The following is a summary of the Velocity Financial, Inc. (VEL) Q1 2024 Earnings Call Transcript:
Financial Performance:
Velocity reported Q1 loan origination volumes 75% higher than the previous year.
The company reported a core EPS of $0.51 per share, a significant high for the company, primarily driven by the fair value gains from new originations and net interest margin from the portfolio.
The April securitization deal further attracted 27 different investors, indicating improved market sentiment.
A strategic placement of $75 million in new corporate debt was made in February to increase the portfolio to $5 billion in UPB by 2025.
Through effective management, Velocity managed to reduce its nonperforming loan rate to 10.1% by the end of Q1.
Velocity's total liquidity at the end of Q1 was nearly $79 million, sustaining a healthy liquidity level.
Business Progress:
Velocity has managed to increase Q1 Originations owing to banks pulling back; this strategic decision has stimulated increased activity in its lending segment across the US.
In April, the company set a new record by issuing $2 billion worth of LOIs and having the most new applications in over two years.
The pipeline of Velocity remains robust with nearly $400 million in combined UPB, implying stable future prospects.
To continue driving earnings growth and shareholder value, Velocity plans to retain earnings, grow book value, and redeploy capital into high-returning assets.
More details: Velocity Financial IR
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