Velocity Financial Inc
NYSE:VEL
Velocity Financial Inc
Velocity Financial, Inc. operates a real estate finance company. The company is headquartered in Westlake Village, California and currently employs 215 full-time employees. The company went IPO on 2020-01-17. The firm originates and manages investor loans secured by one-to-four-unit residential rental and small commercial properties, which it refers to collectively as investor real estate loans. The company originates loans nationwide across its network of independent mortgage brokers. The firm's portfolio includes loans held for investment and loans held for sale. Its loan is secured by a first lien on the underlying property with the added protection of a personal guarantee. Its loan portfolio totaled $2.1 billion of unpaid principal balance (UPB) on properties in 45 states and the District of Columbia. The firm funds its portfolio primarily through a combination of committed and uncommitted secured warehouse facilities, securitizations, corporate debt and equity.
Velocity Financial, Inc. operates a real estate finance company. The company is headquartered in Westlake Village, California and currently employs 215 full-time employees. The company went IPO on 2020-01-17. The firm originates and manages investor loans secured by one-to-four-unit residential rental and small commercial properties, which it refers to collectively as investor real estate loans. The company originates loans nationwide across its network of independent mortgage brokers. The firm's portfolio includes loans held for investment and loans held for sale. Its loan is secured by a first lien on the underlying property with the added protection of a personal guarantee. Its loan portfolio totaled $2.1 billion of unpaid principal balance (UPB) on properties in 45 states and the District of Columbia. The firm funds its portfolio primarily through a combination of committed and uncommitted secured warehouse facilities, securitizations, corporate debt and equity.
Earnings: Core net income rose 52% to $111 million for the year; Q4 core net income was $36.3 million, or $0.93 per share (up from $0.60).
Originations: Record originations of $2.7 billion in 2025 (up ~49% YoY); Q4 production was $634 million (up ~12.6% YoY).
Portfolio growth: Loans held for investment grew to $6.5 billion, up 28.4% year-over-year; portfolio NIM remained healthy at ~3.6%.
NPL action: Sold $129 million of NPLs in Q4 (recognizing $13.4 million of net income), reducing NPLs to 8.5% and freeing ~ $50 million of working capital.
Capital markets: Nine securitizations and $2.6 billion of new issuance in 2025; completed a $500 million unsecured, rated bond in January at 9.5% due 2031 to reduce reliance on warehouse lines.
Liquidity: Total liquidity just under $117 million (including ~$92 million cash); available warehouse capacity ~ $600 million (max capacity $935 million).
Outlook: Management expects NIMs to remain stable and plans to continue portfolio growth; sees healthy deal pipeline and tight spreads in securitization markets.
