WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Velocity Financial, Inc. (NYSE: VEL) (“Velocity” or the “Company”), today announced the completion of its second securitization transaction of 2020 (“VCC 2020-2”). VCC 2020-2 included unrated Mortgage-Backed Certificates (the “Certificates”) backed by a portfolio of 30-year investor loans originated through Velocity’s operating platform. The senior Certificate, with a UPB of $96 million and a fixed interest rate of 4.5%, was sold and the remaining Certificates were retained by the Company.
“Completion of the VCC 2020-2 transaction represents a significant milestone in our plan to permanently finance the loans pledged to Velocity’s existing warehouse lines,” said President and CEO, Chris Farrar. “Fixed income markets have strengthened significantly, and we are making good progress toward long-term financing for the remainder of our loans financed with warehouse lines. Rent payment and real estate price trends in the U.S. generally appear to be holding up better than many expected, which we believe helped drive improved sentiment in the beginning of June. We look forward to successfully completing our near-term financing objectives with the goal of restarting loan production activities in the third quarter.”
The Certificates were issued through VCC Mortgage Securities, LLC, a wholly owned subsidiary of Velocity Financial, Inc., through Velocity Commercial Capital, LLC. The transaction closed on June 9, 2020.
About Velocity Financial, Inc.
Based in Westlake Village, California, Velocity is a vertically integrated real estate finance company that originates and manages investor loans secured by 1-4 unit residential rental and small commercial properties. Velocity originates loans nationwide across an extensive network of independent mortgage brokers it has built and refined over 15 years.
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For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled ‘‘Risk Factors” in the Company’s Form 10-Q filed with the SEC on May 14, 2020, as such risk factors may be updated from time to time in the Company’s periodic filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.velfinance.com.