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,Good day, and welcome to the Velocity Financial first quarter of 2026 results conference call. Please note that today's event is being recorded and all participants will be in a listen-only mode. Should you need any assistance during the call, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw a question, please press star then two. I would now like to turn the call over to the treasurer, Chris Oltmann. Please go ahead.

Thanks, Joe. Hello, everyone, and thank you for joining us today for the discussion of Velocity's fourth quarter 2026 results. Joining me today are Chris Farrar, Velocity's President and Chief Executive Officer, and Mark Szczepaniak, Velocity's Chief Financial Officer. Earlier this afternoon, we released a press release with our first quarter results, and you can find the press release and accompanying presentation that we will refer to during this call on our investor relations website at www.velfinance.com. I'd like to remind everybody that today's call may include forward-looking statements which are uncertain and outside of the company's control, and actual results may differ materially. For discussion of some of the risks and other factors that could affect results, please see the risk factors and other cautionary statements made in our communications with shareholders, including the risk factors disclosed in our filings with the Securities and Exchange Commission.

Please also note that the content of this conference call contains time-sensitive information that is accurate only as of today, and we do not undertake any duty to update forward-looking statements. We may also refer to certain non-GAAP measures on this call. For reconciliations of these non-GAAP measures, you should refer to the earnings materials on our investor relations website. Finally, today's call is being recorded and will be available on the company's website later today. With that, I will now turn the call over to Chris Farrar.

Thank you, Chris. Good evening, everyone. We appreciate you taking the time to join us today. First off, I want to apologize to everyone. On our last call, we had technical difficulties. We've been assured that by our vendor that won't happen again. Hopefully things go well here for us. I'll start off with a few words on the environment. Walk through our Q1 performance. Mark will take you through the rest of the financials in detail before we open up for questions. The first quarter of 2026 was obviously volatile from a macro perspective, quite steady in our corner of the world. Our end real estate markets are functioning well, our pipeline is growing, our fixed income markets are well bid.

In our view, making low LTV loans secured by real estate is a smart way to generate healthy risk-adjusted returns, and our Q1 results speak to the durability of what we've built at Velocity. In the first quarter, we delivered results that were in line with our expectations and importantly, consistent with the trajectory we laid out at the start of the year. Portfolio growth was measured and deliberate, NPL recoveries remained strong, and we continued to generate reliable net interest income from a well-seasoned book. Our story is about consistently compounding our capital, and in this environment, I believe consistency is exactly what our investors, our borrowers, and our originator partners need to see from us. Credit is always a top priority, and this quarter reinforced that discipline. Our non-performing loan resolutions were very consistent with positive gains and significant interest income recognition.

Our dedicated special servicing team continues to resolve assets efficiently while maximizing recovery rates. I've said before that we optimize for asset valuation and that disciplined approach to valuation has served us well through several cycles now. Q1 was no exception, as evidenced by the weighted average LTV on new loan originations of 64.9%. On the origination side, we were intentional. We did not chase volume for its own sake. We originated loans that met our return threshold in markets where we have depth of knowledge through originator relationships we trust. The result was a portfolio that grew nicely quarter-over-quarter with yields that remain attractive relative to our cost of funds. The most significant activity in the quarter was our first-ever issuance of $500 million of unsecured corporate debt rated by Moody's and Fitch.

The investor demand was broad and the deal was oversubscribed and comprised of high quality, sophisticated investors that we are proud to call partners. This capital positions us well for future growth and strengthens our financial flexibility as we dramatically reduced our reliance on shorter-term warehouse debt. As we look to the rest of 2026, we feel well positioned. Our balance sheet is clean, our funding is stable, and we see a pipeline of origination opportunity that should translate into meaningful volume growth in the second half of the year. We remain confident in our ability to deliver on the objectives that we set at the beginning of the year. With that, I'll turn to the earnings presentations materials starting on page three. As I mentioned in my remarks, a pretty stable, straightforward quarter. Very simple. Core net income up 30% over the prior year's quarter.

NIM was very healthy and on target at just over 3.5%. Mentioned that the portfolio grew nicely, up 25% year-over-year. Continue to see positive gains on the NPL resolutions, again, 102.3. Expanded our disclosures here to show the other recovered revenue on those NPLs of $4.6 million. In financing and capital, as I mentioned, the securitization markets are very healthy and we've got another deal out in the market that'll price this week. Those markets are very supportive. In terms of capital and liquidity, we've never been in a stronger position with, for us, a, you know, a much larger amount of liquidity coming off that unsecured corporate debt issuance.

Really gives us, as I mentioned, the strength and the flexibility to navigate whatever market comes our way. With that, I'll turn it over to Mark.

Thanks, Chris, and good evening, everyone. As Chris mentioned, the first quarter of 2026 can kind of continue the consistent production that we saw all during 2025. On page four of the presentation, our Q1 loan production was just a little over $639 million in UPB. That's consistent with just under $635 million for Q4 of 2025. In Q1 of 2026, there were over 1,600 loans funded. The production during Q1 included the weighted average coupon on new held for investment originations continuing to come in strong at 10.1%. The weighted average coupon on our held for investment originations for the last five-quarter average trend has been at 10.3%.

This growth in originations in Q1 also continued at tight credit levels, with the weighted average loan-to-value for the quarter at 62.5%, and on a five-quarter average trend basis of 62.7%. Consistently tight credit levels. Strong Q1 production growth, the healthy WAC, and the low LTV demonstrates consistent trends, as Chris mentioned, of borrower demand for our product, even through these recent challenging economic markets. If we go to page five. As a result of the strong Q1 production, page five shows the growth in our overall loan portfolio at the end of Q1. The total loan portfolio as of March 31st was $6.8 billion in UPB, and that's a 5.3% increase from Q4 and a 25.6% increase in the portfolio year-over-year compared to the Q1 of 2025.

The weighted average coupon on our loan portfolio as of March 31st was 9.75%, which is almost flat to Q4 2025 and a 16 basis point year-over-year increase compared to Q1 of 2025. The total portfolio weighted average loan-to-value decreased to just under 65% as of March 31st, and the loan portfolio continues to provide a healthy yield at these tight credit levels. Moving to page six. Our first quarter net interest margin was 3.56%. That's consistent with Q4's net interest margin of 3.59%. Kind of looking at the individual components over to the right of our net interest margin, our portfolio yield increased by 12 basis points year-over-year due to continued loan production at those healthy WACs.

The higher portfolio yield in Q4 2025 was due to more cash being received during that period on our non-performing loans. As we said, some of that cash on non-performing loans kind of comes in lumpy time over time. It was a little bit elevated in Q4. Our portfolio cost of funds decreased by 14 basis points, both quarter-over-quarter and year-over-year compared to Q1 2026. That's mainly due to paying down the portfolio warehouse lines in Q1 with proceeds from the unsecured corporate debt issuance that Chris had mentioned. On page seven. Our non-performing loan rate at the end of Q1 in this left table was 10.1%, that's a 70 basis point year-over-year decrease compared to Q1 of 2025.

We continue to see strong collection efforts by our special servicing department that have resulted in favorable gain resolutions of our non-performing assets, which are comprised of both the non-performing loans as well as the REOs. The table to the right shows our loans held for investment portfolio, including both our amortized cost loans and our fair value loans. It shows the total year-over-year non-performing loan valuation allowance we have for our non-performing loans. As of March 31st, 2026, the amortized cost loan portfolio had a $4.9 million CECL loss reserve, and the fair value loan portfolio had a $52.2 million valuation adjustment loss allowance for a combined valuation loss allowance of 83 basis points on the entire HFI portfolio. Both these valuation adjustments are required under U.S. GAAP.

The unrealized loss valuation adjustment on our non-performing fair value loans represents what could be achieved for those loans transacted between a willing buyer and a willing seller in the secondary market. However, we do not plan on selling these NPL loans since our in-house special servicing department has a history of producing net gains on the resolutions of these non-performing assets. Again, that 83 basis points of total loss allowance on our entire HFI portfolio, our actual historical trends on losses has been nowhere near that 83 basis points. It's been fractions of that. On page eight. Page eight just shows the CECL loan loss reserve activity. The CECL reserve, remember, is only applicable on the amortized cost loan portfolio, which is continuing to pay down as all our new loans are fair value. It does not include the fair value portfolio.

Again, that CECL reserve at the end of the quarter was $4.9 million or 25 basis points of our outstanding amortized cost portfolio. It's been very consistent. Moving to page 10 on the real estate owned. Page nine. Moving to page nine. Get my pages straight here. Page nine shows the real estate-owned activity. The left-hand side just shows the percentage of our real estate assets to the total HFI portfolio. You can see year-over-year, it's been very, very consistent. You're talking about, you know, basis point movement from 1.5%-1.9%. On the right-hand side is an expanded disclosure that we have on total gain or loss on REO activity.

What we've done on this page is we've actually broken out the gain or loss activity on new REOs compared to the gain or loss on existing REOs. The top half of the table shows the gain or loss for recording new REOs in that period, and it segregates that REO activity between being sourced from either the amortized cost or the fair value loan portfolios. You can see in Q1 of 2026, there was a total $6.8 million gain on transfers of non-performing loans to new REOs in the quarter, compared to $4.4 million gain year-over-year in Q1 2025.

The second half of that table shows the gain or loss on activities on existing REOs subsequent to the initial recording of the REO in future periods or subsequent periods reflecting on the lower of cost or market accounting. For Q1 of 2026, there was a $3.3 million loss on REO activities compared to $1.8 in Q1. If you take those two sections combined, that presents a holistic picture of our overall REO, P&L activity for the periods, which for Q1 of 2026 was a net gain of $3.5 million, compared to a net gain of $2.7 million for Q1 of 2025. The thing to keep in mind there is the REOs in that bottom half are not the same REOs.

The REOs in the top half are new REOs that have come on. The bottom half is activities of REOs that we've had on the books for a while are now making adjustments to based on the requirements of GAAP under lower of cost or market accounting. That kind of gives you the full picture of all the REO activity. On page 10. Page 10 shows our non-performing loan resolutions. Chris mentioned continued very strong resolutions of our non-performing assets. In Q1 of 2026, we resolved a little over $70 million in UPB of non-performing loans and had total resolution dollars recovered, including the past due net contractual interest of $4.6 million or 6.5% over the UPB principal of the loans.

That's compared to $68 million in UPB of loans resolved in Q1 of 2025 with $5.2 million in total recovered revenue or 7.6% over. If you wanted to know just the gain based on the default interest and prepayment fees, that's still there. That would just be in the column that just says gains. For the first quarter of 2026, the total gains on just on default interest and prepayment would be $1.6 of that $4.6 million, with the difference being all the collection of that past due accrued interest. Turning to page 11 on the durable funding and liquidity. A position at the end of the first quarter, total liquidity as of March 31st was $329 million.

That's comprised of $87 million in cash and cash equivalents and almost another $242 million in available liquidity on unfinanced collateral. The available warehouse line capacity at the end of the quarter was $835.6 million, with the maximum line capacity of $935 million. During Q1, as Chris mentioned, we issued our first publicly rated unsecured debt deal, a $500 million deal. We used the proceeds to pay off our 2022 corporate secured note of $215 million. We paid off the secured note of $215 million that was issued in 2022. We also paid down a number of our warehouse lines with those proceeds. Also in Q1, we issued the first regular securitization of the year, 2026-1.

That had a little over $335 million in securities issued. We issued another private security, 2026-P1, and that had about $178 million in securities issued. Looking at the bottom table, our recourse debt-to-equity ratio at the end of Q1 remained very low at 1.0x. Our total debt-to-equity ratio, which includes all the non-recourse securitizations that we do, was at a 9.6x as of the end of the quarter. That kind of wraps up my Q1 2026 financial recap. With that, I'll turn the presentation back over to Chris for an overview of Velocity's outlook on key business drivers this year. Chris.

Thanks, Mark. On page 12, we think the markets are healthy and continue to see strong demand. Credit remains very stable for us and where we expect it to be. In terms of capital, mentioned that all capital markets are healthy and functioning well, so we're in really good shape there. From an earnings perspective, we continue to expect a 3.5% NIM and the portfolio to continue to grow this year as we see origination volumes pick up in the latter half of the year. That concludes our prepared remarks, and we can open it up for questions.

We will now begin the question and answer session. Again, to ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw a question, you may press star then two. At this time, we will pause just momentarily to assemble our roster. Our first question here will come from Chris Muller with Citizens. Please go ahead.

Hey, guys. Thanks for taking the questions. Originations feel like they've been on a pretty steady pace here for, I guess, the last year and a half or so. Do you guys expect origination volumes in 2026 to continue on a similar path to what we saw last year with a pickup later in the year?

Yeah. Yeah, we do. I think we felt a little bit of a slowdown kind of the end of the year and the beginning of this year. I think that was more seasonal in nature. Maybe it was the market, I'm not sure. We've already seen kind of new origination volumes starting to tick up a little bit. We think similar to last year, kind of Q2, Q3, the those volumes will accelerate.

Got it. You guys are generating some really impressive ROEs. Do you think that that can hold in the high teens? It seems like a bunch of the inputs are suggesting that it can hold there, at least in the near term. How are you guys thinking about ROEs going forward?

Yeah, we expect them to hold in there. As I mentioned, we're, you know, we're very disciplined on margin. The margin's probably the most important thing to us. You know, we treat our capital as precious, and we need to make sure we earn those returns. We don't have to chase volume because we have this in-place portfolio. We're far more focused on maintaining margin, which obviously translates into ROE. Yes is the short answer.

Got it. Appreciate you guys taking the questions and congrats on a really strong quarter.

Thank you.

Thanks.

This concludes our question and answer session. I'd like to turn the conference back over to Chris Farrar for any closing remarks.

Great. Thanks, everyone who joined us today. We appreciate your continued interest in Velocity. As always, the investor relations team is available for follow-up conversations, and we look forward to speaking with many of you over the coming weeks. Have a great evening. Thank you, everybody. Have a nice evening.

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

Good day, and welcome to the Velocity Financial, Inc. Fourth Quarter 2025 Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note today's event is being recorded. I would now like to turn the conference over to Christopher J. Oltmann, Treasurer. Please go ahead.

Thanks, Rocco. Hello, everyone, and thank you for joining us today for discussion of Velocity Financial, Inc.'s fourth quarter and full year results. Joining me today are Christopher D. Farrar, Velocity Financial, Inc.'s President and Chief Executive Officer, and Mark R. Szczepaniak, Velocity Financial, Inc.'s Chief Financial Officer. Earlier this afternoon, we released our results, and you can find the press release and accompanying presentation that we will refer to during this call on our Investor Relations website at www.bellfinance.com. I would like to remind everyone that today's call may include forward-looking statements, which are uncertain and outside of the company's control, and actual results may differ materially. For a discussion of some of the risks and other factors that could affect results, please see the risk factors and other cautionary statements made in our communications with shareholders, including the risk factors disclosed in our filings with the Securities and Exchange Commission. Please also note that the content of this conference call contains time-sensitive information that is accurate only as of today, and we do not undertake any duty to update forward-looking statements. We may also refer to certain non-GAAP measures on this call. For reconciliations of these non-GAAP measures, you should refer to the earnings materials on our Investor Relations website. And finally, today's call is being recorded and will be available on the company's website later today. I will now turn the call over to Christopher D. Farrar.

Thanks, Chris, and I would like to welcome everyone. I appreciate you joining our 2025 year-end earnings call. Pleased to report another incredible year of performance and very proud of what our team accomplished. Through hard work and dedication to our vision, we recognized record levels in originations, portfolio growth, new securitizations, book value, pretax ROE, and earnings. Credit belongs to my amazing team members who are talented and passionate about our mission. I believe they are our greatest asset. From a macro perspective, we see healthy activity in the fixed income markets as our deals are oversubscribed and spreads are tight. Our pipeline is growing, our end real estate markets are healthy, and we are optimistic about our prospects going forward. In terms of our specific results, core net income increased by 52% to $111,000,000, which also drove a new record level of pretax ROE of 26%. Importantly, we achieved this growth while maintaining our margins and credit discipline. With respect to originations, we increased volume by 49% to a record $2,700,000,000, driven by increases in productivity from our account executives. Increased volume also set a record for our capital markets team with nine new securitizations and $2,600,000,000 in new issuance. On a net basis, the portfolio grew by 28% versus the prior year, and our asset management team successfully resolved $331,000,000 in NPLs with net recoveries of $30,000,000. At year-end, we entered into a transformative partnership whereby we sold $129,000,000 of NPLs and retained the servicing rights for the entire pool of loans. This transaction drove significant earnings in Q4 but also freed up approximately $50,000,000 in working capital and will drive future earnings from the servicing fees earned. All in all, a great transaction as this team continues to impress and drive meaningful results to the bottom line. From a liquidity perspective, we have never been stronger, as we issued our first rated unsecured debt offering for $500,000,000 in January, which gives us greater flexibility and makes us less reliant on short-term warehouse lines. This new capital will help us execute our long-term plan of growing book value and maximizing shareholder returns. Looking forward, we have great momentum and are well positioned to continue our growth. That concludes my prepared remarks, and we will turn over to Page three in the earnings presentation. 2025 was really just a fantastic year for us. You can see growth across the board, 26% pretax ROE, grew book value by 21%, and maintained a very healthy NIM at 3.6%. Turning to Page four, digging into the fourth quarter, you can see core net income of $36,300,000, or $0.93 a share, up from $0.60 a share from Q4 2024. I mentioned that the NIM was very healthy and stable at 3.59%. In terms of production, dollars were $634,000,000 for the quarter, up 12.5% from the prior year. I mentioned the activity in both the portfolio and NPLs. As a result of that NPL sale, NPLs were down to 8.5% at the end of the year. Again, hitting on the asset management team, they continue to do a great job of realizing net gains, and we have expanded our disclosures in this year's 10-Ks and in these earnings materials. We are reflecting total revenue that we recognize from the NPLs, and that really just shows we have always made those fees and made that income, but it has been difficult to suss out in the financials. So we broke that out and showed the activity from regular accrued interest as well. As you can see for the quarter, that was a total of $7,600,000. So that team continues to do a great job for us. In terms of financing and capital, I mentioned that we have done a number of securitizations in the year. We did do our second private securitization where we had one investor taking down the entire transaction, and we like that execution and think it is a great diversification as we move forward. I mentioned the strong liquidity position, $92,000,000 in unrestricted cash and plenty of warehouse capacity. As I mentioned in my opening remarks, we are really proud of the NPL transaction we were able to close in the fourth quarter, recognizing $13,400,000 of net income as a result of that sale and releasing about $50,000,000 of working capital to fund future production. With that, I will turn it over to Mark for Page five.

Thanks, Chris. Hi, everyone. Another year is in the books for Velocity Financial, Inc., and as Chris had mentioned, Velocity Financial, Inc. is really ending the year strong. If we go to Page five and look at our loan production, total loan production for the fourth quarter was just under $635,000,000 in UPB. As Chris mentioned, that is a 12.6% year-over-year increase from about $563,000,000 in Q4 2024. The strong production growth in 2025 included the weighted average coupon on new Q4 held-for-investment originations continuing to come in strong at just a little over 10%. Originations in Q4 also continued at tight credit levels, resulting in a weighted average loan-to-value for the quarter just under 63%. 2025 total year loan production is $2,700,000,000 in UPB. That was almost a 47.5% year-over-year increase over the $1,900,000,000 in production for 2024. Over 6,600 loans were originated during 2025. The strong 2025 production was a result of continued organic growth of our borrower base and strong demand for our product. As a result of the continued strong growth in production, if you look at Page six, it shows the year-over-year growth in our overall loan portfolio. The total loan portfolio as of the end of the year for 2025 was $6,500,000,000 in UPB, which is a 28.4% increase over the $5,100,000,000 as of 12/31/2024. The weighted average coupon on our total portfolio at the end of the year was 9.7%, as Chris mentioned, a 21 basis point year-over-year increase. The total portfolio weighted average loan-to-value remained consistently low at 65% as of 12/31/2025, and the average loan balance remained consistent at about $390,000. On Page seven, it shows our recent quarterly portfolio net interest margin. You can see 2024 and 2025 have very, very consistent net interest margins. It is not on the slide, but on an annual basis, our portfolio-related net interest margin was 3.61%, about a 1.4% increase over our 2024 net interest margin of 3.56%. For the year, our portfolio yield increased 39 basis points year over year, while our portfolio cost of funds increased year over year by only 18 basis points. The portfolio yield increase is mainly driven by strong loan production during the year and higher loan coupons, and the increase in the portfolio cost of funds is mainly due to an increase in the securitization market yields. On Page eight, our nonperforming loan rate at the end of 2025 was 8.5% compared to 10.7% at the end of 2024, and the decrease, as Chris mentioned, was a combination of the sale of $129,000,000 in UPB of NPL loans sold during Q4 as well as a combination of continued strong resolutions during the entire year by our special servicing department. The table to the right of the page shows our loans held-for-investment portfolio, including both our amortized cost and fair value loans, and shows the total year-over-year net nonperforming loan valuation allowance we have for our nonperforming loans. As of 12/31/2025, the amortized cost loan portfolio had a $4,500,000 CECL reserve and the fair value portfolio had a $48,300,000 valuation adjustment allowance for a combined valuation allowance on the entire loans held-for-investment portfolio of about 81 basis points. Both of these valuation adjustments are required under U.S. GAAP. The unrealized valuation adjustment on our nonperforming fair value loans represents the value for which the loans, under U.S. GAAP, could be sold out in the secondary market. However, we do not plan on selling NPL loans since our in-house special servicing department has a history of producing net gains and very successful resolutions on these loans. Turning to Page nine, it shows our CECL loan loss reserve, which we said was at $4,500,000 for the end of the year, or 22 basis points of our outstanding amortized cost held-for-investment portfolio, and the CECL loan loss reserve does not include the loans being carried at fair value. For 2025, our net gain/loss from loan charge-offs and REO-related activities at the bottom of that table is a net loss of $3,700,000, mainly as a result of a couple of large legacy loan charge-offs. These were smaller loans; we wanted to clean those up. We do not have those types of loans in our portfolio anymore, so that loss is well above our historical loss experience. We do not foresee these types of losses going forward because of the continued favorable resolutions of our nonperforming loans and that significant loss allowance adjustment that you saw on the previous page for the fair value loans. Page 10 presents the enhanced disclosure that Chris was mentioning on our nonperforming loan resolution activity. So the first set of four columns there is what we have always shown in the past. We go up to the net gain or loss on NPL loan resolution, which brings in the amount of default interest and prepayment fee income over and above contractual principal and interest. But what we had not really shown was what is the contractual interest that we go back and pull in. Under GAAP, you have to reverse that out when a loan goes nonperforming. Once we resolve the loan, we are collecting all of that contractual interest in cash. We wanted to bring that in to show the total amount of revenue that we bring in when we resolve these loans. So in this table, we have added columns for net accrued interest and total recovered on the far right. We felt it was important to add the amount of contractual interest, net of any advance write-offs, that is also collected on resolutions for the efforts of our special servicing team. For 2025 Q4, NPL resolution total dollars recovered, including net contractual interest, was $7,600,000, or 9.8% over the UPB, compared to $7,500,000, or 10.8% over UPB, for 2024. Now if you look at the full year 2025 on this table, the total amount recovered on the resolutions of NPL loans was $30,000,000, or 9% of UPB, compared to $22,300,000 total recovered in 2024, or 8.8% over UPB. Page 11 shows our durable funding and liquidity position at the end of the year. Total liquidity as of December 31 was just under $117,000,000, comprised of about $92,000,000 in cash and cash equivalents and another $25,000,000 in available liquidity in unfinanced collateral. In addition, our available warehouse line capacity at December 31 was just under $600,000,000, with a maximum line capacity of $935,000,000. So there is plenty of capacity and available capacity on the warehouse lines. In Q4, we issued two securitizations, 2025-P2 and 2025-5, with a total of $646,300,000 in securities issued. As Chris mentioned, in January 2026, we completed a public rating process for Velocity Financial, Inc.—it is our first time getting a corporate rating. We were rated by both Fitch and Moody's, and we issued $500,000,000 in unsecured debt. That is a five-year term debt, fixed rate at 9.38% interest, due in 2031. The proceeds of the $500,000,000 debt were used to pay off $215,000,000 of corporate securitized debt that was set to mature in 2027, so we paid that off, and the balance of it was to pay down, as Chris mentioned, our shorter-term warehouse lines. And then in February, we issued the first 2026 debt, 2026-1, with $355,000,000 in securities issued. That concludes my 2025 financial recap. Chris, I would like to now give the presentation back to you for an overview of Velocity Financial, Inc.'s 2026 outlook and key business drivers.

Thanks, Mark. On Page 12, our markets are very healthy. We like the backdrop there. Credit is stable. We are not reaching to hit our targets or our volumes; we are remaining disciplined there. Capital markets are great. The securitization market in particular is very robust, and we have a deep bench of investors supporting us there. Then I think from an earnings perspective, we think NIMs should remain where they are, and we think we can continue growing the portfolios. We are very positive about the future in 2026. So with that, we will conclude our presentation and open it up for questions.

Thank you. We will now begin the question and answer session. Today's first question comes from Steven Cole Delaney at Citizens Capital Markets. Please go ahead.

Good afternoon, everyone, and congratulations on an excellent year. We do appreciate Mark's comments on Page nine about the REO, and we may want to follow up with you on that. But, obviously, an outstanding performance. Chris, I am curious, looking ahead, one of the things, if you think about the broader financial markets—and let us talk about the rates market—God, I do not know how many times you turn on CNBC and they were talking the Fed and yada yada. We do not know what the Fed will do. But the futures market, as of a week ago when we updated our internal rate forecast, is showing somewhere between two and three 25 basis point cuts in 2026. Now who knows what we get? And more importantly, the ten-year is really being kind of cranky at 4.20%, and that is, what, 50, 60 basis points off the recent twelve-month lows. I guess what I am trying to say is you have performed the way you did in terms of origination volume, and your clients are obviously finding deals, and they can afford the current rates. Let us just say if we get some short-term rate relief, and if the ten-year were to come down 50 basis points or whatever, how impactful is that to the demand from your borrowing universe for additional loans? I am just curious what the mindset is. And I am curious if you have any material floating-rate loan concentration in your portfolio where, if we did get a break in the five- to ten-year range, is there the possibility of showing somebody some kind of a mini-perm type of a loan structure vis-à-vis just a SOFR-type floater? Thank you for commenting on that, if you would.