Tax withholding of shares for Velocity Financial (NYSE: VEL) CEO

Rhea-AI Filing Summary

Velocity Financial, Inc. reported an insider tax-related share withholding by its CEO. Chief Executive Officer and director Christopher D. Farrar filed a Form 4 showing that on January 13, 2026, 8,854 shares of Velocity Financial common stock were withheld at $18.70 per share. According to the footnote, these shares were retained by Velocity to pay tax liabilities arising from the vesting of previously granted restricted stock, rather than being sold in the open market.

After this transaction, Farrar directly beneficially owned 345,822 shares of common stock and indirectly beneficially owned an additional 522,411 shares held by a family trust. This filing reflects routine tax withholding associated with equity compensation.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Farrar Christopher D.

(Last) (First) (Middle)

C/O VELOCITY FINANCIAL, INC.

2945 TOWNSGATE ROAD, SUITE 110

(Street)

WESTLAKE VILLAGE CA 91361

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
Velocity Financial, Inc. [ VEL ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	Chief Executive Officer

3. Date of Earliest Transaction (Month/Day/Year)
01/13/2026

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	01/13/2026		F(1)		8,854	D	$18.7	345,822	D
Common Stock								522,411	I	Held by family trust

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. Shares withheld and retained by Velocity as payment for tax liabilities resulting from the vesting of previously granted restricted stock.

Remarks:

	/s/ Roland T. Kelly, by power of attorney	01/15/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What insider transaction did Velocity Financial (VEL) report in this Form 4?

The Form 4 reports that Chief Executive Officer and director Christopher D. Farrar had 8,854 shares of Velocity Financial common stock withheld on January 13, 2026, coded as transaction type F, which indicates a tax-related withholding.

Why were 8,854 Velocity Financial (VEL) shares withheld from the CEO?

The footnote explains that the 8,854 shares were withheld and retained by Velocity as payment for tax liabilities resulting from the vesting of previously granted restricted stock, rather than being sold on the open market.

What price was used for the tax withholding of Velocity Financial (VEL) shares?

The shares withheld from Christopher D. Farrar for tax purposes were valued at $18.70 per share in the reported transaction.

How many Velocity Financial (VEL) shares does the CEO directly own after this transaction?

Following the tax withholding transaction, Christopher D. Farrar directly beneficially owned 345,822 shares of Velocity Financial common stock.

What is the family trust holding mentioned in the Velocity Financial (VEL) Form 4?

In addition to his direct holdings, the Form 4 reports that 522,411 shares of Velocity Financial common stock are held indirectly for Christopher D. Farrar through a family trust.

Was this Velocity Financial (VEL) insider transaction an open-market sale by the CEO?

No. The Form 4 footnote states that the shares were withheld and retained by Velocity to cover tax liabilities from restricted stock vesting, rather than being sold in the market.