Walker & Dunlop's Servicing Portfolio Surpasses $100 Billion

Rhea-AI Summary

Walker & Dunlop's servicing portfolio reached $100.8 billion as of July 31, 2020, an increase driven by strong loan originations and limited payoffs. This milestone supports the company's Vision 2020 strategy, targeting $1 billion in annual revenue by year-end 2020. The portfolio includes over 7,300 loans with a weighted average servicing fee of 23.3 bps and a remaining average life of 9.5 years. Over 85% of fees are prepayment protected, ensuring stable revenue. Walker & Dunlop ranks as the 8th largest commercial mortgage servicer in the U.S.

Positive

• Servicing portfolio growth to $100.8 billion, supporting Vision 2020 revenue goals.
• Stable revenue from servicing fees with over 85% prepayment protection.
• Weighted average servicing fee of 23.3 bps enhances financial stability.

Negative

• None.

BETHESDA, Md., Aug. 11, 2020 /PRNewswire/ -- Walker & Dunlop, Inc. announced today that its servicing portfolio totaled $100.8 billion at July 31, 2020, driven by strong loan originations and limited payoffs. Surpassing $100 billion is one of the pillars of the company's five-year strategic growth plan, Vision 2020, to increase annual revenues from $468 million in 2015 to $1 billion by the end of 2020.

"Growing our servicing portfolio from just over $50 billion at the end of 2015 to over $100 billion in less than five years is an incredible accomplishment," commented Chairman and CEO, Willy Walker. "This achievement is a testament to the outstanding group of bankers and brokers we have at W&D, the exceptional service we provide to our clients every day, and the ability of our team to establish highly ambitious long-term goals and consistently achieve them."

Steve Theobald, Walker & Dunlop's Chief Financial Officer, commented, "The servicing portfolio is the backbone of our financial success, as it generates steady, contractually obligated cash servicing fees, which have driven dramatic growth in W&D's adjusted EBITDA, and allowed us to continuously invest in future growth." Theobald continued, "Jim Schroeder and our entire servicing team should be congratulated for managing this dramatic growth in the servicing portfolio while maintaining exceptional customer service and implementing technology solutions to make W&D more efficient and insightful."

As of July 31, 2020, Walker & Dunlop's servicing portfolio contained over 7,300 loans with a weighted average servicing fee of 23.3 bps. The weighted average remaining life of the loans in the portfolio is 9.5 years, and with more than 85% of servicing fees prepayment protected, the portfolio is an asset with very stable, predictable forward revenues.

Walker & Dunlop is the 8^th largest commercial mortgage servicer in the United States as of December 31, 2019, according to the Mortgage Bankers Association. 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, 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. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine's Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop's 900+ professionals in 40 offices across the nation have an unyielding commitment to client satisfaction.

Forward Looking Statements
Some of the statements contained in this press release 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. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. 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 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) the impact of the COVID-19 pandemic on the Company's business, results of operations, and financial condition, including due to its principal and interest advance obligations on Fannie Mae and Ginnie Mae loans it services, and the domestic economy, (2) general economic conditions and multifamily and commercial real estate market conditions, and (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD. 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 and any updates or supplements in subsequent 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.

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SOURCE Walker & Dunlop, Inc.

FAQ

What is the current value of Walker & Dunlop's servicing portfolio?

As of July 31, 2020, Walker & Dunlop's servicing portfolio is valued at $100.8 billion.

What are Walker & Dunlop's revenue goals for 2020?

Walker & Dunlop aims to achieve annual revenues of $1 billion by the end of 2020.

How many loans are in Walker & Dunlop's servicing portfolio?

Walker & Dunlop's servicing portfolio contains over 7,300 loans.

What is the weighted average servicing fee for Walker & Dunlop?

The weighted average servicing fee is 23.3 basis points.

What is the average remaining life of loans in Walker & Dunlop's portfolio?

The average remaining life of loans in the portfolio is 9.5 years.