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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