Mortgage

Walker & Dunlop earnings skyrocket on record origination volume

Lender prepares for commercial mortgage refinancing wave

Walker & Dunlop (WD) posted a first-quarter 2015 net income of $21.3 million, or $0.66 per diluted share, a 198% increase from first-quarter 2014 net income of $7.1 million, or $0.21 per diluted share. 

Total revenues jumped to $112.1 million for the first quarter 2015, a 73% increase over first quarter 2014, driven by record origination volume of $4.3 billion, including two large portfolio transactions, and a significant increase in lending with Fannie Mae and Freddie Mac. 

However, it’s the lender’s commercial mortgage business that it is paying close attention to for the future.

"We have been acquiring businesses and hiring talented mortgage bankers since the economic crisis to create one of the largest commercial real estate lending platforms in the country in anticipation of the 2015, 2016, and 2017 commercial mortgage refinancing wave,” said Walker & Dunlop Chairman and CEO Willy Walker. 

“If Walker & Dunlop's record loan originations of $4.3 billion in the first quarter is any indication, the wave has hit. Our market leadership position in the multifamily financing space, coupled with the growth in our capital markets, balance sheet, and CMBS lending operations, made the first quarter a huge success and positions Walker & Dunlop extremely well to take advantage of the strong macro-economic environment surrounding commercial real estate over the next several years,” Walker added.

Total revenue surged to $112.1 million for the first quarter 2015 compared to $64.8 million for the first quarter 2014, a 73% increase.

The increase was driven by the 175% increase in loan originations, which included a 306% increase in lending with Fannie Mae and Freddie Mac. 

Additionally, gains from mortgage banking activities for the first quarter 2015 were $72.7 million compared to $34.6 million for the first quarter 2014, a 110% increase, largely due to the substantial increase in origination volumes.

Loan origination fees were $41.4 million for the first quarter 2015 compared to $20.7 million for the first quarter 2014, a 100% increase, while gains attributable to mortgage servicing rights were $31.3 million for the first quarter 2015 compared to $13.9 million for the first quarter 2014, a 125% increase.  

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