Walker & Dunlop To Buy Johnson Capital

(RTTNews) - Walker & Dunlop, Inc. (WD) said Monday that it has agreed to buy Johnson Capital's loan origination and servicing platform.

The terms of the cash and stock deal were not disclosed.

Johnson Capital is a commercial real estate mortgage company that maintains long-standing brokerage relationships with many life insurance companies, banks and CMBS conduits. In addition, Johnson Capital is an approved HUD MAP lender nationally and Ginnie Mae issuer.

As part of the deal, about $590 million in HUD servicing will be added to Walker & Dunlop's $40 billion servicing portfolio. Johnson Capital also 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.

Completion of the acquisition is expected to close on or around November 1. Walker & Dunlop expects the deal to be accretive beginning in 2015.