Velocity Commercial Capital Securitization Ratings Affirmed and Upgraded by Kroll Bond Rating Agency
11 June 2024 - 10:30PM
Business Wire
Velocity Financial, Inc. (NYSE: VEL), (“Velocity” or the
“Company”), a leader in business purpose loans, today announced
that Kroll Bond Rating Agency (“KBRA”) has reviewed the ratings on
19 of the outstanding securitizations issued by its wholly-owned
subsidiary, Velocity Commercial Capital, LLC (“VCC”) resulting in
271 rating affirmations and three rating upgrades of the underlying
tranches. The rating actions occurred in conjunction with
completing KBRA’s comprehensive surveillance review.
KBRA’s rating affirmations reflect continued stable collateral
and structure performance, as evidenced by increased credit support
for the rated classes and minimal losses since issuance. The rating
upgrades considered each bond’s increased credit support relative
to KBRA’s updated loss expectations and the generally positive
performance trends exhibited by the related underlying pool since
issuance. Cumulative loss levels in Velocity’s outstanding
securitizations ranged from 0.02% to 0.45%, with 14 of 19 VCC
outstanding securitizations experiencing no losses since
issuance.
“KBRA’s rating actions reflect the continued strong performance
of Velocity’s securitizations,” said Jeff Taylor, Executive Vice
President of Capital Markets. “Velocity maintains a strong
alignment with investors by retaining credit risk in our
securitizations. This strategy has been key to the differentiated
performance of our securitizations and drives our unwavering
attention to producing high-quality loans and maintaining our
best-in-class loss mitigation strategies.”
About Velocity Financial, Inc.
Based in Westlake Village, California, Velocity is a vertically
integrated real estate finance company that primarily 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 20 years. For additional
information, please visit the Company’s investor relations website
at www.velfinance.com.
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Investors and Media: Chris Oltmann (818) 532-3708
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