Velocity Financial Announces Closing of $265 Million Securitization; Sixteenth Securitization Since 2011
May 17 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 it has closed its first securitization
transaction of 2021, in aggregate $265 million of Mortgage-Backed
Certificates, series 2021-1 (the "Certificates") backed by a
portfolio of loans recently originated through Velocity's operating
platform. The sold Certificates will be issued in seven classes and
were priced with a weighted average fixed rate of 1.735%.
The Certificates were rated by KBRA (Kroll Bond Rating Agency)
and DBRS Morningstar; the ratings are as follows:
Ratings Class
Balance KBRA Rating (sf) DBRS
Morningstar (sf) A
$190,460,000
AAA AAA M1
$24,072,000
AA AA M2
$9,655,000
A A M3
$5,026,000
BBB BBB M4
$7,010,000
BB BB M5
$4,101,000
B B M6
$10,977,000
Not Rated Not Rated M7
$13,226,698
Not Rated Not Rated
Initial Balance
$264,527,698
"I am pleased with the strong market reception of our first
securitization in 2021, which reflects Velocity's extensive track
record of performance," said Executive Vice President of Capital
Markets, Jeff Taylor. "The outstanding history of Velocity's
existing securitizations has resulted in our ability to reduce
funding costs and access the capital needed to grow the business
successfully. Broad investor demand tightened spreads for the
entire capital stack and lowered our weighted average coupon by
over 1% as compared to our pre-COVID 2020-1 transaction. As with
our other securitizations, we will continue our practice of
retaining at least 5% of our deals, which creates a strong
alignment of interests with investors."
The Certificates are not registered under the Securities Act of
1933, as amended (the "Securities Act"), and may not be offered or
sold in the United States absent registration or an applicable
exemption from the registration requirements. The Certificates may
only be offered and sold in the United States in accordance with
Rule 144A under the Securities Act. This press release does not
constitute an offer to sell or the solicitation of any offer to
buy, nor shall there be any sale of the Certificates in any
jurisdiction in which such offer, solicitation or sale would be
unlawful under the laws of such jurisdiction.
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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version on businesswire.com: https://www.businesswire.com/news/home/20210517005296/en/
Chris Oltmann (818) 532-3708
Velocity Financial (NYSE:VEL)
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