Walker & Dunlop Doubles Loan Volume in 2Q13

Commercial mortgage lender Walker & Dunlop earned $14.5 million for 2Q13, up from $9.3 million one year prior, as loan originations practically doubled to $2.6 billion from $1.3 billion over the same frame.

Willy Walker, chairman and CEO, said, “HUD origination volumes rebounded nicely in the second quarter, and contributed to a 325% increase over the second quarter of 2012. Capital markets origination volume of $758 million is a record and grew 87% year-on-year. We made significant investments to build out our capital markets business in 2012 and we are very pleased with its growth and ability to meet our customers' financing needs."

On the multifamily side, Fannie Mae’s lending cap restricted volume growth with this investor to 26% over 2Q12, but it had record volume with Freddie Mac and did 176% more than the previous year.

Walker added, “When we established 2013 origination guidance, we did not know HUD would run out of commitment authority or that FHFA would impose a 10% reduction on the GSEs' 2013 multifamily lending volumes. Given these changes, we are revising annual origination guidance from $10 billion to $12 billion to $9 billion to $11 billion, and we are establishing third-quarter 2013 origination guidance of $2 billion to $2.5 billion."

Separately, Ares Commercial Real Estate Corp. reported 2Q13 net income of $3.3 million, up from a $225,000 loss in 2Q12.

It originated five loans with $120.5 million in outstanding principal during 2Q13. Since the quarter ended it has originated three more loans with $159.7 million in outstanding principal.

Ares total portfolio as of Aug. 6 is 24 loans with $689 million in outstanding principal.

During and after 2Q13, Ares was able to increase the size of its funding facilities to $450 million from $309 million at the start of the period.

Also during the quarter, it agreed to purchase EF&A Funding LLC, which does business as Alliant Capital LLC, a multifamily lender and servicer, for $53 million in cash plus stock.