Welcome to our dedicated page for Velocity Financial news (Ticker: VEL), a resource for investors and traders seeking the latest updates and insights on Velocity Financial stock.
Velocity Financial, Inc. (symbol: VEL) is a leading real estate finance company in the United States, specializing in originating and managing investor loans secured by residential rental and small commercial properties. The company operates in a variety of states including New York, California, Florida, and New Jersey, providing essential financial services to a diverse range of property investors.
Velocity Financial earns its revenue primarily through interest income derived from these loans. By offering competitive loan products tailored to the needs of property investors, the company has positioned itself as a crucial player in the real estate finance sector.
In recent years, Velocity Financial, Inc. has achieved significant milestones, including expansion into new markets and the development of innovative loan products. The company's dynamic approach to real estate financing has attracted a variety of partnerships and collaborations with key players in the industry, further solidifying its market position.
Investors and stakeholders can stay updated with the latest developments and financial performance of Velocity Financial, Inc. through regular news updates and reports. The company's commitment to transparency and excellence ensures that it remains a trusted name in real estate finance.
Velocity Financial, Inc. (NYSE: VEL) has announced significant preliminary financial and operational updates for Q4 2021. The company expects loan production of approximately $497.8 million, representing a 46% increase from the previous quarter. Projected net income ranges from $8.2 million to $8.6 million, with diluted EPS estimated between $0.24 and $0.25. Total loans held for investment are estimated at $2.5 billion, and nonperforming loans are expected to decline to between 10.3% and 10.8%. Additionally, the company completed two securitizations and acquired a majority stake in Century Health for $12.8 million.
Velocity Financial, Inc. (NYSE: VEL) has successfully acquired a majority stake in Century Health & Housing Capital, enhancing its commercial mortgage product offerings. Century, established in 1992, specializes in government-insured FHA financing for multifamily and senior housing. The acquisition is poised to diversify Velocity's revenue and is immediately accretive to earnings with a minimal impact on tangible book value. This strategic move is expected to leverage Velocity's national footprint for organic growth and enhance fee-based income.
Velocity Financial, Inc. (NYSE: VEL) reported Q3 2021 net income and core income of $8.02 million, a decrease from Q2 2021's $9.45 million. Diluted EPS was $0.23, down from $0.28 in Q2. Loan production surged by 32.81% to $340.66 million, primarily driven by Investor 1-4 Rental loans. Portfolio net interest income rose by 9% to $26.6 million, with a margin of 4.97%. The company issued a $205.18 million securitization and doubled its warehouse financing facility to $200 million. Despite improvements in credit performance, the nonperforming loans remained a concern at 12.7% of loans held for investment.
Velocity Financial, Inc. (NYSE:VEL) is set to announce its third quarter 2021 results on November 3, 2021, after market close. The management will conduct a conference call at 2:00 p.m. PT to discuss the financial results. Investors can access the live webcast through the company's Investor Relations website. A replay will be available until November 30, 2021. Velocity specializes in small balance investor loans and operates nationwide through a network of mortgage brokers.
Velocity Financial, Inc. (NYSE: VEL) has voluntarily converted all 45,000 shares of Series A Convertible Preferred Stock into 11,688,310 shares of common stock. This conversion moves the $90 million liquidation preference value from mezzanine equity to permanent stockholders’ equity. As of June 30, 2021, stockholders’ equity would have increased from $233 million to $323 million had the conversion occurred. CFO Mark Szczepaniak stated that this successful conversion removes uncertainties regarding liquidation preferences and enhances the company's capital structure.
Velocity Financial, Inc. (NYSE: VEL) announced its second securitization of 2021, closing a $205 million issuance of Mortgage-Backed Certificates (series 2021-2), backed by a portfolio of recently originated loans. The certificates, rated by KBRA and DBRS Morningstar, feature a weighted average fixed rate of 1.75%. Velocity's strong market reception for this transaction led to tighter spreads by over 9 basis points compared to its earlier securitization. The company will retain at least 5% of this transaction, reflecting confidence in its loan quality.
Velocity Financial, Inc. (NYSE: VEL) reported a strong financial performance for 2Q21, posting a net income of $9.45 million, a significant increase from $3.40 million in 1Q21. Core income rose to $8.45 million, up from $6.72 million. The diluted earnings per share reached $0.28, compared to $0.10 in the previous quarter. The company’s total loan portfolio grew to $2.07 billion, a 4% increase over the prior quarter. The net interest margin improved to 4.83%. However, the loan loss reserve decreased to $3.96 million, reflecting an optimistic economic outlook.
Velocity Financial, Inc. (NYSE:VEL) is set to announce its Q2 2021 financial results on August 5, 2021, after market close. A conference call will follow at 2:00 p.m. PT, where executive management will discuss these results. Investors can access the call via a live webcast on the company's Investor Relations website. A replay will also be available until August 30, 2021. Based in Westlake Village, California, Velocity specializes in small balance investor loans secured by residential rental and small commercial properties, leveraging a nationwide network of independent mortgage brokers.
Velocity Financial, Inc. (NYSE: VEL) has successfully closed its first securitization transaction of 2021, totaling $265 million in Mortgage-Backed Certificates, series 2021-1. The certificates, backed by recently originated loans, feature a weighted average fixed rate of 1.735%. They have received ratings from KBRA and DBRS Morningstar, with the largest class (A) rated AAA. Executive Vice President Jeff Taylor expressed confidence in the strong market demand, which helped reduce funding costs and improve growth prospects. The certificates are not registered under the Securities Act of 1933.
Velocity Financial, Inc. (NYSE: VEL) announced an upgrade and affirmation of ratings on its 12 securitizations by Kroll Bond Rating Agency (KBRA) following a comprehensive review. KBRA's analysis included current loss expectations and noted low cumulative loss levels between 0.05% and 0.43%, with 7 of the 12 securitizations experiencing no losses since inception. The review considered VCC’s strong collateral performance and resilience against pandemic impacts. Executive Vice President Jeff Taylor emphasized the disciplined underwriting as a key driver behind the favorable ratings.
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