Walker & Dunlop reported second-quarter transaction volume growth and a record servicing portfolio, but diluted earnings per share fell to $0.09 after $23 million in charges tied to a previously disclosed borrower fraud investigation. Total transaction volume rose 3% year over year to $14.4 billion, with debt financing volume up 8% to $12.5 billion, and the company's combined Fannie Mae and Freddie Mac market share climbed 350 basis points to nearly 15%. The servicing portfolio reached a record $146 billion, up 6% from a year earlier, though servicing and asset-management revenue declined 5% due to timing-related drops in affordable-housing joint-venture earnings. Adjusted core EPS increased 3% to $1.19, and the company expects an additional $12 million to $16 million of credit-related charges in the third quarter as it nears completion of its Fannie Mae review. The board approved a quarterly dividend of $0.68 per share, unchanged from the prior quarter.
Walker & Dunlop IncQ2 EPS fell to $0.09 due to $23M fraud-related charges, with more charges expected.
