Figure Lending Will Securitize $321 Million in HELOCs
The firm expects to close a $321 million securitization of home equity lines of credit in September 2026.
Updated on Sept. 23, 2026 in Residential
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Figure Lending will issue $321 million in mortgage-backed notes through the FIGRE Trust 2026-HF11, utilizing a pool of 3,169 home equity lines of credit. The transaction is slated to close in September 2026 with a final payment date for the notes in September 2056.
Why it matters
This securitization provides a mechanism for the lender to bundle consumer debt into tradable assets, utilizing a senior-subordinate structure to manage risk for investors. The deal reflects the ongoing use of mortgage-backed notes as a tool for liquidity in the home equity market.
The securitization pool features a weighted average coupon of 8.55% and an average balance of $101,315 per contract. The underlying loans maintain a weighted average original cumulative loan-to-value ratio of 63.0%.
The players
Figure Lending
This financial institution specializes in blockchain-based home equity lending and residential mortgage solutions.
Morningstar DBRS
This global credit rating agency provides independent analysis and ratings for structured finance transactions and corporate entities.
Figure Wholesale
This lending division acts as a primary contributor to the securitization pool, accounting for 23.5% of the total contracts.
West Capital Lending
This mortgage firm serves as a significant participant in the securitization, representing 22.3% of the underlying home equity contracts.
Loan Depot
This national mortgage lender contributes 12.3% of the contracts to the securitization trust pool.
The details
The notes will be repaid through a senior-subordinate structure that relies on excess spread, with pricing indexed against the Secured Overnight Financing Rate. Morningstar DBRS has provided ratings ranging from (P) AAA (sf) to (P) B (low) (sf) for the seven tranches.
Timeline
The transaction is expected to close in September 2026.
The stated final payment date for the notes is September 2056.
Roadmap
This securitization aligns with the broader transition in the mortgage industry toward utilizing the Secured Overnight Financing Rate for debt pricing. It underscores the ongoing reliance on secondary market activities to provide liquidity for home equity products.
This financial activity generally does not impact the daily routine or interest rates of existing homeowners. It serves primarily as a backend mechanism for the lender to manage capital and does not alter the terms of individual home equity lines.
The takeaway
The move demonstrates how lenders bundle consumer debt to unlock capital for future lending operations. Investors in these products should monitor the weighted average FICO scores and loan-to-value ratios as primary indicators of the pool's long-term performance.
What happens next
The transaction is expected to finalize its closing process in September 2026.
Further reading
For more information on market trends, visit the United States Residential section.
Source note: This article includes information reported by Asset Securitization Report.
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