Document:

Exhibit 10.3

 

 

August 26, 2019

 

Walker & Dunlop, LLC

Walker & Dunlop, Inc.

7501 Wisconsin Avenue, Suite 1200E

Bethesda, Maryland 20814

 

Attention: Stephen Theobald

 

		Re:	Master Repurchase Agreement dated as of August 26, 2019 between JPMorgan Chase Bank, N.A., as Buyer,
and Walker & Dunlop, LLC, as Seller and Walker & Dunlop, Inc., as Parent

 

Ladies and Gentlemen:

 

This letter (this “Side
Letter”) sets forth certain fees, commitments and pricing information relating to the agreement between JPMorgan Chase
Bank, N.A., as Buyer (“Buyer”) and Walker & Dunlop, LLC, as Seller (“Seller”) and Walker
& Dunlop, Inc., as Parent (“Parent”), pursuant to which Seller engages Buyer to enter into reverse repurchase
arrangements whereby Seller from time to time sells to Buyer, and simultaneously agrees to repurchase on a date certain or on demand,
certain mortgage loans (the “Mortgage Loans”) pursuant to the Master Repurchase Agreement dated as of August
26, 2019 (as supplemented, amended or restated, the “Agreement”) between Buyer, and Seller and Parent. This
is the “Side Letter” as defined and referred to in the Agreement. Capitalized terms defined in the Agreement and used,
but not defined differently, in this Side Letter have the same meanings here as there.

 

Buyer and Seller agree,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, as follows:

 

1.           
Discretionary Transactions Agreement.

 

Subject to the terms
and conditions set forth in the Agreement, Buyer agrees to consider, on an uncommitted and wholly discretionary basis, entering
into Transactions from time to time under the Agreement, as supplemented by this Side Letter, with respect to Eligible Mortgage
Loans having a maximum Aggregate Purchase Price outstanding at any one time of up to Five Hundred Million Dollars ($500,000,000)
(such maximum amount, the “Facility Amount”) from the date hereof until the Termination Date.

 

The Parties agree (1)
that:

 

(x) notwithstanding
the provisions of Section 7(b)(xi) of the Agreement, Buyer may from time to time electively enter into one or more Transactions
with Seller; or

 

    	 	 	 

     

    

 

Walker & Dunlop, LLC

Walker & Dunlop, Inc.

August 26, 2019

Page 2

 

(y) another event
may occur, or other circumstances may exist;

 

after which the Aggregate
Purchase Price shall be greater than the Facility Amount, and (2) that notwithstanding the occurrence or existence of any such
event or circumstances, every Transaction shall be and remain fully subject to all of the other terms and conditions of the Agreement
and all other related Transaction Documents and entitled to all benefits thereof.

 

In addition, the Parties
may agree to increase or decrease the Facility Amount to any amount from time to time in the future by executing a letter agreement
stating the new Facility Amount and the period of time that it will be in effect. At the time of any reduction in the Facility
Amount, whether pursuant to a letter agreement decreasing the Facility Amount or because the time limit for any increase in the
Facility Amount shall have expired, Seller shall be obligated, without notice or demand, to make a cash payment to Buyer in an
amount equal to the excess of the Aggregate Purchase Price then funded and outstanding over the reduced Facility Amount, to be
applied by Buyer to reduce the Repurchase Prices of Purchased Mortgage Loans that are then subject to outstanding Transactions.
Neither Parent’s Guaranty nor any other (future) Guaranty, if any, shall be reduced, limited, canceled, terminated or impaired
in any way by any such future change in the Facility Amount, whether or not any Guarantor concurrently executes a confirmation
of its Guaranty.

 

2.           
Purchase Price.

 

For purposes of the
Agreement and all other Transaction Documents, “Purchase Price” means, on any day and for any Eligible Mortgage
Loan, one hundred percent (100%) of the lowest on that day of its (i) Outstanding Principal Balance and (ii) Takeout Value.

 

3.           
Pricing Rate.

 

For purposes of the
Agreement and all other Transaction Documents, the “Pricing Rate” for each Purchased Mortgage Loan for each
day during a calendar month in which the average aggregate Purchase Price outstanding is:

 

(a)          equal
to or greater than One Hundred Million Dollars ($100,000,000), shall be the per annum percentage rate equal to the sum of (w) the
Adjusted LIBO Rate for that day and (x) one and fifteen hundredths percent (1.15%); and

 

(b)          less
than One Hundred Million Dollars ($100,000,000), shall be the per annum percentage rate equal to the sum of (y) the Adjusted LIBO
Rate for that day and (z) one and twenty hundredths percent (1.20%).

 

provided
that if Buyer, acting in its sole discretion, shall elect from time to time to give Seller a notice specifying a lower Pricing
Rate (or Pricing Rates) for a specified time period, such lower Pricing Rate(s) specified in such notice shall be applicable for
the time period specified in such notice.

 

As used herein, the
following terms shall have the corresponding definitions:

 

    	 	 	 

     

    

 

Walker & Dunlop, LLC

Walker & Dunlop, Inc.

August 26, 2019

Page 3

 

“Adjusted
LIBO Rate” means, for any day, an interest rate per annum equal to (a) the LIBO Rate on such day (or if such day is not
a Business Day, on the immediately preceding Business Day) multiplied by (b) the Statutory Reserve Rate on such day.

 

“LIBO Rate”
means, for any day, the rate appearing on the Bloomberg Screen US0001M <Index> page (or on any successor or substitute page
of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided
on such page of such service, as reasonably determined by Buyer from time to time for purposes of providing quotations of interest
rates applicable to dollar deposits in the London interbank market) on such day (or if such rate does not appear on the Bloomberg
Screen US0001M <Index> page or any such successor or substitute page on such day, then the immediately preceding day on which
such rate so appears), as the rate for dollar deposits for an interest period of one (1) month; provided that if such rate
is less than zero, such rate shall be deemed to be zero for purposes of this Side Letter and the Agreement. In the event that such
rate is not available at such time for any reason, then the LIBO Rate shall be the rate at which dollar deposits in the approximate
amount of the Aggregate Purchase Price outstanding on such day and for one (1) month are offered by the principal London office
of Buyer acting in good faith in immediately available funds in the London interbank market on such day (or if such dollar deposits
are not so offered on such day, then the immediately preceding day on which such deposits are so offered). If at any time Buyer
determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for
ascertaining the LIBO Rate (including, without limitation, because the Bloomberg Screen US0001M <Index> page or any such
successor or substitute page is not available or published on a current basis), and that such circumstances are unlikely to be
temporary, then Buyer and Seller shall endeavor to establish an alternate rate of interest to the LIBO Rate that gives due consideration
to the then-prevailing market convention for determining pricing rates for mortgage warehousing facilities in the United States
at such time, and shall amend this Side Letter to reflect such alternate means of determining the Pricing Rate and such other related
changes to this Side Letter as may be necessary or appropriate under the circumstances then prevailing. Until an alternate rate
of interest shall be determined in accordance with the immediately preceding sentence (but, in the case of the Bloomberg Screen
US0001M <Index> page or any applicable successor or substitute page not being available or published at such time on a current
basis, only to the extent of such unavailability or nonpublication), the LIBO Rate shall be the Prime Rate.

 

“Statutory
Reserve Rate” means, for any day, a fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal,
special, emergency or supplemental reserves) expressed as a decimal established by the Board of Governors of the Federal
Reserve System to which Buyer is subject, with respect to the Adjusted LIBO Rate, for Eurocurrency funding (currently
referred to as “Eurocurrency Liabilities” in Regulation D of the Board) as of such day. Such reserve percentages
shall include those imposed pursuant to such Regulation D. Transactions shall be deemed to constitute Eurocurrency funding
and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be
adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

    	 	 	 

     

    

 

Walker & Dunlop, LLC

Walker & Dunlop, Inc.

August 26, 2019

Page 4

 

Notice Regarding LIBO
Rate

 

The LIBO Rate is derived
from the London interbank offered rate (“LIBOR”). LIBOR is intended to represent the rate at which contributing
banks may obtain short-term borrowings from each other in the London interbank market. In July 2017, the U.K. Financial Conduct
Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions
to the ICE Benchmark Administration (together with any successor, the “IBA”) for purposes of setting LIBOR.
As a result, it is possible that commencing in 2022, LIBOR may no longer be available or may no longer be deemed an appropriate
reference rate to determine the LIBO Rate. In light of this eventuality, public and private sector industry initiatives are currently
underway to identify new or alternative reference rates to be used in place of LIBOR. If LIBOR is no longer available or in the
other circumstances set forth in the above definition of LIBO Rate, such definition provides a mechanism for determining an alternative
rate of interest. Buyer will notify Seller, pursuant to such definition, in advance of any change to the reference rate on which
the LIBO Rate is based. However, Buyer does not warrant or accept any responsibility for, and shall have no liability with respect
to, the administration, submission or any other matter related to LIBOR or other rates referenced in the definition of LIBO Rate,
or with respect to any alternative, successor or replacement rate, including whether the composition or characteristics of LIBOR
or any such alternative, successor or replacement rate, as it may or may not be adjusted pursuant to such definition of LIBO Rate,
will be similar to, or produce the same value or economic equivalence of, the LIBO Rate, or have the same volume or liquidity as
LIBOR did before its discontinuance or unavailability.

 

4.           
Non-Usage Fee.

 

Seller shall pay to
Buyer on each Remittance Date following the end of each whole or partial calendar quarter after the second calendar quarter of
2019, and on the day the Agreement terminates, an amount (the “Non-Usage Fee”) equal to the product of (x) twenty-five
basis points (0.25%) multiplied by the number of days in the quarter divided by 360, times (b) the positive result, if any, of
subtracting from Fifty Million Dollars ($50,000,000), the average of the daily balances of Purchase Price outstanding at the end
of each day during such (whole or partial) calendar quarter; provided that no Non-Usage Fee shall be due with respect to
any quarter for which the average aggregate Purchase Price outstanding during such quarter is equal to or greater than Fifty Million
Dollars ($50,000,000). The Non-Usage Fee, if any, for the quarter in which the Agreement is terminated shall be prorated based
on the actual number of days the Agreement is effective during such quarter. Non-Usage Fee payments are not refundable in whole
or in part for any reason whatsoever.

 

5.           
Package and Funding Fee.

 

Seller shall pay
to Buyer an amount (the “Package and Funding Fee”) equal to Two Hundred Fifty Dollars ($250) plus
Buyer’s standard wire transfer and shipping fees, as applicable, for each Purchased Mortgage Loan on the next
Remittance Date following the applicable Purchase Date.

 

    	 	 	 

     

    

 

Walker & Dunlop, LLC

Walker & Dunlop, Inc.

August 26, 2019

Page 5

 

6.           
Change in Facility Amount; Calculation of Fees.

 

(a)            
If the Agreement is amended pursuant to its terms so as to increase or decrease the Facility Amount, all calculations of
fees under this Side Letter that are based on the Facility Amount shall be adjusted accordingly as of the date such amendment becomes
effective.

 

(b)             Buyer shall calculate the amounts of the Pricing Rate and the Non-Usage Fee and the results of such calculations shall be
incontestable absent manifest error. Buyer shall advise Seller of the periodic amounts of such rate and fees at least one (1) Business
Day before payment is due.

 

7.           
Controlling Agreement.

 

In the event of any
inconsistency between the terms and provisions contained herein and those in the Agreement, the terms and provisions of this Side
Letter shall govern.

 

8.           
Additional Fees.

 

All fees payable pursuant
to this Side Letter are in addition to any fees, expenses and indemnification amounts payable pursuant to the terms of the Agreement.

 

9.            Confidentiality.

 

Buyer and Seller agree
that this Side Letter and all drafts hereof, the documents referred to herein or relating hereto and the transactions contemplated
hereby are confidential in nature and the Parties agree that, unless otherwise directed by a court of competent jurisdiction, each
shall limit the distribution of such documents and the discussion of such transactions to such of its officers, employees, attorneys,
accountants and agents as is required in order to fulfill its obligations under such documents and with respect to such transactions.

 

10.          Term of Side Letter; Amendment; Payments.

 

(a)              The terms and provisions set forth in this Side Letter shall terminate upon the latest to occur of (a) the Termination Date,
(b) the day on which the Agreement is terminated and (c) the day on which all amounts due by Seller under the Transaction Documents
have been indefeasibly paid in full.

 

(b)             No amendment, waiver, supplement or other modification of this Side Letter shall be effective unless made in writing and
executed by each of the Parties.

 

(c)             All payments to be made by Seller to Buyer pursuant to this Side Letter shall be made by wire transfer in immediately available
funds to the account specified by Buyer.

 

    	 	 	 

     

    

 

Walker & Dunlop, LLC

Walker & Dunlop, Inc.

August 26, 2019

Page 6

 

11.          Successors
and Assigns.

 

(a)             The
rights and obligations of Seller under this Side Letter shall not be assigned by Seller without the prior written consent of Buyer
and any such assignment without the prior written consent of Buyer shall be null and void.

 

(b)             Buyer may assign all or any portion of its rights, obligations and interest under this Side Letter at any time without the
consent of any Person; provided that, for so long as no Event of Default or Default has occurred and is continuing, any
such assignment, other than an assignment to an Affiliate of Buyer, is subject to the prior written consent of Seller. Seller’s
consent shall not be required if an Event of Default or Default has occurred and is continuing.

 

12.          Counterparts.

 

This Side Letter may
be executed in any number of counterparts, each of which shall be deemed to be an original and all such counterparts shall constitute
one and the same instrument.

 

13.          Governing Law; Consent to Jurisdiction.

 

(a)             This Side Letter shall be governed by and construed in accordance with the internal laws of the State of New York, but giving
effect to federal law applicable to national banks.

 

(b)             Seller hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of
the United States District Court for the Southern District Of New York and of any New York state court sitting in the City of New
York for purposes of all legal proceedings arising out of or relating to this Agreement or the Transactions contemplated hereby,
or for recognition or enforcement of any judgment, and each Party hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may (and any such claims, cross-claims or third party claims brought against Buyer
may only) be heard and determined in such state court or, to the extent permitted by law, in such federal court. Seller hereby
irrevocably waives, to the fullest extent it may effectively do so, any objection that it may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has
been brought in an inconvenient forum. Nothing in this Section 13 shall affect the right of Buyer to bring any action or
proceeding against Seller or its Property in the courts of other jurisdictions. Each Party agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Each Party consents to the service of any and all process in any such action or proceeding by the mailing
of copies of such process to it at its address for notices hereunder specified in Section 15 of the Agreement.

 

    	 	 	 

     

    

 

Walker & Dunlop, LLC

Walker & Dunlop, Inc.

August 26, 2019

Page 7

 

14.          WAIVER
OF JURY TRIAL

 

EACH PARTY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THE AGREEMENT, THIS SIDE LETTER, ANY OTHER TRANSACTION DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE OR OTHER
AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED
TO ENTER INTO THIS SIDE LETTER BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 14.

 

(The remainder of this
page is intentionally blank; counterpart signature pages follow.)

 

    	 	 	 

     

    

 

Walker & Dunlop, LLC

Walker & Dunlop, Inc.

Counterpart signature
page to Side Letter

 

Please confirm our
mutual agreement as set forth herein and acknowledge receipt of this Side Letter by executing the enclosed copy of this letter
and returning it to JPMorgan Chase Bank, N.A., 712 Main Street, 5th Floor North, Houston, Texas 77002, Attention: Lindsay Schelstrate
email lindsay.r.schelstrate@jpmorgan.com, or fax (713) 216-5570. If you have any questions concerning this matter, please contact
me by email or by phone at (713) 216-3725.

 

	 	Very truly yours,
	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,
	 	Buyer
	 	 	 
	 	By:	/s/ Lindsay Schelstrate
	 	 	Lindsay Schelstrate
	 	 	Authorized Officer

 

	CONFIRMED AND ACKNOWLEDGED:	 
	 	 	 
	WALKER & DUNLOP, LLC, Seller	 
	 	 	 
	By:	/s/ Stephen P. Theobald	 
	Name:	Stephen P. Theobald	 
	Title:	Executive Vice President and Chief Financial Officer	 
	 	 	 
	WALKER & DUNLOP, INC., Parent	 
	 	 	 
	By:	/s/ Stephen P. Theobald	 
	Name:	Stephen P. Theobald	 
	Title:	Executive Vice President and Chief Financial OfficerExhibit 10.4

 

FIRST AMENDMENT TO

MASTER REPURCHASE AGREEMENT

 

Dated as of August
24, 2020

 

Between:

 

WALKER & DUNLOP,
LLC

a Delaware limited
liability company, as SELLER,

 

WALKER & DUNLOP,
INC.,

a Maryland corporation,
as PARENT

 

and

 

JPMORGAN CHASE BANK,
N.A., as BUYER

 

		1.	This Amendment

 

The Parties hereby
amend (for the first time) the Master Repurchase Agreement dated August 26, 2019 among them (the “Original MRA”,
as amended by the Correction of Master Repurchase Agreement dated July 23, 2020, the “Corrected MRA”, and as
amended hereby and supplemented, further amended or restated from time to time, the “MRA”) to amend the Termination
Date.

 

All capitalized terms
used in the Corrected MRA and used, but not defined differently, in this amendment (the “First Amendment” or
within itself, this “Amendment”) have the same meanings here as there.

 

The Sections of this
Amendment are numbered to correspond with the numbers of the Sections in the Original MRA amended hereby and are consequently nonsequential.

 

		2.	Definitions; Interpretation

 

A.       The
following defined term in Section 2(a) of the Original MRA is amended to read as follows:

 

“Termination
Date‎”‎ means the earliest of (i)  the Business Day, if any, that Seller or Buyer designates as the
Termination Date by written notice given to the other Party, (ii) the date of declaration of the Termination Date pursuant to Section 11(b)(i)
and (iii) August 23, 2021.

 

B.       The
following definitions are added to Section 2(a) of the Original MRA in alphabetical order:

 

“Debt
Service Coverage Ratio” means, as of any time of determination, the ratio of:

 

(a) Four-Quarter EBITDA to

 

     

     

    

 

(b) the sum of:

 

(i) interest
expense of Parent on account of all Debt other than Agency Warehouse Facilities,

 

(ii) an amount
equal to the aggregate amount of all scheduled or other mandatory payments of principal under any Debt (whether or not so paid),
excluding such payments under Agency Warehouse Facilities and balloon payments due at maturity, measured over the same time period
as the relevant Four-Quarter EBITDA as provided in the preceding clause (a).

 

For the purposes
of this definition only, (A) Four-Quarter EBITDA shall exclude any EBITDA attributable to any Subsidiary which is not a Specified
Subsidiary during the applicable period, and (B) interest expense shall exclude any interest expense on account of any Indebtedness
of any Subsidiary which is not a Specified Subsidiary during the applicable period.

 

“EBITDA”
means at any date of determination thereof, with respect to Parent and its subsidiaries on a consolidated basis, an amount equal
to the following, all as determined in accordance with GAAP (net of intercompany transactions and without duplication):

 

(a)           Net
Income for the most recently completed Measurement Period; plus

 

(b)           to
the extent deducted in calculating Net Income, the sum of:

 

(i)       Interest
expect of Parent on account of all Indebtedness other than Agency Warehouse Facilities;

 

(ii)      depreciation
expenses,

 

(iii)     amortization
and write-off of Servicing Contracts,

 

(iv)     decreases
in the fair value of any derivative instruments entered into in the ordinary course,

 

(v)      net
cash settlements paid by Parent in connection with any derivative instruments entered into in the ordinary course,

 

(vi)     provisions
for risk-sharing obligations relating solely to Fannie Mae DUS Mortgage Loans pursuant to the Fannie Mae DUS Program, and

 

(vii)   stock
compensation (i.e., a non-cash charge reducing net income); minus

 

(c)          to
the extent included in calculating Net Income,

 

(i)       capitalized
amounts attributable to origination of Servicing Contract rights,

 

(ii)      the fair
value of expected guaranty obligations,

 

     

     

    

 

(iii)       increases
in the fair value of any derivative instruments entered into in the ordinary course,

 

(iv)       net
cash settlements received by Parent in connection with any derivative instruments entered into in the ordinary course, and

 

(v)       any
cash loan loss expenses not deducted or excluded from the determination of Net Income.

 

“Four-Quarter
EBITDA” means, as of any date of determination, EBITDA for the period of four (4) consecutive Fiscal Quarters ending
on or immediately prior to such date of determination.

 

“Measurement
Period” means, at any date of determination, the most recently completed four fiscal quarters of the applicable Person.
For purposes of calculating any financial ratio for a Measurement Period (a) other than with respect to the last fiscal quarter
of any fiscal year, the financial statements delivered to the Buyer pursuant to Section 10(h) of the Agreement shall be used with
respect to each respective fiscal quarter covered thereby, provided that, when a Measurement Period includes a fiscal quarter which
is covered by the then most recently delivered audited financial statement required to be deliver to the Buyer pursuant to Section
10(h) of the Agreement, then the financial statements relating to such prior covered fiscal quarter shall be adjusted pursuant
to any adjustments made in such audited financial statements, and (b) for the fourth fiscal quarter, the audited financial statements
for the fiscal year then ended shall be used.

 

“Net Income”
means, for any Person, the net income (or loss) of such Person for any period after deduction of all expenses, taxes and other
proper charges, all as determined in accordance with GAAP.

 

“Servicing
Contract” means, with respect to any Person, the arrangement, whether or not in writing, under which that Person has
the right to service Mortgage Loans.

 

“Specified
Subsidiary” means Walker &Dunlop Multifamily, Inc., Seller, WD Capital and any other Person who is or becomes a Seller
or Guarantor as defined or otherwise described in the Agreement).

 

10.       Seller
Covenants.

 

A.       Financial
Covenants. The following is added as a new subsection (vi) to Section 10(u) of the Original MRA:

 

(vi)     Permit the
Debt Service Coverage Ratio to be less than 2.75 to 1.00, tested on the last day of each calendar quarter.

 

     

     

    

 

 

EXHIBIT
A

 

Exhibit A attached
to the Original MRA is deleted in its entirety and hereby replaced with Exhibit A attached hereto.

 

(The remainder of this
page is intentionally blank; counterpart signature pages follow.)

 

     

     

    

 

As amended hereby,
the Original MRA remains in full force and effect, and the Parties hereby ratify and confirm it.

 

JPMORGAN CHASE BANK, N.A., as Buyer

 

	By:	/s/ Grace Chi	 
	Name:	Grace Chi	 
	Title:	Authorized Officer  	 

 

WALKER & DUNLOP, LLC, as Seller

 

	By:	/s/ Stephen P. Theobald	 
	Name:	Stephen P. Theobald	 
	Title:	Executive Vice President and Chief Financial
    Officer	 

  

WALKER & DUNLOP, INC., as Parent

 

	By:	/s/ Stephen P. Theobald	 
	Name:	Stephen P. Theobald	 
	Title:	Executive Vice President and Chief Financial
    Officer  	 

 

Counterpart signature
page to First Amendment to Master Repurchase Agreement

 

     

     

    

 

EXHIBIT A

 

TO MASTER REPURCHASE
AGREEMENT

 

Form of Officer’s
Certificate with computations

to show compliance
or non-compliance with

certain financial covenants

 

OFFICER’S CERTIFICATE

 

	AGENT:	JPMORGAN CHASE BANK, N.A.

 

	COMPANY:	WALKER & DUNLOP, LLC

 

SUBJECT PERIOD:                      
ended                  , 20    

 

DATE                        ,
20    

 

This certificate is
delivered to the Buyer under the Master Repurchase Agreement dated as of August 26, 2019 (as supplemented, amended or restated
from time to time, the “Repurchase Agreement”), between Walker & Dunlop, LLC (“Seller”)
and Walker & Dunlop, Inc. (“Parent”) and JPMorgan Chase Bank, N.A. (the “Buyer”). Unless
they are otherwise defined in this request, terms defined in the Repurchase Agreement have the same meanings here as there.

 

The undersigned officer
of Parent and Seller certifies to Buyer that on the date of this certificate that:

 

1.       The
undersigned is an incumbent officer of Parent and Seller, holding the titles stated below the undersigned’s signature below.

 

2.       Seller’s
financial statements that are attached to this certificate were prepared in accordance with GAAP (except that interim — i.e.,
other than annual — financial statements exclude notes to financial statements and statements of changes to stockholders’
equity and cash flow and are subject to year-end adjustments) and (subject to the aforesaid proviso as to interim financial statements)
present fairly the financial position and results of operations of Seller and its Subsidiaries, on a consolidated basis, as of
                       and for the (check, as applicable)  ̈ one,  ̈ two or  ̈ three quarter(s) of Seller’s fiscal
year, as the case may be, ending on the last day of that period (the “Subject Period”).

 

3.       The
undersigned officer of Seller supervised a review of the activities of Seller and its Subsidiaries during the Subject Period
in respect of the following matters and has determined the following: (a) to undersigned officer’s best knowledge,
except to the extent that a representation or warranty speaks to a specific date, the representations and warranties of
Seller in Section 10 of the Repurchase Agreement are true and correct in all material respects, other than for
the changes, if any, described on the attached Annex A; (b) Seller has complied with all of its obligations under the
Transaction Documents, other than for the deviations, if any, described on the attached Annex A; (c) no Event
of Default has occurred that has not been declared by the Buyer in writing to have been cured or waived, and no Default has
occurred that has not been cured before it became an Event of Default, other than those Events of Default and/or
Defaults, if any, described on the attached Annex A (d) compliance by Seller with certain financial covenants in Section
11(v) of the Repurchase Agreement is accurately calculated on the attached Annex A.

 

	Walker
    & Dunlop, LLC	 
	 	 
	By:	          	 
	Name:	 	 
	Title:	 	 

 

     

     

    

 

ANNEX A TO OFFICER’S
CERTIFICATE

 

1.       Describe
deviations from compliance with obligations, if any — clause 3(b) of attached Officer’s Certificate —
if none, so state:

 

2.       Describe
Defaults or Events of Default, if any — clause 3(c) of attached Officer’s Certificate — if none,
so state:

 

3.       Calculate
compliance with covenants in Section 10(u) — clause 3(d) of attached Officer’s Certificate:

 

As of the last day
of the calendar quarter ending                         , 20__:

 

(a)              
The ratio of (x) the Total Indebtedness of Parent and its consolidated Subsidiaries to (y) its Tangible Net Worth was ____.
(The maximum is 2.25 to 1.00.)

 

(b)              
The Tangible Net Worth of Parent and its consolidated Subsidiaries was $__________________. (The minimum is $200,000,000.)

 

(c)              
The Liquidity of Parent and its consolidated Subsidiaries was $___________________. (The minimum is $15,000,000.)

 

(d)              
The sum of the unpaid principal balances of all Delinquent Serviced Mortgage Loans in the Fannie Mae Servicing Portfolio
was ___% of the aggregate unpaid principal balances of all Fannie Mae Mortgage Loans then serviced by Seller and its consolidated
Subsidiaries. (The maximum is 3.5%.)

 

(e)              
The aggregate principal balance of Seller’s portfolio of Serviced Mortgage Loans (excluding Delinquent Serviced Mortgage
Loans) was $____________ as of the last day of the most recent calendar quarter. (The minimum is $20,000,000,000.)

 

(f)               
The aggregate principal balance of Seller’s portfolio of Serviced Fannie Mae Mortgage Loans (excluding Delinquent
Serviced Mortgage Loans) was $____________ as of the last day of the most recent calendar quarter. (The minimum is $10,000,000,000.)

 

(g)              
The Debt Service Coverage Ratio was ____ to 1.00, tested on the last day of the most recent calendar quarter. (The minimum
is 2.75 to 1.00.)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00313-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00313-of-00352.parquet"}]]