8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENTREPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date Earliest Event reported): March 18, 2020

Velocity Financial, Inc.

(Exact name of registrant as specified in its charter)

(818) 532-3700

(Registrant’s telephone number, including area code)

Not applicable.

(Formername or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

On March 18, 2020, Velocity Financial, Inc., (the “Company”) issued a news release regarding its current operating environment and certain operational metrics. The news release is furnished as Exhibit 99.1 hereto.

The information contained within this Item 2.02, including the information in Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended.

(d) Exhibits.

EXHIBIT INDEX

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned hereunto duly authorized.

Date: March 18, 2020

EX-99.1

Exhibit 99.1

Investors and Media:

Chris Oltmann

(818) 532-3708

Velocity Financial Update on Current Operating Conditions

Westlake Village, CA – March 18, 2020 – Velocity Financial, Inc. (NYSE: VEL), (the “Company”) today provided an update on the current operating environment and operational metrics.

Loan origination volume for the two months ended February 29, 2020 totaled $204.5 million in UPB, a 49 percent increase from the same period in 2019. The total loan portfolio totaled $2.11 billion in unpaid principal balance (UPB) on February 29, 2020, up 30 percent from February 28, 2019. Loans held for investment comprised 90 percent of the total loan portfolio on February 29, 2020, with the remainder consisting of short-term held for sale loans.

The Company, through its operating subsidiary Velocity Commercial Capital (“VCC”), maintains operating liquidity through three separate Bank warehouse financing facilities totaling $550 million in total capacity. As of March 17, 2020, available capacity on these Bank warehouse facilities totaled $253 million. Recently, one of the Company’s warehouse banks, Barclays Bank PLC, agreed to increase its financing line capacity to $300 million from $250 million to support origination volume growth. Moreover, in February, the Company completed its first securitization transaction of 2020, and its 13^th^ transaction overall, totaling $249 million of securities issued.

“We remain focused on the health of our employees and the communities in which we work and live while also maintaining operational readiness to serve our brokers effectively as the COVID-19 pandemic situation evolves,” said President and CEO, Chris Farrar. “Our business is performing very well, we continue to see strong demand for debt financing from investors, and the Company remains on a sound footing both financially and operationally. We maintain substantial liquidity and have enjoyed longstanding relationships with our warehouse banks, who have supported the Company through a variety of market conditions over our 15-year operating history. While it is too soon to assess the long-term economic impact of the pandemic on real estate values or demand for debt financing, our considerable operational track record and experience will help us successfully navigate this rapidly evolving environment.”

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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 15 years.

Forward-Looking Statements

Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions.

The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.

While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and real estate market conditions, (2) regulatory and/or legislative changes, (3) our ability to retain and attract loan originators and other professionals, and (4) changes in federal government fiscal and monetary policies.

For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled ‘‘Risk Factors” the Company previously disclosed in its prospectus filed with the SEC on January 17, 2020, as such risk factors may be updated from time to time in the Company’s periodic filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.velfinance.com.

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