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 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 500 professionals in 24 offices across the nation with an unyielding commitment to client satisfaction.