Velocity Financial, Inc. (NYSE: VEL) is where real estate investors, brokers and the capital markets come together. Through our nationwide broker network, we are a leader in providing financing solutions to investors in 1-4 unit and small commercial properties, with a 20-year history of exceptional service and strong financial performance.
Year founded
Founded in 2004 by Chris Farrar and Jeff Taylor in Westlake Village, CA
Originations in 45 states & Washington, D.C.
Nine locations strategically located in geographies with significant investor demand
Approved brokers
Broker relationships maintained by our team account executives located throughout our 10 offices
Total UPB of loans in our portfolio(1)
Consists primarily of 1–4 unit residential rental and small commercial properties, largely sourced through our loan production operations and supplemented by acquisitions.
Gross portfolio yield(1)
The strong performance of our organically sourced loan portfolio is supported by disciplined underwriting and extensive market expertise.
Weighted average LTV(1)
Gross yields complemented by conservative LTVs, low loss content and structural interest rate protections
(1) As of March 31, 2024
1-4 unit properties owned by small private investors
Large and highly fragmented market, historically concentrated among small investors
Annual small balance commercial originations market
Important and growing market segment, increasingly underserved by banks resulting from operational and regulatory issues
Providing a tailwind for rental demand
Household formation growth and an increasing propensity of the 35–44 year-old demographic to rent, bodes well for strong long-term rental demand
Online broker portal
Online Broker portal provides customizable loan terms and document upload functionality, integrated with our proprietary risk-based pricing engine
Leveraging leading third-party technologies and analytics
100% cloud-based operational infrastructure provides seamless integration across systems, resulting in greater efficiency and better customer engagement
Resulting from our 18-year operating history
Customized systems, coupled with 20 years of proprietary operational data, enables specialized analytics to support lending and product development activities
Gross proceeds from securitization(1)
We have successfully built a solid reputation with MBS investors, executing 32 securitization since 2011(1), with 1 securitizations completed thus far in 2024.
Retained interests from our securitizations(2)
Velocity Financial retains the first loss tranches of its securitizations due to the strong historical performance of the underlying loans
Charge-offs(3)
Low cumulative losses result from strict adherence to our underwriting discipline, low LTVs and proactive loss mitigation strategies
(1) From May 2011 through March 31, 2024
(2) As of March 31, 2024
(3) As a % of average nonperforming loans for the three-months ended March 31, 2024, annualized.
Management team’s average years of experience
Extensive experience in commercial and residential lending, structured finance, capital markets and corporate finance
Navigating changing market conditions
Our operational track record and comprehensive platform enables our ability to deliver strong performance in a variety of market environments
for continued success and growth
Our scalable operating infrastructure, growing broker network, and proven financing strategies position us well for strong performance in the future
(1) As of September 20, 2019
(2) Reflects the total charge-offs on loans that were non-performing and have been liquidated or converted to REO from January 1, 2013 through September 20, 2019