servicing of their existing home equity lines.
The pool includes 3,169 contracts with an average draw balance of $101,315 and a weighted average coupon of 8.55%. Morningstar DBRS has assigned preliminary ratings ranging from (P) AAA (sf) to (P) B (low) (sf) across seven tranches.
The players
Figure Lending
A financial technology firm that provides home equity lines of credit and residential mortgage services.
Morningstar DBRS
A global credit rating agency that evaluates the risk profiles of mortgage-backed securities and financial products.
Loan Depot
A national mortgage lender that originates residential home loans and credit products across the United States.
The details
This transaction utilizes a senior-subordinate structure where noteholders receive repayment through excess spread generated by the pool. The notes are priced against the Secured Overnight Financing Rate to determine ongoing interest obligations for the investors. Figure Wholesale, West Capital Lending, and Loan Depot act as the primary originators for these pooled credit lines.
Timeline
The transaction is expected to close in September 2026.
The notes carry a stated final payment date of September 2056.
The Home Front
This securitization reflects the ongoing shift in housing finance where home equity debt is packaged into mortgage-backed securities to maintain lender liquidity. It follows established trends in the secondary mortgage market where lenders bundle individual loans to manage credit risk.
If you hold a loan with one of the participating originators, you should continue to make your payments as scheduled. Check your most recent monthly statement to confirm your servicer contact information, as this will remain your primary point of contact for any questions regarding your balance.
The takeaway
Your loan agreement remains unchanged by the bundling of these debts into investment tranches. You should keep your loan documentation in a secure location and monitor your monthly statements for any authorized changes in payment processing instructions.
Further reading
For more insight into how your mortgage and equity debt functions, visit Residential.
Source note: This article includes information reported by Asset Securitization Report.
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