Walker & Dunlop to Acquire Johnson Capital

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Commercial real estate lender Walker Dunlop has agreed to acquire Johnson Capital’s loan origination and servicing platform.

As part of this transaction, Walker Dunlop will add $590 million in HUD servicing to its $40 billion servicing portfolio when this deal closes at the beginning of November, according to a press release.

Johnson Capital originated $1.3 billion in commercial loans on average over the past three years. Additionally, as a correspondent to Walker Dunlop, Johnson Capital has sourced billions of dollars of Fannie Mae DUS loans.

Terms of the cash and stock transaction were undisclosed. Walker Dunlop in Bethesda, Md., expects the transaction to be accretive beginning in 2015.

Willy Walker, chairman and chief executive officer of Walker Dunlop, said adding the origination capabilities of Johnson Capital is both “timely and strategic” as he projects commercial loan refinancing volumes will grow more than 70% next year.

“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,” Walker said in the release.

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