Walker & Dunlop, Inc. (NYSE: WD) announced today that its servicing portfolio has surpassed $75 billion, driven by strong origination volume and the recent acquisition of a $590 million commercial mortgage servicing portfolio. The acquired portfolio is comprised of 56 loans insured by the U.S. Department of Housing and Urban Development (HUD). Walker & Dunlop has now added another $5 billion to its servicing portfolio in less than four months.
Jim Schroeder, senior vice president, stated, "We are well on our way to building a $100 billionservicing portfolio by 2020. The dramatic and rapid growth in mortgage servicing rights (MSRs) we've seen is due to the size and scale of our loan origination platform and the opportunistic acquisitions of portfolios we have made over the past few years. Over 85% of our servicing fees are prepayment protected, meaning the servicing revenues due to Walker & Dunlop are contractually obligated through loan maturity, or are paid in full if a loan is paid-off."
Walker & Dunlop's servicing portfolio has grown by 69% over the past three years, driving a substantial increase in servicing-related revenues, cash flow, and adjusted EBITDA. For example, the Company's adjusted EBITDA for the first three quarters of 2017 was $146 million, compared to $96 million for the same period in 2016. The $590 million HUD servicing portfolio acquisition closed on December 20, 2017 and brings Walker & Dunlop's HUD portfolio to $9.6 billion as of year-end 2017. The escrow balances related to the servicing portfolio, much of which come from the HUD portfolio, totaled $2 billion at the end of 2017.
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.
