Welcome to Walker & Dunlop’s First Quarter 2014 Earnings Conference Call and Webcast. Hosting the call today from Walker & Dunlop is Willy Walker, Chairman and CEO. He’s joined by Steve Theobald, Chief Financial Officer; and Claire Harvey, Vice President of Investor Relations. Today’s call is being recorded and will be available for replay beginning at 10 AM Eastern Standard Time. The dial-in number for the replay is 1800-688-4915. At this time all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. (Operator Instructions). It is now my pleasure to turn the floor over to Claire Harvey.

Thank you, Leo. Good morning, everyone and thank you for joining the Walker & Dunlop first quarter 2014 earnings call. I have with me this morning our Chairman and CEO, Willy Walker; and our CFO, Steve Theobald. This call is being webcast live on our website and a recording will be available later this morning. Both our earnings press release and website provide details on accessing the archived call. This morning we posted our earnings release and presentation to the Investor Relations section of our website, www.walkerdunlop.com. These slides serve as a reference point for some of what Willy and Steve will touch on this morning. Please also note that we may reference certain non-GAAP financial metrics such as adjusted net income, adjusted earnings per diluted share, adjusted operating margin, adjusted EBITDA and adjusted total expenses during the course of this call. Please refer to the earnings release and presentation posted on our website for reconciliation of the GAAP and non-GAAP financial metrics and related explanation. Investors are urged to carefully read the forward-looking statements language in our earnings release. Statements made on this call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding future financial operating results, involve risks, uncertainties and contingencies, many of which are beyond the control of Walker & Dunlop and which may cause actual results to differ materially from the anticipated results. Walker & Dunlop is under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise. We expressly disclaim any obligation to do so. More detailed information about risk factors can be found in our reports on file with SEC. With that, I will now turn the call over to Willy.

Thank you Claire and good morning to everyone for joining us on this call. I would like to start by looking back over the past three years to highlight the strategic steps and financial growth we have experienced over this period of time. It reflects a coherent strategy that has transformed Walker & Dunlop into a far more diversified, scaled and financially sound company. I will then discuss our Q1 performance, turn the call over to Steve to discuss our finances and finish discussing the rest of 2014 and what we see ahead. We went public at the end of 2010 as predominantly a Fannie Mae and Freddie Mac multi-family lender. The GSEs were in conservatorship, they had huge market share and W&D was growing along with them. But we knew that diversification and growth of our platform was paramount to our long-term success. If you turn to slide five, it shows that five quarters later in Q1, 2012 Fannie Mae and Freddie Mac represented only 52% of loan originations. Brokered originations increased to 30%, HUD had grown to 17% and we made our first balance sheet loan. We had executed very well on our strategic plan to diversify our loan originations but we were still a small company trying to gain market share in a rapidly expanding marketplace. We made the decision in 2012 to acquire CW Capital based on several long term strategic beliefs. First we knew that scale matters in the lending business and becoming a top five lender with Fannie Mae, Freddie Mac and HUD was an important strategic objective. Second we knew that the GSEs multi-family businesses were sound and would be around for many years to come given the implementation timeline for any GSE reform. And finally we saw the long-term value in GSE…

Thank you Willy and good morning everyone. We posted very solid results in the first quarter demonstrating the value of our increasingly diverse business model. I will focus my remarks this morning how on the breadth of our platform contributed to our results, including the significant quarter-over-quarter increase in adjusted EBITDA. Net income for the first quarter was $7.1 million a $0.21 per diluted share compared to $7.7 million or $0.23 per diluted share for the first quarter of 2013. Adjusted net income which excludes certain non-operating items was $7.5 million or $0.22 per diluted share compared to $8.5 million or $0.25 per diluted share for the same period in 2013. Adjusted EBITDA was $19.8 million up 44% increase from the $13.8 million we reported for the first quarter of 2013. Total originations were 1.6 billion in the first quarter down 9% from first quarter last year. The first quarter is typically our slowest quarter from a volume perspective and after a very slow January we saw our volumes accelerate through the remainder of the quarter, with over half of the quarter's originations booked in March. The mix of loans originated was in line with our expectations and consistent with that batch of the last few quarters. As Willy mentioned our originations with Fannie Mae and Freddie Mac were down 35% over the prior year, as first quarter 2013 originations were largely down before the FHFA mandated 10% reduction had taken hold. To provide further context Fannie took delivery of $8.2 billion in loans in the first quarter of 2013 compared to only $3.5 billion in the same period this year a decline of 57%. The expected declines in GSC volumes were offset by growth in all of our other executions with HUD up 75%, brokered originations up 36% and…

Thank you, Steve. If we turn to slide 13 for a moment, you can see the 2014 is a trough year for commercial mortgage refinancing at $92 billion. Starting in 2015 the volume of refinancing increases 72% year-on-year and given Walker & Dunlop's scale and expended product offering we plan to be a major provider of capital. I’ll point our two important data points on slide 13. First, the significant growth in 2015, 2016 and 2017 is primarily due to the surge in CMBS lending from 2005 to 2007 and will present a large opportunity for our capital markets, CMBS and interim lending businesses. That opportunity is depicted by the dark blue portion of the graph. Yet equally as important for Walker & Dunlop's continued growth and success is the consistently growing multi-family refinancing volumes, depicted in the grey portion of the graph over the next 10 years. As you can see only $23 billion of multi-family loans reached maturity in 2014, increasing to $40 billion in 2015 and to $55 billion in 2016. As the graph also shows multi-family is projected to be 65% of the commercial loan maturities in 2019. Our investments to grow our capital markets, CMBS and interim lending operations will pay dividends during the commercial refinancing wave from 2015 to 2017 and at the same time our market presence as one of the largest multi-family lenders in the country will pay dividends over the next decade as multi-family refinancing opportunities become a larger part of the commercial real estate refinancing market. We will continue to focus on using our balance sheet and interim lending program to capture deal flow. Our team has been highly effective at differentiating our program based on speed of execution and underwriting expertise and although we compete daily with commercial banks…

(Operator Instructions). Thank you. Our first question is coming from Bose George of KBW.

Hi, guys this [Chez Tyson] in for Bose. Just a couple of quick ones for me, you talked about GSE reform and you know in kind of two different scenarios whether Johnson-Crapo bill goes through or there is no progress there and [inaudible] kind of runs a show a little bit. Do you guys have a sense of which outcome might be better for you?

You Chez is still in a draft form it's very difficult to tell clearly what's going to happen there the spin-out scenario for the agencies in the draft legislation and from conversations with Senators on the banking committee looks quite positive. But at the same time I would say that if [Director Watt] comes out with a score card that industry expects for all factual proposes it's business as usual and business is usual with the agencies getting increasing competitive as Steve mentioned in his comments is a very good scenario for us. So it's very difficult to if you pick one or other I would say under either scenario it's probably significantly better than 2013.

Okay, that's helpful. And you guys talked kind of volumes trends you're seeing going through the quarter with half of the originations coming in March. What are you guys seeing post quarter? Has there been a pick-up from March or kind of same even keel or how's that looking?

It's impossible quite honestly to predict Chez. I would say that the market is -- has a pace to it right now as far as originations and activity that was clearly not there in January and the beginning of February. And as it relates to Fannie and Freddie they are very competitive right now in the marketplace. Banks I would put forth with a big surprise in 2013 and from conversation with several of our bank peers I'd be surprised if banks were as aggressive in 2014 as they were in 2013. I spoke with one of our bank peers two weeks ago who said that their year-over-year on balance sheet lending on commercial real estate will be down about 40% year-over-year after having had a record 2013 but as I said in my comments Chez Fannie, Freddie, HUD will all be challenged we believe in 2014 to deploy the capital that HUD already has allocated and we are expecting to see Fannie and Freddie get allocated. It's a very competitive land escape.

Yeah, definitely. And then just one last one on the conduit platform I think you guys have talked using kind of $1 billion of CMBS volume when we thought about that is that still case when we think about 2014?

No, it's a very given where the market is now Chez as it relates to volume on CMBS there is no reason to think that is an unrealistic expectation and at the same time we have gotten out of the blocks slower than we thought we would as far as just getting the conduit up and going and we are in the process of originating our first deals to then be securitized. So I would put forth to you it's far too early to us to either to say the billion is a good number or a bad number based on a very healthy and robust market that we are up and going but we are starting slower we thought we would.

Okay, thanks guys.

Our next question comes from Jason Stewart of Compass Point.

Hi, good morning, thanks. Really I am curious just to hear your comments on the push at the FHFA, GSEs for longer-term affordability targets, and how that might impact either the competitive environment that you are seeing from banks, the GSEs position. But it seems pretty clear that's a -- whatever the outcome of legislation I mean that is clear push from the FHFA?

You're correct Jason. We'll see how they decided to if you will push for affordable when the score card comes out. I would put forth we talked a couple of quarters about FHFA trying to the push agencies out of the high-end. It appears that FHFA has changed their strategy there of not restricting the agencies out of a high-end but if you will incenting them to do more on the affordable end. But without seeing the score card and what they actually put in place it's impossible to know how that all has -- is going to be played out. And then I would say as it relates to Fannie and Freddie in the affordable space Fannie Mae has not had difficulties in reaching their affordable targets given the type of deals that they have access to and the way the DUS lenders originate loans for them Freddie Mac has been more challenged in getting to their affordable targets. And so given we are number one with Fannie Mae and number three with Freddie Mac we’ve got great skill with both of them and I believe that last year we came in as the third largest affordable lender for Fannie Mae. And so we have access to affordable deal flow and will obviously go after originating loans that fit their box and allow us to be successful.

Okay. Let me ask you just a different way. I mean it would seem to me that the GSEs are at a price advantage on the affordable loans versus the bank. Is that true?

I don’t that that’s -- I think that’s too broad generalization Jason in the sense that a property that has a bank focused on it and a borrower who believes that interest rates aren't moving anywhere anytime soon is going to be very hard to beat on our short term floating rate loans. If the borrower is going long term fixed rate and it is an affordable property clearly HUD will compete very well on that type of a property and Fannie or Freddie on a seven or ten year fixed rate loan will also compete very well against the bank, CMBS or Life Insurance Company. And life companies really aren’t competing very much on those types of properties. So but I think it's I can’t say to you that Fannie and Freddie can compete head to head with a bank on a short term floating rate loan today on an affordable property.

Okay. So it's more about the structure of the loan then it is the affordability of the property. Okay I appreciate the color thanks.

(Operator Instructions). And it appears we have no further questions at this time. I would be happy to move floor back over to Mr. Willy Walker for any additional or closing comments.

I thank everyone for joining us this morning and wish you all a great day. Thanks very much.

Thank you. This does conclude today’s conference and webcast. Please disconnect your lines at this time and have a wonderful day.