Morningstar DBRS finalized provisional credit ratings for Velocity Commercial Capital Loan Trust 2024-6 (VCC 2024-6), a securitization backed by 765 mortgage loans with a total principal balance of $301,585,376 as of November 1, 2024. The Class A certificates received a AAA (sf) rating, reflecting 33.40% credit enhancement from subordinated certificates.
The collateral pool is composed of approximately 50.7% residential investor loans, 47.0% traditional small-balance commercial (SBC) loans, and 2.3% SBA 504 loans. Most of the loans, 84.5%, were originated by Velocity Commercial Capital, LLC, with the remaining 15.5% from its wholly-owned subsidiary, New Day Commercial Capital, LLC.
The CMBS loans within the pool feature a weighted-average fixed interest rate of 11.0%. A lawsuit filed on January 5, 2024, against New Day Business Finance LLC and Velocity Commercial Capital, LLC d/b/a New Day Commercial Capital, LLC, alleging trade secret violations, is not believed to be material by New Day.
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