SECOND QUARTER 2020 EARNINGS August 5, 2020 Forward-Looking - - PowerPoint PPT Presentation

SECOND QUARTER 2020 EARNINGS

August 5, 2020

Forward-Looking Statements Some of the statements contained in this presentation may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as ''may,'' ''will,'' ''should,'' ''expects,'' ''intends,'' ''plans,'' ''anticipates,'' ''believes,'' ''estimates,'' ''predicts,'' or ''potential'' or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The forward-looking statements contained in this presentation reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement. While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) the impact of COVID- 19 on the Company’s business, including its principal and interest advance obligations on Fannie Mae and Ginnie Mae loans it services, and the domestic economy, (2) general economic conditions and multifamily and commercial real estate market conditions, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, and (5) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations. For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled ''Risk Factors" in our most recent Annual Report on Form 10-K, as it may be updated or supplemented by our subsequent Quarterly Reports on Form 10-Q and other SEC filings. Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.

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C R E M A R K E T S H A R E H A S I N C R E A S E D D R A M AT I C A L LY T O 1 3 %

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$184 $244 $358 $400 $504 $490 $530 $574 $601 $124 2.2% 2.9% 2.3% 2.8% 3.2% 3.4% 4.7% 4.4% 4.4% 13.2%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $- $100,000,000,000 $200,000,000,000 $300,000,000,000 $400,000,000,000 $500,000,000,000 $600,000,000,000 $700,000,000,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD 2020*

Total Commercial Real Estate Mortgage Originations

(dollars in billions)

Source: Mortgage Bankers Association *Market share calculated through the first half of 2020 using 50% of the MBA forecast volume for 2020

P R E V I O U S I N V E S T M E N T S C A M E T O G E T H E R I N Q 2 T O P R O D U C E S T R O N G F I N A N C I A L R E S U LT S

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Diluted Earnings Per Share Servicing Portfolio(1)

$200,325 $252,825 Q2'19 Q2'20 $1.33 $1.95 Q2'19 Q2'20

Total Revenues(1)

1) In millions

$94,822 $99,988

at March 31, 2020 at June 30, 2020

S T R O N G A G E N C Y V O L U M E S D R I V E T O TA L G S E M A R K E T S H A R E T O 1 4 %

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Fannie Mae

($ in millions)

Freddie Mac

($ in millions)

$3,264 $3,571 $5,029 $5,971 $9,135 $6,883 $8,678 $6,716 11.3% 12.4% 11.9% 10.8% 14.0% 10.5% 12.4% 19.9% 2013 2014 2015 2016 2017 2018 2019 YTD 2020 W&D Deliveries W&D Market Share $1,997 $2,841 $5,119 $5,919 $7,804 $7,076 $6,442 $2,167 7.7% 10.0% 10.8% 10.4% 10.7% 9.1% 8.2% 7.2% 2013 2014 2015 2016 2017 2018 2019 YTD 2020

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S T R O N G A G E N C Y T R A N S A C T I O N V O L U M E

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$2,358 $1,533 $192 $1,945 $178 $1,102 $2,762 $1,769 $640 $1,496 $14 $447

Fannie Mae Freddie Mac HUD Brokered Principal Lending and Investing Property Sales Q2'19 Q2'20

Breakdown of Total Transaction Volume (in millions)

VISION 2020

$1 BILLION

I N A N N U A L R E V E N U E S

$8B

asset management platform

$100B

servicing portfolio

$30B

annual debt financing volume

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$8B

annual property sales volume

V I S I O N 2 0 2 0 C A G R S

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Debt Financing Volume

(in millions)

Property Sales Volume

(in millions)

$16,239 $16,724 $24,875 $25,334 $26,574 $31,432 2015 2016 2017 2018 2019 TTM 2020 $1,520 $2,574 $3,031 $2,713 $5,393 $5,772 2015 2016 2017 2018 2019 TTM 2020

14%

CAGR

31%

CAGR

V I S I O N 2 0 2 0 C A G R S

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Total Revenues

(in millions)

$468 $575 $712 $725 $817 $916 2015 2016 2017 2018 2019 TTM 2020

Servicing Portfolio

(in millions)

15%

CAGR

14%

CAGR

$50,212 $63,081 $74,310 $85,689 $93,225 $99,988

at December 31, 2015 at December 31, 2016 at December 31, 2017 at December 31, 2018 at December 31, 2019 at June 30, 2020

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Property Type Loans in Portfolio Loans in Forbearance % in Forbearance

Multifamily 5,404 44 1% Retail 845 197 23% Industrial 343 15 4% Office 252 24 10% Hotel 17 14 82%

M U LT I FA M I LY R E M A I N S T O P P E R F O R M I N G A S S E T C L A S S I N C R E

WD Forbearance Requests* by Property Type

*Forbearance requests through 6/30/20

1.08% 1.17% 0.68% 1.35% 1.76% 2.52% Q2'19 Q2'20

Gains attributable to MSRs Origination related fees

$7,306 $7,128 Q2'19 Q2'20 $1.33 $1.95 Q2'19 Q2'20

Total Transaction Volume(1) Total Revenues(2) Diluted EPS

11 1) In millions 2) In thousands

$200,325 $252,825 Q2'19 Q2'20

H I G H E R M A R G I N S D R I V E S T R O N G G R O W T H I N R E V E N U E S A N D E A R N I N G S

Gain on Sale Margin

K E Y F I N A N C I A L M E T R I C S O U T P E R F O R M TA R G E T R A N G E S

Operating Margin Return on Equity

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28% 33% 30% Q2'19 Q2'20 YTD 2020 18% 23% 21% Q2'19 Q2'20 YTD 2020

S E RV I C I N G P O RT F O L I O H A S S T E A D I LY G R O W N T O $ 1 0 0 B I L L I O N

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As of June 30, 2020, the servicing portfolio had a weighted average remaining life of 9.5 years and a weighted average servicing fee of 23.3 bps

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Over the next two years, only $4.1 billion of Agency loans are scheduled to mature with a weighted average servicing fee of 25.6 bps

Servicing Portfolio and Servicing Fees

(in millions)

13 1) For the three months ended

(1) $57,322 $66,291 $77,821 $89,897 $99,988 $- $15 $30 $45 $60 $- $25,000 $50,000 $75,000 $100,000 $125,000 At June 30, 2016 at June 30, 2017 at June 30, 2018 at June 30, 2019 at June 30, 2020

Servicing Fees Servicing Portfolio

Servicing Portfolio Servicing Fees

S T R O N G L I Q U I D I T Y P O S I T I O N S U P P O R T S A D VA N C E O B L I G AT I O N S

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Fa nnie Ma e Ginnie Ma e Tot a l Total number of loans in Company's servicing portfolio (at June 30, 2020) 2,467 1,135 3,602 Total unpaid principal balance (UPB) of loans in Company's servicing portfolio (at June 30, 2020) $45.2 billion $9.7 billion $54.9 billion Number of loans in forbearance* 9 12 21 UPB of loans delinquent or in forbearance* $273.8 million $234.6 million $508.4 million Outstanding principal, interest and guaranty fee advances at June 30, 2020 $0.9 million $1.0 million $1.9 million Outstanding principal, interest and guaranty fee advances at May 31, 2020 $1.1 million $0.9 million $2.0 million as of June 30, 2020 unless otherwise noted > Under the terms of our Fannie Mae and Ginnie Mae loan servicing agreements, we are obligated to advance mortgage payments to bondholders for loans that are granted forbearance or are otherwise delinquent. We do not have advance obligations for any other loans in our servicing portfolio. > As of June 30, 2020, we had $275 million of cash on our balance sheet that can be used to fund mortgage advance obligations in

• ur portfolio.

> In June, we secured a $100 million servicing advance line to make Principal & Interest advances on our Fannie Mae portfolio

*Does not include loans that are in maturity forbearance, as Walker & Dunlop has no advance obligations on these loans

Phone 301.215.5500 7501 Wisconsin Avenue, Suite 1200E Bethesda, Maryland 20814