Walker & Dunlop Updates Origination Guidance for Q3'13

BETHESDA, Md., Sept. 30, 2013 /PRNewswire/ -- Walker & Dunlop, Inc. (the "Company") (NYSE: WD) announced today that it expects third quarter 2013 loan originations to be in the range of $1.7 - $1.9 billion, below the Company's third quarter guidance of $2.0 - $2.5 billion due to rising interest rates and a slowdown in lending activity by Fannie Mae and Freddie Mac to stay under their FHFA-imposed 2013 lending caps.

"Many borrowers chose shorter-term, variable rate financing during the quarter as the yield curve continued to steepen," commented Walker & Dunlop Chairman and CEO Willy Walker. "Fannie Mae and Freddie Mac were both ahead of their annual production caps at the end of Q2, and as a result, pulled back their lending activity significantly," continued Walker. "Rates have come down somewhat in September, and Fannie and Freddie appear very focused on lending their full allocations of $30 billion and $26 billion, respectively, before the end of the year.  Year-to-date Walker & Dunlop will have originated $6.0 - $6.2 billion of financing, compared to $4.2 billion for the same period in 2012, an increase of 43% - 48%."

Walker & Dunlop will hold its Q3 earnings call on November 7th and will update its 2013 fourth quarter and annual origination guidance at that time.  

Expected loan origination volumes by investor are as follows:


Walker & Dunlop

Expected Loan Origination Volume by Investor

For the quarter ended:(1)

 

September 30, 2013(2)

Fannie Mae

32-35%

Freddie Mac

10-15%

HUD/Ginnie Mae

12-15%

Capital Markets(3)

32-35%

Interim Loans

4-6%

 

(1) Amounts are unaudited

(2) As a percentage of total originations

(3) CMBS, life insurance companies and commercial banks


Origination volumes in this release are unaudited, and these amounts may be adjusted as the Company completes its year-end audit.

About Walker & Dunlop

Through its subsidiary Walker & Dunlop, LLC, Walker & Dunlop, Inc. (NYSE: WD) is one of the leading commercial real estate finance companies in the United States, with a primary focus on multifamily lending. As a Fannie Mae DUS®, Freddie Mac Program Plus® and MAP- and LEAN-approved FHA lender, the Multifamily and FHA Finance groups are focused on lending to property owners, investors, and developers of multifamily properties across the country. The Capital Markets group specializes in financing commercial real estate for owners and investors across the United States, securing capital from large institutions such as life insurance companies, commercial banks, CMBS lenders, pension funds, and specialty finance companies. The Proprietary Capital group develops new financial products and provides institutional advisory, asset management, and investment management services with respect to debt, structured debt and equity, including interim financing. Walker & Dunlop, LLC has over 400 employees located in 20 offices nationwide. More information about the Company can be found at www.walkerdunlop.com.

Forward Looking Statements

Some of the statements contained in this press release 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 that 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) general economic conditions and multifamily and commercial real estate market conditions; (2) regulatory and or legislative changes to Freddie Mac, Fannie Mae or HUD, (3)  our ability to retain and attract loan originators and other professionals; and (4) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for multifamily loan originations. 

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 entitled ''Risk Factors" in our most recent Annual Report on Form 10-K and in our subsequent SEC filings.  Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.

 

SOURCE Walker & Dunlop, Inc.



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