Velocity Financial Inc (NYSE: VEL) is a specialty finance company that originates and holds investor real estate loans secured by 1-4 unit residential rental and small commercial properties. Revenue comes primarily from net interest income on the loan portfolio, supplemented by origination fee income and, through its 80%-owned subsidiary Century Health & Housing Capital, LLC, FHA mortgage origination fees and mortgage servicing rights income. VEL operates in a large, fragmented market targeting individual investors who own ten or fewer properties, distributing loans through a network of approved mortgage brokers. Century, acquired December 28, 2021, originates government-insured FHA loans for multifamily, senior, and long-term care housing and services them through an in-house platform. Origination fee income was $24.0 million for FY2024, up from $12.5 million in FY2023. VEL is listed on the NYSE and funds its loan portfolio primarily through securitizations, including fair-value-option securitized debt.

Revenue model

Net interest income from a held-for-investment loan portfolio is the primary revenue driver. Secondary revenue includes origination fee income ($24.0 million, FY2024), interest income on cash balances ($6.5 million, FY2024), mortgage servicing fees from Century's Ginnie Mae servicing portfolio, and other income ($2.1 million, FY2024). The company finances its portfolio largely through securitizations.

Products and services

Investor real estate loans on 1-4 unit residential rental properties and small commercial properties, originated via an approved mortgage broker network. Through Century Health & Housing Capital (80% owned, acquired December 28, 2021): FHA government-insured mortgage financing for multifamily housing, senior housing, and long-term care/assisted living facilities, plus in-house loan servicing generating mortgage servicing rights income.

Customers and end markets

Individual real estate investors owning ten or fewer properties, served through mortgage brokers. Century's end markets include multifamily housing operators, senior housing providers, and long-term care/assisted living facility owners seeking FHA-insured financing.

Value-chain role

Direct lender and portfolio holder. Originates loans through a third-party mortgage broker network, retains loans on balance sheet (with a fair value option election applied to originated loans beginning October 1, 2022), finances the portfolio via securitizations, and services non-performing loans internally. Century services its own Ginnie Mae loan portfolio through an in-house platform.

Geographic exposure

National U.S. presence maintained through a mortgage broker origination network described as geographically wide. No specific state or regional revenue breakdown is disclosed in the filing excerpts.

Source: SEC 10-K, filed 2026-03-12

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