Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 001-35000 | |
Entity Registrant Name | Walker & Dunlop, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 80-0629925 | |
Entity Address, Address Line One | 7272 Wisconsin Avenue, Suite 1300 | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20814 | |
City Area Code | 301 | |
Local Phone Number | 215-5500 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value Per Share | |
Trading Symbol | WD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,012,082 | |
Entity Central Index Key | 0001497770 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 152,188 | $ 305,635 |
Restricted cash | 40,246 | 42,812 |
Pledged securities, at fair value | 151,413 | 148,996 |
Loans held for sale, at fair value | 2,180,117 | 1,811,586 |
Loans held for investment, net | 247,106 | 269,125 |
Mortgage servicing rights | 967,770 | 953,845 |
Goodwill | 948,164 | 698,635 |
Other intangible assets | 202,834 | 183,904 |
Derivative assets | 255,295 | 37,364 |
Receivables, net | 216,963 | 212,019 |
Committed investments in tax credit equity | 214,430 | 177,322 |
Other assets | 426,487 | 364,746 |
Total assets | 6,003,013 | 5,205,989 |
Liabilities | ||
Warehouse notes payable | 2,545,406 | 1,941,572 |
Note payable | 711,107 | 740,174 |
Allowance for risk-sharing obligations | 49,658 | 62,636 |
Derivative liabilities | 24,054 | 6,403 |
Commitments to fund investments in tax credit equity | 198,073 | 162,747 |
Other liabilities | 780,012 | 714,250 |
Total liabilities | 4,308,310 | 3,627,782 |
Equity | ||
Preferred stock (authorized 50,000 shares; none issued) | ||
Common stock ($0.01 par value; authorized 200,000 shares; issued and outstanding 32,344 shares at September 30, 2022 and 32,049 shares at December 31, 2021) | 323 | 320 |
Additional paid-in capital ("APIC") | 407,417 | 393,022 |
Accumulated other comprehensive income (loss) ("AOCI") | (1,460) | 2,558 |
Retained earnings | 1,256,663 | 1,154,252 |
Total stockholders' equity | 1,662,943 | 1,550,152 |
Noncontrolling interests | 31,760 | 28,055 |
Total equity | 1,694,703 | 1,578,207 |
Commitments and contingencies (NOTES 2 and 9) | ||
Total liabilities and equity | $ 6,003,013 | $ 5,205,989 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Preferred shares, authorized | 50,000 | 50,000 |
Preferred shares, issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 200,000 | 200,000 |
Common stock, issued | 32,344 | 32,049 |
Common stock, outstanding | 32,344 | 32,049 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||||||
Total revenues | $ 315,611 | $ 346,290 | $ 975,903 | $ 851,989 | ||||
Expenses | ||||||||
Personnel | 157,059 | 170,181 | 469,608 | 407,817 | ||||
Amortization and depreciation | 59,846 | 53,498 | 177,101 | 148,879 | ||||
Provision (benefit) for credit losses | 1,218 | 1,266 | (13,120) | (14,380) | ||||
Interest expense on corporate debt | 9,306 | 1,766 | 22,123 | 5,291 | ||||
Other operating expenses | 33,991 | 24,836 | 102,400 | 62,171 | ||||
Total expenses | 261,420 | 251,547 | 758,112 | 609,778 | ||||
Income from operations | 54,191 | 94,743 | 217,791 | 242,211 | ||||
Income tax expense | 7,532 | 22,953 | 46,495 | 56,311 | ||||
Net income before noncontrolling interests | 46,659 | 71,790 | 171,296 | 185,900 | ||||
Less: net income (loss) from noncontrolling interests | (174) | $ (179) | $ (679) | 69 | (1,032) | 69 | ||
Walker and Dunlop net income | 46,833 | $ 54,286 | $ 71,209 | 71,721 | $ 56,058 | $ 58,052 | 172,328 | 185,831 |
Net change in unrealized gains (losses) on pledged available-for-sale securities, net of taxes | (1,238) | 159 | (4,018) | 769 | ||||
Walker and Dunlop comprehensive income | $ 45,595 | $ 71,880 | $ 168,310 | $ 186,600 | ||||
Basic earnings per share (NOTE 10) | $ 1.41 | $ 2.23 | $ 5.18 | $ 5.80 | ||||
Diluted earnings per share (NOTE 10) | $ 1.40 | $ 2.21 | $ 5.13 | $ 5.73 | ||||
Basic weighted average shares outstanding | 32,290 | 31,064 | 32,300 | 30,969 | ||||
Diluted weighted average shares outstanding | 32,620 | 31,459 | 32,645 | 31,367 | ||||
Loan origination and debt brokerage fees, Net | ||||||||
Revenues | ||||||||
Total revenues | $ 90,858 | $ 123,242 | $ 275,773 | $ 306,593 | ||||
Fair value of expected net cash flows from servicing, net | ||||||||
Revenues | ||||||||
Total revenues | 55,291 | 89,482 | 159,970 | 209,266 | ||||
Servicing fees | ||||||||
Revenues | ||||||||
Total revenues | 75,975 | 70,628 | 222,916 | 205,658 | ||||
Property sales broker fees | ||||||||
Revenues | ||||||||
Total revenues | 30,308 | 33,677 | 100,092 | 65,173 | ||||
Investment management fees | ||||||||
Revenues | ||||||||
Total revenues | 16,301 | 2,564 | 47,345 | 9,115 | ||||
Net warehouse interest income | ||||||||
Revenues | ||||||||
Total revenues | 3,980 | 5,583 | 14,021 | 14,768 | ||||
Escrow earnings and other interest income | ||||||||
Revenues | ||||||||
Total revenues | 18,129 | 2,032 | 26,683 | 5,972 | ||||
Other revenue | ||||||||
Revenues | ||||||||
Total revenues | $ 24,769 | $ 19,082 | $ 129,103 | $ 35,444 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | APIC | AOCI | Retained Earnings | Noncontrolling Interests | Total |
Balances at the beginning of the period at Dec. 31, 2020 | $ 307 | $ 241,004 | $ 1,968 | $ 952,943 | $ 1,196,222 | |
Balance at the beginning of the period (in shares) at Dec. 31, 2020 | 30,678 | |||||
Change in Stockholders' Equity | ||||||
Walker and Dunlop net income | 58,052 | 58,052 | ||||
Other comprehensive income (loss), net of tax | (158) | (158) | ||||
Stock-based compensation - equity classified | 7,836 | 7,836 | ||||
Issuance of common stock in connection with equity compensation plans | $ 4 | 12,602 | 12,606 | |||
Issuance of common stock in connection with equity compensation plans (in shares) | 430 | |||||
Repurchase and retirement of common stock | $ (1) | (13,373) | (13,374) | |||
Repurchase and retirement of common stock (in shares) | (131) | |||||
Cash dividends paid | (16,052) | (16,052) | ||||
Balances at the end of the period at Mar. 31, 2021 | $ 310 | 248,069 | 1,810 | 994,943 | 1,245,132 | |
Balance at the end of the period (in shares) at Mar. 31, 2021 | 30,977 | |||||
Balances at the beginning of the period at Dec. 31, 2020 | $ 307 | 241,004 | 1,968 | 952,943 | 1,196,222 | |
Balance at the beginning of the period (in shares) at Dec. 31, 2020 | 30,678 | |||||
Change in Stockholders' Equity | ||||||
Walker and Dunlop net income | 185,831 | |||||
Net income (loss) from noncontrolling interests | 69 | |||||
Balances at the end of the period at Sep. 30, 2021 | $ 312 | 271,562 | 2,737 | 1,090,506 | $ 18,819 | 1,383,936 |
Balance at the end of the period (in shares) at Sep. 30, 2021 | 31,194 | |||||
Balances at the beginning of the period at Mar. 31, 2021 | $ 310 | 248,069 | 1,810 | 994,943 | 1,245,132 | |
Balance at the beginning of the period (in shares) at Mar. 31, 2021 | 30,977 | |||||
Change in Stockholders' Equity | ||||||
Walker and Dunlop net income | 56,058 | 56,058 | ||||
Other comprehensive income (loss), net of tax | 768 | 768 | ||||
Stock-based compensation - equity classified | 7,892 | 7,892 | ||||
Issuance of common stock in connection with equity compensation plans | $ 1 | 530 | 531 | |||
Issuance of common stock in connection with equity compensation plans (in shares) | 64 | |||||
Repurchase and retirement of common stock | $ (1) | (815) | (816) | |||
Repurchase and retirement of common stock (in shares) | (7) | |||||
Cash dividends paid | (16,070) | (16,070) | ||||
Balances at the end of the period at Jun. 30, 2021 | $ 310 | 255,676 | 2,578 | 1,034,931 | 1,293,495 | |
Balance at the end of the period (in shares) at Jun. 30, 2021 | 31,034 | |||||
Change in Stockholders' Equity | ||||||
Walker and Dunlop net income | 71,721 | 71,721 | ||||
Net income (loss) from noncontrolling interests | 69 | 69 | ||||
Other comprehensive income (loss), net of tax | 159 | 159 | ||||
Stock-based compensation - equity classified | 10,426 | 10,426 | ||||
Issuance of common stock in connection with acquisitions | $ 1 | 5,249 | 5,250 | |||
Issuance of common stock in connection with acquisitions (in shares) | 50 | |||||
Issuance of common stock in connection with equity compensation plans | $ 2 | 1,706 | 1,708 | |||
Issuance of common stock in connection with equity compensation plans (in shares) | 124 | |||||
Repurchase and retirement of common stock | $ (1) | (1,495) | (1,496) | |||
Repurchase and retirement of common stock (in shares) | (14) | |||||
Noncontrolling interests from acquisitions | 18,750 | 18,750 | ||||
Cash dividends paid | (16,146) | (16,146) | ||||
Balances at the end of the period at Sep. 30, 2021 | $ 312 | 271,562 | 2,737 | 1,090,506 | 18,819 | 1,383,936 |
Balance at the end of the period (in shares) at Sep. 30, 2021 | 31,194 | |||||
Balances at the beginning of the period at Dec. 31, 2021 | $ 320 | 393,022 | 2,558 | 1,154,252 | 28,055 | 1,578,207 |
Balances at the beginning of the period at Dec. 31, 2021 | $ 1,550,152 | |||||
Balance at the beginning of the period (in shares) at Dec. 31, 2021 | 32,049 | 32,049 | ||||
Change in Stockholders' Equity | ||||||
Walker and Dunlop net income | 71,209 | $ 71,209 | ||||
Net income (loss) from noncontrolling interests | (679) | (679) | ||||
Other comprehensive income (loss), net of tax | (970) | (970) | ||||
Stock-based compensation - equity classified | 10,812 | 10,812 | ||||
Issuance of common stock in connection with equity compensation plans | $ 5 | 15,526 | 15,531 | |||
Issuance of common stock in connection with equity compensation plans (in shares) | 544 | |||||
Repurchase and retirement of common stock | $ (1) | (27,048) | (27,049) | |||
Repurchase and retirement of common stock (in shares) | (195) | |||||
Cash dividends paid | (20,077) | (20,077) | ||||
Other activity (NOTE 10) | (5,303) | 15,490 | 10,187 | |||
Balances at the end of the period at Mar. 31, 2022 | $ 324 | 387,009 | 1,588 | 1,205,384 | 42,866 | 1,637,171 |
Balance at the end of the period (in shares) at Mar. 31, 2022 | 32,398 | |||||
Balances at the beginning of the period at Dec. 31, 2021 | $ 320 | 393,022 | 2,558 | 1,154,252 | 28,055 | 1,578,207 |
Balances at the beginning of the period at Dec. 31, 2021 | $ 1,550,152 | |||||
Balance at the beginning of the period (in shares) at Dec. 31, 2021 | 32,049 | 32,049 | ||||
Change in Stockholders' Equity | ||||||
Walker and Dunlop net income | $ 172,328 | |||||
Net income (loss) from noncontrolling interests | (1,032) | |||||
Balances at the end of the period at Sep. 30, 2022 | $ 323 | 407,417 | (1,460) | 1,256,663 | 31,760 | 1,694,703 |
Balances at the end of the period at Sep. 30, 2022 | $ 1,662,943 | |||||
Balance at the end of the period (in shares) at Sep. 30, 2022 | 32,344 | 32,344 | ||||
Balances at the beginning of the period at Mar. 31, 2022 | $ 324 | 387,009 | 1,588 | 1,205,384 | 42,866 | $ 1,637,171 |
Balance at the beginning of the period (in shares) at Mar. 31, 2022 | 32,398 | |||||
Change in Stockholders' Equity | ||||||
Walker and Dunlop net income | 54,286 | 54,286 | ||||
Net income (loss) from noncontrolling interests | (179) | (179) | ||||
Other comprehensive income (loss), net of tax | (1,810) | (1,810) | ||||
Stock-based compensation - equity classified | 9,980 | 9,980 | ||||
Issuance of common stock in connection with equity compensation plans | 110 | 110 | ||||
Issuance of common stock in connection with equity compensation plans (in shares) | 43 | |||||
Repurchase and retirement of common stock | $ (1) | (2,409) | (9,892) | (12,302) | ||
Repurchase and retirement of common stock (in shares) | (119) | |||||
Distributions to noncontrolling interest holders | (1,675) | (1,675) | ||||
Cash dividends paid | (20,066) | (20,066) | ||||
Other activity (NOTE 10) | 8,978 | (8,718) | 260 | |||
Balances at the end of the period at Jun. 30, 2022 | $ 323 | 403,668 | (222) | 1,229,712 | 32,294 | 1,665,775 |
Balance at the end of the period (in shares) at Jun. 30, 2022 | 32,322 | |||||
Change in Stockholders' Equity | ||||||
Walker and Dunlop net income | 46,833 | 46,833 | ||||
Net income (loss) from noncontrolling interests | (174) | (174) | ||||
Other comprehensive income (loss), net of tax | (1,238) | (1,238) | ||||
Stock-based compensation - equity classified | 5,185 | 5,185 | ||||
Issuance of common stock in connection with equity compensation plans (in shares) | 36 | |||||
Repurchase and retirement of common stock | (1,436) | (1,436) | ||||
Repurchase and retirement of common stock (in shares) | (14) | |||||
Distributions to noncontrolling interest holders | (360) | (360) | ||||
Cash dividends paid | (19,882) | (19,882) | ||||
Balances at the end of the period at Sep. 30, 2022 | $ 323 | $ 407,417 | $ (1,460) | $ 1,256,663 | $ 31,760 | 1,694,703 |
Balances at the end of the period at Sep. 30, 2022 | $ 1,662,943 | |||||
Balance at the end of the period (in shares) at Sep. 30, 2022 | 32,344 | 32,344 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
TOTAL EQUITY. | ||||||
Cash dividends paid. amount per common share | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.50 | $ 0.50 | $ 0.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net income before noncontrolling interests | $ 171,296 | $ 185,900 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Gains attributable to the fair value of future servicing rights, net of guaranty obligation | (159,970) | (209,266) |
Change in the fair value of premiums and origination fees | 8,586 | 6,909 |
Amortization and depreciation | 177,101 | 148,879 |
Provision (benefit) for credit losses | (13,120) | (14,380) |
Gain from revaluation of previously held equity-method investment | (39,641) | |
Originations of loans held for sale | (13,877,961) | (12,761,432) |
Proceeds from transfers of loans held for sale | 13,283,455 | 12,459,511 |
Other operating activities, net | (16,512) | (13,100) |
Net cash provided by (used in) operating activities | (466,766) | (196,979) |
Cash flows from investing activities | ||
Capital expenditures | (19,302) | (5,507) |
Purchase of equity-method investments | (25,098) | (8,029) |
Purchase of pledged available-for-sale ("AFS") securities | (51,302) | (7,250) |
Proceeds from prepayment and sale of pledged AFS securities | 9,261 | 28,781 |
Investments in joint ventures | (5,040) | (58,065) |
Distributions from joint ventures | 11,926 | 34,012 |
Acquisitions, net of cash acquired | (114,163) | (62,208) |
Originations of loans held for investment | (50,772) | (269,737) |
Principal collected on loans held for investment upon payoff | 73,500 | 397,328 |
Net cash provided by (used in) investing activities | (170,990) | 49,325 |
Cash flows from financing activities | ||
Borrowings (repayments) of warehouse notes payable, net | 593,685 | 333,887 |
Borrowings of interim warehouse notes payable | 36,459 | 154,661 |
Repayments of interim warehouse notes payable | (26,000) | (157,277) |
Repayments of notes payable | (29,487) | (2,234) |
Repayments of secured borrowings | (73,312) | |
Proceeds from issuance of common stock | 263 | 5,256 |
Repurchase of common stock | (40,675) | (15,686) |
Cash dividends paid | (60,025) | (48,268) |
Payment of contingent consideration | (19,720) | |
Distributions to noncontrolling interests | (2,035) | |
Debt issuance costs | (2,831) | (2,762) |
Net cash provided by (used in) financing activities | 449,634 | 194,265 |
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents (NOTE 2) | (188,122) | 46,611 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 393,180 | 358,002 |
Total of cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | 205,058 | 404,613 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid to third parties for interest | 48,590 | 24,906 |
Cash paid for income taxes | $ 56,099 | $ 38,728 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Disclosure of Non-Cash Activity: | ||
Issuance of common stock in connection with acquisitions | $ 5,250 | |
Issuance of common stock to settle compensation liabilities | $ 6,551 | 9,589 |
Issuance of common stock to settle contingent consideration liabilities (NOTE 7) | 8,750 | |
Net increase (decrease) in total equity due to consolidations of tax credit entities (NOTE 10) | 10,447 | |
Net increase (decrease) in total assets due to consolidations of tax credit entities (NOTE 10) | 13,700 | |
Net increase (decrease) in total liabilities due to consolidations of tax credit entities (NOTE 10) | 3,559 | |
Forgiveness of a receivable the Company had with an acquired joint venture (NOTE 7) | 5,460 | |
Additions of contingent consideration liabilities from acquisitions (NOTE 7) | $ 119,955 | $ 7,504 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Organization and Basis of Presentation | NOTE 1—ORGANIZATION AND BASIS OF PRESENTATION These financial statements represent the condensed consolidated financial position and results of operations of Walker & Dunlop, Inc. and its subsidiaries. Unless the context otherwise requires, references to “we,” “us,” “our,” “Walker & Dunlop” and the “Company” mean the Walker & Dunlop consolidated companies. The statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they may not include certain financial statement disclosures and other information required for annual financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). In the opinion of management, all adjustments considered necessary for a fair presentation of the results for the Company in the interim periods presented have been included. Results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or thereafter. Walker & Dunlop, Inc. is a holding company and conducts the majority of its operations through Walker & Dunlop, LLC, the operating company. Walker & Dunlop is one of the leading commercial real estate services and finance companies in the United States. The Company originates, sells, and services a range of commercial real estate debt and equity financing products, provides multifamily property sales brokerage and valuation services, engages in commercial real estate investment management activities with a particular focus on the affordable housing sector through low-income housing tax credit (“LIHTC”) syndication, provides housing market research, and delivers real estate-related investment banking and advisory services. Through its agency lending products, the Company originates and sells loans pursuant to the programs of the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac” and, together with Fannie Mae, the “GSEs”), the Government National Mortgage Association (“Ginnie Mae”), and the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (together with Ginnie Mae, “HUD”). Through its debt brokerage products, the Company brokers, and in some cases services, loans for various life insurance companies, commercial banks, commercial mortgage-backed securities issuers, and other institutional investors. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Summary of Significant Accounting Policies | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation If the Company determines it does not hold a variable interest in a VIE, it then applies the voting interest model. Under the voting interest model, the Company consolidates an entity when it holds a majority voting interest in an entity. If the Company does not have a majority voting interest but has significant influence, it uses the equity method of accounting. In instances where the Company owns less than 100% of the equity interests of an entity but holds a controlling financial interest and is the primary beneficiary or owns a majority of the voting interests, the Company accounts for the portion of equity not attributable to Walker & Dunlop, Inc. as Noncontrolling interests Net income (loss) from noncontrolling interests Subsequent Events Use of Estimates combinations, estimation of the fair value of the Apprise joint venture (as discussed in NOTE 7), and the disclosure of contingent assets and liabilities. Actual results may vary from these estimates. Co-broker Fees— Loan origination and debt brokerage fees, net Loans Held for Investment, net As of September 30, 2022, Loans held for investment, net Loans held for investment, net One loan held for investment with an unpaid principal balance of $14.7 million was delinquent and on non-accrual status as of September 30, 2022 and December 31, 2021. The Company had $3.7 million in collateral-based reserves for this loan as of both September 30, 2022 and December 31, 2021 and has not recorded any interest related to this loan since it went on non-accrual status in 2019. All other loans were current as of September 30, 2022 and December 31, 2021. The amortized cost basis of loans that were current as of September 30, 2022 and December 31, 2021 was $236.1 million and $258.6 million, respectively. As of September 30, 2022, $48.6 million, $162.2 million, and $26.3 million of the loans that were current were originated in 2022, 2021, and 2019, respectively. Other than the defaulted loan noted above, the Company has never experienced any delinquencies related to loans held for investment. Provision (Benefit) for Credit Losses — Provision (benefit) for credit losses Provision (benefit) for credit losses For the three months ended For the nine months ended September 30, September 30, Components of Provision (Benefit) for Credit Losses (in thousands) 2022 2021 2022 2021 Provision (benefit) for loan losses $ 35 $ (12) $ (142) $ (674) Provision (benefit) for risk-sharing obligations 1,183 1,278 (12,978) (13,706) Provision (benefit) for credit losses $ 1,218 $ 1,266 $ (13,120) $ (14,380) Net Warehouse Interest Income— Net warehouse interest income principal balance of the loans and secured borrowing for the nine months ended September 30, 2021. Included in Net warehouse interest income For the three months ended For the nine months ended September 30, September 30, Components of Net Warehouse Interest Income (in thousands) 2022 2021 2022 2021 Warehouse interest income - loans held for sale $ 14,517 $ 11,334 $ 35,555 $ 28,315 Warehouse interest expense - loans held for sale (12,339) (7,611) (26,140) (19,249) Net warehouse interest income - loans held for sale $ 2,178 $ 3,723 $ 9,415 $ 9,066 Warehouse interest income - loans held for investment $ 3,896 $ 3,108 $ 9,261 $ 9,298 Warehouse interest expense - loans held for investment (2,094) (1,248) (4,655) (3,596) Net warehouse interest income - loans held for investment $ 1,802 $ 1,860 $ 4,606 $ 5,702 Total net warehouse interest income $ 3,980 $ 5,583 $ 14,021 $ 14,768 Statement of Cash Flows September 30, December 31, (in thousands) 2022 2021 2021 2020 Cash and cash equivalents $ 152,188 $ 318,188 $ 305,635 $ 321,097 Restricted cash 40,246 34,875 42,812 19,432 Pledged cash and cash equivalents (NOTE 9) 12,624 51,550 44,733 17,473 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 205,058 $ 404,613 $ 393,180 $ 358,002 Income Taxes Contracts with Customers The majority of the Company’s contracts with customers do not require significant judgment or material estimates that affect the determination of the transaction price (including the assessment of variable consideration), the allocation of the transaction price to performance obligations, and the determination of the timing of the satisfaction of performance obligations. Additionally, the earnings process for the majority all of the Company’s contracts with customers is not complicated and is generally completed in a short period of time. The following table presents information about the Company’s contracts with customers for the three and nine months ended September 30, 2022 and 2021: For the three months ended For the nine months ended September 30, September 30, Description in thousands 2022 2021 2022 2021 Statement of income line item Certain loan origination fees $ 40,076 $ 46,527 $ 130,722 $ 113,650 Loan origination and debt brokerage fees, net Property sales broker fees 30,308 33,677 100,092 65,173 Property sales broker fees Investment management fees 16,301 2,564 47,345 9,115 Investment management fees Application fees, subscription revenues, other revenues from LIHTC operations, and other revenues 12,643 8,372 55,384 15,999 Other revenues Total revenues derived from contracts with customers $ 99,328 $ 91,140 $ 333,543 $ 203,937 Litigation Recently Adopted and Recently Announced Accounting Pronouncement s Reclassifications |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2022 | |
MSRs | |
Mortgage Servicing Rights | |
Mortgage Servicing Rights | NOTE 3—MORTGAGE SERVICING RIGHTS The fair value of the mortgage servicing rights (“MSRs”) was $1.3 billion as of both September 30, 2022 and December 31, 2021. The Company uses a discounted static cash flow valuation approach, and the key economic assumption is the discount rate. For example, see the following sensitivities related to the discount rate: The impact of a 100 - basis point increase in the discount rate at September 30, 2022 would be a decrease in the fair value of $40.6 million to the MSRs outstanding as of September 30, 2022. The impact of a 200 - basis point increase in the discount rate at September 30, 2022 would be a decrease in the fair value of $78.6 million to the MSRs outstanding as of September 30, 2022. These sensitivities are hypothetical and should be used with caution. These estimates do not include interplay among assumptions and are estimated as a portfolio rather than individual assets. Activity related to MSRs for the three and nine months ended September 30, 2022 and 2021 follows: For the three months ended For the nine months ended September 30, September 30, Roll Forward of MSRs (in thousands) 2022 2021 2022 2021 Beginning balance $ 978,745 $ 915,519 $ 953,845 $ 862,813 Additions, following the sale of loan 45,454 70,095 182,753 224,035 Amortization (47,391) (44,402) (140,846) (130,868) Pre-payments and write-offs (9,038) (11,387) (27,982) (26,155) Ending balance $ 967,770 $ 929,825 $ 967,770 $ 929,825 The following table summarizes the gross value, accumulated amortization, and net carrying value of the Company’s MSRs as of September 30, 2022 and December 31, 2021: Components of MSRs (in thousands) September 30, 2022 December 31, 2021 Gross value $ 1,622,213 $ 1,548,870 Accumulated amortization (654,443) (595,025) Net carrying value $ 967,770 $ 953,845 The expected amortization of MSRs shown in the Condensed Consolidated Balance Sheet as of September 30, 2022 is shown in the table below. Actual amortization may vary from these estimates. Expected (in thousands) Amortization Three Months Ending December 31, 2022 $ 46,639 Year Ending December 31, 2023 $ 180,469 2024 163,771 2025 141,014 2026 119,503 2027 101,362 Thereafter 215,012 Total $ 967,770 |
ALLOWANCE FOR RISK-SHARING OBLI
ALLOWANCE FOR RISK-SHARING OBLIGATIONS AND GUARANTY OBLIGATION | 9 Months Ended |
Sep. 30, 2022 | |
ALLOWANCE FOR RISK-SHARING OBLIGATIONS AND GUARANTY OBLIGATION | |
Allowance For Risk-Sharing Obligations and Guaranty Obligation | NOTE 4—ALLOWANCE FOR RISK-SHARING OBLIGATIONS AND GUARANTY OBLIGATION When a loan is sold under the Fannie Mae DUS program, the Company typically agrees to guarantee a portion of the ultimate loss incurred on the loan should the borrower fail to perform. The compensation for this risk is a component of the servicing fee on the loan. The guaranty is in force while the loan is outstanding. The Company does not provide a guaranty for any other loan product it sells or brokers. Substantially all loans sold under the Fannie Mae DUS program contain modified or full-risk sharing guaranties that are based on the credit performance of the loan. The Company records an estimate of the contingent loss reserve for Current Expected Credit Losses (“CECL”) for all loans in its Fannie Mae at-risk servicing portfolio and presents this loss reserve as Allowance for risk-sharing obligations Other liabilities Activity related to the allowance for risk-sharing obligations for the three and nine months ended September 30, 2022 and 2021 follows: For the three months ended For the nine months ended September 30, September 30, Roll Forward of Allowance for Risk-Sharing Obligations (in thousands) 2022 2021 2022 2021 Beginning balance $ 48,475 $ 60,329 $ 62,636 $ 75,313 Provision (benefit) for risk-sharing obligations 1,183 1,278 (12,978) (13,706) Write-offs — — — — Ending balance $ 49,658 $ 61,607 $ 49,658 $ 61,607 During the first quarter of 2022, the Company updated its historical loss rate factor calculation to the current 10-year During the first three quarters of 2021, reported and forecasted unemployment rates significantly improved compared to December 31, 2020. In response to improving unemployment statistics and the expected continued overall health of the multifamily market, the Company reduced the loss rate for the forecast period to four basis points as of March 31, 2021 and three basis points as of both June 30, 2021 and September 30, 2021 from six basis points as of December 31, 2020, resulting in the benefit for risk-sharing obligations for the three and nine months ended September 30, 2021, as presented above. The calculated CECL reserve for the Company’s $52.1 billion at-risk Fannie Mae servicing portfolio as of September 30, 2022 was $38.9 million compared to $52.3 million as of December 31, 2021. The weighted-average remaining life of the at-risk Fannie Mae servicing portfolio as of September 30, 2022 was 7.3 years compared to 7.5 years as of December 31, 2021. Three loans had aggregate collateral-based reserves of $10.8 million and $10.3 million as of September 30, 2022 and December 31, 2021, respectively. Activity related to the guaranty obligation for the three and nine months ended September 30, 2022 and 2021 is presented in the following table: For the three months ended For the nine months ended September 30, September 30, Roll Forward of Guaranty Obligation (in thousands) 2022 2021 2022 2021 Beginning balance $ 45,649 $ 50,369 $ 47,378 $ 52,306 Additions, following the sale of loan 1,401 1,449 4,711 4,023 Amortization and write-offs (2,588) (2,758) (7,627) (7,269) Ending balance $ 44,462 $ 49,060 $ 44,462 $ 49,060 As of September 30, 2022 and 2021, the maximum quantifiable contingent liability associated with the Company’s guaranties for the at-risk loans serviced under the Fannie Mae DUS agreement was $10.8 billion and $9.8 billion, respectively. This maximum quantifiable contingent liability relates to the at-risk loans serviced for Fannie Mae at the specific point in time indicated. The maximum quantifiable contingent liability is not representative of the actual loss the Company would incur. The Company would be liable for this amount only if all of the loans it services for Fannie Mae, for which the Company retains some risk of loss, were to default and all of the collateral underlying these loans were determined to be without value at the time of settlement. |
SERVICING
SERVICING | 9 Months Ended |
Sep. 30, 2022 | |
Loans and Other Servicing Accounts | |
Servicing | |
Servicing | NOTE 5—SERVICING The total unpaid principal balance of loans the Company was servicing for various institutional investors was $120.8 billion as of September 30, 2022 compared to $115.7 billion as of December 31, 2021. As of September 30, 2022 and December 31, 2021, custodial escrow accounts relating to loans serviced by the Company totaled $3.1 billion and $3.7 billion, respectively. These amounts are not included in the Condensed Consolidated Balance Sheets as such amounts are not Company assets; however, the Company is entitled to earn fees on these escrow balances, presented as a component of Escrow earnings and other interest income |
WAREHOUSE NOTES PAYABLE
WAREHOUSE NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2022 | |
WAREHOUSE NOTES PAYABLE | |
Warehouse Notes Payable | NOTE 6—WAREHOUSE NOTES PAYABLE As of September 30, 2022, to provide financing to borrowers under the Agencies’ programs, the Company has committed and uncommitted warehouse lines of credit in the amount of $3.9 billion with certain national banks and a $1.5 billion uncommitted facility with Fannie Mae (collectively, the “Agency Warehouse Facilities”). In support of these Agency Warehouse Facilities, the Company has pledged substantially all of its loans held for sale under the Company’s approved programs. The Company’s ability to originate mortgage loans for sale depends upon its ability to secure and maintain these types of financings on acceptable terms. Additionally, as of September 30, 2022, the Company has arranged for warehouse lines of credit in the amount of $0.5 billion with certain national banks to assist in funding loans held for investment under the Interim Loan Program (“Interim Warehouse Facilities”). The Company has pledged substantially all of its loans held for investment against these Interim Warehouse Facilities. The Company’s ability to originate loans held for investment depends upon its ability to secure and maintain these types of financings on acceptable terms. The Company also has a warehouse line of credit in the amount of $30.0 million with a national bank to assist in funding the Company’s Committed investments in tax credit equity The maximum amount and outstanding borrowings under Warehouse notes payable September 30, 2022 (dollars in thousands) Committed Uncommitted Total Facility Outstanding Facility Amount Amount Capacity Balance Interest rate (1) Agency Warehouse Facility #1 $ 325,000 $ 250,000 $ 575,000 $ 147,070 Adjusted Term SOFR plus 1.30% Agency Warehouse Facility #2 700,000 300,000 1,000,000 536,956 Adjusted Term SOFR plus 1.30% Agency Warehouse Facility #3 600,000 265,000 865,000 420,585 Adjusted Term SOFR plus 1.35% Agency Warehouse Facility #4 200,000 225,000 425,000 92,924 Adjusted Term SOFR plus 1.30% Agency Warehouse Facility #5 — 1,000,000 1,000,000 652,773 Adjusted Term SOFR plus 1.45% Total National Bank Agency Warehouse Facilities $ 1,825,000 $ 2,040,000 $ 3,865,000 $ 1,850,308 Fannie Mae repurchase agreement, uncommitted line and open maturity — 1,500,000 1,500,000 507,412 Total Agency Warehouse Facilities $ 1,825,000 $ 3,540,000 $ 5,365,000 $ 2,357,720 Interim Warehouse Facility #1 $ 135,000 $ — $ 135,000 $ — Adjusted Term SOFR plus 1.80% Interim Warehouse Facility #2 100,000 — 100,000 — Adjusted Term SOFR plus 1.35% to 1.85% Interim Warehouse Facility #3 200,000 — 200,000 163,468 30-day LIBOR plus 1.75% to 3.25% Interim Warehouse Facility #4 19,810 — 19,810 19,810 30-day LIBOR plus 3.00% Total National Bank Interim Warehouse Facilities $ 454,810 $ — $ 454,810 $ 183,278 Tax Credit Equity Warehouse Facility $ 30,000 $ — $ 30,000 $ 5,300 Adjusted Daily SOFR plus 3.00% Debt issuance costs — — — (892) Total warehouse facilities $ 2,309,810 $ 3,540,000 $ 5,849,810 $ 2,545,406 (1) Interest rate presented does not include the effect of any applicable interest rate floors. During 2022, the following amendments to the Warehouse Facilities were executed in the normal course of business to support the growth of the Company’s business. Agency Warehouse Facilities During the third quarter of 2022, at the Company’s request, an amendment to Agency Warehouse Facility #1 was executed that decreased the committed borrowing capacity from $425.0 million to $325.0 million. In addition to the change in committed borrowing capacity, the amendment added $250 million of uncommitted borrowing capacity and extended the maturity date to August 30, 2023. No other material modifications have been made to the agreement during 2022. During the second quarter of 2022, the Company executed an amendment to Agency Warehouse Facility #2 that extended the maturity date to April 13, 2023 and transitioned the interest rate from 30-day LIBOR to Adjusted Term SOFR plus 130 basis points. No other material modifications have been made to the agreement during 2022. During the second quarter of 2022, the Company executed an amendment related to Agency Warehouse Facility #3 that extended the maturity date to May 15, 2023 and transitioned the interest rate from 30-day LIBOR to Adjusted Term SOFR plus 135 basis points with an Adjusted Term SOFR floor of 15 basis points. No other material modifications have been made to the agreement during 2022. During the second quarter of 2022, the Company executed an amendment related to Agency Warehouse Facility #4 that extended the maturity date to June 22, 2023, increased the total borrowing capacity to $425.0 million from $350.0 million, and transitioned the interest rate from 30-day LIBOR to Adjusted Term SOFR plus 130 basis points. No other material modifications have been made to the agreement during 2022. During the third quarter of 2022, the Company executed an amendment related to Agency Warehouse Facility #5 that extended the maturity date to September 14, 2023. No other material modifications have been made to the agreement during 2022. During the third quarter of 2022, the Company allowed an agency warehouse facility to mature on September 29, 2022, as the Company believed it had sufficient borrowing capacity from the other warehouse lenders. Interim Warehouse Facilities During the second quarter of 2022, the Company executed an amendment related to Interim Warehouse Facility #1 that extended the maturity date to May 15, 2023 and transitioned the interest rate from 30-day LIBOR to Adjusted Term SOFR plus 180 basis points. No other material modifications have been made to the agreement during 2022. During the first quarter of 2022, the Company executed an amendment related to Interim Warehouse Facility #2 that extended the maturity date to December 13, 2023 and transitioned the interest rate from 30-day LIBOR to Adjusted Term SOFR plus 135 to 185 basis points. No other material modifications have been made to the agreement during 2022. During the third quarter of 2022, the Company executed an amendment related to Interim Warehouse Facility #3 that extended the maturity date to September 29, 2023. No other material modifications have been made to the agreement during 2022. During the fourth quarter of 2022, the Company executed an amendment related to Interim Warehouse Facility #4 that extended the maturity date to October 1, 2024 and transitioned the interest rate from 30-day LIBOR to Adjusted Term SOFR plus 311 basis points with an Adjusted Term SOFR floor of 15 basis points. No other material modifications have been made to the agreement during 2022. Tax Credit Equity Warehouse Facility During the third quarter of 2022, the Company executed amendments related to the Tax Credit Equity Warehouse Facility that extended the maturity date to October 14, 2022. Additionally, the amendments transitioned the interest rate from Daily LIBOR plus 300 basis points to Adjusted Daily SOFR plus 300 basis points, with a SOFR floor of 150 basis points. During October 2022, the Company allowed the Tax Credit Equity Warehouse Facility to mature according to the terms of the agreement. In October 2022, the Company, through one of its wholly-owned subsidiaries, replaced the maturing Tax Credit Equity Warehouse Facility with a new warehouse facility with a national bank. The credit agreement is scheduled to mature on October 5, 2025. The facility provides the Company with up to $20.0 million in committed borrowing capacity to fund investments in affordable housing limited partnerships that also secure the borrowings. Borrowings under this facility bear interest at the Adjusted Term SOFR plus 280 basis points, with a SOFR floor of zero basis points. The credit agreement requires the Company to abide by the following financial covenants: ● tangible net worth of the Company of not less than (i) $30.0 million; ● liquid assets of the Company of not less than $15.0 million. The warehouse notes payable are subject to various financial covenants, all of which the Company was in compliance with as of September 30, 2022. Interest on the Company’s warehouse notes payable is based on 30-day LIBOR, Adjusted Term SOFR, or Adjusted Daily SOFR. As a result of the expected transition from LIBOR, the Company has transitioned all of its debt agreements to a SOFR based benchmark or has included fallback language to govern the transition from 30-day LIBOR to an alternative reference rate. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Goodwill and Other Intangible Assets | NOTE 7—GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Acquisition Activities A summary of the Company’s goodwill for the nine months ended September 30, 2022 and 2021 follows: For the nine months ended September 30, Roll Forward of Goodwill (in thousands) 2022 2021 Beginning balance $ 698,635 $ 248,958 Additions from acquisitions 222,670 84,291 Measurement-period adjustments 26,859 — Impairment — — Ending balance $ 948,164 $ 333,249 The additions to goodwill from acquisitions during 2022 shown in the table above during the nine months ended September 30, 2022 relate to two acquisitions. On February 28, 2022, the Company acquired 100% of the equity interests of GeoPhy B.V. (“GeoPhy”), a Netherlands-based commercial real-estate technology company. As part of the acquisition, the Company also obtained GeoPhy’s 50% interest in the Company’s appraisal joint venture, Apprise. The Company now owns 100% of Apprise and consolidates its balances and its operating results post acquisition. Prior to the acquisition, the Company accounted for its investment in Apprise under the equity method. The fair value of the consideration was $204.6 million and consisted of $82.1 million of cash, $5.5 million of forgiveness of a receivable the Company had with the joint venture (non-cash activity not reflected in the Condensed Consolidated Statements of Cash Flows), and $117.0 million of contingent consideration. GeoPhy’s data analytics and technology development capabilities are expected to accelerate the growth of the Company’s lending, brokerage, and appraisal operations. The GeoPhy acquisition is also expected to allow the Company to meet its goal of $5 billion of annual small-balance lending volume and appraisal revenue of $75 million by 2025 as part of the Company’s overall growth targets. A significant portion of the value associated with the GeoPhy acquisition was related to the assembled workforces with their combined expertise in information technology, data science, and commercial real estate. The Company believes that the combination of GeoPhy’s personnel, appraisal technology platform, and the future development of technology to accelerate growth in the origination of small-balance commercial loans, along with Walker & Dunlop’s financial resources will (i) drive a significant increase in the identification and retention of borrowers in the small-balance segment of the multifamily market and (ii) continue to drive significant growth in appraisal revenues over the next five years. GeoPhy’s financial results since the acquisition and pro-forma information as if the acquisition occurred January 1, 2021 were immaterial. The contingent consideration noted above is contingent on achieving certain Apprise revenue and productivity milestones and small-balance loan volume and revenue milestones over a four-year period. The maximum earnout included as part of the GeoPhy acquisition is $205.0 million. The Company estimated that $132.7 million, or 65% of the maximum earnout, was achievable based on management forecasts. The discounted balance of $117.0 million is 57% of the maximum earnout amount. The Company estimated the fair value of this contingent consideration using a Monte Carlo simulation. The weighted average cost of capital (“WACC”) used for the valuation of the contingent consideration was 17.0% for the Apprise portion of the earnout and 14.5% for the small-balance portion of the earnout. The WACC reflects the additional risk inherent in the Apprise performance estimates as it is still in the startup stage of its development. The estimated achievable earnout amount was discounted using a forward curve for a Company-specific subordinated debt rating. The calculation of goodwill of $206.4 million included the fair value of the consideration transferred of $204.6 million and the acquisition-date fair value of the Company’s previously held equity-method investment in Apprise of $58.5 million. The book value of the Company’s equity-method investment in Apprise prior to the acquisition date was $18.9 million, resulting in a $39.6 million gain from remeasuring to fair value. The gain is included as a component of Other revenues The goodwill resulting from the GeoPhy acquisition was allocated to the Company’s Capital Markets reportable segment. The other assets primarily consisted of technology intangible assets of $31.0 million and deferred tax assets of $9.4 million. The technology intangible assets will be amortized over a 10-year The Company expects a large portion of the goodwill to be tax deductible, with the tax-deductible amount of goodwill related to the contingent consideration to be determined once the cash payments to settle the contingent consideration are made. The second acquisition occurred during the third quarter of 2022 for consideration of $6.0 million of cash and $3.0 million of contingent consideration and resulted in $8.8 million of goodwill. The Company allocated the goodwill from this acquisition to the Company’s Capital Markets reportable segment. The Company expects all of the goodwill from this acquisition to be tax deductible, with the tax-deductible amount of goodwill related to the contingent consideration to be determined once the cash payments to settle the contingent consideration are made. The financial results since the acquisition and pro-forma financial information as if the acquisition occurred on January 1, 2021 were immaterial. The measurement-period adjustments above primarily relate to the Company’s acquisition of Alliant Capital Ltd. (“Alliant”), an acquisition completed in December of 2021, as more fully described in the Company’s 2021 Form 10-K. The measurement-period adjustments consist of (i) $29.7 million additional purchase price consideration related to the settlement of working capital adjustments and (ii) immaterial other adjustments as a result of the Company obtaining additional information. The additional consideration was paid during the third quarter of 2022. The Company has substantially completed the purchase accounting for the Alliant acquisition as of September 30, 2022. During the third quarter of 2022, the Company settled working capital adjustments related to the GeoPhy acquisition, resulting in a $5.5 million reduction in purchase price consideration. The settlement of the cash owed to the Company from GeoPhy for working capital adjustments will be a reduction of the cash paid to settle the contingent consideration achieved in the future. The Company has not completed the purchase accounting for the GeoPhy acquisition as it is waiting for the GeoPhy tax returns to be completed. As discussed in NOTE 11 below, in the first quarter of 2022, the Company began disclosing three reportable segments. The following table shows goodwill by reportable segments as of September 30, 2022. As the Company did not have segment reporting as of December 31, 2021, all of the goodwill balance was allocated to the Company’s one reportable segment as of December 31, 2021. As of Goodwill by Reportable Segment (in thousands) September 30, 2022 Capital Markets $ 451,345 Servicing & Asset Management 496,819 Corporate — Ending balance $ 948,164 Other Intangible Assets Activity related to other intangible assets for the nine months ended September 30, 2022 and 2021 follows: For the nine months ended September 30, Roll Forward of Other Intangible Assets (in thousands) 2022 2021 Beginning balance $ 183,904 $ 1,880 Additions from acquisitions 31,000 8,719 Amortization (12,070) (2,145) Ending balance $ 202,834 $ 8,454 The following table summarizes the gross value, accumulated amortization, and net carrying value of the Company’s other intangible assets as of September 30, 2022 and December 31, 2021: Components of Other Intangible Assets (in thousands) September 30, 2022 December 31, 2021 Gross value $ 220,682 $ 189,682 Accumulated amortization (17,848) (5,778) Net carrying value $ 202,834 $ 183,904 The expected amortization of other intangible assets shown in the Condensed Consolidated Balance Sheet as of September 30, 2022 is shown in the table below. Actual amortization may vary from these estimates. Expected (in thousands) Amortization Three Months Ending December 31, 2022 $ 4,190 Year Ending December 31, 2023 $ 17,263 2024 16,206 2025 16,206 2026 16,206 2027 16,206 Thereafter 116,557 Total $ 202,834 Contingent Consideration Liabilities A summary of the Company’s contingent consideration liabilities, which are included in Other liabilities For the nine months ended September 30, Roll Forward of Contingent Consideration Liabilities (in thousands) 2022 2021 Beginning balance $ 125,809 $ 28,829 Additions 119,955 7,504 Accretion and revaluation 3,767 1,405 Payments (28,547) (6,080) Ending balance $ 220,984 $ 31,658 The contingent consideration liabilities presented in the table above relate to (i) acquisitions of debt brokerage and investment sales brokerage companies completed over the past several years, (ii) the purchase of noncontrolling interests in 2020 that was fully earned as of December 31, 2021 and paid in 2022, (iii) the Alliant acquisition, and (iv) the GeoPhy acquisition. The contingent consideration for each of the acquisitions may be earned over various lengths of time after each acquisition, with a maximum earn-out period of five years , provided certain revenue targets and other metrics have been met. The last of the earn-out periods related to the contingent consideration ends in the third quarter of 2027. In each case, the Company estimated the initial fair value of the contingent consideration using a Monte Carlo simulation. The recognition of the contingent consideration liability for the two acquisitions in 2022 is non-cash, and thus not reflected in the amount of cash consideration paid on the Condensed Consolidated Statements of Cash Flows. In addition, |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Fair Value Measurements | NOTE 8—FAIR VALUE MEASUREMENTS The Company uses valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach to measure assets and liabilities that are measured at fair value. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, accounting standards establish a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ● Level 1 —Financial assets and liabilities whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. ● Level 2 —Financial assets and liabilities whose values are based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, discount rates, volatilities, prepayment speeds, earnings rates, credit risk, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. ● Level 3 —Financial assets and liabilities whose values are based on inputs that are both unobservable and significant to the overall valuation. The Company's MSRs are measured at fair value at inception, and thereafter on a nonrecurring basis. That is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value measurement when there is evidence of impairment and for disclosure purposes (NOTE 3). The Company's MSRs do not trade in an active, open market with readily observable prices. Accordingly, the estimated fair value of the Company’s MSRs was developed using discounted cash flow models that calculate the present value of estimated future net servicing income. The model considers contractually specified servicing fees, prepayment assumptions, estimated revenue from escrow accounts, costs to service, and other economic factors. The Company periodically reassesses and adjusts, when necessary, the underlying inputs and assumptions used in the model to reflect observable market conditions and assumptions that market participants consider in valuing MSR assets. MSRs are carried at the lower of amortized cost or fair value. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. ● Derivative Instruments —The derivative positions consist of interest rate lock commitments with borrowers and forward sale agreements to the Agencies. The fair value of these instruments is estimated using a discounted cash flow model developed based on changes in the applicable U.S. Treasury rate and other observable market data. The value was determined after considering the potential impact of collateralization, adjusted to reflect nonperformance risk of both the counterparty and the Company, and are classified within Level 3 of the valuation hierarchy . ● Loans Held for Sale —All loans held for sale presented in the Condensed Consolidated Balance Sheets are reported at fair value. The Company determines the fair value of the loans held for sale using discounted cash flow models that incorporate quoted observable inputs from market participants such as changes in the U.S. Treasury rate. Therefore, the Company classifies these loans held for sale as Level 2 . ● Pledged Securities —Investments in money market funds are valued using quoted market prices from recent trades. Therefore, the Company classifies this portion of pledged securities as Level 1. The Company determines the fair value of its AFS investments in Agency debt securities using discounted cash flows that incorporate observable inputs from market participants and then compares the fair value to broker estimates of fair value . Consequently, the Company classifies this portion of pledged securities as Level 2. ● Contingent Consideration Liabilities —Contingent consideration liabilities from acquisitions are initially recognized at fair value at acquisition and subsequently remeasured based on the change in probability of achievement of the performance objectives and fair value accretion. The remeasurement and fair value accretion are recognized as Other operating expenses in the Condensed Consolidated Statements of Income. The Company determines the fair value of each contingent consideration liability based on a combination of Monte Carlo simulations and probability of achievement estimates, which incorporates management estimates. As a result, the Company classifies these liabilities as Level 3. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy used to measure fair value: Balance as of (in thousands) Level 1 Level 2 Level 3 Period End September 30, 2022 Assets Loans held for sale $ — $ 2,180,117 $ — $ 2,180,117 Pledged securities 12,624 138,789 — 151,413 Derivative assets — — 255,295 255,295 Total $ 12,624 $ 2,318,906 $ 255,295 $ 2,586,825 Liabilities Derivative liabilities $ — $ — $ 24,054 $ 24,054 Contingent consideration liabilities — — 220,984 220,984 Total $ — $ — $ 245,038 $ 245,038 December 31, 2021 Assets Loans held for sale $ — $ 1,811,586 $ — $ 1,811,586 Pledged securities 44,733 104,263 — 148,996 Derivative assets — — 37,364 37,364 Total $ 44,733 $ 1,915,849 $ 37,364 $ 1,997,946 Liabilities Derivative liabilities $ — $ — $ 6,403 $ 6,403 Contingent consideration liabilities — — 125,808 125,808 Total $ — $ — $ 132,211 $ 132,211 There were no transfers between any of the levels within the fair value hierarchy during the nine months ended September 30, 2022. Derivative instruments (Level 3) are outstanding for short periods of time (generally less than 60 days). A roll forward of derivative instruments is presented below for the three and nine months ended September 30, 2022 and 2021: For the three months ended For the nine months ended September 30, September 30, Derivative Assets and Liabilities, net (in thousands) 2022 2021 2022 2021 Beginning balance $ 42,634 $ 6,340 $ 30,961 $ 44,720 Settlements 42,458 (146,841) (235,463) (488,356) Realized gains recorded in earnings (1) (85,092) 140,501 204,502 443,636 Unrealized gains (losses) recorded in earnings (1) 231,241 72,223 231,241 72,223 Ending balance $ 231,241 $ 72,223 $ 231,241 $ 72,223 (1) Realized and unrealized gains (losses) from derivatives are recognized in Loan origination and debt brokerage fees, net and Fair value of expected net cash flows from servicing, net in the Condensed Consolidated Statements of Income. The following table presents information about significant unobservable inputs used in the recurring measurement of the fair value of the Company’s Level 3 assets and liabilities as of September 30, 2022: Quantitative Information about Level 3 Fair Value Measurements (in thousands) Fair Value Valuation Technique Unobservable Input (1) Input Range (1) Weighted Average (3) Derivative assets $ 255,295 Discounted cash flow Counterparty credit risk — — Derivative liabilities $ 24,054 Discounted cash flow Counterparty credit risk — — Contingent consideration liabilities $ 220,984 Monte Carlo Simulation (2) Probability of earn-out achievement 65% - 100% 76% (1) Significant increases in this input may lead to significantly lower fair value measurements. (2) Monte Carlo simulation analysis was supported by other valuation analyses. (3) Contingent consideration weighted based on maximum gross earn-out amount. The carrying amounts and the fair values of the Company's financial instruments as of September 30, 2022 and December 31, 2021 are presented below: September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair (in thousands) Amount Value Amount Value Financial Assets: Cash and cash equivalents $ 152,188 $ 152,188 $ 305,635 $ 305,635 Restricted cash 40,246 40,246 42,812 42,812 Pledged securities 151,413 151,413 148,996 148,996 Loans held for sale 2,180,117 2,180,117 1,811,586 1,811,586 Loans held for investment, net 247,106 248,098 269,125 270,826 Derivative assets 255,295 255,295 37,364 37,364 Total financial assets $ 3,026,365 $ 3,027,357 $ 2,615,518 $ 2,617,219 Financial Liabilities: Derivative liabilities $ 24,054 $ 24,054 $ 6,403 $ 6,403 Contingent consideration liabilities 220,984 220,984 125,808 125,808 Warehouse notes payable 2,545,406 2,546,298 1,941,572 1,942,448 Notes payable 711,107 715,688 740,174 745,175 Total financial liabilities $ 3,501,551 $ 3,507,024 $ 2,813,957 $ 2,819,834 The following methods and assumptions were used for recurring fair value measurements as of September 30, 2022 and December 31, 2021. Cash and Cash Equivalents and Restricted Cash —The carrying amounts approximate fair value because of the short maturity of these instruments (Level 1). Pledged Securities —Consist of cash, highly liquid investments in money market accounts invested in government securities, and investments in Agency debt securities. The investments of the money market funds typically have maturities of 90 days or less and are valued using quoted market prices from recent trades. The fair value of the Agency debt securities incorporates the contractual cash flows of the security discounted at market-rate, risk-adjusted yields. Loans Held for Sale —Consist of originated loans that are generally transferred or sold within 60 days from the date that a mortgage loan is funded and are valued using discounted cash flow models that incorporate observable prices from market participants. Contingent Consideration Liability —Consists of the estimated fair values of expected future earn-out payments related to acquisitions completed over th Derivative Instruments — Consist of interest rate lock commitments and forward sale agreements. These instruments are valued using discounted cash flow models developed based on changes in the U.S. Treasury rate and other observable market data. The value is determined after considering the potential impact of collateralization, adjusted to reflect nonperformance risk of both the counterparty and the Company . Fair Value of Derivative Instruments and Loans Held for Sale — In the normal course of business, the Company enters into contractual commitments to originate and sell multifamily mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrowers "lock-in" a specified interest rate within time frames established by the Company. All mortgagors are evaluated for creditworthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the "lock-in" of rates by the borrower and the sale date of the loan to an investor . To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, the Company enters into a sale commitment with the investor simultaneously with the rate lock commitment with the borrower. The sale contract with the investor locks in an interest rate and price for the sale of the loan. The terms of the contract with the investor and the rate lock with the borrower are matched in substantially all respects, with the objective of eliminating interest rate risk to the extent practical. Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for the closing of the loan and processing of paperwork to deliver the loan into the sale commitment . Both the rate lock commitments to borrowers and the forward sale contracts to buyers are undesignated derivatives and, accordingly, are marked to fair value through Loan origination and debt brokerage fees, net in the Condensed Consolidated Statements of Income. The fair value of the Company's rate lock commitments to borrowers and loans held for sale and the related input levels includes, as applicable : ● the estimated gain of the expected loan sale to the investor (Level 2); ● the expected net cash flows associated with servicing the loan, net of any guaranty obligations retained (Level 2); ● the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and ● the nonperformance risk of both the counterparty and the Company (Level 3; derivative instruments only). The estimated gain considers the origination fees the Company expects to collect upon loan closing (derivative instruments only) and premiums the Company expects to receive upon sale of the loan (Level 2). The fair value of the expected net cash flows associated with servicing the loan is calculated pursuant to the valuation techniques applicable to the fair value of future servicing, net at loan sale (Level 2). To calculate the effects of interest rate movements, the Company uses applicable published U.S. Treasury prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount (Level 2). The fair value of the Company's forward sales contracts to investors considers effects of interest rate movements between the trade date and the balance sheet date (Level 2). The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value. The fair value of the Company’s interest rate lock commitments and forward sales contracts is adjusted to reflect the risk that the agreement will not be fulfilled. The Company’s exposure to nonperformance in interest rate lock commitments and forward sale contracts is represented by the contractual amount of those instruments. Given the credit quality of our counterparties and the short duration of interest rate lock commitments and forward sale contracts, the risk of nonperformance by the Company’s counterparties has historically been minimal (Level 3). The following table presents the components of fair value and other relevant information associated with the Company’s derivative instruments and loans held for sale as of September 30, 2022 and December 31, 2021: Fair Value Adjustment Components Balance Sheet Location Fair Value Notional or Estimated Total Adjustment Principal Gain Interest Rate Fair Value Derivative Derivative to Loans (in thousands) Amount on Sale Movement Adjustment Assets Liabilities Held for Sale September 30, 2022 Rate lock commitments $ 870,205 $ 21,833 $ (37,337) $ (15,504) $ 8,469 $ (23,973) $ — Forward sale contracts 3,230,106 — 246,745 246,745 246,826 (81) — Loans held for sale 2,359,901 29,624 (209,408) (179,784) — — (179,784) Total $ 51,457 $ — $ 51,457 $ 255,295 $ (24,054) $ (179,784) December 31, 2021 Rate lock commitments $ 1,115,829 $ 29,837 $ (4,604) $ 25,233 $ 26,526 $ (1,293) $ — Forward sale contracts 2,881,224 — 5,728 5,728 10,838 (5,110) — Loans held for sale 1,765,395 47,315 (1,124) 46,191 — — 46,191 Total $ 77,152 $ — $ 77,152 $ 37,364 $ (6,403) $ 46,191 |
FANNIE MAE COMMITMENTS AND PLED
FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES | |
Fannie Mae Commitments and Pledged Securities | NOTE 9—FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES Fannie Mae DUS Related Commitments The Company is generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program. The Company is required to secure these obligations by assigning restricted cash balances and securities to Fannie Mae, which are classified as Pledged securities, at fair value The Company is in compliance with the September 30, 2022 collateral requirements as outlined above. As of September 30, 2022, reserve requirements for the DUS loan portfolio will require the Company to fund $71.8 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within the at-risk portfolio. Fannie Mae has reassessed the DUS Capital Standards in the past and may make changes to these standards in the future. The Company generates sufficient cash flow from its operations to meet these capital standards and does not expect any future changes to have a material impact on its future operations; however, any future increases to collateral requirements may adversely impact the Company’s available cash. Fannie Mae has established benchmark standards for capital adequacy and reserves the right to terminate the Company's servicing authority for all or some of the portfolio if, at any time, it determines that the Company's financial condition is not adequate to support its obligations under the DUS agreement. The Company is required to maintain acceptable net worth as defined in the agreement, and the Company satisfied the requirements as of September 30, 2022. The net worth requirement is derived primarily from unpaid principal balances on Fannie Mae loans and the level of risk sharing. At September 30, 2022, the net worth requirement was $275.0 million, and the Company's net worth, as defined in the requirements, was $646.0 million, as measured at our wholly-owned operating subsidiary, Walker & Dunlop, LLC. As of September 30, 2022, the Company was required to maintain at least $54.7 million of liquid assets to meet operational liquidity requirements for Fannie Mae, Freddie Mac, HUD, and Ginnie Mae, and the Company had operational liquidity, as defined in the requirements, of $131.9 million as of September 30, 2022, as measured at our wholly-owned operating subsidiary, Walker & Dunlop, LLC. Pledged Securities, at Fair Value Pledged securities, at fair value September 30, December 31, Pledged Securities (in thousands) 2022 2021 2021 2020 Restricted cash $ 8,454 $ 10,596 $ 3,779 $ 4,954 Money market funds 4,170 40,954 40,954 12,519 Total pledged cash and cash equivalents $ 12,624 $ 51,550 $ 44,733 $ 17,473 Agency MBS 138,789 97,224 104,263 119,763 Total pledged securities, at fair value $ 151,413 $ 148,774 $ 148,996 $ 137,236 The information in the preceding table is presented to reconcile beginning and ending cash, cash equivalents, restricted cash, and restricted cash equivalents in the Condensed Consolidated Statements of Cash Flows as more fully discussed in NOTE 2. The Company’s investments included within Pledged securities, at fair value Fair Value and Amortized Cost of Agency MBS (in thousands) September 30, 2022 December 31, 2021 Fair value $ 138,789 $ 104,263 Amortized cost 140,782 100,847 Total gains for securities with net gains in AOCI 762 3,636 Total losses for securities with net losses in AOCI (2,755) (220) Fair value of securities with unrealized losses 116,989 4,757 An immaterial amount of the pledged securities has been in a continuous unrealized loss position for more than 12 months. The following table provides contractual maturity information related to Agency MBS. The money market funds invest in short-term Federal Government and Agency debt securities and have no stated maturity date. September 30, 2022 Detail of Agency MBS Maturities (in thousands) Fair Value Amortized Cost Within one year $ — $ — After one year through five years 16,018 16,063 After five years through ten years 99,612 100,327 After ten years 23,159 24,392 Total $ 138,789 $ 140,782 |
EARNINGS PER SHARE AND STOCKHOL
EARNINGS PER SHARE AND STOCKHOLDERS EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY | |
Earnings Per Share and Stockholders' Equity | NOTE 10—EARNINGS PER SHARE AND STOCKHOLDERS’ EQUITY Earnings per share (“EPS”) is calculated under the two-class method. The two-class method allocates all earnings (distributed and undistributed) to each class of common stock and participating securities based on their respective rights to receive dividends. The Company grants share-based awards to various employees and nonemployee directors under the 2020 Equity Incentive Plan that entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. The following table presents the calculation of basic and diluted EPS for the three and nine months ended September 30, 2022 and 2021 under the two-class method. Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the treasury-stock method. For the three months ended September 30, For the nine months ended September 30, EPS Calculations (in thousands, except per share amounts) 2022 2021 2022 2021 Calculation of basic EPS Walker & Dunlop net income $ 46,833 $ 71,721 $ 172,328 $ 185,831 Less: dividends and undistributed earnings allocated to participating securities 1,296 2,364 4,984 6,163 Net income applicable to common stockholders $ 45,537 $ 69,357 $ 167,344 $ 179,668 Weighted-average basic shares outstanding 32,290 31,064 32,300 30,969 Basic EPS $ 1.41 $ 2.23 $ 5.18 $ 5.80 Calculation of diluted EPS Net income applicable to common stockholders $ 45,537 $ 69,357 $ 167,344 $ 179,668 Add: reallocation of dividends and undistributed earnings based on assumed conversion 7 23 34 57 Net income allocated to common stockholders $ 45,544 $ 69,380 $ 167,378 $ 179,725 Weighted-average basic shares outstanding 32,290 31,064 32,300 30,969 Add: weighted-average diluted non-participating securities 330 395 345 398 Weighted-average diluted shares outstanding 32,620 31,459 32,645 31,367 Diluted EPS $ 1.40 $ 2.21 $ 5.13 $ 5.73 The assumed proceeds used for calculating the dilutive impact of restricted stock awards under the treasury-stock method includes the unrecognized compensation costs associated with the awards. For the three and nine months ended September 30, 2022, 218 thousand average restricted shares and 111 thousand average restricted shares, respectively, were excluded from the computation of diluted EPS under the treasury-stock method. For the three months and nine months ended September 30, 2021, an immaterial number of average restricted shares were excluded from the computation. These average restricted shares were excluded from the computation of diluted EPS under the treasury method because the effect would have been anti-dilutive, as the grant date market price of the restricted shares was greater than the average market price of the Company’s shares of common stock during the periods presented. The following non-cash transactions did not impact the amount of cash paid on the Condensed Consolidated Statements of Cash Flows. During 2022, the operating agreement of three of the Company’s tax-credit-related joint ventures changed. The Company reconsidered its consolidation conclusion based on these changes and concluded that the joint ventures should be consolidated, resulting in a $3.7 million increase in APIC and $6.8 million of noncontrolling interests consolidated as shown on the Consolidated Statements of Changes in Equity for the nine months ended September 30, 2022. The consolidation also resulted in a $35.0 million increase in Receivables, net Other assets Other liabilities. In February 2022, the Company’s Board of Directors approved a stock repurchase program that permits the repurchase of up to $75.0 million of the Company’s common stock over a 12-month period beginning on February 13, 2022. During the first quarter of 2022, the Company did no t repurchase any shares of its common stock under the share repurchase program. During the second quarter of 2022, the Company repurchased 109 thousand shares of its common stock under the 2022 share repurchase program at a weighted-average price of $101.77 per share and immediately retired the shares, reducing stockholders’ equity by $11.1 million. During the third quarter of 2022, the Company did no t repurchase any shares of its common stock under the share repurchase program. As of September 30, 2022, the Company had $63.9 million of authorized share repurchase capacity remaining under the 2022 share repurchase program. During each of the first three quarters of 2022, the Company paid a dividend of $0.60 per share. On November 8, 2022, the Company’s Board of Directors declared a dividend of $0.60 per share for the fourth quarter of 2022. The dividend will be paid on December 9, 2022 to all holders of record of the Company’s restricted and unrestricted common stock as of November 25, 2022. The Company’s Note Payable (“Term Loan”) contains direct restrictions to the amount of dividends the Company may pay, and the warehouse debt facilities and agreements with the Agencies contain minimum equity, liquidity, and other capital requirements that indirectly restrict the amount of dividends the Company may pay. The Company does not believe that these restrictions currently limit the amount of dividends the Company can pay for the foreseeable future. |
SEGMENTS
SEGMENTS | 9 Months Ended |
Sep. 30, 2022 | |
SEGMENTS | |
Segments | NOTE 11—SEGMENTS In the first quarter of 2022, as a result of the Company’s growth and recent acquisitions, the Company’s executive leadership team, which functions as the Company’s chief operating decision making body, began making decisions and assessing performance based on the following three operating segments. The operating segments are determined based on the product or service provided and reflect the manner in which management is currently evaluating the Company’s financial information. (i) Capital Markets (“CM”) —CM provides a comprehensive range of commercial real estate finance products to our customers, including Agency lending, debt brokerage, property sales, and appraisal and valuation services. The Company’s long-established relationships with the Agencies and institutional investors enable CM to offer a broad range of loan products and services to the Company’s customers, including first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, and small-balance loans. CM provides property sales services to owners and developers of multifamily properties and commercial real estate and multifamily property appraisals for various investors. As part of Agency lending, CM temporarily funds the loans it originates (loans held for sale) before selling them to the Agencies and earns net interest income on the spread between the interest income on the loans and the warehouse interest expense. For Agency loans, CM recognizes the fair value of expected net cash flows from servicing, which represents the right to receive future servicing fees. CM also earns fees for origination of loans for both Agency lending and debt brokerage and fees for property sales and appraisals. Direct internal, including compensation, and external costs that are specific to CM are included within the results of this operating segment. (ii) Servicing & Asset Management (“SAM”) —SAM’s activities include: (i) servicing and asset-managing the portfolio of loans the Company (a) originates and sells to the Agencies, (b) brokers to certain life insurance companies, and (c) originates through its principal lending and investing activities, (ii) managing third-party capital invested in tax credit equity funds focused on the affordable housing sector and other commercial real estate, and (iii) real estate-related investment banking and advisory services, including housing market research. SAM earns revenue through (i) fees for servicing the loans in the Company’s servicing portfolio, (ii) asset management fees for managing third-party capital invested in funds, primarily LIHTC tax credit funds, (iii) subscription revenue for its housing market research, and (iv) net interest income on the spread between the interest income on the loans and the warehouse interest expense for loans held for investment. Direct internal, including compensation, and external costs that are specific to SAM are included within the results of this operating segment. (iii) Corporate —The Corporate segment consists primarily of the Company’s treasury operations and other corporate-level activities. The Company’s treasury activities include monitoring and managing liquidity and funding requirements, including corporate debt. Other corporate-level activities include equity-method investments, accounting, information technology, legal, human resources, marketing, internal audit, and various other corporate groups (“support functions”). The Company does not allocate costs from these support functions to the CM or SAM segments in presenting segment operating results, other than income tax expense, which is allocated proportionally based on income from operations at each segment, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following tables provide a summary and reconciliation of each segment’s results for the three months ended September 30, 2022 and 2021. For the three months ended September 30, 2022 Segment Results Servicing & (in thousands) Capital Asset Markets Management Corporate Consolidated Revenues Loan origination and debt brokerage fees, net $ 89,752 $ 1,106 $ — $ 90,858 Fair value of expected net cash flows from servicing, net 55,291 — — 55,291 Servicing fees — 75,975 — 75,975 Property sales broker fees 30,308 — — 30,308 Investment management fees — 16,301 — 16,301 Net warehouse interest income 2,178 1,802 — 3,980 Escrow earnings and other interest income — 17,760 369 18,129 Other revenues 5,845 21,544 (2,620) 24,769 Total revenues $ 183,374 $ 134,488 $ (2,251) $ 315,611 Expenses Personnel $ 125,980 $ 21,676 $ 9,403 $ 157,059 Amortization and depreciation 952 57,239 1,655 59,846 Provision (benefit) for credit losses — 1,218 — 1,218 Interest expense on corporate debt — — 9,306 9,306 Other operating expenses 6,063 6,043 21,885 33,991 Total expenses $ 132,995 $ 86,176 $ 42,249 $ 261,420 Income from operations $ 50,379 $ 48,312 $ (44,500) $ 54,191 Income tax expense (benefit) 12,751 12,110 (17,329) 7,532 Net income before noncontrolling interests $ 37,628 $ 36,202 $ (27,171) $ 46,659 Less: net income (loss) from noncontrolling interests — (174) — (174) Walker & Dunlop net income $ 37,628 $ 36,376 $ (27,171) $ 46,833 For the three months ended September 30, 2021 Segment Results Servicing & (in thousands) Capital Asset Markets Management Corporate Consolidated Revenues Loan origination and debt brokerage fees, net $ 121,133 $ 2,109 $ — $ 123,242 Fair value of expected net cash flows from servicing, net 89,482 — — 89,482 Servicing fees — 70,628 — 70,628 Property sales broker fees 33,677 — — 33,677 Investment management fees — 2,564 — 2,564 Net warehouse interest income 3,723 1,860 — 5,583 Escrow earnings and other interest income — 1,945 87 2,032 Other revenues 3,026 16,724 (668) 19,082 Total revenues $ 251,041 $ 95,830 $ (581) $ 346,290 Expenses Personnel $ 139,890 $ 10,446 $ 19,845 $ 170,181 Amortization and depreciation 17 52,388 1,093 53,498 Provision (benefit) for credit losses — 1,266 — 1,266 Interest expense on corporate debt — — 1,766 1,766 Other operating expenses 4,628 3,199 17,009 24,836 Total expenses $ 144,535 $ 67,299 $ 39,713 $ 251,547 Income from operations $ 106,506 $ 28,531 $ (40,294) $ 94,743 Income tax expense (benefit) 25,660 7,040 (9,747) 22,953 Net income before noncontrolling interests $ 80,846 $ 21,491 $ (30,547) $ 71,790 Less: net income (loss) from noncontrolling interests — 69 — 69 Walker & Dunlop net income $ 80,846 $ 21,422 $ (30,547) $ 71,721 The following tables provide a summary and reconciliation of each segment’s results for the nine months ended September 30, 2022 and 2021 and total assets as of September 30, 2022 and 2021. As of and for the nine months ended September 30, 2022 Segment Results and Total Assets Servicing & (in thousands) Capital Asset Markets Management Corporate Consolidated Revenues Loan origination and debt brokerage fees, net $ 273,660 $ 2,113 $ — $ 275,773 Fair value of expected net cash flows from servicing, net 159,970 — — 159,970 Servicing fees — 222,916 — 222,916 Property sales broker fees 100,092 — — 100,092 Investment management fees — 47,345 — 47,345 Net warehouse interest income 9,415 4,606 — 14,021 Escrow earnings and other interest income — 26,166 517 26,683 Other revenues 12,503 74,959 41,641 129,103 Total revenues $ 555,640 $ 378,105 $ 42,158 $ 975,903 Expenses Personnel $ 363,619 $ 62,195 $ 43,794 $ 469,608 Amortization and depreciation 1,762 170,930 4,409 177,101 Provision (benefit) for credit losses — (13,120) — (13,120) Interest expense on corporate debt — — 22,123 22,123 Other operating expenses 16,757 18,721 66,922 102,400 Total expenses $ 382,138 $ 238,726 $ 137,248 $ 758,112 Income from operations $ 173,502 $ 139,379 $ (95,090) $ 217,791 Income tax expense (benefit) 42,074 33,799 (29,378) 46,495 Net income before noncontrolling interests $ 131,428 $ 105,580 $ (65,712) $ 171,296 Less: net income (loss) from noncontrolling interests — (1,032) — (1,032) Walker & Dunlop net income $ 131,428 $ 106,612 $ (65,712) $ 172,328 Total assets $ 3,016,153 $ 2,621,380 $ 365,480 $ 6,003,013 As of and for the nine months ended September 30, 2021 Segment Results and Total Assets Servicing & (in thousands) Capital Asset Markets Management Corporate Consolidated Revenues Loan origination and debt brokerage fees, net $ 302,011 $ 4,582 $ — $ 306,593 Fair value of expected net cash flows from servicing, net 209,266 — — 209,266 Servicing fees — 205,658 — 205,658 Property sales broker fees 65,173 — — 65,173 Investment management fees — 9,115 — 9,115 Net warehouse interest income 9,066 5,702 — 14,768 Escrow earnings and other interest income — 5,712 260 5,972 Other revenues 8,721 28,381 (1,658) 35,444 Total revenues $ 594,237 $ 259,150 $ (1,398) $ 851,989 Expenses Personnel $ 332,519 $ 27,004 $ 48,294 $ 407,817 Amortization and depreciation 556 145,161 3,162 148,879 Provision (benefit) for credit losses — (14,380) — (14,380) Interest expense on corporate debt — — 5,291 5,291 Other operating expenses 11,628 8,056 42,487 62,171 Total expenses $ 344,703 $ 165,841 $ 99,234 $ 609,778 Income from operations $ 249,534 $ 93,309 $ (100,632) $ 242,211 Income tax expense (benefit) 58,014 21,693 (23,396) 56,311 Net income before noncontrolling interests $ 191,520 $ 71,616 $ (77,236) $ 185,900 Less: net income (loss) from noncontrolling interests — 69 — 69 Walker & Dunlop net income $ 191,520 $ 71,547 $ (77,236) $ 185,831 Total assets $ 3,229,274 $ 1,387,423 $ 500,165 $ 5,116,862 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2022 | |
Variable Interest Entities | |
Variable Interest Entities | NOTE 12—VARIABLE INTEREST ENTITIES The Company, through its subsidiary Alliant, provides alternative investment management services through the syndication of tax credit funds and the joint development of affordable housing projects. To facilitate the syndication and development of affordable housing projects, the Company is involved with the acquisition and/or formation of limited partnerships and joint ventures with investors, property developers, and property managers that are VIEs. A detailed discussion of the Company’s accounting policies regarding the consolidation of VIEs and significant transactions involving VIEs is included in NOTE 2 and NOTE 17 of the Company’s 2021 Form 10-K. During 2022, the operating agreements of three of the Company’s joint ventures were amended, resulting in the Company gaining the power to direct the activities that most significantly impact the economic performance of the joint ventures; previously, the Company only held rights to receive the significant economic benefits of the joint ventures. The Company reassessed its consolidation conclusions and determined that it was the primary beneficiary, and as a result, consolidated the joint ventures as of March 31, 2022. As of September 30, 2022 and December 31, 2021, the assets and liabilities of the consolidated tax credit funds were immaterial. The table below presents the assets and liabilities of the Company’s consolidated joint development VIEs included in the Condensed Consolidated Balance Sheets: Consolidated VIEs (in thousands) September 30, 2022 December 31, 2021 Assets: Cash and cash equivalents $ 387 $ — Restricted cash 1,817 — Receivables, net 33,235 — Other Assets 49,475 54,880 Total assets of consolidated VIEs $ 84,914 $ 54,880 Liabilities: Other liabilities $ 38,114 $ 36,480 Total liabilities of consolidated VIEs $ 38,114 $ 36,480 The table below presents the carrying value and classification of the Company’s interests in nonconsolidated VIEs included in the Condensed Consolidated Balance Sheets: Nonconsolidated VIEs (in thousands) September 30, 2022 December 31, 2021 Assets Committed investments in tax credit equity $ 214,430 $ 177,322 Other assets: 58,126 74,997 Total interests in nonconsolidated VIEs $ 272,556 $ 252,319 Liabilities Commitments to fund investments in tax credit equity $ 198,073 $ 162,747 Total commitments to fund nonconsolidated VIEs $ 198,073 $ 162,747 Maximum exposure to losses (1)(2) $ 272,556 $ 252,319 (1) Maximum exposure determined as Total interests in nonconsolidated VIEs . The maximum exposure for the Company’s investments in tax credit equity is limited to the carrying value of its investment, as there are no funding obligations or other commitments related to the nonconsolidated VIEs other than the amounts presented in the table above. (2) Based on historical experience and the underlying expected cash flows from the underlying investment, the maximum exposure of loss is not representative of the actual loss, if any, that the Company may incur. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation If the Company determines it does not hold a variable interest in a VIE, it then applies the voting interest model. Under the voting interest model, the Company consolidates an entity when it holds a majority voting interest in an entity. If the Company does not have a majority voting interest but has significant influence, it uses the equity method of accounting. In instances where the Company owns less than 100% of the equity interests of an entity but holds a controlling financial interest and is the primary beneficiary or owns a majority of the voting interests, the Company accounts for the portion of equity not attributable to Walker & Dunlop, Inc. as Noncontrolling interests Net income (loss) from noncontrolling interests |
Subsequent Events | Subsequent Events |
Use of Estimates | Use of Estimates combinations, estimation of the fair value of the Apprise joint venture (as discussed in NOTE 7), and the disclosure of contingent assets and liabilities. Actual results may vary from these estimates. |
Co-broker Fees | Co-broker Fees— Loan origination and debt brokerage fees, net |
Loans Held for Investment, net | Loans Held for Investment, net As of September 30, 2022, Loans held for investment, net Loans held for investment, net One loan held for investment with an unpaid principal balance of $14.7 million was delinquent and on non-accrual status as of September 30, 2022 and December 31, 2021. The Company had $3.7 million in collateral-based reserves for this loan as of both September 30, 2022 and December 31, 2021 and has not recorded any interest related to this loan since it went on non-accrual status in 2019. All other loans were current as of September 30, 2022 and December 31, 2021. The amortized cost basis of loans that were current as of September 30, 2022 and December 31, 2021 was $236.1 million and $258.6 million, respectively. As of September 30, 2022, $48.6 million, $162.2 million, and $26.3 million of the loans that were current were originated in 2022, 2021, and 2019, respectively. Other than the defaulted loan noted above, the Company has never experienced any delinquencies related to loans held for investment. |
Provision (Benefit) for Credit Losses | Provision (Benefit) for Credit Losses — Provision (benefit) for credit losses Provision (benefit) for credit losses For the three months ended For the nine months ended September 30, September 30, Components of Provision (Benefit) for Credit Losses (in thousands) 2022 2021 2022 2021 Provision (benefit) for loan losses $ 35 $ (12) $ (142) $ (674) Provision (benefit) for risk-sharing obligations 1,183 1,278 (12,978) (13,706) Provision (benefit) for credit losses $ 1,218 $ 1,266 $ (13,120) $ (14,380) |
Net Warehouse Interest Income | Net Warehouse Interest Income— Net warehouse interest income principal balance of the loans and secured borrowing for the nine months ended September 30, 2021. Included in Net warehouse interest income |
Statement of Cash Flows | Statement of Cash Flows September 30, December 31, (in thousands) 2022 2021 2021 2020 Cash and cash equivalents $ 152,188 $ 318,188 $ 305,635 $ 321,097 Restricted cash 40,246 34,875 42,812 19,432 Pledged cash and cash equivalents (NOTE 9) 12,624 51,550 44,733 17,473 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 205,058 $ 404,613 $ 393,180 $ 358,002 |
Income Taxes | Income Taxes |
Contracts with Customers | Contracts with Customers The majority of the Company’s contracts with customers do not require significant judgment or material estimates that affect the determination of the transaction price (including the assessment of variable consideration), the allocation of the transaction price to performance obligations, and the determination of the timing of the satisfaction of performance obligations. Additionally, the earnings process for the majority all of the Company’s contracts with customers is not complicated and is generally completed in a short period of time. The following table presents information about the Company’s contracts with customers for the three and nine months ended September 30, 2022 and 2021: For the three months ended For the nine months ended September 30, September 30, Description in thousands 2022 2021 2022 2021 Statement of income line item Certain loan origination fees $ 40,076 $ 46,527 $ 130,722 $ 113,650 Loan origination and debt brokerage fees, net Property sales broker fees 30,308 33,677 100,092 65,173 Property sales broker fees Investment management fees 16,301 2,564 47,345 9,115 Investment management fees Application fees, subscription revenues, other revenues from LIHTC operations, and other revenues 12,643 8,372 55,384 15,999 Other revenues Total revenues derived from contracts with customers $ 99,328 $ 91,140 $ 333,543 $ 203,937 |
Litigation | Litigation |
Recently Adopted and Recently Announced Accounting Pronouncements | Recently Adopted and Recently Announced Accounting Pronouncement s |
Reclassifications | Reclassifications |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Components of Provision (Benefit) for Credit Losses | For the three months ended For the nine months ended September 30, September 30, Components of Provision (Benefit) for Credit Losses (in thousands) 2022 2021 2022 2021 Provision (benefit) for loan losses $ 35 $ (12) $ (142) $ (674) Provision (benefit) for risk-sharing obligations 1,183 1,278 (12,978) (13,706) Provision (benefit) for credit losses $ 1,218 $ 1,266 $ (13,120) $ (14,380) |
Schedule of Net Warehouse Interest Income | For the three months ended For the nine months ended September 30, September 30, Components of Net Warehouse Interest Income (in thousands) 2022 2021 2022 2021 Warehouse interest income - loans held for sale $ 14,517 $ 11,334 $ 35,555 $ 28,315 Warehouse interest expense - loans held for sale (12,339) (7,611) (26,140) (19,249) Net warehouse interest income - loans held for sale $ 2,178 $ 3,723 $ 9,415 $ 9,066 Warehouse interest income - loans held for investment $ 3,896 $ 3,108 $ 9,261 $ 9,298 Warehouse interest expense - loans held for investment (2,094) (1,248) (4,655) (3,596) Net warehouse interest income - loans held for investment $ 1,802 $ 1,860 $ 4,606 $ 5,702 Total net warehouse interest income $ 3,980 $ 5,583 $ 14,021 $ 14,768 |
Schedule of Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | September 30, December 31, (in thousands) 2022 2021 2021 2020 Cash and cash equivalents $ 152,188 $ 318,188 $ 305,635 $ 321,097 Restricted cash 40,246 34,875 42,812 19,432 Pledged cash and cash equivalents (NOTE 9) 12,624 51,550 44,733 17,473 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 205,058 $ 404,613 $ 393,180 $ 358,002 |
Schedule of Contracts with Customers | For the three months ended For the nine months ended September 30, September 30, Description in thousands 2022 2021 2022 2021 Statement of income line item Certain loan origination fees $ 40,076 $ 46,527 $ 130,722 $ 113,650 Loan origination and debt brokerage fees, net Property sales broker fees 30,308 33,677 100,092 65,173 Property sales broker fees Investment management fees 16,301 2,564 47,345 9,115 Investment management fees Application fees, subscription revenues, other revenues from LIHTC operations, and other revenues 12,643 8,372 55,384 15,999 Other revenues Total revenues derived from contracts with customers $ 99,328 $ 91,140 $ 333,543 $ 203,937 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
MORTGAGE SERVICING RIGHTS | |
Schedule of Activity Related to MSRs | For the three months ended For the nine months ended September 30, September 30, Roll Forward of MSRs (in thousands) 2022 2021 2022 2021 Beginning balance $ 978,745 $ 915,519 $ 953,845 $ 862,813 Additions, following the sale of loan 45,454 70,095 182,753 224,035 Amortization (47,391) (44,402) (140,846) (130,868) Pre-payments and write-offs (9,038) (11,387) (27,982) (26,155) Ending balance $ 967,770 $ 929,825 $ 967,770 $ 929,825 |
Summary of Components of Net Carrying Value of MSRs | Components of MSRs (in thousands) September 30, 2022 December 31, 2021 Gross value $ 1,622,213 $ 1,548,870 Accumulated amortization (654,443) (595,025) Net carrying value $ 967,770 $ 953,845 |
Schedule of Expected Amortization of MSRs | Expected (in thousands) Amortization Three Months Ending December 31, 2022 $ 46,639 Year Ending December 31, 2023 $ 180,469 2024 163,771 2025 141,014 2026 119,503 2027 101,362 Thereafter 215,012 Total $ 967,770 |
ALLOWANCE FOR RISK-SHARING OB_2
ALLOWANCE FOR RISK-SHARING OBLIGATIONS AND GUARANTY OBLIGATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
ALLOWANCE FOR RISK-SHARING OBLIGATIONS AND GUARANTY OBLIGATION | |
Summary of Allowance for Risk-Sharing Obligations | For the three months ended For the nine months ended September 30, September 30, Roll Forward of Allowance for Risk-Sharing Obligations (in thousands) 2022 2021 2022 2021 Beginning balance $ 48,475 $ 60,329 $ 62,636 $ 75,313 Provision (benefit) for risk-sharing obligations 1,183 1,278 (12,978) (13,706) Write-offs — — — — Ending balance $ 49,658 $ 61,607 $ 49,658 $ 61,607 |
Schedule of Activity Related to Guaranty Obligation | For the three months ended For the nine months ended September 30, September 30, Roll Forward of Guaranty Obligation (in thousands) 2022 2021 2022 2021 Beginning balance $ 45,649 $ 50,369 $ 47,378 $ 52,306 Additions, following the sale of loan 1,401 1,449 4,711 4,023 Amortization and write-offs (2,588) (2,758) (7,627) (7,269) Ending balance $ 44,462 $ 49,060 $ 44,462 $ 49,060 |
WAREHOUSE NOTES PAYABLE (Tables
WAREHOUSE NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
WAREHOUSE NOTES PAYABLE | |
Schedule of notes payable | September 30, 2022 (dollars in thousands) Committed Uncommitted Total Facility Outstanding Facility Amount Amount Capacity Balance Interest rate (1) Agency Warehouse Facility #1 $ 325,000 $ 250,000 $ 575,000 $ 147,070 Adjusted Term SOFR plus 1.30% Agency Warehouse Facility #2 700,000 300,000 1,000,000 536,956 Adjusted Term SOFR plus 1.30% Agency Warehouse Facility #3 600,000 265,000 865,000 420,585 Adjusted Term SOFR plus 1.35% Agency Warehouse Facility #4 200,000 225,000 425,000 92,924 Adjusted Term SOFR plus 1.30% Agency Warehouse Facility #5 — 1,000,000 1,000,000 652,773 Adjusted Term SOFR plus 1.45% Total National Bank Agency Warehouse Facilities $ 1,825,000 $ 2,040,000 $ 3,865,000 $ 1,850,308 Fannie Mae repurchase agreement, uncommitted line and open maturity — 1,500,000 1,500,000 507,412 Total Agency Warehouse Facilities $ 1,825,000 $ 3,540,000 $ 5,365,000 $ 2,357,720 Interim Warehouse Facility #1 $ 135,000 $ — $ 135,000 $ — Adjusted Term SOFR plus 1.80% Interim Warehouse Facility #2 100,000 — 100,000 — Adjusted Term SOFR plus 1.35% to 1.85% Interim Warehouse Facility #3 200,000 — 200,000 163,468 30-day LIBOR plus 1.75% to 3.25% Interim Warehouse Facility #4 19,810 — 19,810 19,810 30-day LIBOR plus 3.00% Total National Bank Interim Warehouse Facilities $ 454,810 $ — $ 454,810 $ 183,278 Tax Credit Equity Warehouse Facility $ 30,000 $ — $ 30,000 $ 5,300 Adjusted Daily SOFR plus 3.00% Debt issuance costs — — — (892) Total warehouse facilities $ 2,309,810 $ 3,540,000 $ 5,849,810 $ 2,545,406 (1) Interest rate presented does not include the effect of any applicable interest rate floors. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of Goodwill | For the nine months ended September 30, Roll Forward of Goodwill (in thousands) 2022 2021 Beginning balance $ 698,635 $ 248,958 Additions from acquisitions 222,670 84,291 Measurement-period adjustments 26,859 — Impairment — — Ending balance $ 948,164 $ 333,249 As of Goodwill by Reportable Segment (in thousands) September 30, 2022 Capital Markets $ 451,345 Servicing & Asset Management 496,819 Corporate — Ending balance $ 948,164 |
Schedule of Activity Related to Other Intangible Assets | For the nine months ended September 30, Roll Forward of Other Intangible Assets (in thousands) 2022 2021 Beginning balance $ 183,904 $ 1,880 Additions from acquisitions 31,000 8,719 Amortization (12,070) (2,145) Ending balance $ 202,834 $ 8,454 |
Summary of Components of Net Carrying Value of Other Intangible Assets | Components of Other Intangible Assets (in thousands) September 30, 2022 December 31, 2021 Gross value $ 220,682 $ 189,682 Accumulated amortization (17,848) (5,778) Net carrying value $ 202,834 $ 183,904 |
Schedule of Expected Amortization of Other Intangible Assets | Expected (in thousands) Amortization Three Months Ending December 31, 2022 $ 4,190 Year Ending December 31, 2023 $ 17,263 2024 16,206 2025 16,206 2026 16,206 2027 16,206 Thereafter 116,557 Total $ 202,834 |
Schedule of Contingent Liability | For the nine months ended September 30, Roll Forward of Contingent Consideration Liabilities (in thousands) 2022 2021 Beginning balance $ 125,809 $ 28,829 Additions 119,955 7,504 Accretion and revaluation 3,767 1,405 Payments (28,547) (6,080) Ending balance $ 220,984 $ 31,658 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis | Balance as of (in thousands) Level 1 Level 2 Level 3 Period End September 30, 2022 Assets Loans held for sale $ — $ 2,180,117 $ — $ 2,180,117 Pledged securities 12,624 138,789 — 151,413 Derivative assets — — 255,295 255,295 Total $ 12,624 $ 2,318,906 $ 255,295 $ 2,586,825 Liabilities Derivative liabilities $ — $ — $ 24,054 $ 24,054 Contingent consideration liabilities — — 220,984 220,984 Total $ — $ — $ 245,038 $ 245,038 December 31, 2021 Assets Loans held for sale $ — $ 1,811,586 $ — $ 1,811,586 Pledged securities 44,733 104,263 — 148,996 Derivative assets — — 37,364 37,364 Total $ 44,733 $ 1,915,849 $ 37,364 $ 1,997,946 Liabilities Derivative liabilities $ — $ — $ 6,403 $ 6,403 Contingent consideration liabilities — — 125,808 125,808 Total $ — $ — $ 132,211 $ 132,211 |
Schedule of Roll Forward of Derivative Instruments | For the three months ended For the nine months ended September 30, September 30, Derivative Assets and Liabilities, net (in thousands) 2022 2021 2022 2021 Beginning balance $ 42,634 $ 6,340 $ 30,961 $ 44,720 Settlements 42,458 (146,841) (235,463) (488,356) Realized gains recorded in earnings (1) (85,092) 140,501 204,502 443,636 Unrealized gains (losses) recorded in earnings (1) 231,241 72,223 231,241 72,223 Ending balance $ 231,241 $ 72,223 $ 231,241 $ 72,223 (1) Realized and unrealized gains (losses) from derivatives are recognized in Loan origination and debt brokerage fees, net and Fair value of expected net cash flows from servicing, net in the Condensed Consolidated Statements of Income. |
Schedule of Significant Unobservable Inputs Used in the Measurement of the Fair Value of Level 3 Assets and Liabilities | Quantitative Information about Level 3 Fair Value Measurements (in thousands) Fair Value Valuation Technique Unobservable Input (1) Input Range (1) Weighted Average (3) Derivative assets $ 255,295 Discounted cash flow Counterparty credit risk — — Derivative liabilities $ 24,054 Discounted cash flow Counterparty credit risk — — Contingent consideration liabilities $ 220,984 Monte Carlo Simulation (2) Probability of earn-out achievement 65% - 100% 76% (1) Significant increases in this input may lead to significantly lower fair value measurements. (2) Monte Carlo simulation analysis was supported by other valuation analyses. (3) Contingent consideration weighted based on maximum gross earn-out amount. |
Schedule of Carrying Amounts and the Fair Values of the Company's Financial Instruments | September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair (in thousands) Amount Value Amount Value Financial Assets: Cash and cash equivalents $ 152,188 $ 152,188 $ 305,635 $ 305,635 Restricted cash 40,246 40,246 42,812 42,812 Pledged securities 151,413 151,413 148,996 148,996 Loans held for sale 2,180,117 2,180,117 1,811,586 1,811,586 Loans held for investment, net 247,106 248,098 269,125 270,826 Derivative assets 255,295 255,295 37,364 37,364 Total financial assets $ 3,026,365 $ 3,027,357 $ 2,615,518 $ 2,617,219 Financial Liabilities: Derivative liabilities $ 24,054 $ 24,054 $ 6,403 $ 6,403 Contingent consideration liabilities 220,984 220,984 125,808 125,808 Warehouse notes payable 2,545,406 2,546,298 1,941,572 1,942,448 Notes payable 711,107 715,688 740,174 745,175 Total financial liabilities $ 3,501,551 $ 3,507,024 $ 2,813,957 $ 2,819,834 |
Schedule of Fair Value of Derivative Instruments and Loans Held for Sale | Fair Value Adjustment Components Balance Sheet Location Fair Value Notional or Estimated Total Adjustment Principal Gain Interest Rate Fair Value Derivative Derivative to Loans (in thousands) Amount on Sale Movement Adjustment Assets Liabilities Held for Sale September 30, 2022 Rate lock commitments $ 870,205 $ 21,833 $ (37,337) $ (15,504) $ 8,469 $ (23,973) $ — Forward sale contracts 3,230,106 — 246,745 246,745 246,826 (81) — Loans held for sale 2,359,901 29,624 (209,408) (179,784) — — (179,784) Total $ 51,457 $ — $ 51,457 $ 255,295 $ (24,054) $ (179,784) December 31, 2021 Rate lock commitments $ 1,115,829 $ 29,837 $ (4,604) $ 25,233 $ 26,526 $ (1,293) $ — Forward sale contracts 2,881,224 — 5,728 5,728 10,838 (5,110) — Loans held for sale 1,765,395 47,315 (1,124) 46,191 — — 46,191 Total $ 77,152 $ — $ 77,152 $ 37,364 $ (6,403) $ 46,191 |
FANNIE MAE COMMITMENTS AND PL_2
FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES | |
Schedule of Pledged Securities at Fair Value | September 30, December 31, Pledged Securities (in thousands) 2022 2021 2021 2020 Restricted cash $ 8,454 $ 10,596 $ 3,779 $ 4,954 Money market funds 4,170 40,954 40,954 12,519 Total pledged cash and cash equivalents $ 12,624 $ 51,550 $ 44,733 $ 17,473 Agency MBS 138,789 97,224 104,263 119,763 Total pledged securities, at fair value $ 151,413 $ 148,774 $ 148,996 $ 137,236 |
Schedule of Investment Information Related to AFS Agency MBS | Fair Value and Amortized Cost of Agency MBS (in thousands) September 30, 2022 December 31, 2021 Fair value $ 138,789 $ 104,263 Amortized cost 140,782 100,847 Total gains for securities with net gains in AOCI 762 3,636 Total losses for securities with net losses in AOCI (2,755) (220) Fair value of securities with unrealized losses 116,989 4,757 |
Schedule of Contractual Maturity Information Related to Agency MBS | September 30, 2022 Detail of Agency MBS Maturities (in thousands) Fair Value Amortized Cost Within one year $ — $ — After one year through five years 16,018 16,063 After five years through ten years 99,612 100,327 After ten years 23,159 24,392 Total $ 138,789 $ 140,782 |
EARNINGS PER SHARE AND STOCKH_2
EARNINGS PER SHARE AND STOCKHOLDERS EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY | |
Schedule of Basic and Diluted EPS Under Two-Class Method | For the three months ended September 30, For the nine months ended September 30, EPS Calculations (in thousands, except per share amounts) 2022 2021 2022 2021 Calculation of basic EPS Walker & Dunlop net income $ 46,833 $ 71,721 $ 172,328 $ 185,831 Less: dividends and undistributed earnings allocated to participating securities 1,296 2,364 4,984 6,163 Net income applicable to common stockholders $ 45,537 $ 69,357 $ 167,344 $ 179,668 Weighted-average basic shares outstanding 32,290 31,064 32,300 30,969 Basic EPS $ 1.41 $ 2.23 $ 5.18 $ 5.80 Calculation of diluted EPS Net income applicable to common stockholders $ 45,537 $ 69,357 $ 167,344 $ 179,668 Add: reallocation of dividends and undistributed earnings based on assumed conversion 7 23 34 57 Net income allocated to common stockholders $ 45,544 $ 69,380 $ 167,378 $ 179,725 Weighted-average basic shares outstanding 32,290 31,064 32,300 30,969 Add: weighted-average diluted non-participating securities 330 395 345 398 Weighted-average diluted shares outstanding 32,620 31,459 32,645 31,367 Diluted EPS $ 1.40 $ 2.21 $ 5.13 $ 5.73 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
SEGMENTS | |
Schedule of Segment Results and Total Assets | For the three months ended September 30, 2022 Segment Results Servicing & (in thousands) Capital Asset Markets Management Corporate Consolidated Revenues Loan origination and debt brokerage fees, net $ 89,752 $ 1,106 $ — $ 90,858 Fair value of expected net cash flows from servicing, net 55,291 — — 55,291 Servicing fees — 75,975 — 75,975 Property sales broker fees 30,308 — — 30,308 Investment management fees — 16,301 — 16,301 Net warehouse interest income 2,178 1,802 — 3,980 Escrow earnings and other interest income — 17,760 369 18,129 Other revenues 5,845 21,544 (2,620) 24,769 Total revenues $ 183,374 $ 134,488 $ (2,251) $ 315,611 Expenses Personnel $ 125,980 $ 21,676 $ 9,403 $ 157,059 Amortization and depreciation 952 57,239 1,655 59,846 Provision (benefit) for credit losses — 1,218 — 1,218 Interest expense on corporate debt — — 9,306 9,306 Other operating expenses 6,063 6,043 21,885 33,991 Total expenses $ 132,995 $ 86,176 $ 42,249 $ 261,420 Income from operations $ 50,379 $ 48,312 $ (44,500) $ 54,191 Income tax expense (benefit) 12,751 12,110 (17,329) 7,532 Net income before noncontrolling interests $ 37,628 $ 36,202 $ (27,171) $ 46,659 Less: net income (loss) from noncontrolling interests — (174) — (174) Walker & Dunlop net income $ 37,628 $ 36,376 $ (27,171) $ 46,833 For the three months ended September 30, 2021 Segment Results Servicing & (in thousands) Capital Asset Markets Management Corporate Consolidated Revenues Loan origination and debt brokerage fees, net $ 121,133 $ 2,109 $ — $ 123,242 Fair value of expected net cash flows from servicing, net 89,482 — — 89,482 Servicing fees — 70,628 — 70,628 Property sales broker fees 33,677 — — 33,677 Investment management fees — 2,564 — 2,564 Net warehouse interest income 3,723 1,860 — 5,583 Escrow earnings and other interest income — 1,945 87 2,032 Other revenues 3,026 16,724 (668) 19,082 Total revenues $ 251,041 $ 95,830 $ (581) $ 346,290 Expenses Personnel $ 139,890 $ 10,446 $ 19,845 $ 170,181 Amortization and depreciation 17 52,388 1,093 53,498 Provision (benefit) for credit losses — 1,266 — 1,266 Interest expense on corporate debt — — 1,766 1,766 Other operating expenses 4,628 3,199 17,009 24,836 Total expenses $ 144,535 $ 67,299 $ 39,713 $ 251,547 Income from operations $ 106,506 $ 28,531 $ (40,294) $ 94,743 Income tax expense (benefit) 25,660 7,040 (9,747) 22,953 Net income before noncontrolling interests $ 80,846 $ 21,491 $ (30,547) $ 71,790 Less: net income (loss) from noncontrolling interests — 69 — 69 Walker & Dunlop net income $ 80,846 $ 21,422 $ (30,547) $ 71,721 As of and for the nine months ended September 30, 2022 Segment Results and Total Assets Servicing & (in thousands) Capital Asset Markets Management Corporate Consolidated Revenues Loan origination and debt brokerage fees, net $ 273,660 $ 2,113 $ — $ 275,773 Fair value of expected net cash flows from servicing, net 159,970 — — 159,970 Servicing fees — 222,916 — 222,916 Property sales broker fees 100,092 — — 100,092 Investment management fees — 47,345 — 47,345 Net warehouse interest income 9,415 4,606 — 14,021 Escrow earnings and other interest income — 26,166 517 26,683 Other revenues 12,503 74,959 41,641 129,103 Total revenues $ 555,640 $ 378,105 $ 42,158 $ 975,903 Expenses Personnel $ 363,619 $ 62,195 $ 43,794 $ 469,608 Amortization and depreciation 1,762 170,930 4,409 177,101 Provision (benefit) for credit losses — (13,120) — (13,120) Interest expense on corporate debt — — 22,123 22,123 Other operating expenses 16,757 18,721 66,922 102,400 Total expenses $ 382,138 $ 238,726 $ 137,248 $ 758,112 Income from operations $ 173,502 $ 139,379 $ (95,090) $ 217,791 Income tax expense (benefit) 42,074 33,799 (29,378) 46,495 Net income before noncontrolling interests $ 131,428 $ 105,580 $ (65,712) $ 171,296 Less: net income (loss) from noncontrolling interests — (1,032) — (1,032) Walker & Dunlop net income $ 131,428 $ 106,612 $ (65,712) $ 172,328 Total assets $ 3,016,153 $ 2,621,380 $ 365,480 $ 6,003,013 As of and for the nine months ended September 30, 2021 Segment Results and Total Assets Servicing & (in thousands) Capital Asset Markets Management Corporate Consolidated Revenues Loan origination and debt brokerage fees, net $ 302,011 $ 4,582 $ — $ 306,593 Fair value of expected net cash flows from servicing, net 209,266 — — 209,266 Servicing fees — 205,658 — 205,658 Property sales broker fees 65,173 — — 65,173 Investment management fees — 9,115 — 9,115 Net warehouse interest income 9,066 5,702 — 14,768 Escrow earnings and other interest income — 5,712 260 5,972 Other revenues 8,721 28,381 (1,658) 35,444 Total revenues $ 594,237 $ 259,150 $ (1,398) $ 851,989 Expenses Personnel $ 332,519 $ 27,004 $ 48,294 $ 407,817 Amortization and depreciation 556 145,161 3,162 148,879 Provision (benefit) for credit losses — (14,380) — (14,380) Interest expense on corporate debt — — 5,291 5,291 Other operating expenses 11,628 8,056 42,487 62,171 Total expenses $ 344,703 $ 165,841 $ 99,234 $ 609,778 Income from operations $ 249,534 $ 93,309 $ (100,632) $ 242,211 Income tax expense (benefit) 58,014 21,693 (23,396) 56,311 Net income before noncontrolling interests $ 191,520 $ 71,616 $ (77,236) $ 185,900 Less: net income (loss) from noncontrolling interests — 69 — 69 Walker & Dunlop net income $ 191,520 $ 71,547 $ (77,236) $ 185,831 Total assets $ 3,229,274 $ 1,387,423 $ 500,165 $ 5,116,862 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Consolidated VIEs | |
Schedule of the Carrying Value and Classification of Assets and Liabilities of VIEs | Consolidated VIEs (in thousands) September 30, 2022 December 31, 2021 Assets: Cash and cash equivalents $ 387 $ — Restricted cash 1,817 — Receivables, net 33,235 — Other Assets 49,475 54,880 Total assets of consolidated VIEs $ 84,914 $ 54,880 Liabilities: Other liabilities $ 38,114 $ 36,480 Total liabilities of consolidated VIEs $ 38,114 $ 36,480 |
Nonconsolidated VIEs | |
Schedule of the Carrying Value and Classification of Assets and Liabilities of VIEs | Nonconsolidated VIEs (in thousands) September 30, 2022 December 31, 2021 Assets Committed investments in tax credit equity $ 214,430 $ 177,322 Other assets: 58,126 74,997 Total interests in nonconsolidated VIEs $ 272,556 $ 252,319 Liabilities Commitments to fund investments in tax credit equity $ 198,073 $ 162,747 Total commitments to fund nonconsolidated VIEs $ 198,073 $ 162,747 Maximum exposure to losses (1)(2) $ 272,556 $ 252,319 (1) Maximum exposure determined as Total interests in nonconsolidated VIEs . The maximum exposure for the Company’s investments in tax credit equity is limited to the carrying value of its investment, as there are no funding obligations or other commitments related to the nonconsolidated VIEs other than the amounts presented in the table above. (2) Based on historical experience and the underlying expected cash flows from the underlying investment, the maximum exposure of loss is not representative of the actual loss, if any, that the Company may incur. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Mortgage Banking Activities | ||||
Co-broker fees | $ 3.1 | $ 6.3 | $ 13.4 | $ 15.2 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Held-for-Investment, Net (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Financial Asset, Not Past Due | ||
Loans Held-for-Investment, Net | ||
Amortized cost of loans held for investment, current | $ 236,100,000 | $ 258,600,000 |
Loans originated in 2022 | 48,600,000 | |
Loans originated in 2021 | 162,200,000 | |
Loan originated in 2019 | $ 26,300,000 | |
Loans Held for Investment | ||
Loans Held-for-Investment, Net | ||
Number of loans held for investment | loan | 9 | 12 |
Unpaid principal balance of loans held for investment | $ 251,800,000 | $ 274,500,000 |
Net unamortized deferred fees and costs | 700,000 | 1,200,000 |
Allowance for loan losses | $ 4,000,000 | $ 4,200,000 |
Number of delinquent loans | 1 | 1 |
Loans held for investment, delinquent | $ 14,700,000 | $ 14,700,000 |
Number of loans on nonaccrual status | loan | 1 | 1 |
Loans, non-accrual status | $ 14,700,000 | $ 14,700,000 |
Specific reserve for loan | $ 3,700,000 | $ 3,700,000 |
Loans Held for Investment | Maximum | ||
Loans Held-for-Investment, Net | ||
Loan term (in years) | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Components of Provision for Credit Losses | ||||
Provision (benefit) for loan losses | $ 35 | $ (12) | $ (142) | $ (674) |
Provision (benefit) for risk-sharing obligations | 1,183 | 1,278 | (12,978) | (13,706) |
Provision (benefit) for credit losses | $ 1,218 | $ 1,266 | $ (13,120) | $ (14,380) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Warehouse Interest Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Warehouse Interest Income | ||||
Net warehouse interest income | $ 3,980 | $ 5,583 | $ 14,021 | $ 14,768 |
Loans Held for Sale | ||||
Net Warehouse Interest Income | ||||
Warehouse interest income | 14,517 | 11,334 | 35,555 | 28,315 |
Warehouse interest expense | (12,339) | (7,611) | (26,140) | (19,249) |
Net warehouse interest income | 2,178 | 3,723 | 9,415 | 9,066 |
Loans Held for Investment | ||||
Net Warehouse Interest Income | ||||
Warehouse interest income | 3,896 | 3,108 | 9,261 | 9,298 |
Warehouse interest expense | (2,094) | (1,248) | (4,655) | (3,596) |
Net warehouse interest income | $ 1,802 | $ 1,860 | $ 4,606 | $ 5,702 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash Flows (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | ||||
Cash and cash equivalents | $ 152,188 | $ 305,635 | $ 318,188 | $ 321,097 |
Restricted cash | 40,246 | 42,812 | 34,875 | 19,432 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 205,058 | 393,180 | 404,613 | 358,002 |
Total pledged cash and cash equivalents | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | ||||
Pledged cash and cash equivalents (NOTE 9) | $ 12,624 | $ 44,733 | $ 51,550 | $ 17,473 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Excess tax benefits recognized | $ 0.3 | $ 2.1 | $ 5.5 | $ 7.3 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Contracts with Customers | ||||
Revenue from contracts with customer | $ 99,328 | $ 91,140 | $ 333,543 | $ 203,937 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Revenues | Revenues | Revenues | Revenues |
Loan Origination Fees | ||||
Contracts with Customers | ||||
Revenue from contracts with customer | $ 40,076 | $ 46,527 | $ 130,722 | $ 113,650 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Revenues | Revenues | Revenues | Revenues |
Property Sales Broker Fees | ||||
Contracts with Customers | ||||
Revenue from contracts with customer | $ 30,308 | $ 33,677 | $ 100,092 | $ 65,173 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Revenues | Revenues | Revenues | Revenues |
Investment management fees | ||||
Contracts with Customers | ||||
Revenue from contracts with customer | $ 16,301 | $ 2,564 | $ 47,345 | $ 9,115 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Revenues | Revenues | Revenues | Revenues |
Application fees, subscription revenues, other revenues from LIHTC operations, and other revenues | ||||
Contracts with Customers | ||||
Revenue from contracts with customer | $ 12,643 | $ 8,372 | $ 55,384 | $ 15,999 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Revenues | Revenues | Revenues | Revenues |
MORTGAGE SERVICING RIGHTS - Fai
MORTGAGE SERVICING RIGHTS - Fair Value Disclosures (Detail) - MSRs $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Servicing | |
Fair value of the MSRs | $ 1,300 |
Sensitivity Analysis of Fair Value, example 1, impact of percent adverse change in discount rate, percent | 1% |
Decrease in fair value as a result of 100 basis point increase in discount rate | $ 40.6 |
Sensitivity Analysis of Fair Value, example 2, impact of percent adverse change in discount rate, percent | 2% |
Decrease in fair value as a result of 200 basis point increase in discount rate | $ 78.6 |
MORTGAGE SERVICING RIGHTS - Sch
MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to MSRs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Mortgage Servicing Rights | ||||
Beginning balance | $ 953,845 | |||
Ending balance | $ 967,770 | 967,770 | ||
MSRs | ||||
Mortgage Servicing Rights | ||||
Beginning balance | 978,745 | $ 915,519 | 953,845 | $ 862,813 |
Additions, following sale of loan | 45,454 | 70,095 | 182,753 | 224,035 |
Amortization | (47,391) | (44,402) | (140,846) | (130,868) |
Pre-payments and write-offs | (9,038) | (11,387) | (27,982) | (26,155) |
Ending balance | $ 967,770 | $ 929,825 | $ 967,770 | $ 929,825 |
MORTGAGE SERVICING RIGHTS - Sum
MORTGAGE SERVICING RIGHTS - Summary of Components of Net Carrying Value of Acquired and Originated MSRs (Detail) - MSRs - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Mortgage Servicing Rights Acquired and Originated | ||
Gross value | $ 1,622,213 | $ 1,548,870 |
Accumulated amortization | (654,443) | (595,025) |
Net carrying value | $ 967,770 | $ 953,845 |
MORTGAGE SERVICING RIGHTS - S_2
MORTGAGE SERVICING RIGHTS - Schedule of Expected Amortization of MSRs (Detail) - MSRs - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Future amortization | ||
Three Months Ending December 31, 2022 | $ 46,639 | |
2023 | 180,469 | |
2024 | 163,771 | |
2025 | 141,014 | |
2026 | 119,503 | |
2027 | 101,362 | |
Thereafter | 215,012 | |
Net carrying value | $ 967,770 | $ 953,845 |
ALLOWANCE FOR RISK-SHARING OB_3
ALLOWANCE FOR RISK-SHARING OBLIGATIONS AND GUARANTY OBLIGATION - Summary of Allowance for Risk-Sharing Obligations (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Allowance for Risk-Sharing Contracts | ||||||||||
Beginning balance | $ 48,475 | $ 62,636 | $ 61,607 | $ 60,329 | $ 62,636 | $ 75,313 | ||||
Provision (benefit) for risk-sharing obligations | 1,183 | 1,278 | (12,978) | (13,706) | ||||||
Ending balance | 49,658 | 62,636 | 61,607 | $ 49,658 | 61,607 | |||||
Number of defaulted loans | loan | 3 | |||||||||
Amount of specific reserves placed on defaulted at risk loans | 10,800 | $ 10,300 | $ 10,800 | |||||||
Fannie Mae DUS program | ||||||||||
Allowance for Risk-Sharing Contracts | ||||||||||
Maximum quantifiable contingent liability associated with guarantees | $ 10,800,000 | $ 9,800,000 | $ 10,800,000 | $ 9,800,000 | ||||||
Fannie Mae DUS Program | ||||||||||
Allowance for Risk-Sharing Contracts | ||||||||||
Period of time used to determine the historical loss rate | 10 years | |||||||||
Charge off rate for forecasted period | 0.03% | 0.022% | 0.03% | 0.04% | 0.06% | |||||
Charge off rate for the remaining period | 0.012% | 0.018% | 0.012% | |||||||
At risk servicing portfolio | $ 52,100,000 | $ 52,100,000 | ||||||||
CECL reserve for at risk servicing portfolio | $ 38,900 | $ 52,300 | $ 38,900 | |||||||
Weighted average remaining life of the at risk servicing portfolio | 7 years 6 months | 7 years 3 months 18 days |
ALLOWANCE FOR RISK-SHARING OB_4
ALLOWANCE FOR RISK-SHARING OBLIGATIONS AND GUARANTY OBLIGATION - Schedule of Activity Related to Guaranty Obligation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
ALLOWANCE FOR RISK-SHARING OBLIGATIONS AND GUARANTY OBLIGATION | ||||
Guaranty obligation, net of accumulated amortization - beginning balance | $ 45,649 | $ 50,369 | $ 47,378 | $ 52,306 |
Additions, following the sale of loan | 1,401 | 1,449 | 4,711 | 4,023 |
Amortization | (2,588) | (2,758) | (7,627) | (7,269) |
Guaranty obligation, net of accumulated amortization - ending balance | $ 44,462 | $ 49,060 | $ 44,462 | $ 49,060 |
SERVICING - (Detail)
SERVICING - (Detail) - Loans serviced - USD ($) $ in Billions | Sep. 30, 2022 | Dec. 31, 2021 |
Servicing | ||
Servicing portfolio loans unpaid principal balance | $ 120.8 | $ 115.7 |
Custodial escrow accounts | $ 3.1 | $ 3.7 |
WAREHOUSE NOTES PAYABLE - Summa
WAREHOUSE NOTES PAYABLE - Summary Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Warehouse notes payable | |||||||
Committed Amount | $ 2,309,810 | $ 2,309,810 | |||||
Uncommitted Amount | 3,540,000 | 3,540,000 | |||||
Total Facility Capacity | 5,849,810 | 5,849,810 | |||||
Outstanding Balance | 2,545,406 | 2,545,406 | $ 1,941,572 | ||||
Debt issuance costs | (892) | (892) | |||||
Loans Held for Sale | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | 1,825,000 | 1,825,000 | |||||
Uncommitted Amount | 3,540,000 | 3,540,000 | |||||
Total Facility Capacity | 5,365,000 | 5,365,000 | |||||
Outstanding Balance | 2,357,720 | 2,357,720 | |||||
National Banks | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Total Facility Capacity | 3,900,000 | 3,900,000 | |||||
National Banks | Interim Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Total Facility Capacity | 500,000 | 500,000 | |||||
National Banks | Tax Credit Equity Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | 30,000 | 30,000 | |||||
Total Facility Capacity | 30,000 | 30,000 | |||||
Outstanding Balance | $ 5,300 | $ 5,300 | |||||
Maturity date | Oct. 14, 2022 | ||||||
National Banks | Tax Credit Equity Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 3% | 3% | |||||
National Banks | Tax Credit Equity Warehouse Facility | Adjusted Term SOFR | Minimum | |||||||
Warehouse notes payable | |||||||
Interest rate floor | 1.50% | ||||||
National Banks | Tax Credit Equity Warehouse Facility | Daily LIBOR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 3% | ||||||
National Banks | New Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Maturity date | Oct. 05, 2025 | ||||||
National Banks | New Warehouse Facility | Maximum | |||||||
Warehouse notes payable | |||||||
Committed Amount | $ 20,000 | ||||||
National Banks | New Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 2.80% | ||||||
National Banks | New Warehouse Facility | Adjusted Term SOFR | Minimum | |||||||
Warehouse notes payable | |||||||
Interest rate floor | 0% | ||||||
National Banks | Loans Held for Sale | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | $ 1,825,000 | $ 1,825,000 | |||||
Uncommitted Amount | 2,040,000 | 2,040,000 | |||||
Total Facility Capacity | 3,865,000 | 3,865,000 | |||||
Outstanding Balance | 1,850,308 | 1,850,308 | |||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #1 | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | 325,000 | $ 425,000 | 325,000 | ||||
Uncommitted Amount | 250,000 | 250,000 | |||||
Total Facility Capacity | 575,000 | 575,000 | |||||
Outstanding Balance | $ 147,070 | $ 147,070 | |||||
Maturity date | Aug. 30, 2023 | ||||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #1 | Agency Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.30% | ||||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #2 | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | $ 700,000 | $ 700,000 | |||||
Uncommitted Amount | 300,000 | 300,000 | |||||
Total Facility Capacity | 1,000,000 | 1,000,000 | |||||
Outstanding Balance | 536,956 | $ 536,956 | |||||
Maturity date | Apr. 13, 2023 | ||||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #2 | Agency Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.30% | 1.30% | |||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #3 | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | 600,000 | $ 600,000 | |||||
Uncommitted Amount | 265,000 | 265,000 | |||||
Total Facility Capacity | 865,000 | 865,000 | |||||
Outstanding Balance | 420,585 | $ 420,585 | |||||
Maturity date | May 15, 2023 | ||||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #3 | Agency Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.35% | 1.35% | |||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #3 | Agency Warehouse Facility | Adjusted Term SOFR | Minimum | |||||||
Warehouse notes payable | |||||||
Interest rate floor | 0.15% | ||||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #4 | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | 200,000 | $ 200,000 | |||||
Uncommitted Amount | 225,000 | 225,000 | |||||
Total Facility Capacity | 425,000 | $ 425,000 | $ 350,000 | 425,000 | |||
Outstanding Balance | 92,924 | $ 92,924 | |||||
Maturity date | Jun. 22, 2023 | ||||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #4 | Agency Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.30% | 1.30% | |||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #5 | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Uncommitted Amount | 1,000,000 | $ 1,000,000 | |||||
Total Facility Capacity | 1,000,000 | 1,000,000 | |||||
Outstanding Balance | $ 652,773 | $ 652,773 | |||||
Maturity date | Sep. 14, 2023 | ||||||
National Banks | Loans Held for Sale | Agency Warehouse Facility #5 | Agency Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.45% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | $ 454,810 | $ 454,810 | |||||
Total Facility Capacity | 454,810 | 454,810 | |||||
Outstanding Balance | 183,278 | 183,278 | |||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #1 | Interim Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | 135,000 | 135,000 | |||||
Total Facility Capacity | 135,000 | $ 135,000 | |||||
Maturity date | May 15, 2023 | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #1 | Interim Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.80% | 1.80% | |||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #2 | Adjusted Term SOFR | Minimum | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.35% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #2 | Adjusted Term SOFR | Maximum | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.85% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #2 | Interim Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | 100,000 | $ 100,000 | |||||
Total Facility Capacity | 100,000 | $ 100,000 | |||||
Maturity date | Dec. 13, 2023 | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #2 | Interim Warehouse Facility | Adjusted Term SOFR | Minimum | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.35% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #2 | Interim Warehouse Facility | Adjusted Term SOFR | Maximum | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.85% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #3 | Interim Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | 200,000 | $ 200,000 | |||||
Total Facility Capacity | 200,000 | 200,000 | |||||
Outstanding Balance | $ 163,468 | $ 163,468 | |||||
Maturity date | Sep. 29, 2023 | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #3 | Interim Warehouse Facility | 30-day LIBOR | Minimum | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 1.75% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #3 | Interim Warehouse Facility | 30-day LIBOR | Maximum | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 3.25% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #4 | Interim Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Committed Amount | $ 19,810 | $ 19,810 | |||||
Total Facility Capacity | 19,810 | 19,810 | |||||
Outstanding Balance | 19,810 | $ 19,810 | |||||
Maturity date | Oct. 01, 2024 | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #4 | Interim Warehouse Facility | 30-day LIBOR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 3% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #4 | Interim Warehouse Facility | Adjusted Term SOFR | |||||||
Warehouse notes payable | |||||||
Percentage added to reference rate | 3.11% | ||||||
National Banks | Loans Held for Investment | Interim Warehouse Facility #4 | Interim Warehouse Facility | Adjusted Term SOFR | Minimum | |||||||
Warehouse notes payable | |||||||
Interest rate floor | 0.15% | ||||||
Fannie Mae | Loans Held for Sale | Fannie Mae Repurchase Agreement, Uncommitted Line and Open Maturity | Agency Warehouse Facility | |||||||
Warehouse notes payable | |||||||
Uncommitted Amount | 1,500,000 | $ 1,500,000 | |||||
Total Facility Capacity | 1,500,000 | 1,500,000 | |||||
Outstanding Balance | $ 507,412 | $ 507,412 |
WAREHOUSE NOTES PAYABLE - Coven
WAREHOUSE NOTES PAYABLE - Covenants and Terms (Detail) - New Warehouse Facility $ in Millions | Oct. 31, 2022 USD ($) |
Warehouse notes payable | |
Minimum tangible net worth under covenant requirement | $ 30 |
Minimum liquid asset to be maintained under financial covenants | $ 15 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 698,635 | $ 248,958 |
Additions from acquisitions | 222,670 | 84,291 |
Measurement-period adjustments | 26,859 | |
Ending balance | $ 948,164 | $ 333,249 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Acquisitions (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 28, 2022 USD ($) | Sep. 30, 2022 USD ($) item | Sep. 30, 2022 USD ($) item segment | Dec. 31, 2021 USD ($) segment | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Acquisitions | ||||||
Number of acquisitions during the period | item | 2 | 2 | ||||
Receivable forgiven | $ 5,460 | $ 5,460 | ||||
Gain on remeasurement of equity investment to fair value prior to acquisition of controlling interest | 39,641 | |||||
Goodwill recognized | 948,164 | $ 948,164 | $ 698,635 | $ 333,249 | $ 248,958 | |
Number of reportable segments | segment | 3 | 1 | ||||
Measurement-period adjustments | $ 26,859 | |||||
Annual small balance lending volume goal by 2025 | 5,000,000 | |||||
Annual appraisal revenue goal by 2025 | $ 75,000 | |||||
Expected period of significant appraisal revenue growth | 5 years | |||||
Maximum | ||||||
Acquisitions | ||||||
Contingent consideration liability earnout period | 5 years | |||||
Discounted Cash Flows | Measurement Input, Discount Rate | ||||||
Fair value valuation | ||||||
Investment, Measurement Input | 0.170 | |||||
Capital Markets | ||||||
Acquisitions | ||||||
Goodwill recognized | 451,345 | $ 451,345 | ||||
Apprise | ||||||
Acquisitions | ||||||
Book value of equity method investment prior to transaction | $ 18,900 | |||||
Fair value of equity method investment prior to transaction | 58,500 | |||||
Apprise | Other Revenues | ||||||
Acquisitions | ||||||
Gain on remeasurement of equity investment to fair value prior to acquisition of controlling interest | $ 39,600 | |||||
Apprise | ||||||
Acquisitions | ||||||
Total ownership interest | 100% | |||||
GeoPhy | ||||||
Acquisitions | ||||||
Ownership interest acquired | 100% | |||||
Cash consideration | $ 82,100 | |||||
Receivable forgiven | 5,500 | |||||
Contingent consideration liabilities | 117,000 | |||||
Total consideration | 204,600 | |||||
Deferred tax assets | $ 9,400 | |||||
Contingent consideration liability earnout period | 4 years | |||||
Maximum earnout of contingent consideration | $ 205,000 | |||||
Estimated undiscounted maximum earnout of contingent consideration | $ 132,700 | |||||
Estimated maximum percentage earnout of contingent consideration | 65% | |||||
Liability recognized as a percentage of the maximum consideration which may be paid | 57% | |||||
Measurement-period adjustments | 5,500 | |||||
GeoPhy | Contingent Consideration Liability, Apprise Portion | Probability-weighted Expected Return | Probability of earnout achievement | ||||||
Fair value valuation | ||||||
Contingent consideration liabilities, Measurement input | 0.170 | |||||
GeoPhy | Contingent Consideration Liability, Small Balance Portion | Probability-weighted Expected Return | Probability of earnout achievement | ||||||
Fair value valuation | ||||||
Contingent consideration liabilities, Measurement input | 0.145 | |||||
GeoPhy | Technology intangible assets | ||||||
Acquisitions | ||||||
Intangible assets acquired | $ 31,000 | |||||
Amortization period of intangible assets | 10 years | |||||
GeoPhy | Capital Markets | ||||||
Acquisitions | ||||||
Goodwill recognized | $ 206,400 | |||||
Apprise | ||||||
Acquisitions | ||||||
Ownership interest acquired | 50% | |||||
Investment Sales Brokerage Company | ||||||
Acquisitions | ||||||
Cash consideration | 6,000 | |||||
Contingent consideration liabilities | 3,000 | 3,000 | ||||
Goodwill recognized | $ 8,800 | 8,800 | ||||
Alliant Capital, LTD | ||||||
Acquisitions | ||||||
Measurement-period adjustments | $ 29,700 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill [Line Items] | ||||
Goodwill. | $ 948,164 | $ 698,635 | $ 333,249 | $ 248,958 |
Capital Markets | ||||
Goodwill [Line Items] | ||||
Goodwill. | 451,345 | |||
Servicing and Asset Management | ||||
Goodwill [Line Items] | ||||
Goodwill. | $ 496,819 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - Other intangible assets - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Other intangible assets | |||
Beginning Balance | $ 183,904 | $ 1,880 | |
Additions from acquisitions | 31,000 | 8,719 | |
Amortization | (12,070) | (2,145) | |
Ending balance | 202,834 | 8,454 | $ 183,904 |
Components of other intangible assets | |||
Gross value | 220,682 | 189,682 | |
Accumulated amortization | (17,848) | (5,778) | |
Net carrying value | $ 202,834 | $ 8,454 | $ 183,904 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Expected Amortization of Other Intangible Assets (Details) - Other intangible assets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Future amortization | ||||
Three Months Ending December 31, 2022 | $ 4,190 | |||
2023 | 17,263 | |||
2024 | 16,206 | |||
2025 | 16,206 | |||
2026 | 16,206 | |||
2027 | 16,206 | |||
Thereafter | 116,557 | |||
Net carrying value | $ 202,834 | $ 183,904 | $ 8,454 | $ 1,880 |
GOODWILL AND OTHER INTANGIBLE_8
GOODWILL AND OTHER INTANGIBLE ASSETS - Contingent Consideration Liabilities (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | |
Contingent consideration liabilities | ||
Additions | $ 119,955 | $ 7,504 |
Number of acquisitions during the period | item | 2 | |
Stock issued for settlement of contingent liabilities | $ 8,750 | |
Maximum | ||
Contingent consideration liabilities | ||
Contingent consideration liability earnout period | 5 years | |
Other Liabilities | ||
Contingent consideration liabilities | ||
Beginning balance | $ 125,809 | 28,829 |
Additions | 119,955 | 7,504 |
Accretion and revaluation | 3,767 | 1,405 |
Payments | (28,547) | (6,080) |
Ending balance | $ 220,984 | $ 31,658 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Loans held for sale | $ 2,180,117 | $ 1,811,586 |
Pledged securities, at fair value | 151,413 | 148,996 |
Derivative assets | 255,295 | 37,364 |
Liabilities | ||
Derivative liabilities | 24,054 | 6,403 |
Recurring Basis | ||
Assets | ||
Loans held for sale | 2,180,117 | 1,811,586 |
Pledged securities, at fair value | 151,413 | 148,996 |
Derivative assets | 255,295 | 37,364 |
Total financial assets | 2,586,825 | 1,997,946 |
Liabilities | ||
Derivative liabilities | 24,054 | 6,403 |
Contingent consideration liabilities | 220,984 | 125,808 |
Total financial liabilities | 245,038 | 132,211 |
Level 1 | Recurring Basis | ||
Assets | ||
Pledged securities, at fair value | 12,624 | 44,733 |
Total financial assets | 12,624 | 44,733 |
Level 2 | Recurring Basis | ||
Assets | ||
Loans held for sale | 2,180,117 | 1,811,586 |
Pledged securities, at fair value | 138,789 | 104,263 |
Total financial assets | 2,318,906 | 1,915,849 |
Level 3 | Recurring Basis | ||
Assets | ||
Derivative assets | 255,295 | 37,364 |
Total financial assets | 255,295 | 37,364 |
Liabilities | ||
Derivative liabilities | 24,054 | 6,403 |
Contingent consideration liabilities | 220,984 | 125,808 |
Total financial liabilities | $ 245,038 | $ 132,211 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Fair Value Measurements | |
Amount of transfers between any of the levels within the fair value hierarchy | $ 0 |
Maximum | |
Fair Value Measurements | |
Contract term | 60 days |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Roll Forward of Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative assets and liabilities, net | ||||
Beginning balance | $ 42,634 | $ 6,340 | $ 30,961 | $ 44,720 |
Settlements | 42,458 | (146,841) | (235,463) | (488,356) |
Realized gains recorded in earnings | (85,092) | 140,501 | 204,502 | 443,636 |
Unrealized gains recorded in earnings | 231,241 | 72,223 | 231,241 | 72,223 |
Ending balance | $ 231,241 | $ 72,223 | $ 231,241 | $ 72,223 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Significant Unobservable Inputs Used in the Measurement of the Fair Value of Level 3 Assets and Liabilities (Detail) $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurements | ||
Derivative assets | $ 255,295 | $ 37,364 |
Derivative liabilities | 24,054 | 6,403 |
Recurring Basis | ||
Fair Value Measurements | ||
Derivative assets | 255,295 | 37,364 |
Derivative liabilities | 24,054 | 6,403 |
Contingent consideration liabilities | 220,984 | 125,808 |
Recurring Basis | Level 3 | ||
Fair Value Measurements | ||
Derivative assets | 255,295 | 37,364 |
Derivative liabilities | 24,054 | 6,403 |
Contingent consideration liabilities | 220,984 | $ 125,808 |
Recurring Basis | Level 3 | Derivative Liabilities | Discounted Cash Flows | ||
Fair Value Measurements | ||
Derivative liabilities | 24,054 | |
Recurring Basis | Level 3 | Contingent Consideration Liabilities | Monte Carlo Simulation | ||
Fair Value Measurements | ||
Contingent consideration liabilities | $ 220,984 | |
Recurring Basis | Level 3 | Contingent Consideration Liabilities | Monte Carlo Simulation | Probability of earnout achievement | Minimum | ||
Fair Value Measurements | ||
Contingent consideration liabilities, Measurement input | 0.65 | |
Recurring Basis | Level 3 | Contingent Consideration Liabilities | Monte Carlo Simulation | Probability of earnout achievement | Maximum | ||
Fair Value Measurements | ||
Contingent consideration liabilities, Measurement input | 1 | |
Recurring Basis | Level 3 | Contingent Consideration Liabilities | Monte Carlo Simulation | Probability of earnout achievement | Weighted Average | ||
Fair Value Measurements | ||
Contingent consideration liabilities, Measurement input | 0.76 | |
Recurring Basis | Level 3 | Derivative Assets | Discounted Cash Flows | ||
Fair Value Measurements | ||
Derivative assets | $ 255,295 |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Carrying Amounts and the Fair Values of the Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||||
Cash and cash equivalents | $ 152,188 | $ 305,635 | $ 318,188 | $ 321,097 |
Restricted cash | 40,246 | 42,812 | $ 34,875 | $ 19,432 |
Pledged securities, at fair value | 151,413 | 148,996 | ||
Loans held for sale | 2,180,117 | 1,811,586 | ||
Loans held for investment, net | 247,106 | 269,125 | ||
Derivative assets | 255,295 | 37,364 | ||
Financial liabilities: | ||||
Derivative liabilities | 24,054 | 6,403 | ||
Warehouse notes payable | 2,545,406 | 1,941,572 | ||
Note payable | 711,107 | 740,174 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 152,188 | 305,635 | ||
Restricted cash | 40,246 | 42,812 | ||
Pledged securities, at fair value | 151,413 | 148,996 | ||
Loans held for sale | 2,180,117 | 1,811,586 | ||
Loans held for investment, net | 247,106 | 269,125 | ||
Derivative assets | 255,295 | 37,364 | ||
Total financial assets | 3,026,365 | 2,615,518 | ||
Financial liabilities: | ||||
Derivative liabilities | 24,054 | 6,403 | ||
Contingent consideration liabilities | 220,984 | 125,808 | ||
Warehouse notes payable | 2,545,406 | 1,941,572 | ||
Note payable | 711,107 | 740,174 | ||
Total financial liabilities | 3,501,551 | 2,813,957 | ||
Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 152,188 | 305,635 | ||
Restricted cash | 40,246 | 42,812 | ||
Pledged securities, at fair value | 151,413 | 148,996 | ||
Loans held for sale | 2,180,117 | 1,811,586 | ||
Loans held for investment, net | 248,098 | 270,826 | ||
Derivative assets | 255,295 | 37,364 | ||
Total financial assets | 3,027,357 | 2,617,219 | ||
Financial liabilities: | ||||
Derivative liabilities | 24,054 | 6,403 | ||
Contingent consideration liabilities | 220,984 | 125,808 | ||
Warehouse notes payable | 2,546,298 | 1,942,448 | ||
Note payable | 715,688 | 745,175 | ||
Total financial liabilities | $ 3,507,024 | $ 2,819,834 |
FAIR VALUE MEASUREMENTS - Gener
FAIR VALUE MEASUREMENTS - General information (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Loans Held for Sale | |
Other information | |
Period of originated loans within which they are transferred or sold | 60 days |
Money Market Funds | Maximum | |
Other information | |
Maximum term of maturity of pledged securities | 90 days |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Fair Value of Derivative Instruments and Loans Held for Sale (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative notional amount and balance sheet location | ||
Estimated Gain on Sale | $ 51,457 | $ 77,152 |
Total Fair Value Adjustment | 51,457 | 77,152 |
Derivative assets | 255,295 | 37,364 |
Derivative Liabilities | (24,054) | (6,403) |
Fair Value Adjustment to Loans Held for Sale | (179,784) | 46,191 |
Loans Held for Sale | ||
Derivative notional amount and balance sheet location | ||
Notional or Principal Amount | 2,359,901 | 1,765,395 |
Estimated Gain on Sale | 29,624 | 47,315 |
Interest Rate Movement | (209,408) | (1,124) |
Total Fair Value Adjustment | (179,784) | 46,191 |
Fair Value Adjustment to Loans Held for Sale | (179,784) | 46,191 |
Forward Sale Contracts | ||
Derivative notional amount and balance sheet location | ||
Notional or Principal Amount | 3,230,106 | 2,881,224 |
Interest Rate Movement | 246,745 | 5,728 |
Total Fair Value Adjustment | 246,745 | 5,728 |
Derivative assets | 246,826 | 10,838 |
Derivative Liabilities | (81) | (5,110) |
Rate Lock Commitments | ||
Derivative notional amount and balance sheet location | ||
Notional or Principal Amount | 870,205 | 1,115,829 |
Estimated Gain on Sale | 21,833 | 29,837 |
Interest Rate Movement | (37,337) | (4,604) |
Total Fair Value Adjustment | (15,504) | 25,233 |
Derivative assets | 8,469 | 26,526 |
Derivative Liabilities | $ (23,973) | $ (1,293) |
FANNIE MAE COMMITMENTS AND PL_3
FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES - Commitments (Detail) - DUS Risk-Sharing Obligations - Fannie Mae $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
LITIGATION, COMMITMENTS, AND CONTINGENCIES | |
Period of funding for collateral requirement | 48 months |
Amount of additional capital required to be funded over the next 48 months | $ 71.8 |
Net worth | 646,000 |
Minimum liquid assets to be maintained to meet operational liquidity requirements | 54.7 |
Operational liquidity | 131.9 |
Minimum | |
LITIGATION, COMMITMENTS, AND CONTINGENCIES | |
Net worth requirement | $ 275 |
New Tier 2 loans | |
LITIGATION, COMMITMENTS, AND CONTINGENCIES | |
Collateral requirements percentage | 0.75% |
Period of funding for collateral requirement | 48 months |
New Tier 2 loans | Money Market Funds | |
LITIGATION, COMMITMENTS, AND CONTINGENCIES | |
Restricted liquidity collateral reduction percentage | 5% |
New Tier 2 loans | Agency Mortgage Backed Securities | |
LITIGATION, COMMITMENTS, AND CONTINGENCIES | |
Restricted liquidity collateral reduction percentage | 4% |
FANNIE MAE COMMITMENTS AND PL_4
FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES - Pledged Securities at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Pledged securities | ||||
Pledged securities, at fair value | $ 151,413 | $ 148,996 | ||
Total pledged cash and cash equivalents | ||||
Pledged securities | ||||
Pledged securities, at fair value | 12,624 | 44,733 | $ 51,550 | $ 17,473 |
Restricted Cash - Pledged | ||||
Pledged securities | ||||
Pledged securities, at fair value | 8,454 | 3,779 | 10,596 | 4,954 |
Money Market Funds | ||||
Pledged securities | ||||
Pledged securities, at fair value | 4,170 | 40,954 | 40,954 | 12,519 |
Agency MBS | ||||
Pledged securities | ||||
Pledged securities, at fair value | 138,789 | 104,263 | 97,224 | 119,763 |
Asset Pledged as Collateral with Right | Pledged Securities - Fannie Mae DUS Program | ||||
Pledged securities | ||||
Pledged securities, at fair value | $ 151,413 | $ 148,996 | $ 148,774 | $ 137,236 |
FANNIE MAE COMMITMENTS AND PL_5
FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES - Agency Multifamily Mortgage Based Securities Pledged Securities (Detail) - Agency Mortgage Backed Securities - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investments in Agency debt securities | ||
Fair Value | $ 138,789 | $ 104,263 |
Amortized Cost | 140,782 | 100,847 |
Total gains for securities with net gains in AOCI | 762 | 3,636 |
Total losses for securities with net losses in AOCI | (2,755) | (220) |
Fair value of securities with unrealized losses | 116,989 | 4,757 |
Maturities - Fair Value | ||
After one year through five years | 16,018 | |
After five years through ten years | 99,612 | |
After ten years | 23,159 | |
Total | 138,789 | 104,263 |
Maturities - Amortized Cost | ||
After one year through five years | 16,063 | |
After five years through ten years | 100,327 | |
After ten years | 24,392 | |
Total | $ 140,782 | $ 100,847 |
EARNINGS PER SHARE AND STOCKH_3
EARNINGS PER SHARE AND STOCKHOLDERS EQUITY - Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Calculation of basic EPS | ||||||||
Walker and Dunlop net income | $ 46,833 | $ 54,286 | $ 71,209 | $ 71,721 | $ 56,058 | $ 58,052 | $ 172,328 | $ 185,831 |
Less: dividends and undistributed earnings allocated to participating securities | 1,296 | 2,364 | 4,984 | 6,163 | ||||
Net income applicable to common stockholders | $ 45,537 | $ 69,357 | $ 167,344 | $ 179,668 | ||||
Basic weighted average shares outstanding | 32,290 | 31,064 | 32,300 | 30,969 | ||||
Basic EPS | $ 1.41 | $ 2.23 | $ 5.18 | $ 5.80 | ||||
Calculation of diluted EPS | ||||||||
Add: reallocation of dividends and undistributed earnings based on assumed conversion | $ 7 | $ 23 | $ 34 | $ 57 | ||||
Net income allocated to common stockholders | $ 45,544 | $ 69,380 | $ 167,378 | $ 179,725 | ||||
Add: weighted-average diluted non-participating securities | 330 | 395 | 345 | 398 | ||||
Weighted average diluted shares outstanding | 32,620 | 31,459 | 32,645 | 31,367 | ||||
Diluted EPS | $ 1.40 | $ 2.21 | $ 5.13 | $ 5.73 | ||||
Shares outstanding excluded from computation of earnings per share | 218 | 111 |
EARNINGS PER SHARE AND STOCKH_4
EARNINGS PER SHARE AND STOCKHOLDERS EQUITY - Noncash Transactions (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) item | Dec. 31, 2021 USD ($) | |
Noncash transactions not impacting cash paid on Statements of Cash Flows | ||
Stock issued for settlement of contingent liabilities | $ 8,750 | |
Number of joint ventures with operating agreement changes causing reconsideration of consolidation conclusion | item | 3 | |
Additional paid-in capital ("APIC") | $ 407,417 | $ 393,022 |
Noncontrolling interests | 31,760 | 28,055 |
Receivables, net | 216,963 | 212,019 |
Other assets | 426,487 | 364,746 |
Other liabilities | $ 780,012 | $ 714,250 |
Consolidation of joint venture | ||
Noncash transactions not impacting cash paid on Statements of Cash Flows | ||
Number of joint ventures with operating agreement changes causing reconsideration of consolidation conclusion | item | 3 | |
Additional paid-in capital ("APIC") | $ 3,700 | |
Noncontrolling interests | 6,800 | |
Receivables, net | 35,000 | |
Other assets | (21,300) | |
Other liabilities | $ 3,600 |
EARNINGS PER SHARE AND STOCKH_5
EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY - Restricted Stock Awards and Share Repurchases (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Nov. 08, 2022 | Feb. 28, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Repurchases of common stock | ||||||||
Reduction of equity for retirement of repurchased shares | $ 1,436 | $ 12,302 | $ 27,049 | $ 1,496 | $ 816 | $ 13,374 | ||
Dividends | ||||||||
Cash dividends paid per common share | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.50 | $ 0.50 | $ 0.50 | ||
Cash dividends declared per common share | $ 0.60 | |||||||
Share Repurchase Program 2022 | ||||||||
Repurchases of common stock | ||||||||
Shares repurchased during the period | 0 | 109,000 | 0 | |||||
Weighted average market price of shares repurchased and retired (in dollars per share) | $ 101.77 | |||||||
Reduction of equity for retirement of repurchased shares | $ 11,100 | |||||||
Share repurchase program, period for repurchases | 12 months | |||||||
Authorized share repurchase capacity remaining | $ 63,900 | |||||||
Share Repurchase Program 2022 | Maximum | ||||||||
Repurchases of common stock | ||||||||
Repurchase authorization | $ 75,000 |
SEGMENTS (Detail)
SEGMENTS (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segments | |||||||||
Number of operating segments | segment | 3 | ||||||||
Revenues | |||||||||
Total revenues | $ 315,611 | $ 346,290 | $ 975,903 | $ 851,989 | |||||
Expenses | |||||||||
Personnel | 157,059 | 170,181 | 469,608 | 407,817 | |||||
Amortization and depreciation | 59,846 | 53,498 | 177,101 | 148,879 | |||||
Provision (benefit) for credit losses | 1,218 | 1,266 | (13,120) | (14,380) | |||||
Interest expense on corporate debt | 9,306 | 1,766 | 22,123 | 5,291 | |||||
Other operating expenses | 33,991 | 24,836 | 102,400 | 62,171 | |||||
Total expenses | 261,420 | 251,547 | 758,112 | 609,778 | |||||
Income from operations | 54,191 | 94,743 | 217,791 | 242,211 | |||||
Income tax expense | 7,532 | 22,953 | 46,495 | 56,311 | |||||
Net income before noncontrolling interests | 46,659 | 71,790 | 171,296 | 185,900 | |||||
Less: net income (loss) from noncontrolling interests | (174) | $ (179) | $ (679) | 69 | (1,032) | 69 | |||
Walker and Dunlop net income | 46,833 | $ 54,286 | $ 71,209 | 71,721 | $ 56,058 | $ 58,052 | 172,328 | 185,831 | |
Net change in unrealized gains (losses) on pledged available-for-sale securities, net of taxes | (1,238) | 159 | (4,018) | 769 | |||||
Walker and Dunlop comprehensive income | 45,595 | 71,880 | 168,310 | 186,600 | |||||
Total assets | 6,003,013 | 5,116,862 | 6,003,013 | 5,116,862 | $ 5,205,989 | ||||
Loan origination and debt brokerage fees, Net | |||||||||
Revenues | |||||||||
Total revenues | 90,858 | 123,242 | 275,773 | 306,593 | |||||
Fair value of expected net cash flows from servicing, net | |||||||||
Revenues | |||||||||
Total revenues | 55,291 | 89,482 | 159,970 | 209,266 | |||||
Servicing fees | |||||||||
Revenues | |||||||||
Total revenues | 75,975 | 70,628 | 222,916 | 205,658 | |||||
Property sales broker fees | |||||||||
Revenues | |||||||||
Total revenues | 30,308 | 33,677 | 100,092 | 65,173 | |||||
Investment management fees | |||||||||
Revenues | |||||||||
Total revenues | 16,301 | 2,564 | 47,345 | 9,115 | |||||
Net warehouse interest income | |||||||||
Revenues | |||||||||
Total revenues | 3,980 | 5,583 | 14,021 | 14,768 | |||||
Escrow earnings and other interest income | |||||||||
Revenues | |||||||||
Total revenues | 18,129 | 2,032 | 26,683 | 5,972 | |||||
Other revenue | |||||||||
Revenues | |||||||||
Total revenues | 24,769 | 19,082 | 129,103 | 35,444 | |||||
Operating Segments | Capital Markets | |||||||||
Revenues | |||||||||
Total revenues | 183,374 | 251,041 | 555,640 | 594,237 | |||||
Expenses | |||||||||
Personnel | 125,980 | 139,890 | 363,619 | 332,519 | |||||
Amortization and depreciation | 952 | 17 | 1,762 | 556 | |||||
Other operating expenses | 6,063 | 4,628 | 16,757 | 11,628 | |||||
Total expenses | 132,995 | 144,535 | 382,138 | 344,703 | |||||
Income from operations | 50,379 | 106,506 | 173,502 | 249,534 | |||||
Income tax expense | 12,751 | 25,660 | 42,074 | 58,014 | |||||
Net income before noncontrolling interests | 37,628 | 80,846 | 131,428 | 191,520 | |||||
Walker and Dunlop net income | 37,628 | 80,846 | 131,428 | 191,520 | |||||
Total assets | 3,016,153 | 3,229,274 | 3,016,153 | 3,229,274 | |||||
Operating Segments | Capital Markets | Loan origination and debt brokerage fees, Net | |||||||||
Revenues | |||||||||
Total revenues | 89,752 | 121,133 | 273,660 | 302,011 | |||||
Operating Segments | Capital Markets | Fair value of expected net cash flows from servicing, net | |||||||||
Revenues | |||||||||
Total revenues | 55,291 | 89,482 | 159,970 | 209,266 | |||||
Operating Segments | Capital Markets | Property sales broker fees | |||||||||
Revenues | |||||||||
Total revenues | 30,308 | 33,677 | 100,092 | 65,173 | |||||
Operating Segments | Capital Markets | Net warehouse interest income | |||||||||
Revenues | |||||||||
Total revenues | 2,178 | 3,723 | 9,415 | 9,066 | |||||
Operating Segments | Capital Markets | Other revenue | |||||||||
Revenues | |||||||||
Total revenues | 5,845 | 3,026 | 12,503 | 8,721 | |||||
Operating Segments | Servicing and Asset Management | |||||||||
Revenues | |||||||||
Total revenues | 134,488 | 95,830 | 378,105 | 259,150 | |||||
Expenses | |||||||||
Personnel | 21,676 | 10,446 | 62,195 | 27,004 | |||||
Amortization and depreciation | 57,239 | 52,388 | 170,930 | 145,161 | |||||
Provision (benefit) for credit losses | 1,218 | 1,266 | (13,120) | (14,380) | |||||
Other operating expenses | 6,043 | 3,199 | 18,721 | 8,056 | |||||
Total expenses | 86,176 | 67,299 | 238,726 | 165,841 | |||||
Income from operations | 48,312 | 28,531 | 139,379 | 93,309 | |||||
Income tax expense | 12,110 | 7,040 | 33,799 | 21,693 | |||||
Net income before noncontrolling interests | 36,202 | 21,491 | 105,580 | 71,616 | |||||
Less: net income (loss) from noncontrolling interests | (174) | 69 | (1,032) | 69 | |||||
Walker and Dunlop net income | 36,376 | 21,422 | 106,612 | 71,547 | |||||
Total assets | 2,621,380 | 1,387,423 | 2,621,380 | 1,387,423 | |||||
Operating Segments | Servicing and Asset Management | Loan origination and debt brokerage fees, Net | |||||||||
Revenues | |||||||||
Total revenues | 1,106 | 2,109 | 2,113 | 4,582 | |||||
Operating Segments | Servicing and Asset Management | Servicing fees | |||||||||
Revenues | |||||||||
Total revenues | 75,975 | 70,628 | 222,916 | 205,658 | |||||
Operating Segments | Servicing and Asset Management | Investment management fees | |||||||||
Revenues | |||||||||
Total revenues | 16,301 | 2,564 | 47,345 | 9,115 | |||||
Operating Segments | Servicing and Asset Management | Net warehouse interest income | |||||||||
Revenues | |||||||||
Total revenues | 1,802 | 1,860 | 4,606 | 5,702 | |||||
Operating Segments | Servicing and Asset Management | Escrow earnings and other interest income | |||||||||
Revenues | |||||||||
Total revenues | 17,760 | 1,945 | 26,166 | 5,712 | |||||
Operating Segments | Servicing and Asset Management | Other revenue | |||||||||
Revenues | |||||||||
Total revenues | 21,544 | 16,724 | 74,959 | 28,381 | |||||
Operating Segments | Corporate | |||||||||
Revenues | |||||||||
Total revenues | (2,251) | (581) | 42,158 | (1,398) | |||||
Expenses | |||||||||
Personnel | 9,403 | 19,845 | 43,794 | 48,294 | |||||
Amortization and depreciation | 1,655 | 1,093 | 4,409 | 3,162 | |||||
Interest expense on corporate debt | 9,306 | 1,766 | 22,123 | 5,291 | |||||
Other operating expenses | 21,885 | 17,009 | 66,922 | 42,487 | |||||
Total expenses | 42,249 | 39,713 | 137,248 | 99,234 | |||||
Income from operations | (44,500) | (40,294) | (95,090) | (100,632) | |||||
Income tax expense | (17,329) | (9,747) | (29,378) | (23,396) | |||||
Net income before noncontrolling interests | (27,171) | (30,547) | (65,712) | (77,236) | |||||
Walker and Dunlop net income | (27,171) | (30,547) | (65,712) | (77,236) | |||||
Total assets | 365,480 | 500,165 | 365,480 | 500,165 | |||||
Operating Segments | Corporate | Escrow earnings and other interest income | |||||||||
Revenues | |||||||||
Total revenues | 369 | 87 | 517 | 260 | |||||
Operating Segments | Corporate | Other revenue | |||||||||
Revenues | |||||||||
Total revenues | $ (2,620) | $ (668) | $ 41,641 | $ (1,658) |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Number of joint ventures with operating agreement changes causing reconsideration of consolidation conclusion | item | 3 | |||
Assets | ||||
Cash and cash equivalents | $ 152,188 | $ 305,635 | $ 318,188 | $ 321,097 |
Restricted cash | 40,246 | 42,812 | 34,875 | $ 19,432 |
Receivables, net | 216,963 | 212,019 | ||
Committed investments in tax credit equity | 214,430 | 177,322 | ||
Other assets | 426,487 | 364,746 | ||
Total assets | 6,003,013 | 5,205,989 | $ 5,116,862 | |
Liabilities | ||||
Commitments to fund investments in tax credit equity | 198,073 | 162,747 | ||
Other Liabilities | 780,012 | 714,250 | ||
Total liabilities | 4,308,310 | 3,627,782 | ||
Consolidated VIEs | ||||
Assets | ||||
Cash and cash equivalents | 387 | |||
Restricted cash | 1,817 | |||
Receivables, net | 33,235 | |||
Other assets | 49,475 | 54,880 | ||
Total assets | 84,914 | 54,880 | ||
Liabilities | ||||
Other Liabilities | 38,114 | 36,480 | ||
Total liabilities | 38,114 | 36,480 | ||
Nonconsolidated VIEs | ||||
Assets | ||||
Committed investments in tax credit equity | 214,430 | 177,322 | ||
Other assets | 58,126 | 74,997 | ||
Total assets | 272,556 | 252,319 | ||
Liabilities | ||||
Commitments to fund investments in tax credit equity | 198,073 | 162,747 | ||
Total liabilities | 198,073 | 162,747 | ||
Maximum exposure | $ 272,556 | $ 252,319 |