related charges in the quarter. The first was just the default, as you referred to. And then the second was we did have Fannie Mae wrap up a portion of its loan level review. And at the conclusion of those two loans, or there were two loans that we identified that we recorded some additional reserves as we agreed to increase our loss sharing in lieu of repurchasing the loans. And Fannie Mae, they've communicated to us that that would be the intent of how they wrap up and resolve their portion of the investigation, which is why we only expect an additional credit mark in the third quarter as we finalize that review. And we don't expect any further repurchases from either at this stage as a result of the investigation. So from a capital perspective, we'll manage the losses, but we don't have to, at this point, feel like we need to be focused on actually repurchasing the full UPB of a loan. So hopefully that came through, and that answers your question.

Got it. Yes, that's very helpful. And then I guess on the Fannie investigation, is that $12 to $16 million of expected credit losses in the third quarter? Is that related to the $15.9 increase in loss-sharing reserves, or is that separate from that?

That'll be a new charge as we finalize that discussion and overall review with Fannie Mae. So we're pretty close to being finalized there. As we said, we're hoping that wraps up imminently here. And certainly by the time we get on the next quarterly earnings call, we'll be able to say both investigations are done. But as we wrap those final loans up in review, we'll finalize what that loss sharing will look like in lieu of repurchasing the loans, and we'll take that charge in the third quarter. So it's unrelated to anything we've recorded to date.

Got it. That's helpful. And then maybe just changing gears a little bit, as you guys open an office in Europe now, can you just talk about maybe the differences in that market versus the U.S. and just how quickly you think that market can ramp up?

Sure, Chris. That office has a tremendous, has a fantastic team at it. We've started to see them closing loans after taking a little bit of time to get up and get going and get the W&D brand in the European market. I think the biggest differentiator between Europe and the U.S. is that there's no agency there. So the W&D brand, if you will, that has been so strong in agency financing and therefore in multifamily, given the role that the agencies play in multifamily in the United States, you don't have that in London or in France or any of the other countries in Europe where we are focused on lending. And so it's a very robust capital market without the presence of Fannie Mae and Freddie Mac, obviously. And the team has done a fantastic job of both establishing the brand, and it shouldn't come as any surprise that our first three large deals have come from existing Walker & Dunlop clients in the United States who also happen to operate in Europe. And so we're leveraging the platform in the U.S. into U.S. commercial real estate owner operators into Europe. And our European team is leveraging off of that to find deals and execute on those deals. And so it's a true brokerage operation. And one of the things that we are right now about to expand is bringing investment sales into that lending or debt brokerage team so that we're not doing just debt and equity, but when we're also getting into the asset sales business, which has been such a key component of the growth of our debt business in the United States.

Got it. That's all very helpful. I appreciate you guys taking the questions today.

Thank you, Chris.

As a reminder, if you would like to ask a question, you may press star one on your telephone keypad.

Now it appears there are no further questions at this time.

I'd like to turn the conference back over to Willie Walker for any additional or closing remarks.

I'd like to reinforce my thanks to the WMD team for all you do. Congrats on the great places to work. Thank you to everyone who joined us today, and I hope everyone has a terrific day.

This concludes today's call. Thank you again for your participation. You may now disconnect, and have a great day.