Velocity Financial

What Velocity Financial does

Velocity Financial, Inc. (NYSE: VEL) is a vertically integrated real estate finance company that originates business-purpose loans secured by 1-4 unit residential rental properties and small commercial properties for individual and institutional real estate investors. Founded in 2004 and headquartered in Westlake Village, California, the company operates as a public financial institution following its January 2020 IPO. As of March 31, 2026, Velocity's loan portfolio had an unpaid principal balance of $6.8 billion across 17,639 loans in 45 states plus Washington D.C.

The company originates loans exclusively through a nationwide network of independent mortgage brokers supported by account executives in approximately ten regional offices. Its technology stack includes a 100% cloud-based, fully-integrated lending platform, a proprietary online broker portal with customizable loan terms and document upload functionality, and a proprietary risk-based pricing engine that draws on 21 years of operational data to support underwriting decisions. Loan products include 1-4 unit residential rental loans, traditional small-balance commercial loans, short-term loans, warehouse financing, and government-insured FHA multifamily loans originated through its Century Health & Housing Capital subsidiary.

Velocity earns revenue primarily through net interest income on its loan portfolio (portfolio net interest margin of 3.56% in Q1 2026, portfolio yield of 9.23%, and weighted average loan coupon of 10.28%), supplemented by origination fees (FY2025: $33.98M), fair value gains on loans and securitized debt, and gains from non-performing loan sales and securitization transactions. The company has executed 46 securitizations since 2011, including nine totaling $2.6 billion in 2025, and holds the first-loss tranches of these deals. Capital is sourced through a combination of warehouse facilities, senior secured notes, and senior unsecured notes, including a $500 million 9.375% senior notes issuance closed in January 2026.

Name

Velocity Financial

Legal name

Velocity Financial, Inc.

Website

https://velfinance.com

Company type

Public

Founded year

2004

Operating status

Operating

Headcount range

251–500 employees

Short description

Velocity Financial is a publicly traded real estate finance company that originates business-purpose loans secured by 1-4 unit residential rental and small commercial properties for individual and institutional investors, distributed exclusively through a nationwide independent mortgage broker network.

Ownership category

akta.pro rank

Product category

Real Estate Finance

NAICS

Real Estate Credit (522292), Mortgage and Nonmortgage Loan Brokers (52231)

SIC

Mortgage Bankers & Loan Correspondents (6162), Asset-Backed Securities (6189)

akta.pro primary industry

Jumbo & Portfolio Wholesale Lending (FSALACAF)

akta.pro secondary industries

Commercial Mortgage Brokerage (FSAEAEAB), Hard Money & Private Mortgage Lending Intermediation (FSAEAEAH)

Keywords

• Real estate finance
• Business-purpose lending
• Residential rental loans
• Small commercial lending
• Mortgage securitization

Headquarters

HQ city

Westlake Village

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Interest Income: Net interest income from the loan portfolio. Portfolio net interest margin was 3.56% in Q1 2026. Interest income is generated from business-purpose loans secured by 1-4 unit residential rental and small commercial properties.
2. Origination Fee Income: Fees charged at loan origination. Origination fee income of $7.97 million in Q1 2026 and $33.98 million for full-year 2025.
3. Fair Value Gains: Unrealized gains/losses on fair value loans and securitized debt, driven by changes in market valuations and portfolio composition.
4. Loan Sales and Securitization: Gains from selling non-performing loans and executing securitizations. The company completed nine securitizations totaling $2.6 billion in 2025 and sold $129 million of non-performing loans.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Velocity Financial originates, holds, services, and securitizes business-purpose mortgage loans secured by 1-4 unit residential rental properties and small commercial properties for real estate investors nationwide. Loans are sourced through a broker network and funded via warehouse facilities, the company's balance sheet, and recurring securitization transactions (VCC Series). The portfolio totaled $6.8 billion in unpaid principal balance as of March 31, 2026, with 17,639 loans across 45 states and Washington, D.C.

Product overview

Velocity Financial operates as a vertically integrated real estate finance company offering a portfolio of loan products centered on business-purpose financing for investor properties. The core offerings include Business-Purpose Loans secured by 1-4 unit residential rental and small commercial properties, supplemented by Government Insured Multifamily Loans through its subsidiary Century Health & Housing Capital. Additional products include Traditional Commercial Loans, Short-Term Loans, and Warehouse Financing. The company serves borrowers through an Online Broker Portal platform with proprietary risk-based pricing and supports its funding through securitization products (VCC series).

Differentiator

Problem solved

Functional benefit

Products and services

• Business-Purpose Loans

Quantifiable outcome

• Low cumulative charge-offs due to strict underwriting discipline, low LTVs, and proactive loss mitigation; 109.0% NPL recovery rate in 2025
• +1 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Three partnerships are on record, tiered core and minor.

• Century Health & Housing CapitalcoreStrategic or Co-development Partner · 28 December 2021Acquired majority interest in Century Health & Housing Capital for $12.8 million in December 2021. Century is a licensed Ginnie Mae issuer/servicer providing government-insured FHA mortgage financing for multifamily housing, senior housing, and long-term care/assisted living facilities. The acquisition expanded Velocity's product offerings to include government-insured multifamily loans.
• American Stock TransferminorOthersAmerican Stock Transfer serves as Velocity Financial's transfer agent, handling stock transfer services and related shareholder inquiries.
• Kroll Bond Rating AgencycoreOthersKroll Bond Rating Agency has provided ratings affirmations and upgrades for Velocity Commercial Capital securitizations over multiple years (2020-2024), indicating consistent credit quality assessment.

Scale indicators10 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• Angel Oak Mortgage Solutions: Angel Oak Mortgage Solutions is a non-QM and business-purpose mortgage lender focused on residential investor and self-employed borrowers. It directly competes with Velocity in the non-conforming, business-purpose loan segment serving real estate investors.
• Verus Mortgage Capital: Verus Mortgage Capital is a non-QM and business-purpose lender that funds through warehouse facilities and securitization. Its product mix, investor focus, and securitization-based funding model make it one of the closest direct comps to Velocity Financial.
• NewRez (Shellpoint Mortgage Servicing): NewRez is a nonbank mortgage originator and servicer with significant non-QM and investor loan programs. It operates in the same business-purpose and non-conforming lending space as Velocity, with comparable wholesale broker distribution.
• Lima One Capital: Lima One Capital specializes in business-purpose loans for real estate investors purchasing single-family rentals and multifamily properties. It directly overlaps with Velocity's 1-4 unit rental and small commercial lending focus.
• Kiavi (formerly LendingHome): Kiavi provides financing to real estate investors for fix-and-flip and rental properties. Its product set and target customer (investors in residential rental property) directly mirrors Velocity's core 1-4 unit rental loan products.
• RCN Capital: RCN Capital is a private direct lender offering business-purpose loans for real estate investors, including rental and small commercial properties. It competes head-to-head with Velocity for broker-originated investor loans.
• CoreVest Finance (Redwood Trust subsidiary): CoreVest is a direct lender to residential real estate investors and small balance commercial borrowers, acquired by Redwood Trust. Its product mix and target market substantially overlap with Velocity's 1-4 unit rental and small commercial offerings.

Broad incumbents

• Redwood Trust: Redwood Trust is a specialty finance company focused on residential and business-purpose mortgage investing and securitization. It is a broader incumbent in mortgage securitization that competes with Velocity for both investor loan origination and capital markets distribution.
• Rithm Capital (formerly New York Mortgage Trust / Newcastle): Rithm Capital is a diversified mortgage and real estate-focused investment manager. While broader than Velocity, it operates in the same business-purpose and non-QM lending space and competes for capital markets funding and origination relationships.
• Chimera Investment Corporation: Chimera Investment Corporation is a specialty finance REIT investing in residential and commercial mortgage assets, including non-QM and business-purpose loans. As a larger mortgage REIT, it represents a broad incumbent with overlapping product exposure and securitization funding strategy.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries1 record

Funding overview

Funding rounds2 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Velocity Financial