VEL - Velocity Financial acquires majority interest in Century Health & Housing Capital

Velocity Financial (NYSE:VEL) acquired a majority stake in Century Health & Housing Capital, a licensed Ginnie Mae issuer/servicer that provides government-insured Federal Housing Administration mortgage financing for multifamily housing, senior housing and long-term care/assisted living facilities. Century issued $158Min unpaid principal balance (UPB) of loans for the 11 months ended Nov. 30, 2021, and manages a servicing portfolio in $500M+ in UPB. The acquisition expands Velocity's commercial mortgage product offerings through growth in a new channel and the ability to offer new products to Velocity's broker network. The addition of Century is expected to be immediately accretive to Velocity’s earnings with minimal impact to tangible book value, it also diversifies Velocity’s revenue with fee-based origination and servicing income. Also, Century will leverage Velocity’s technology-driven platform to broaden their Northeast-focused origination footprint.

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Velocity Financial acquires majority interest in Century Health & Housing Capital