Velocity Financial, Inc. (NYSE: VEL), ("Velocity" or the "Company"), a leading provider of small balance investor loans, today announced that it has closed its second securitization transaction of 2021, in aggregate $205 million of Mortgage-Backed Certificates, series 2021-2 (the "Certificates") backed by a portfolio of loans recently originated through Velocity's operating platform. The sold Certificates will be issued in seven classes and were priced with a weighted average fixed rate of 1.75%.

The Certificates were rated by KBRA (Kroll Bond Rating Agency) and DBRS Morningstar; the ratings are as follows:

"The strong market reception continued for Velocity’s second securitization of 2021, and we are very pleased with the execution we achieved on this transaction," said Executive Vice President of Capital Markets, Jeff Taylor. "Velocity's proven business model and the solid performance of our securitizations helped maintain high investor demand that drove spreads tighter by over 9 basis points as compared to our 2021-1 transaction and resulted in a weighted average coupon of 1.75%. Because we strongly believe in the quality of our loans and the capabilities of our special servicing team, we will retain at least 5% of this transaction as we have done with our prior securitizations."

The Certificates are not registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The Certificates may only be offered and sold in the United States in accordance with Rule 144A under the Securities Act. This press release does not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of the Certificates in any jurisdiction in which such offer, solicitation or sale would be unlawful under the laws of such jurisdiction.

About Velocity Financial, Inc.

Based in Westlake Village, California, Velocity is a vertically integrated real estate finance company that 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 16 years. For additional information, please visit the Company’s investor relations website at www.velfinance.com.

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