Velocity Mortgage Capital Issues Securitization Worth $186 Million
Velocity Mortgage Capital Issues Securitization Worth $186 Million
Velocity Mortgage Capital has issued its 8th securitization, backed by $186 million of loans, as the company continues to take a leadership position in the growing investment property and small balance commercial real estate market.
Kroll Bond Rating Agency (KBRA), a full-service credit rating agency registered with the U.S. Securities and Exchange Commission, assigned preliminary ratings to six classes of Velocity Commercial Capital Loan Trust 2018-1 (VCC 2018-1) mortgage-backed certificates.
“The importance of a successful securitization process means we have additional resources to support the increased business activity of the brokers we service,” said CEO and Founder Chris Farrar. “The investors (insurance companies, pension plans, etc.) who buy our bonds find us attractive because they get a steady stream of income with lower risk.”
Velocity retains a first-loss position in its securitizations, which lowers the risk for its investors. “The success of our securitizations underline the strength of our mortgage portfolio,” added Jeff Taylor, EVP and Head of Capital Markets at Velocity. “Our eighth securitization demonstrates our commitment to be a serious participant in investment property financing for residential and small balance commercial buildings.”
With a focus on residential 1-4 “investor,” multi-family, mixed-use and small balance commercial properties, the majority of Velocity Mortgage Capital’s funded loans fall under the $2 million mark. Programs are offered through mortgage brokers and aimed at W-2 employees, self-employed investors and small business owners who use the funds to generate rental income, fund improvements or operate their businesses. The company’s asset-based mortgage programs allow it to provide funding for borrowers who are often tough to qualify due to minor income and credit issues.
“Velocity has established growing interest in its small-balance commercial real estate securitizations as a result of the superior credit performance of the underlying collateral and the attractive pricing of the securities,” said Mark Szczepaniak, Chief Financial Officer at Velocity Financial, LLC. “The capital raised, combined with Velocity’s national footprint and expertise in the commercial mortgage market, will result in significant growth and diversification in products offered to our broker community.”
Recently, Velocity Mortgage Capital has benefited from low housing inventory levels and a stronger economy, both of which tend to increase interest in investment property ownership. “The investment and commercial property markets continue to grow across America; this growth presents increased opportunities for the mortgage brokers who participate in it,” Farrar added.
About Velocity Mortgage Capital
Velocity Mortgage Capital is a nationwide, direct portfolio lender, specializing in financing investment properties and small balance commercial real estate. Founded in 2004, Velocity has originated over $2 billion in loans and established itself as the largest lender of its kind. Velocity is an active capital markets participant that has issued over $1.4 billion in securitizations in the last five years. An equal housing lender, Velocity has an A+ rating with the Better Business Bureau and accreditation from the National Association of Mortgage Brokers and Scotsman Guide. For more information, call (866) 505-FUND (3863) or email [email protected].
Velocity offers loans from $75,000 to $5 million and has provided financing for properties located in 34 states and the District of Columbia. A large portion of Velocity’s portfolio comes from New York, California and Florida, where the company maintains regional offices. Newly opened offices in Massachusetts, Washington and Texas are expected to expand the company’s footprint further.
About KBRA and KBRA Europe
Kroll Bond Rating Agency (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. The agency is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
