Q1 2021 Velocity Financial Inc Earnings Call

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I was wondering if you can elaborate a little bit on.

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Lee.

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Lee.

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Got it.

Scott What conference of you're looking joined.

Steve you know book value so.

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Hi, I'm looking for the velocity financial conference.

Is there anything to the N P.

And today.

The improvement I mean does.

First of all of that.

Is that just you just expect to see that.

The call Brown, J O H N B R O W N.

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Place in your company as well.

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It's going to take a while.

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Take time assessing.

Yes, hi.

Aaron good to hear from you.

Debt.

Thank you.

I think that's a function of kind of both of them. We think it has increased.

Kris.

The next.

And also.

Jen.

So.

From Aaron's.

So change.

Two our programs but.

No.

Operationally.

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The production.

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There was.

Yeah.

For the.

And then also there's a little bit of seasonality.

The quarter.

The bar.

At the.

In January.

But does that.

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Murray January a year.

Is that just of.

For instance.

The change in demand.

These sales.

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Of those.

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Your marketing.

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A couple of volume.

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Aaron good.

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The that's I think.

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It's a function of.

That's not changing our guidelines.

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Yeah.

But also.

Mr of productivity.

So that's no change to our programs.

And then.

The.

But.

But.

The offering.

Yeah.

Short term loan product again, starting in April.

Okay.

Or are you.

Are you changing the underwriting.

A little bit.

For any fall or will it.

The season.

It be kind of similar expected.

Daniel timber January.

The.

Year.

What you used to.

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A little.

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It's hard to say.

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What kind of traction we're going to get there.

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Crossword.

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The money.

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We did see.

A lot of demand.

There was kind of saw a lot of apps.

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So.

Generic.

The opposite.

Good.

Okay.

Kind of got.

Yeah.

Coming back to somewhere at that level, we did.

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The offering in your short term loan product again starting.

Credit.

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And each of them.

Are you.

Are you changing the underwriting.

Pete.

Alrighty.

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The third dollar or.

For it should be.

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The quarters.

Expected.

Orders under.

That's what you of what you used.

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For the month, you'd see a lot of demand.

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It looks like you know a big chunk of them are in for closure.

So somewhere.

Sure.

We're at.

The goal.

The timeline I know it probably varies by.

Level.

Level.

The.

Yeah, depending on the traditional or.

The.

Yeah.

Non traditional.

But.

The little.

I know the sometimes some of the judicial states can.

But.

Can take.

Yeah.

Maybe I'm just try.

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Goodbye.

Like.

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Like how long some.

The horror.

Some of the same.

Orders at all.

Yes.

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I don't.

One of them.

What you see.

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At the.

The delinquency.

The breakout of nine.

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It sits in foreclosure quite a.

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Looks like a big chunk of them are in.

The foreclosure.

We can process.

The CS.

Sure.

For the typical.

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All.

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For.

One of a foreclosure sale.

How.

Sale.

Along.

It means.

Finally the.

Long.

On this call.

The loan there.

It kind of gets paid.

So yes.

It often so.

She is it.

So some of the longer stage.

So you have borrowers.

Kind.

Kind of quickly roles.

For us who.

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Wait for the very last.

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Where are you.

For those 60 days so.

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Yes.

State processes.

Yes.

Yes.

It varies across the U.

Yes.

The us on average 10 months or so is what we experience.

Okay. Thank you yep.

As a reminder of you have a question. Please press star then one to be joined into the queue.

The next question comes from Chris Miller with JMP Securities. Please go ahead.

Hey, guys. Thanks for taking the questions I'm on for Steve today, they kind of like.

Couple of things I had but I guess, just the follow up on origination volumes I guess once we do reach that normalized market do you think the volumes will be closer to that 30% in each bucket breakout or do you feel like the SSR is gonna be a heavier weighting going forward.

Yes, so on the short term product that's all <unk>.

Under for so it'll skew more heavily to the one to for them because we don't offer that short term of product on the for the commercial assets yet.

May offer that sometime in the future, but right now it's all wonder for.

Got it and then on the other side of the equation do you guys have any expectations for repayment levels for this year.

We don't we don't try to forecast that it's it's kind of too tricky to.

To do so.

Where were you know accruing default interest while it happens so.

Whether it happens this week or next week or next month, you know, we're somewhat indifferent because it's very profitable for us and it's it's it's lumpy, it's very hard to predict so we don't try to forecast that.

Alright. Thanks.

The way I'm sorry.

Sorry months I, just want to add in there Chris that we accrue for default interest really clear because then we true up when it happens, meaning we record the default interest on the cash basis, we don't reserve for accrued for it we just book it when we receive it.

Right.

Alright, Thanks, Mark for clarifying it's accruing to the borrower at all times of what I meant to say it.

Mean in our financial statements, but the you know.

It's it's.

Something that's owed to us right.

Right.

Makes sense, thanks, and thanks for taking the questions.

Okay.

This concludes our question and answer session I would like to turn the conference back over to Christopher <unk> for any closing remarks.

Thank you all for participating we appreciate it and look forward to our next update after Q2.

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Thank you everybody.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.