BETHESDA, Md. (AP) -- Shares of Walker & Dunlop hit a new 52-week low Tuesday after it lowered its third-quarter loan origination outlook, citing increasing interest rates and a slowdown in lending by Fannie Mae and Freddie Mac so they can stay under lending caps.
Walker & Dunlop Inc. provides commercial real estate financial services for owners and developers of commercial real estate.
The Bethesda, Md., company said late Monday that it now expects loan originations between $1.7 billion and $1.9 billion for the third quarter. Its prior forecast was for $2 billion to $2.5 billion in loan originations.
Walker & Dunlop Chairman and CEO Willy Walker said in a statement that for the year to date the company has originated $6 billion to $6.2 billion of financing, up from $4.2 billion for the same period a year earlier.
On Tuesday, Walker & Dunlop said it is entering a $150 million to $200 million senior secured term loan to help repay an existing senior credit facility and for general corporate purposes such as strategic growth opportunities.
The facility is expected to close this month.
Walker & Dunlop will report its third-quarter financial results on Nov. 7 and will update its fourth-quarter and annual origination outlook at that time. Its shares declined $2.24, or 14.1 percent, to $13.67 in midday trading. The stock fell to $13.42 earlier in the session, the lowest point since September 2012.
