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Velocity Financial to buy Toorak platform, manage $3B loan portfolio
The deal values the transactions at about $3.2 billion and is expected to lift Velocity’s loan origination volume by about 76% and its servicing portfolio by about 39%.
HousingWire reports that Velocity Financial is acquiring Toorak Capital’s business-purpose lending and asset management operating platform in an all-cash deal, alongside an agreement tied to a roughly $3 billion loan portfolio. The companies said the transactions total about $3.2 billion.
Toorak will also sell about $3 billion in unpaid principal balance across whole loans and loans held in Toorak Mortgage Trust and TRK Trust securitizations to a third-party investment firm. Velocity will manage the acquired portfolio and will sign forward sale arrangements to sell future Toorak-originated loans to the investor and other counterparties.
According to HousingWire, Velocity expects the acquisition to increase its nationwide origination volume by about 76% and expand its servicing portfolio by about 39%. The company also plans to expand its residential transition loan and debt-service-coverage ratio product offerings, add a direct retail origination channel, and extend its geographic reach into the United Kingdom.
HousingWire adds that Toorak was founded in 2016 and has funded more than $20 billion in cumulative volume across nearly 43,000 loans, and it employs about 280 people. Post-closing, Toorak’s existing brands and Tampa headquarters will remain in place, and its management team will continue to lead the business.