BETHESDA, MD—Walker & Dunlop reports that its loan servicing portfolio is now more than $40 billion, after posting 473% growth since the end of 2008.
The portfolio consists of more than 4,300 commercial loans from across the United States. These loans have an average term of over ten years with 84% of the servicing fees protected from prepayment through make-whole requirements. The portfolio's mortgage servicing rights had a fair value of $432 million at June 30, 2014.
W&D's servicing portfolio growth has been a combination of strong organic originations as well as the acquisition of Column Guaranteed LLC in 2009 and the acquisition of CWCapital LLC in 2012. At the end of last year, the Mortgage Bankers Association found that Walker & Dunlop was the 8th largest commercial loan servicer in the country.
Besides a nice round number, the $40 billion portfolio is an important financial achievement for W&D, says CEO Willy Walker in a prepared statement. "Servicing generates extremely stable, long-term revenue streams." The company has goal of generating 50% or more of our revenue from servicing and asset management fees by the end of 2017, he also pointed out, which it is well on the way to achieving.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
