Velocity Financial Secures $375 Million in Credit

Velocity Financial Inc. has fresh money to make new mortgage loans.The Westlake Village mortgage lender announced it has entered a $200 million warehouse facility with Barclays Bank to finance new loan originations. The facility is non-mark-to-market, which means its terms don’t adjust with market interest rates.Velocity also entered a $175 million, five-year term loan with a syndicate of lenders including funds managed by Blackrock’s U.S. Private Capital group, Oaktree Capital Management and UBS O’Connor. That facility has an initial fund of $125 million with another $50 million available as a delayed draw. It will be used for new loan originations as well as debt refinancing.Chief Financial Officer Mark Szczepaniak said in a statement the credit facilities are a critical step in shoring up financing for Velocity’s platform growth.“We are excited to partner with an impressive team of lenders that believe in our strategy and support our growth plans. We intend to capitalize on the considerable investment opportunities in today’s market through increased loan production and market share growth to expand our existing portfolio,” he added.Shares of Velocity closed Tuesday up 34 cents, or nearly 5 percent, to $7.30 on the New York Stock Exchange.