Velocity Financial Inc. is a specialty finance company that focuses on originating, managing, and servicing small balance commercial mortgage loans. The company was founded in 2004 and is based in Westlake Village, California, USA.
Velocity Financial primarily provides financing solutions to investors and small businesses seeking to acquire or refinance commercial properties, such as multifamily, mixed-use, retail, and other income-producing properties. They specialize in offering loans with loan amounts between $1 million and $20 million, which fall within the small balance commercial mortgage sector.
The company's lending model is based on originating loans and then pooling and securitizing them into mortgage-backed securities, which are then sold to investors. This allows Velocity Financial to free up capital and expand its lending capacity, facilitating further lending opportunities.
Velocity Financial prides itself on its strong risk management practices and disciplined underwriting standards, which help to ensure the credit quality of its loan portfolio. By catering to the underserved small balance commercial mortgage market, the company has been able to carve out a niche in the financial services industry and deliver value to both borrowers and investors.