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TEXT-Fitch puts Walker & Dunlop Capital servicer rating on negative watch

(The following statement was released by the rating agency)

Oct 10 - Fitch Ratings places Walker & Dunlop Capital, LLC's (formerly known as CWCapital LLC) master and primary servicer ratings of 'CMS3' and 'CPS2+' on Rating Watch Negative following the sale of CWCapital's master and primary servicing operations to Walker & Dunlop, LLC.

On Sept. 4, 2012, Walker & Dunlop, LLC, a subsidiary of Walker & Dunlop, Inc.

(NYSE: WD) completed the acquisition of CWCapital LLC, renaming it Walker & Dunlop Capital, LLC.

The Rating Watch Negative status is due to the uncertainty surrounding the integration, staffing and financial condition of the Walker and Dunlop servicing operations. Fitch expects to resolve the rating watch status following an operational review of the integrated Walker & Dunlop servicing platform before the end of 2012.

The servicer rating is based on the methodology described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb. 18, 2011, and 'Global Rating Criteria for Structured Finance Servicers' dated Aug. 16, 2010, available on Fitch's web site

.

Additional information is available at '

'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research: --'U.S. Commercial Mortgage Servicer Rating Criteria' Feb. 18, 2011; --'Global Rating Criteria for Structured Finance Servicers' Aug. 16, 2010.

Applicable Criteria and Related Research: Global Rating Criteria for Structured Finance Servicers U.S. Commercial Mortgage Servicer Rating Criteria

(New York Ratings Team)

((e-mail: pam.niimi@thomsonreuters.com; Reuters Messaging: pam.niimi.reuters.com@reuters.net; Tel:1-646-223-6330;))