KBRA Assigns Preliminary Ratings to ACHM Trust 2023-HE2 (ACHM 2023-HE2)

KBRA assigns preliminary ratings to 3 classes of mortgage-backed notes from ACHM Trust 2023-HE2 (ACHM 2023-HE2), a $173.6 million RMBS transaction sponsored by Series B, a Series of Freedom Consumer Credit Fund, LLC. The transaction consists entirely of first and second lien home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately five months and comprises 3,234 loans originated by Achieve Home Loans. The HELOC collateral consists of fixed-rate mortgages (FRMs), with 10-year (69.5%) and 15-year (30.5%) repayment periods. The borrowers in the pool exhibit a weighted average utilization rate of 97.7% as of the cut-off date.

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Related Publications

• ACHM 2023-HE2 Tear Sheet
• RMBS KBRA Comparative Analytic Tool (KCAT)
• U.S. RMBS Mortgage Default and Loss Model Methodology
• U.S. RMBS Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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