Walker & Dunlop 2Q Profit Rises on Mortgage Banking

Walker & Dunlop in Bethesda, Md., reported a higher second-quarter profit, citing gains from mortgage banking and servicing fees.

Net income rose 56% to $20.2 million, or 67 cents per share, from a year earlier.

Total revenue rose 34% to $113.9 million. Gains from mortgage banking activity rose 34% to $70 million. Servicing fees rose 17% to $28 million.

"We are in the midst of a mortgage refinancing cycle that is unprecedented," Willy Walker, chairman and chief executive, said in a news release. "The volume of commercial mortgages originated in 2005, 2006 and 2007 had never been seen before, and the majority of that paper must be refinanced over the next several years."

Expenses rose 26% to $81.3 million, on higher personnel costs to handle higher transaction volume, as well as increases in amortization and depreciation.