Q2 2026 Walker & Dunlop Inc Earnings Call Transcript
Key Points
- Walker & Dunlop Inc (WD) reported a 3% increase in total transaction volumes to $14.4 billion, with debt financing volume up 8% to $12.5 billion, led by 43% growth in HUD originations.
- The company gained significant market share with the GSEs, with year-to-date market share up 350 basis points to nearly 15%, positioning it to potentially lead the GSE league tables for 2026.
- The servicing portfolio reached a record $146 billion, up 6% year-over-year, providing durable recurring revenues and cash flows.
- The Freddie Mac loan-level review related to the borrower fraud investigation is complete, and the Fannie Mae review is nearly finished, providing clarity and a path to resolution.
- Multifamily market fundamentals are improving, with occupancy increasing for four consecutive months and vacancy declining year-over-year for the first time in over four years, signaling a potential upturn in transaction activity.
- Walker & Dunlop Inc (WD) recognized $23 million in charges and operating costs related to legacy repurchase issues, significantly impacting reported diluted EPS of $0.09.
- The company expects additional credit-related charges of $12 million to $16 million in the third quarter related to the final resolution of the Fannie Mae review.
- GSE lending volumes were down 10% in the quarter due to an extremely active Q2 last year, and the mix shift toward brokered lending reduced non-cash MSR income.
- The company's core earnings outlook is uncertain, with the potential to finish toward the lower end of original guidance if current market conditions persist.
- The borrower fraud investigation has been costly and time-consuming, requiring significant team effort and creating ongoing financial and operational challenges.
Good day and welcome to the second quarter 2026 Walker & Dunlop earnings call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Amy Hopkins, Senior Vice President of Investor Relations. Please go ahead.
Thank you, Taryn. Good morning, everyone. Thank you for joining Walker & Dunlop's second quarter 2026 earnings call. This call is being webcast live on our website, and a recording will be available later today. Joining me today are Willie Walker, Chairman and CEO; and Greg Florkowski, our CFO.
Before we begin, please note that statements made on this call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are urged to read. Forward-looking statements language in our press release, which was posted this morning to the investor relations section of our website. More detailed information about risk
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