Walker & Dunlop Supports Increasing Demand for Affordable Housing

Bethesda, Maryland – February 24, 2016

Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it originated $557 million of affordable housing loans in 2015, primarily through programs of Fannie Mae, Freddie Mac and U.S. Department of Housing and Urban Development (HUD), and was ranked the #3 Fannie Mae DUS^® Producer of Affordable Housing for the year. From 2010 to 2015, Walker & Dunlop’s affordable loan originations grew at a compound annual rate of 57 percent, reflecting the Company’s increased focus on this specialty product in recent years.

With apartment rents steadily on the rise and far outpacing wage growth, there is an increasing need for affordable housing in the United States, making this submarket a very attractive space for multifamily borrowers. Walker & Dunlop’s strong partnerships with Fannie Mae, Freddie Mac, and HUD, the largest providers of capital to the multifamily market in the United States, give its originators access to ample resources to structure the optimal affordable housing financing solutions for its clients.

Walker & Dunlop’s President, Howard W. Smith, stated, “The Federal Housing Finance Agency has made affordable housing a key component of Fannie Mae and Freddie Mac’s 2016 scorecard by allowing them to purchase an unlimited volume of affordable loans. The GSEs, along with HUD, are prioritizing these transactions and introducing new, more flexible financing tools to accommodate borrowers of affordable housing. Walker & Dunlop’s experienced affordable housing originators have a wealth of knowledge about this specialized market and are becoming an increasingly valuable asset to both our clients and our overall platform as additional capital flows into this space.”

Recent affordable housing financings by Walker & Dunlop:

Alta Coventry Station Apartments–Atlanta, Georgia

• $25.0 million Fannie Mae loan for an affordable housing property with a Land Use Restrictive Agreement (LURA) in place, requiring that at least 20 percent of the residential units be occupied by residents with income of 50 percent or less of the Area Median Income (AMI)

The Waters at Magnolia Bay–Lincolnville, South Carolina

• $22.0 million new construction loan under HUD’s 221(d)(4) program coupled with short term tax-exempt bonds
• By utilizing HUD’s tax-exempt bond financing, Walker & Dunlop provided the borrower with an efficient, costeffective way to finance a property with 4 percent Low-Income Housing Tax Credit

Glen Oak Towers–Peoria, Illinois

• $7.7 million acquisition loan for a federally subsidized high rise for low-income senior citizens
• Using HUD’s 223(f) tax credit pilot program, the borrower was able to acquire and rehabilitate an outdated Section 8 property without taking on the added costs of a full construction loan
• This was the first transaction in the country to convert a Moderate Rehabilitation Section 8 contract to a Project Based Rental Assistance (PBRA) contract under HUD’s Rental Assistance Demonstration (RAD) program

Edison Terraces–Miami, Florida

• $6.4 million acquisition rehab loan for a development with 4 percent Low-Income Housing Tax Credit
• Under Freddie Mac’s Unfunded Forward Tax Exempt Loan Program, the borrower was able to use the rehabilitation period to transition additional units within the property to meet affordability requirements
• Walker & Dunlop closed the very first loan through Freddie Mac’s Direct Purchase of Tax-Exempt Loans initiative in 2014 and has partnered with Freddie Mac on many of these transactions, which increase cost-effective financing for tax-exempt multifamily properties

More information on Walker & Dunlop’s experienced affordable housing professionals is available here on the Company’s website, www.walkerdunlop.com

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.