Walker & Dunlop (WD) 7 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the Q3 2024 Walker & Dunlop earnings call. Today's conference is being recorded. At this time, I would like to turn the conference over to Kelsey Duffey. Please go ahead.

Thank you, Ruth. everyone. morning, Good joining Call. for Dunlop's Quarter Third Thank Walker Earnings XXXX you & I Chairman morning Walker; this have me with our CFO, Florkowski. and Greg and our Willy CEO, a live This being today. on recording will our call be webcast website, is later available and release earnings provide website webcast. press the details Both accessing archived and our on release This website www.walkerdunlop.com. earnings to Investor and morning, we posted Relations the presentation our section our of Willy reference and as These a point the for call. of during slides will Greg what touch on serve some

will we and a that of Please the during non-GAAP course metrics. EBITDA note also presentation call. reconciliation appendix adjusted metrics, reference non-GAAP financial to adjusted the for financial these the earnings the EPS core of Please of this refer

earnings may made historical Securities release. are not Investors the deemed meaning of be which XXXX. Statements forward-looking urged are carefully our read on facts to statements Reform Act Private the of within forward-looking Litigation the in statements language

in current under statements to expectations I and annual filed obligation disclaim future over is new do events Dunlop found and our may so. information, alter or we Walker a & results actual our result and whether forward-looking no of detailed Forward-looking about will as SEC. describe risk can be statements, differ with obligation otherwise, call expressly quarterly information the now turn reports Willy. to to factors More any or our update materially. the

Kelsey, you, morning, everyone. Thank and good

on & brand over financing several estate to in the market our top market commercial position and the services market expanding activity. and results financing next people our in expectation results improving estate presence and to fundamentals reflect that well of financial investments increase technology are years commercial quarter grow to line market an bottom an continues and continue Dunlop, our market. our our and is our in and that the from third capital improve the benefited Walker us real the Our It in very the and driving attracting that acquisition real healthy

volume QX of up to billion grew QX up Adjusted per year-over-year which strip and $XX.X in from X%. XXXX. QX, out were share in up total EBITDA XX% flow expenses per and closed $X.XX earnings yield XX% and we We both revenues, increase transaction share. adjusted core to diluted XX% sequentially revenues Due from noncash XXXX and EPS,

As Slide included in year-over-year. with to QX transaction $X.X shown in XX% $XX.X shows in a multifamily and $X.X billion a billion of QX billion grew $X.X trend X, QX volume QX activity. property billion sales sales, sales on healthy QX $X.X volume from billion up of Property in to terrific pipeline

without billion $XX before are in lending in combined in in the and still closed presence have close below half Mac headcount. loans the welcome significantly quarter. and QX capacity $X.X to exceptional pickup GSEs to but our Freddie XXXX, of caps. of they third in with scale our adding us transaction these well While of volumes brand participants Mae the of Fannie back national sluggish were pre-tightening first market allow the both will stepped volumes peak in year, XXXX the plenty lending billion Year-to-date, GSEs and deployed We in QX, get their billion QX volume. market $XXX the a a

Our both with us financing and strong setting Fannie GSE is finish pipeline a for up robust, Freddie.

and MSRs duration. X longer MSR factors noncash EBITDA. in adjusted can servicing to future loan fees volumes, GSE higher drive to revenue contribute The We will an loan earnings higher that continue and increase booking for

loan uptick year-over-year. We saw a in meaningful XX% in And was as QX. volumes such, revenue up GSE MSR

from change our the still in quarters historical and QX duration fee not significantly loan The below averages. and other X variables, several average previous servicing did are

the as costs their which rates rose interest to for duration, historic will as long terms yield curve years With is and duration, Depending X dramatically rate borrowers normalize. compressed years. borrowers borrowing belief shorter down. been assumption the and rates back have typically revert rates picking the start with come fees, and Servicing levels should on our regard borrowing loan back again U.S. that that to increasing fiscal government's going the environment XX outlook, it and to

revenues Given should that loan earnings a and and income, future the the have next cycle. over rights on mortgage increases are a fees of to servicing present significant in servicing term continued reversion with servicing normalized impact value volume W&D's GAAP

important tax area Freddie housing need as Fannie, the affordable for expands. HUD and affordable W&D low an housing is credits lending income growth and focus on

grew equity syndications affordable decline credit and in Our the during $XXX over volumes HUD dispositions to million revenues XX% were due down in tax asset W&D XXX% lending a quarter. QX, while to

W&D affordable finish the performance, been The W&D strong from fiscal to the volumes growth up second due the year, contributor largest has a in to in syndication And we lender to see. consistent HUD confident fifth to equity HUD in our country very on HUD moved are financial will and disposition up. pick quarter fantastic our XXXX. team's multifamily the is the that to volumes largest

with for continues credit makes fundamentals. wonderful with financing that with market. recurring exactly servicing W&D ended stable Fannie, in #X generate and the is is very to revenues This W&D billion HUD success portfolio scale the with Freddie. $XXX strong third and #X we with We the This and quarter news #X envision agency underlying

adjusted The to the continue adjusted EPS great & cash and earnings Dunlop's tightening from Walker EBITDA going flows will forward. and consistent throughout high-margin generate bolstered core servicing

Walker rights servicing and these X raise and increase deploy the Investment down As we cycles. paramount and servicing more opportunity and in that capital are growth The revenue and generate sources and Partners. in & next also up management asset wonderful enter cycle, to volumes at Dunlop the book revenues provide the earnings cycles businesses of origination loan we will mortgage

asset markets, long-standing the weather helps cycles the inevitable and build up and streams and model, real in W&D's management estate. recurring acquire business have in is to also platform assets down capital that revenue a clients This commercial markets from servicing our finance

we real model great estate, positioned commercial more refinancing a growth. As business market and tightening, the well for from away team and for are W&D's robust transition and towards investing

I to about and the we return will performance greater turn thoughts quarter credit and call our with in some Greg? over discuss in then the financial Greg see detail what beyond. now to and fourth

the and . diluted Thank signal earnings XX% everyone. good XX% improvement recovery our real The and key of morning, per nearly a you, the billion to grew market. share of financial in this Willy, and Total all generated transaction activity transaction within growth year-over-year. volumes estate $XX.X metrics up across commercial beginning $X.XX, quarter

cash continues growing to strong outperform clarity X% EPS position capital estate a adjusted market around in supporting is EBITDA to as commercial interest sector, flows, of and adjusted produce and path increase rates continue the business core us a supply the We of short-term financial recovery. position, macroeconomic and differentiated the stable with and the landscape and to strengthening diversified model real its W&D's platform increasing

accelerated segment to quarter. Markets transaction activity results. Turning this our Capital

Our throughout volumes XXXX sequential been increases platform steadily since sales brokerage has in with rebounded debt our and QX. GSE property

also volumes X, net to quarter million, XXX% in adjusted segment loss improved As EBITDA to for growth million. income transaction surge produced $X.X the $XX a of the shown in while on Slide this

pool a of transaction significant in growth and assets. XXX% fundamentals by stabilization a are asset robust buyers increased particularly the which of prices sales in quarter, encouraged of from long-term property We confident the reflecting multifamily activity, last

of segment in the supply rate to and with we quarter. Additionally, expanding transaction we volumes are capital a an coupled into momentum turning Willy as The fourth next performance for anticipate real transition interest is the trend into GSE commercial estate the cycle. we at our environment, described this point the promising, continue current suggests

of asset We managed servicing the of billion with ended continues Our our despite deliver fees SAM activities. related a portfolio segment a flows segment to from X% from billion, management recurring our $XXX SAM servicing increase a portfolio assets under this in and X% cash total Revenues $XX declined healthy revenues. and management. quarter including servicing quarter $XXX scaled billion and

new decline lower this syndication decrease & that primarily driven revenues by Dunlop revenue quarter. equity generated the activity by is The affordable Walker in fundraising

quarter. have a of funds activity pipeline in healthy improve We expect the quarter and syndication fourth fourth to

management of asset that been brokers, of our WDIP's pool WD expected has Partners bankers Walker debt assets XX% synergies & Year-to-date, under sourced fund investments establishing and transaction. Dunlop reflecting year, Investment into clients' has we and capital a debt this the deployed from routinely entered equity grown the we management steadily were when business.

recognized update indemnified on SAM our also I GSEs. or for X the impacts we the And Last $X risk that repurchased million The we a loans quarter, provision million credit portfolio. totaling quarter, an includes $XX either the provided of losses. during from credit segment

additional repurchased borrower is $X to loss million, fraud. them reserve in and in estimates were The million. X loans reportedly total the both assets these of $X and navigate a loans reserve we we As additional portfolio. loans we which investigated challenges updated are our Mae expected being our defaulted the that prepare to this DOJ bring market, totaling the Fannie recently our an by assets million to bringing requested quarter to with resulting $XX

X recognized for At of already $XX reserve our they portfolio, defaults X basis the quarters have points. the we totaling We end million $X a these XX quarter, within or ago. only loss loans at-risk had when million defaulted loan

quality sharing loan the our loans, currently arise new transition broad our to of current in on sufficiently of risk $XX we at-risk these remains are additional that any estimating we credit defaulted losses reserves a allowance challenges $XX portfolio We to $X strong, loss as our The of that million believe which and cycle. portfolio cover million. may compares billion overall

our first per slowly improved Although started as due consolidated business. in cash by this transaction in X the result quarters the of generated financial the share a transaction flow to transaction consistent Diluted low for our year first year. half activity the and activity activity of earnings of growth quarter XX% $X.XX to results the this share down is year-to-date per year,

return third Capital durable for adjusted a segment and segment drove EBITDA operating XX% cash respectively. flows, and which, core the EPS XX%, is and X%, million equity XX%, of to $XXX continued and $X.XX, strong combination SAM generate The adjusted to Year-to-date year. XX% up Markets with year-to-date last is X% on respectively, in margin quarter of compared

interest core Slide little EBITDA in on to $X our a mid-single funds results, interest and we will XX reminder, per adjusted which points targeting EPS basis September, to by by low reduced impact the on year, net warehouse long-term million quarter. the in rate million for the but borrowings digits X, shown growth FOMC adjusted reduce Fed teens. and the fourth in had diluted $X share, deposits, in our earnings from earnings QX and as are As The full

and building activity momentum offset that in fourth than the the more though, should Importantly transaction quarter decline.

path year, a achieving accelerate for adjusted EPS. on a result, to respect With activity our expectation our back us to our financial EPS our As adjusted year-to-date half diluted which underscored the core of last results the have diluted that allow EBITDA would to would us hit target. and targets we quarter, in EPS transaction

that QX expectation. delivered on

sell-off commercial the amount the of rates volatility, interest While will the market few and support estate long-term deal activity of believe in level activity interest drive in quarter. the we bond the healthy long-term real caused rates transaction weeks over current fourth last a

short-term end for $XX million with transactions We opportunities momentum gives several fourth strong an the EPS. quarter clients path sheet diluted balance additional that invested cash low us with pipeline our of management of on quarter in ended for drove guidance of that the the range We million and to the entered fund business a businesses. our and of cash with achieving $XXX a

record November capital our through our our growth recurring this of pursuit in our reinvested to we while XX, Board business XXXX. capital our Directors dividend $X.XX returning Throughout objectives of also per shareholders approved payable of to quarterly quarterly our shareholders Yesterday, of dividend. long-term share, in routinely cycle, of as

backdrop. underway third period performance reflects a within an of macroeconomic a gradually of indicators active solid with another quarter across healthy Our and recovering improving QX clear the market progress with business

shareholders. deliver long-term We opportunities ahead the to our to continue our business manage as growth excited to W&D are for we about

Thank morning. call turn to over back Willy. the for your now you time I'll this

Thank you, Greg.

expected Slide to cost as on projecting be regions for rent Research XXXX and will shown As yet held influx is market online. apartment of Family well against Company, research are a peak XXX,XXX And units growing the X.X% massive Walker shows completions & supply unaffordable XX, Zelman, XXXX come Healthy have assets that year with many is of growth simply extremely Americans. a many for up rents. because still in homeownership Dunlop assets

cost of someone median or housing dramatic decrease only making in we mortgage starts in in single-family on this America. of remain and will down for in to increase XXXX, market the of homeownership macro dramatically XXXX's Until properties XX% supply get XXXX. reach a a income in an have peak, a dropped rates, XXXX dramatic units, construction the from undersupplied to new multifamily creating outlook, Add out XXX,XXX

The on to real today, capital will higher happens the volume beginning which right and sales lower driving what investment are lead lead we believe will higher cap conviction at is of returns. lead one greater to and rents future which supply rates, is every to now. flows, This will we starting estate cycle, which

transaction afford fell look cycle to our volumes, as investors of is to the Dunlop's could bottom would eventually and top and bankers to to grow it majority the & the we knew We because even a on ability for because As forward understand turn. transaction important brokers hold in both to the recovery tightening dramatically made decision line. off we during we our to Walker activity great

As relatively broker. per banker XXXX and shown or Walker transaction on brokers on before this the & who market volume we closed normal XXX average slide, $XXX bankers conditions, in at million had pandemic Dunlop, in under and

in you in have year, and professionals, and bankers column, was volume XXX a middle the of As grown number past XXXX market that the per brokers & recovering Dunlop originated at today the in over broker. million XXX can $XXX Walker in and banker we XXX to see from

when broker. the slide. our side at the in brokers what market really to on transaction closed banker active volume per cycle. XXXX, look of hard is volume next predict column of normal and exciting What of It's this million be the to bankers is this highly the right-hand $XXX transaction In new will

margins. personnel expanded is our It bottom brand grow that presence more top and our grow line market to without a adding line team, then capacity W&D's and have of to tremendous clear amount

use bankers and serving business We to brokers our make analytics data continue more effective our clients. to new winning and at

continues Galaxy a key tool, that from differentiator and analytics data loans allows win clients proprietary Our to us to competition. be new the

rate W&D. new new was refinancings total of and volume we clients of loans XX% done XX% locked the our with Year-to-date, were portfolio to transaction to

of of Beyond and debt from increasing used month great financing $X.X quarter and QX businesses, we growth our property revenues seeing are lending. to platforms, XXXX, balance traditional $X.X and each in sales from in small process, QX increase our to grew per technology-enabled the appraiser million this to technology valuation from $X.X QX. per reports in million last year XX to valuation in XX efficiency our the number year. million

in in customers. efficient small from balance in million our $X.X combination $X.X to and allowing to Similarly, lending with The us processes grew our be our and is people, million technology QX $X.X to more of revenues million QX QX. insightful

recovers. funding X now allow scale market are year processing should many the We small compared per which as to ago, loans us twice underwriter to balance meaningfully our as volumes

impossible speak it's Finally, mentioning to without of AI.

are We AI W&D's every day. into processes integrating

and build to efficiencies algorithms XXXX, in our our continuously with acquisition we and our loan drive underwriting in AI-related processing. improve Beginning first learning machine

to AI small loan loan efficiencies our coming our implement balance test quarters. large will and to that process be will continue migrated over business into We the

data an we model originate, developed gets output that gets larger, properties of data sell with input even and as also we properties of valuation making informed smarter our grow we every We set appraise we and property the and that valuable. loans number data we automated more

stops serve AI data to We and strategy to as where us our build areas of part and administration our overall be office takes takes the hold, real QX allows and like conditions There economic and will in technology improves commercial starts Fed as processes play out. use it Trump of continue our cycle. estate beginning and of clients. business the the better feels overall some our policy the may next

to financing the the crisis your any line questions. people, years. to and and transaction is the ask after morning. time will and coming demand leader. market great with technology a now remain open volumes to for brand financial this drive for and up the up Similar to Thank assets I for the you W&D over poised investment will growth operator

Sommers We'll to Instructions] with first go [Operator Jefferies. Derek

on property from we expanded an of know of sales Just pipeline? of the sales volume. of about how past value broker for was opinion much the the had how talked quarters, that in the volume And pipeline pulled property I of couple quarter, kind kind much was through opportunistic?

-- there not versus exactly don't I'm in sort QX? Derek, the you pipeline, so deals in the of QX little had we in pipeline -- could be -- the more are materialized and you're looking sense bit for a will, you in not what is of, pipeline -- sure asking if you been what I'm the

Yes. Correct.

period, gestation doing having if actual property a a relates longer BOV is and as you then quarter. The it to happen than listing a will, transaction on the

all got to to impossible in it's QX delivered that So you, QX. was of say then well, and in

seen there for been pipeline very to and both as the volumes significant sometimes that went weeks the pipeline not. into extent and the been uptick in I are speaking, well very X seen pipeline have have in through the as sometimes few transaction the in. is holding the accepted have Greg rates seller call. by gone hold adjustments a that as in as in dropped, in call, think investment strong as said the sales the I we we both even But up, requests although QX. I price generally in have last And have And detail deals

terms makes guess, shift between longer-term Got purchase I to averages? any and refinance of there And of in deals kind recently, compared sense. it. then is That purpose mix,

into run-up pipeline head is which has the where we The the how No. much particularly refinance to activity, focused recent one property been perm-driven financing. is refinancing rates is versus someone very acquisition we've the typically in QX, that on of as thing with

And towards pulling it, pipeline, forward look moving also as and as rates. people properties said, good very we say, not market in overweighted we the acquisition we I But activity. I then pipeline refinancing is still activity from that as run-up are are feel would acquisitions into given the acquisition versus at QX look just the the

go We'll Jade Rahmani with KBW. to next

hear Can you now? me

hear we you now. can Yes,

can. Yes, we

Okay.

volumes, you as There's would duration homes single-family likely X%? Sorry XX-year scenario. multifamily that how goes demand? to for and the since as Curious the if servicing, respect to treasury with What have out see lower you game about to implications do transaction takes portfolio puts that. market some well as happening

Yes, of, impossible you just out, gained predict Jade, where we saw rates to where go. a We're haven't sort will, yesterday as it's We go. for to us watching are you post But election. if rates obviously that in significant rates increase said. going

as rate every very Walker adjusted in other as well X obviously to get I general relatively or that an funds significantly next a to after the going that the know, would you likely that and we Fed the to basis stable years, cut Should Dunlop who's increases beginning of of on is at environment. X we should we that are it an to in rate everyone in we're last change, there in is basis. years rates, that every Fed over another say adjust point & meeting cycle meeting funds we'll remain we rates rate it the that the tightening saw seeing, investor that sense dramatic a were XX changes

business really our react no based we of the interest more is comes but treasury Fed off environment the also will project bond on, than funds focus rate to much and is of as There off whatever long into way. is our But XX-year rate. that, it you

people will mean and which that rates single-family renters, will that between that do which You only remain your as occupancy go gap will high. underscore that stay up, means comment would increase, multifamily in

that of are That new rent call the And should the down unprecedented which assets as all we national you to deliveries. through see an volume well then capital the bodes of still then the deliveries, which capital XXXX underscored cap with brings growth have downward and to of rates as the on to sales burn to put market. which value continue which pressure market, in albeit underlying investment our And investment multifamily, in inflate. we rents go drives activity, attract fundamentals to comes going dollars,

XX-year to go. So time hard I have encouraging and normalized a the somewhere yesterday. that million XX-year deal the settle is closing -- into predict XXX We do actually end curve, the million. to that $XXX $XXX going We're to high we between been a at in some where are our of to rates as predict. still that obviously range transacting. for saying are get clients never thing the at ought with But

seeing said ago, And precipitously. I we've the moment are we as a pipeline rates fade away go QX as not to question Derek's seen up

is the one And to loans On seasonally so get the on strongest, your the GSEs noted a GSE more throughput, the many coming quite typically, yes, into think some ability competitors meaningful side, quarter uptick. closed and of the now active. I be fourth pressure requests they're there's looking to the because

in a from ramp to see ability loans. up having a the Do they've of to you being kind that gating quarter? So fourth in factor being holding pattern close gone to

partner. a And Mac Jade, earnings as are underwritten the larger by Fannie Optigo believe in call that made lender. than DUS lender Fannie underwritten and DUS I business, you loans DUS competitor Freddie the they much are are their Mae call the Optigo know, Mae by business, loans and Fannie Mae is Fannie Mae a on our lender those that the

say lot would Mae control Mac. that And just we more I so you on our than things, a on the would Fannie of to we side destiny Freddie

not I set competitor what echo it firms ability to so as to relates our business. would the process And

you finally, expect in business, that broader on a be the in that you business, was that touch like expect positive But fourth in on still there XXXX? can tax trajectory? of your for recognition in maybe Do delay say, business just itself growth correct on That's to quarter. outlook XXXX, fees a you from sounds placement And good to the color good hear. and then indication and

in growth We XXXX. business in certainly that expect

to years QX in I a quarter both it's an extremely consistent that's slow no syndication due revenues As contributor my comments, a and since we to acquired was no activity several dispositions. said us earnings ago, 'XX and Alliant for been fantastic and business.

confidence as see on I HUD, more the of that And things, Freddie capital Fannie, some I back have underscored We primary on We've with affordable in are credit construction of Walker both X year, that business income those of the and very & track. get needing properties. in and focused coming significant housing made will the focused on equity integrating we that into and very Dunlop. low market great tax sources for all housing also affordable multifamily as one of the capital changes

The will, great, forward. the see that that either We level one income about business passed I or the down potentially thing you on Jobs to the going Trump is that rate in backwards stepped time, Reductions has talked in would in dramatic administration rate corporate step that decrease Act to corporate the XXXX Tax XX%. XX% a change corporate the tax down XXXX and happened as say tax that when in close is What where been significantly. dynamics a extension from other on took if Nothing came significantly. business tax the at

time that, corporate the down rate, the would the rate we have you came saw or dramatically tax a stays a think as either So doesn't if of business tax did and in last line modification it. step as continuation back that that it X%

Steven to Citizens with next JMP. Delaney go We'll

Obviously, third that transaction revenues XX%. obviously very your on total volume though X%. quarter. strongly strong I increased only congratulations year-over-year, noticed

So difference last growth? revenue you it volume just business there your appears with an or mix on rationalize of revenue year. the between help Could something and transient me to was maybe the going outlier your

Steve. Go ahead, Greg. Sure,

closes, No, Capital thing the platform SAM go out portion of impact base fees between are the right, the where is revenues I the balance the loan transaction next business start coming SAM and on think, now quarter. just revenue Steve, road, our down until of segment, servicing and you Markets our ahead, SAM, a when that you activity from significant Willy, Look, the the then during if our segment the to point doesn't

in in transaction XX% and the on generated a which highlighted Capital Markets net income segment, the earnings So line call. you growth we expect with in in and increase that that revenues would activity for we the is growth the what generated XXX% highlighted

segment going segments on so basis of transaction you're basis get growth X to because some to growth. at volume an And when look I'll than relative overall just overall the you look it a blending our the more at business

Got it. Got it.

apples-to-apples. originations? money within not where it's of really the the SAM earning what you're hear saying, it's So you're mix versus I

Steve, But let me -- Steve, just just Steve, real quickly. -- let me jump in

You a fee we big the getting relates but was on. a know in enough well fee our to happen thing excited the competitive It it one number in numbers we a very have which as have numbers you We it, but transaction, you less-than-normal did it our know it very of highly identified the commensurate was was to made had won well, competitive. size because it were didn't a quarter, that that know we did that large transaction it.

fee it fee size Greg into look win on made to of But a on overall as quite not that how that, transaction it. was didn't transaction, is the on love identified that business it. relates we it very as we it. the had as it to you thrilled overall commensurate We competitive you the make right mix exactly But said what to relates in one So that, to it volumes, business. we win were a honestly, but given did was large

was if there was to That mix. an trying what of helps identify in exactly kind outlier the Understood. I us somewhere

picture, all but election, bigger, standpoint, are political with back rates of to understand let's that Willy, big the But that anything road on out we here Yes. in. just -- issues affect I impact from now as that any are the GSEs tie and looking the back so that so there lingering borrowers. critical not stepping your much you know have Just business I guess on -- down policy what's we looking on that, going that right to and multifamily, can GSEs a when and standpoint appreciate there your problems the go out the create sort housing business? is would for there or your look

without I'll too have had. I the -- conversations about talking just specifically that

As with Trump in whatever to good a any election to administration and have to happen both have a make constant relates the is, you we ours up can a or we to imagine, thoughts Harris that what outcome administration. contact as leading Steve, sense would the sure under of it the these GSEs

Everything And if is to in there. to people or many, either relates having all who various I will, you disruption. desire GSEs but quite would it that conservatorship, previously to positive without many of it market go potentially spoken is could to the out lists significant engaged with of say on, a get are who Republicans, as do a the hearing agencies I am were

done Fannie be the it of in getting out will conservatorship, be -- the will will be that, the what picked there And well bill as first taxes about assume year. 'XX the that on conservatorship, won't but Trump relates is significant I that of there be the is and potentially in about work really work at you Trump I work was, work would in to all as administration. Freddie the getting there know, of XXXX that done out taxes GSEs and and background tax end and up administration the all next on would new think to

Senate will both to think at in doing Both to as the and Services And to some Financial something the chair Steve, both French obviously 'XX like markets. the congressional gentlemen who looking that and route, out in the Chairman or if there. would the various had is that piece role you Republican But the It it think committees, them play action/executive them women if at a would Freddie of done now I through that the Committee as real of TBD. committee, know I point And honestly will. you men it's end any Republican a not there of see an type would be through start of the think who Senate Chairman conservatorship. think house, I the are are administrative House that or X 'XX. Banking would those handicap legislatively. Scott, you Fannie order getting look the and those representative Both was out it, 'XX on conservatorship have I at is the then I if Tim Hill and day, well of a get agencies of on if other work, would of 'XX And well in of

out just or appetite would to spin Treasury the and that's Secretary. But whether make will -- and tenure priority final reform he things. the treasury say in thing secretary she the The trying lot I project matter his has as different is Freddie, and a of of that's GSE Fannie is really it who to or a her

go Jay McCanless to next We'll Wedbush. with

backlog think I with comment off. pending to you hear moving book Did Willy, still I if rates that on the has said up correctly? done. earlier transactions in that get I People that ready could are fallen higher, pick made you not a the

You Jay. did,

there we Great. above or good real rates? what hear. what's potential to monitoring Okay. That's cycle to Is of be tailwinds estate and beyond on were need very cycle. encouraging that start you then of even course, rates, the with that a that new And could going anything about besides be headwinds saying

as on last for Jay, you've that got you their end to because So will. as investors, return I sitting we've the that X or equity capital most like either to tremendous capital to investors. sidelines talked think that, of the don't going watch in investors that about there's past, And deployed amount if result been a is to a of has years returning the be

to like it put They to work.

So all, first going I think, to of see that. we're

that, think and in a than The year. recently second then thing is announced basically last air this activity Blackstone. been important We than take real has earlier retail is again for But estate the year. commercial private Blackstone more other acquisition, had that by M&A I communities

at well publicly There's equity public, relates as M&A 'XX public as to traded as And activity into firms REITs was you buying been and there if M&A large very, little into very private it or 'XX, 'XX of look companies. private activity. significant public, either

the market relates the would we market, M&A to given of sales, for do. M&A Investment there. financing I things lot think, have will work. both activity you as the need And amount picks excitement the and more up, obviously as it that the work a you see all valuation

private And drive the the and role also then piece final is so REITs the volumes. I And have it private of up will and REIT market played the they would think the M&A and the market to 'XX. picking a in and going 'XX in to the 'XX sit sold. to be needs on all amount massive that properties financed, in collateral transaction And sidelines either 'XX

'XX on think or 'XX that, has whether as a those market impact well I so in they're major that would to refinancing back and either And selling volumes come holding, figure players market out as properties. big

the 'XX. stays we I servicing if the provision the loans another the quarter. how much took And think guess is for in portfolio? where last for me. I guess XXX great. this about guys That's into one know it XX-year right should I you now, risk

Just wondering next they if about that where don't thinking point? are all how at are year off into of you rates move this book

of So rate loans. at-risk fixed XX% portfolio Jay, is our

not does loans. So the XX-year impact those moving

very, mature We also amount loans small have of a XXXX. actually in that very

the So as is a risk refi low. very result in the that, portfolio of

to from up, marketing will side to back It the or So the credit not big a to the market where transact have moving obviously relates as going XX-year, down, it a to real impact have is continuing either relates transaction the the relates of it that's pulling volumes. as it staying as big it moving equation. to impact

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KBW. with Rahmani Jade to next go We'll

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today's session. to does conclude would closing like the any for to back call question-and-answer Walker remarks. I turn This Willy over

you, hope great a and and day. appreciate Thank Greg on today. a us to to thanks, dialing joining has listen I Kelsey W&D this release, call, for on everyone for quarter's I team QX. the morning and script everyone, in you, Thank everyone Great. earnings your everyone and for the all fantastic work this

This does conclude call. today's conference

may disconnect. You now