Velocity Commercial Capital Securitization Ratings Upgraded and Affirmed by Kroll Bond Rating Agency
May 12 2021 - 8:30AM
Business Wire
Velocity Financial, Inc. (NYSE: VEL), (“Velocity” or the
“Company”), a leading provider of small balance investor loans,
today announced that Kroll Bond Rating Agency (“KBRA”) has upgraded
and affirmed the ratings on the 12 outstanding securitizations
issued by its wholly-owned subsidiary, Velocity Commercial Capital,
LLC (“VCC”). The rating actions occurred in conjunction with the
completion of KBRA’s comprehensive surveillance review.
KBRA’s analysis included updated loss expectations which
factored higher serious delinquency levels in certain VCC
transactions and continued low cumulative loss levels ranging from
0.05% to 0.43%, with 7 of 12 VCC outstanding securitizations
experiencing no losses since issuance. Also considered were
historical performance of the collateral and the capital structure,
including excess spread, servicing advances, borrower equity trends
in the underlying properties, and the continually evolving impacts
of the COVID-19 pandemic. The consideration of these factors and
the performance of VCC’s securitizations allowed KBRA to determine
that 16 of VCC’s outstanding tranches warranted rating upgrades and
the ratings on the remaining 105 outstanding tranches warranted
affirmations.
“KBRA’s rating actions once again confirm the strong historical
performance of Velocity’s securitizations driven by our disciplined
underwriting and ability to avoid losses through our deep expertise
in resolving nonperforming assets,” said Executive Vice President
of Capital Markets, Jeff Taylor.
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 16 years. For additional information, please visit
the Company’s investor relations website at www.velfinance.com.
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Investors and Media: Chris Oltmann (818) 532-3708
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