Morningstar DBRS assigned provisional credit ratings to the Mortgage-Backed Certificates, Series 2025-1 (VCC 2025-1), a new securitization from Velocity Financial. The transaction is backed by 793 mortgage loans with a total principal balance of $351,581,520 as of the January 1, 2025, Cut-Off Date.
The loan pool consists of approximately 41.1% residential investor loans, 57.9% traditional small-balance commercial (SBC) loans, and 0.9% SBA 504 loans. The majority of these loans, 82.3%, were originated by Velocity Commercial Capital, LLC, with 17.7% from its subsidiary, New Day Commercial Capital, LLC.
The CMBS loans in the pool have a weighted-average fixed interest rate of 11.2%. The (P) AAA (sf) credit ratings on the Class A Certificates reflect 31.25% of credit enhancement provided by subordinated certificates, indicating strong structural support for the issuance.
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