Century is an issuer and servicer that provides government-insured Federal Housing Administration mortgage financing for multifamily housing, senior housing and long-term care or assisted living facilities.
The company issued $158 million in unpaid principal balance of loans for the first 11 months of 2021. It manages a servicing portfolio in excess of $500 million in unpaid principal balance.
The acquisition by Velocity expands the Westlake Village company’s commercial mortgage product offerings through new channel growth and gives Velocity the ability to offer new products to its broker network.
Velocity expects the acquisition to be immediately accretive to its earnings, according to a statement.
Also, the company will also be helped by Century’s government-insured product focus, which will act as a natural hedge through market cycles, according to the statement.
“The entire Century team is pleased to be joining Velocity’s family and we look forward to realizing the opportunities this transaction offers to both companies,” Kyle Perry, Century’s chief executive, said in a statement. “Velocity’s national footprint and operational capabilities will significantly expand our ability to grow customer relationships and origination volume.”
Shares of Velocity (VEL) closed Thursday down 13 cents, or nearly 1 percent, to $13.51 on a day the Dow closed down a fraction of a percent.