Bethesda, Maryland – November 10, 2016
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that its servicing portfolio surpassed $60 billion of commercial mortgage loans. Due to strong loan originations, limited payoffs, and the acquisition of a loan servicing portfolio in June, the Company has grown its portfolio from $50 billion to $60 billion in less than 11 months.
Walker & Dunlop’s Chairman and CEO, Willy Walker, commented, “Record second and third quarter earnings were driven by outstanding loan origination volumes, which have now pushed our servicing portfolio to over $60 billion. It took us two years to grow the portfolio from $30 billion to $40 billion, 18 months to grow from $40 billion to $50 billion, and less than 11 months to grow from $50 to $60 billion. Every $10 billion of servicing adds roughly $26 million of high margin revenue to W&D each year.” Mr. Walker continued, “As the servicing portfolio has grown, so has the weighted average servicing fee, from 23 bps in 2012 to 26 bps today. The servicing portfolio is such an incredible asset- it maintains our relationship with our borrowers, presents fantastic refinancing opportunities, and provides W&D with long-term, high margin revenue streams.”
As of September 30, 2016, Walker & Dunlop’s servicing portfolio contained over 5,400 loans with a weighted average servicing fee of 26 bps and a weighted average remaining life of 10.5 years. Approximately 87% of the portfolio’s servicing fees are prepayment protected, meaning should the borrower decide to prepay the loan, Walker & Dunlop is compensated for all future servicing fees, discounted at the risk-free rate. The servicing portfolio has an exceptional credit track record, with not a single loan 60-days delinquent in the at-risk portfolio for six consecutive quarters.
The Company’s operating subsidiary, Walker & Dunlop, LLC, is a rated Primary Servicer by Fitch with a rating of CPS2. Walker & Dunlop, LLC services loans on all types of commercial real estate properties on behalf of Fannie Mae, Freddie Mac, Ginnie Mae, life insurance companies, CMBS issuers, and other capital sources.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 600 professionals in 28 offices across the nation with an unyielding commitment to client satisfaction.
The statements in this press release relating to anticipated revenues from growth in the servicing portfolio may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts.
The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.
While the forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions and (2) regulatory and or legislative changes to HUD, Fannie Mae and Freddie Mac.
For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled “Risk Factors” in our most recent Annual Report on Form 10-K, as it may be updated or supplemented by our Quarterly Reports on Form 10-Q and our other filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.
Investors:Media:Claire HarveySusan WeberVice President, Investor RelationsSenior Vice President, MarketingPhone: 301/634-2143Phone: 301/215-5515Contact Investor RelationsContact Marketing