Velocity Financial Inc. has completed its second securitization transaction of 2020. The Westlake Village mortgage lender packaged $128 million in unrated mortgage certificates for sale to private investors. The senior certificate, with an unpaid balance of $96 million, was sold at a fixed interest rate of 4.5 percent. Velocity retained the remaining certificates rather than selling them. The certificates were issued through VCC Mortgage Securities, a subsidiary of Velocity Financial. Velocity, founded in 2004, provides loans mainly for small apartment buildings and commercial properties. Velocity Chief Executive Chris Farrar said the transaction is a milestone in the company’s plan to permanently finance loans pledged to its existing warehouse lines of credit. “Fixed income markets have strengthened significantly, and we are making good progress toward long-term financing for the remainder of our loans financed with warehouse lines,” Farrar said in a statement. “Rent payment and real estate price trends in the U.S. generally appear to be holding up better than many expected, which we believe helped drive improved sentiment in the beginning of June.” He added the company intends to resume producing loans in the third quarter. Shares of Velocity (VEL) closed Monday up 42 cents, or more than 9 percent, to $5.03 on the New York Stock Exchange following the announcement. The Dow Jones Industrial Average rose about half a percent on the day. Velocity’s stock price has dropped more than 61 percent since its initial public offering at $13 in mid-January.