BETHESDA, MD. — Walker & Dunlop Inc. (NYSE : WD) has agreed to acquire Johnson Capital’s loan origination and servicing platform. As part of the transaction, approximately $590 million in HUD servicing will be added to Walker & Dunlop’s $40 billion servicing portfolio.
The terms of the cash and stock transaction were not disclosed. Completion of the acquisition is subject to certain conditions, consents and approvals. The transaction is expected to close on or around Nov. 1. Walker & Dunlop expects the transaction to be accretive beginning in 2015.
Johnson Capital has sourced billions of dollars of Fannie Mae DUS loans as a correspondent to Walker & Dunlop over the past 20 years, and has originated Freddie Mac multifamily loans. Johnson Capital has originated $1.3 billion in commercial loans on average over the past three years.
“As one of Walker & Dunlop’s largest mortgage banking correspondents, we know Johnson Capital extremely well and are thrilled to be adding such an exceptional team of real estate finance professionals to our platform,” says Willy Walker, chairman and CEO of Walker & Dunlop.
“Johnson Capital has a significant origination presence in the West and Southwest and will grow Walker & Dunlop’s brokered originations with life insurance companies, banks and CMBS conduits dramatically. Commercial loan refinancing volumes are projected to grow over 70 percent between 2014 and 2015 and adding the origination capabilities of Johnson Capital to Walker & Dunlop is both timely and strategic.”
Johnson Capital maintains brokerage relationships with many life insurance companies, banks and CMBS conduits. The commercial real estate firm is an approved HUD MAP lender nationally and Ginnie Mae issuer.
“We have enjoyed a long and mutually beneficial correspondent relationship with
Walker & Dunlop and I am very excited to be part of bringing our two great companies together. Walker & Dunlop’s national brand and extremely strong market position will benefit our people and clients immediately,” says Guy Johnson, founder and CEO of Johnson Capital.
Bethesda, Md.-based Walker & Dunlop is a provider of commercial real estate financing solutions nationwide. The firm has more than 400 employees located in 20 offices nationwide.
Walker & Dunlop’s stock price closed at $13.29 per share on Tuesday, Sept. 30, down from $15.91 per share a year ago.
— Danielle Everson