Velocity Financial, Inc. (VEL)

In the past six months, Velocity Financial's stock has shown strong recent performance, outperforming the broader market. Key events impacting the stock include the announcement of preliminary Q4 and full-year 2025 results, the offering and pricing of senior notes, the sale of non-performing loans with a servicing partnership, and earnings conference calls for Q3 and Q2 2025 results.

While specific seasonal fluctuations in demand are not explicitly detailed, the company has reported strong demand for business-purpose loans and successfully increased loan production each quarter in 2023. The company is actively expanding its reach in the commercial real estate lending sector to meet rising demand, and positive market trends are seen as tailwinds for strong long-term rental demand.

Velocity Financial, Inc. (VEL), established in 2004 and based in Westlake Village, California, is a vertically integrated real estate finance company operating in the Mortgage Finance industry. It specializes in originating, securitizing, and managing a portfolio of investor loans secured by various real estate types. The company generates revenue through interest income and acquired an 80% ownership interest in Century Health & Housing Capital, LLC in 2021.

Velocity Financial, Inc. operates across the United States, with loan originations in 45 states and Washington, D.C. The company has a physical presence with nine locations strategically placed in areas with significant investor demand, including states like New York, California, Florida, and New Jersey.

Velocity Financial has established a strong brand reputation as a market leader in the origination and management of investor real estate loans. The company is recognized for its exceptional service and strong financial performance, with a 21-year history in the business purpose loan market. Its reputation has been positively reinforced by its record originations and earnings in 2025.

Velocity Financial, Inc. has a significant institutional ownership presence, with 249 institutional owners and shareholders holding a total of 38,587,801 shares. Major institutional shareholders include Snow Phipps Group, LLC, Allianz Asset Management GmbH, Beach Point Capital Management LP, BlackRock, Inc., and Vanguard Group Inc. Insiders own 2.66% of the company, while institutions own 97.35%. Co-founders Christopher D. Farrar (CEO) and Jeffrey T. Taylor (Executive Vice President of Capital Markets) also hold direct ownership stakes.