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. (NYSE: VEL) is a U.S. real estate finance company focused on business purpose and investor real estate loans, and its news flow centers on loan production, portfolio performance, securitizations and capital markets activity. The company describes itself as a leader in investor real estate loans and business purpose loans, with a portfolio secured by investor 1–4 family rental properties and a range of commercial property types.
News updates for Velocity commonly include quarterly and annual earnings releases that detail net income, core net income, diluted and core diluted earnings per share, portfolio net interest margin and net revenue. These releases also provide insight into record loan production volumes, growth in the total loan portfolio, and trends in nonperforming loans and real estate owned resolutions, including realization rates on resolved nonperforming assets.
Investors following VEL news will see regular disclosures on securitization activity, such as the completion of new securitizations, the collapse and refinancing of existing securitizations, and liquidity and warehouse line capacity metrics. Announcements can also cover equity capital actions, including issuance of common shares through an at-the-market offering program, and developments like a dual listing of the company’s common stock on NYSE Texas, Inc. alongside its primary New York Stock Exchange listing.
Other notable news items include rating agency reviews of securitizations issued by Velocity’s subsidiary, with rating affirmations and upgrades based on collateral and structure performance, and transactions such as the sale of nonperforming loans combined with third-party servicing mandates. For investors and analysts tracking VEL, this news page offers a centralized view of the company’s operating trends, credit performance, funding strategy and corporate milestones over time.
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.
Velocity Financial, Inc. (NYSE: VEL) reported a net income of $3.40 million for 1Q21, up 32% from $2.58 million in 1Q20. Core income also rose to $6.72 million, despite diluted EPS decreasing to $0.10 from $0.13. The book value per share fell to $11.12 from $12.47 year-over-year. The company noted a 30% growth in production volumes quarter-over-quarter and is optimistic about the economic recovery. However, total loan portfolio decreased by 6% year-over-year to $1.99 billion, driven by nonperforming loans increasing by 122% due to pandemic impacts.
Velocity Financial, Inc. (NYSE:VEL) will release its first quarter 2021 financial results after the market closes on May 6, 2021. The executive management team will host a live conference call at 2:00 PM PT / 5:00 PM ET to discuss the results. The call will be available via webcast on the company's Investor Relations website, with a slide presentation accessible after market close. Investors can participate by phone, with a replay available until May 27, 2021.
Velocity Financial reported a net income of $9.6 million for Q4 2020, a significant increase from $3.5 million in Q3 2020. The diluted earnings per share rose to $0.29, while book value per common share increased to $10.93. The company's total loan portfolio decreased by 2% to $1.93 billion. Despite a rise in nonperforming loans to 17.23%, operating expenses decreased by 9% quarter-over-quarter. Velocity's total net revenues grew by 33%, reflecting strong loan sales and improved interest income. The firm anticipates further growth in originations as it moves into 2021.
Velocity Financial, Inc. (NYSE:VEL) will release its fourth quarter and full year 2020 results on March 16, 2021, after market close. The executive management team will host a conference call and webcast at 2:00 p.m. PT/5:00 p.m. ET on the same day to discuss the financial outcomes. Interested participants can access the live webcast through the Investor Relations section of the company's website. A replay of the call will be available until March 23, 2021, via specified phone lines.
FAQ
What is the current stock price of Velocity Financial (VEL)?
What is the market cap of Velocity Financial (VEL)?
