Velocity Financial (NYSE: VEL) CEO receives stock and PSU awards

Rhea-AI Filing Summary

Velocity Financial, Inc. reported that Chief Executive Officer and director Christopher D. Farrar received new equity awards on January 15, 2026. He acquired 89,285 shares of common stock, bringing his directly held common stock to 435,107 shares, and separately was granted 89,285 Performance Stock Units (PSUs), increasing his directly held PSUs to 524,392 units.

The restricted stock is scheduled to vest in equal annual installments over three years from the grant date. The PSUs are subject to forfeiture and will vest from 0% to 200% of the granted amount based on Velocity’s average annual Core Net Income growth for fiscal years 2026, 2027 and 2028, with vesting determined after the end of fiscal 2028. Farrar is also reported as indirectly beneficially owning 522,411 shares of common stock through a family trust.

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

OMB APPROVAL

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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)
01/15/2026

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	01/15/2026		A(1)		89,285	A	$19.6	435,107	D
Performance Stock Units	01/15/2026		A(2)	V	89,285	A	$19.6	524,392	D
Common Stock								522,411	I	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. Acquisition of restricted stock subject to annual vesting ratably over three years from grant date.

2. Grant of Performance Stock Units. Under the terms of the grant, 100% of the PSUs are subject to forfeiture based on Velocity's average annual performance as measured by Core Net Income Annual Growth for fiscal years 2026, 2027 and 2028 with potential vesting of 0 to 200% of the granted PSUs following fiscal year end 2028.

Remarks:

	/s/ Roland T. Kelly, by power of attorney	01/16/2026
	** 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).
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FAQ

What insider equity awards did Velocity Financial (VEL) report for its CEO?

Velocity Financial reported that CEO Christopher D. Farrar received 89,285 shares of common stock and a grant of 89,285 Performance Stock Units (PSUs) on January 15, 2026.

How many Velocity Financial (VEL) common shares does the CEO hold after this Form 4?

After the reported transaction, Christopher D. Farrar beneficially owns 435,107 shares of common stock directly and 522,411 shares indirectly through a family trust.

How do the new restricted stock awards for the Velocity Financial (VEL) CEO vest?

The filing states that the restricted stock vests ratably over three years from the grant date, with a portion vesting each year.

What performance conditions apply to the Velocity Financial (VEL) Performance Stock Units?

The PSUs are tied to Velocity’s average annual Core Net Income growth for fiscal years 2026, 2027 and 2028, with potential vesting from 0% to 200% of the granted units after fiscal year-end 2028.

Is the CEO’s indirect ownership in Velocity Financial (VEL) shares disclosed?

Yes. The report shows 522,411 shares of common stock held indirectly with the nature of ownership described as a Family Trust.

What role does Christopher D. Farrar hold at Velocity Financial (VEL)?

Christopher D. Farrar is reported as both a Director and an Officer, serving as Chief Executive Officer of Velocity Financial, Inc.