Velocity Financial reports earnings growth in Q3
Westlake Village-based mortgage lender Velocity Financial reported an increase in net income and net interest margin for the third quarter, compared to the same quarter last year, in an earnings statement released Nov. 3.
Velocity reported net income of $8.02 million in the third quarter, or 23 cents per diluted share, compared to $3.5 million, or 11 cents per diluted share, in the third quarter of 2020.
The company’s portfolio net interest margin was 4.97% in the third quarter, an increase from the reported portfolio net interest margin of 3.77% in the third quarter last year.
Chris Farrar, the president and CEO of Velocity, said in a company news release that the results for the third quarter of 2021 reflected “outstanding execution by our loan origination team which delivered 33% quarter-over-quarter production growth, in addition to strong earnings and improved credit performance from our held for investment portfolio.”
He also noted that demand for small balance business purposed loans accelerated in the third quarter, with solid growth in rental demand driven by consumer preference for single-family homes. Velocity makes loans mostly to investors in small multifamily and commercial properties.
“Our strong originations trends continued in October as we originated $138.5 million of new loans, an all-time record for Velocity,” Farrar said.