Walker & Dunlop, Inc.’s loan servicing portfolio crossed over the $40 billion mark. The portfolio made up of more than 4,300 commercial loans from across the United States, has an average loan term of more than 10 years with 84 percent of the servicing fees protected from the risk of prepayment through make-whole requirements.
The mortgage servicing rights related to this portfolio had a fair value of $432 million as of June 30 of this year.
Walker & Dunlop’s servicing portfolio has grown 473 percent since the end of 2008 because of strong organic loan originations as well as the acquisition of assets of Column Guaranteed LLC in 2009 and the acquisition of CWCapital LLC in 2012. Walker & Dunlop ended 2013 as the eighth-largest commercial loan servicer in the country according to the Mortgage Bankers Association.
“This is a huge milestone for our Company,” said chairman and chief executive officer Willy Walker. “Servicing generates extremely stable, long-term revenue streams. We established a goal of generating 50 percent or more of our revenue from servicing and asset management fees by the end of 2017, and crossing the $40 billion mark is a significant step in achieving that goal.”