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Toorak Capital Transaction Overview August 2026
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33 40 89 240 133 33 69 69 71 102 152 41 231 175 2 2 161 217 84 99 193 53 103 151 Forward-Looking Statements This presentation contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act, as amen ded and Section 21E of the Exchange Act, as amended, including, but not limited to, statements that relate to the anticipated benefits of the transaction and the expe cted synergies from the transaction. Forward - looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond Velocity Financial I nc.’s (the “Company,” “we,” “us” or “our”) control. The Company cautions that the forward-looking information contained in this presentation is not a guarantee of future e vents, and that actual events and results may differ materially from those made in, or suggested by, the forward-looking information contained in this presentation. In ad dition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “will,” “expect,” “intend,” “estimate,” “anti cipate,” “believe,” or “continue,” or the negative thereof, or variations thereon, or similar terminology. A number of important factors could cause actual events and results to differ materially from those contained in or implied b y the forward-looking statements, including, but not limited to: (i) the risk that the proposed transaction between the Company and Toorak Capital LLC (“Toorak”) may not be completed in a time ly manner or at all, which may adversely affect our business; (ii) the failure to satisfy any of the conditions to the consummation of the proposed tran saction, including the receipt of certain regulatory approvals; (iii) the occurrence of any event, change, or circumstance that could give rise to the termination of the acquisit ion; (iv) the effect of the announcement of the proposed transaction on the Company’s business relationships, operating results, and business generally; (v) unexpected costs , charges, or expenses resulting from the proposed transaction; and (vi) other risks described in the risk factors set forth in the Company’s filings with the SEC, inc luding the most recent Annual Report on Form 10-K, filed with the SEC on March 12, 2026 and Quarterly Report on Form 10-Q filed with the SEC on August 6, 2026. Any forward-looking information presented herein is made only as of the date of this presentation. Except as required by applica ble law, the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipate d events, or otherwise. This presentation also contains information showing combined 2025 figures for the Company’s and Toorak’s production volume, p roduct offering mix, direct and third-party origination mix, and duration profile. Such information does not purport to reflect what such figures would have been had the proposed transaction been completed at any historical date or to reflect production volume or other characteristics for the Company after giving effect to the proposed transaction, and should not be regarded as a prediction or forecast. 2
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33 40 89 240 133 33 69 69 71 102 152 41 231 175 2 2 161 217 84 99 193 53 103 151 Transaction Overview 1. As of 7/31/2026 based on original maximum loan amount in U.S. dollars. 2. Purchase price is subject to certain customary adjustments specified in equity purchase agreement. 3. Company loan portfolio as of 6/30/2026 and Toorak loan portfolio as of 5/31/2026. Origination volumes are based on Company FY 2025 and Toorak FY 2025 data and exclude TCP U.S. production, except for the DSCR product. 4. Based on Toorak FY 2025 financial performance. 3 Transaction Summary Toorak is a business purpose loan origination and asset management platform with omnichannel capabilities and $20.3bn originations since inception (1) Velocity has entered into a definitive agreement to acquire the operating platform of Toorak Capital from funds advised by affiliates of KKR for a purchase price of $63 million (2) Toorak has also entered into separate agreements with a third-party investment firm for the purchase of Toorak’s existing portfolio of business-purpose loans (“BPL”) Velocity will also enter into an agreement with the third-party investment firm to manage Toorak’s existing BPL (~$3bn across whole loans and securitizations), meaningfully increasing Velocity’s total assets under management to ~$10bn UPB (3) The acquisition of Toorak’s platform is anticipated to add a capital-light, high-return business with diversified origination channels and product suite, and add fee-based revenue streams (origination-related fees, servicing / asset management fees) through forward loan sale agreements Toorak will continue operating under its existing brands and leadership team as a subsidiary of Velocity following closing, with Founder & CEO John Beacham joining Velocity as Executive Vice President The transaction is structured as a 100% cash purchase at closing using cash from balance sheet Expected to close in the fourth quarter of 2026, subject to customary closing conditions Strategic and Financial Impacts Transaction diversifies Velocity’s lending business product wise, geographically and by origination channels Transaction is expected to meaningfully expand the scale of Velocity’s origination (+76%) and servicing (+39%) platform (3) Transaction creates a more balanced mix of short-and long-duration lending products (4) Expected to be accretive to GAAP earnings in 2027 and beyond Attractive return on equity profile (4) Expected to earn back book value dilution (estimated to be 4-6%) in approximately three years
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33 40 89 240 133 33 69 69 71 102 152 41 231 175 2 2 161 217 84 99 193 53 103 151 Retail channel directly sources and originates loans and Broker / Table Funding channel funds loans from correspondent partners at closing Acquires funded and closed loans from correspondent partners Funds loans sourced by correspondent partners at closing 29% of FY 2025 Production Volume (1) 34% of FY 2025 Production Volume (1) 37% of FY 2025 Production Volume (1) Toorak is a Premier Business-Purpose Loan Sourcing and Asset Management Platform 1. As of 12/31/2025 unless otherwise noted. 2. Production based on TCP U.S. and TCP U.K. maximum loan amount. 3. Approximate total employees as of 6/30/26. 4. As of 7/31/2026. Lifetime Funded Volume based on TCP U.S. and TCP U.K. maximum loan amount. 5. Reflects cumulative net principal losses incurred across lifetime U.S. and U.K. single -family and multifamily transitional loan (RTL and GUC) activity. 6. Reflects approximate weighted average life of all paid-off U.S. single-family and multifamily transitional loans (RTL and GUC) held by Toorak since inception. 4 Business Segments Employees (3) ~280 Founded in 2016 with capital backing from KKR Instrumental in the growth of the U.S. and U.K. residential transitional loan (“RTL”) markets Full-service business-purpose loan product suite across RTL, ground-up construction (“GUC”), and DSCR loans secured by residential properties Substantial investments in proprietary in-house technology, analytics and overall platform infrastructure to drive scale Toorak Overview Key Statistics (1) Closing Date Loan Portfolio Managed (4) ~$3bn FY 2025 Production Volume (2) $2.9bn Lifetime Funded Volume (4) $20.3bn Cumulative Net Principal Losses (5) <10 bps Average Duration of RTL Assets (6) 15 Months
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33 40 89 240 133 33 69 69 71 102 152 41 231 175 2 2 161 217 84 99 193 53 103 151 Transaction Merits 1. Based on Company FY 2025 and Toorak FY 2025 data (excluding TCP U.S. production except for the DSCR product). Significantly Increases the Scale of Velocity’s Origination Platform Meaningfully increases production volume from ~$2.7bn to ~$4.8bn+ (1) Expected to enhance operating leverage from low-cost originator and market positioning 1 Broadens and Diversifies Velocity’s Product Offerings Meaningfully expands RTL including GUC, creating a more balanced mix of short - and long-duration lending products Adds direct-to-consumer origination capabilities in the U.S. via Toorak’s Merchants segment 2 Expands Market Reach into the U.K. Establishes an immediate U.K. operating presence Provides relationships, expertise, and underwriting infrastructure to support scalable growth in a large, adjacent market 3 Adds Tech-Driven Underwriting and Servicing Platform Servicing platform augments Velocity’s strong system and allows for around -the-clock capabilities Integrated and proprietary workflow systems (e.g., ToorakConnect / MerchantsConnect) enhance automation and data quality 4 Provides a Diversified, Capital-Light Revenue Platform Toorak platform is anticipated to increase contribution from recurring, fee -based revenue, complementing existing net interest m argin Expected post-closing loan sales to forward flow partners support scalable growth without meaningful balance sheet impact 5 5
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33 40 89 240 133 33 69 69 71 102 152 41 231 175 2 2 161 217 84 99 193 53 103 151 Significant Increase in Production Volume $2.7bn $2.1bn $4.8bn Diversified Product Offerings Direct Origination Capabilities Balanced Duration Profile Scales and Diversifies Velocity’s Origination Platform 1. Reflects Company FY 2025 and Toorak FY 2025 data (excluding TCP U.S. production except for the DSCR product). 6 100% 60% 40% 83% 17% Third-Party Direct 9% 91% 58% 42% Long-Term Short-Term 94% 6% 50% 41% 6% 3% Traditional Commercial Investor 1-4 Rental Short-Term Multifamily 29% 28% 40% 2%1% Combined The Transaction Nearly Doubles Production Volume, Diversifies Product Offerings and Expands Origination Channels (1) Traditional Commercial Investor 1-4 Rental Short-Term Multifamily Single-Family GUC Long-Term Short-Term Long-Term Short-Term Third-Party Direct Third-Party Direct / 9% 86% 2% 3% Short-TermInvestor 1-4 Rental Multifamily Single-Family GUC
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33 40 89 240 133 33 69 69 71 102 152 41 231 175 2 2 161 217 84 99 193 53 103 151 U.S. Correspondent: Originations sourced and funded by correspondent partners Toorak U.S. acquires closed loans U.K. Table Funding: Originations sourced by correspondent partners Toorak U.K. directly funds the loan to the borrower at transaction closing Direct Retail: • Directly sources and originates loans in the U.S. • 35+ sales professionals across the U.S. Direct Broker / Table Funding: • Borrowers and transactions sourced by wholesale brokers • Merchants directly funds the loan to the borrower at transaction closing Adds New Channels of Origination & Proprietary Technology 7 Introduces Direct & Correspondent Origination Channels… Toorak’s unique omnichannel asset sourcing engine will broaden the borrower universe and position Velocity’s platform for scalable growth Toorak’s proprietary technology and analytics platform is expected to enhance digital origination, improve underwriting efficiency, and further strengthen credit risk management …Powered by Proprietary Platform Technology Direct Channel Correspondent Channel AI-enabled loan aggregation and workflow platform digitizing sourcing, underwriting, QA/QC, settlement and document review across the loan lifecycleToorak Connect AI-enabled loan origination and CRM platform streamlines sourcing, documentation and workflows while automating manual processesMerchants Connect Centralized data infrastructure supporting enterprise-wide analytics, reporting, credit underwriting and risk decision-makingData Warehouse
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33 40 89 240 133 33 69 69 71 102 152 41 231 175 2 2 161 217 84 99 193 53 103 151 >$100mm $50-100mm $0-10 mm Not Active$10-50 mm Expands Velocity’s Geographic Footprint Note: Data as of FY 2025. Further U.S. Diversification… Establishing direct origination presence in the U.S. via Merchants, which has grown ~2x since being acquired by Toorak in 2022 and continues to expand nationally 8 Like the U.S. housing market, dynamics around aging housing stock and insufficient new housing starts to support the outlook for a robust U.K. RTL market Merchants maintains a strong presence in core western states (AZ, CA, CO, OR, and WA) Since launching its U.K. channel in 2017, Toorak has sourced loans through 30+ correspondent partners, with a strong presence across Greater London and Southeast regions …And Strategic U.K. Expansion Loan Production Volume by Geography (LTM December 2025) >$100mm $50-100mm $0-10mm Not Active$10-50mm Greater London: ~$409mm (51%)
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33 40 89 240 133 33 69 69 71 102 152 41 231 175 2 2 161 217 84 99 193 53 103 151 Increases fee-based income to complement net interest margin – capital-light economics driven by upfront fees, servicing income, and retained interest-only strip income Asset management agreement on ~$3bn closing date loan portfolio meaningfully increases Velocity’s AUM and delivers asset management / servicing income Loan sales to forward flow partners following closing are expected to support origination growth / scale with limited capital requirement High-ROE platform anchored in high-margin RTL products, fee-driven earnings, and a capital efficient model Provides a Capital-Light Platform with Attractive ROE Profile Note: Based on historic data. Diversified Revenue Streams and Capital-Efficient Growth Support Higher Returns 9