Walker & Dunlop, Inc (WD) Q2 2025 Earnings Call

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WEBVTT 00:00:00.000 -- 00:00:04.220 Bill of Warrant of Walker Knapp's competitor firms spoke before me and said that the 00:00:04.220 -- 00:00:08.840 next CRA cycle would begin on July 8, 2025, 00:00:08.840 -- 00:00:11.640 as soon as the new tariff deals were negotiated. 00:00:11.640 -- 00:00:16.320 I disagreed and said it was highly unlikely all the trade deals would be negotiated by 00:00:16.320 -- 00:00:21.640 July 8. And second, even if the Trump administration was wildly successful negotiating 00:00:21.640 -- 00:00:27.160 trade deals, that nobody should think trade is the last macroeconomic issue President 00:00:27.160 -- 00:00:30.360 Trump is going to try to impact. And guess what? 00:00:30.360 -- 00:00:34.540 We were both right. The volatility we have seen in the market since the advent of the 00:00:34.540 -- 00:00:39.060 second Trump administration is likely to be with us for the next three and a half years. 00:00:39.060 -- 00:00:44.200 And at the same time, the next CRA cycle appears to be underway. 00:00:44.200 -- 00:00:49.200 This cycle is underway not due to significantly lower rates, higher asset prices, nor 00:00:49.200 -- 00:00:54.480 macroeconomic tranquility. It has begun because after three years of dramatically lower 00:00:54.480 -- 00:00:59.820 sales and financing activity, it is time to recycle capital to investors, 00:00:59.820 -- 00:01:05.240 refinance assets, and deploy capital that was raised prior to the Great Tightening. 00:01:05.240 -- 00:01:08.000 As you can see on slide three, 00:01:08.000 -- 00:01:13.120 there is over $640 billion of equity capital in real estate funds that 00:01:13.120 -- 00:01:18.160 has been invested for over five years and needs to be returned to investors. 00:01:18.160 -- 00:01:22.840 As you can also see in this ch...