An aggregated $265 million of mortgage certificates are backed by a portfolio of loans originated through Velocity's operating platform.
The certificates, priced with a weighted average fixed rate of 1.74 percent, were rated by Kroll Bond Rating Agency and DBRS Morningstar.
Securitization is a process in which an issuer creates an investment instrument by pooling together financial assets – in this case mortgages on commercial properties and apartment buildings – into a group.
“I am pleased with the strong market reception of our first securitization in 2021, which reflects Velocity’s extensive track record,” said Velocity’s Executive Vice President of Capital Markets Jeff Taylor in a statement.
Shares of Velocity (VEL) closed Monday up 23 cents, or 2 percent, to $11.23 per share on the New York Stock Exchange on a day when the Dow fell a fraction of a percent.