Maryland-based lender Walker & Dunlop has completed the acquisition of Johnson Capital and its loan origination and servicing platform.
The acquisition is part of an effort to bulk up its capital markets team in anticipation of the upcoming wave of commercial loan refinancings, which Walker & Dunlop’s chairman and CEO, Willy Walker, expects to grow by more than 70% next year.
The company has said that the transaction will allow it to add $590m in servicing under the Federal Housing Administration’s HUD program to its existing $40bn servicing portfolio.
“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 stated when the then-pending deal was announced in September.
Johnson Capital – under CEO Guy Johnson, who will become vice chairman of the Walter & Dunlop capital markets group – was a commercial real estate capital intermediary with direct lender relationships through Freddie Mac, HUD and insurance companies.
The firm originated an average of $1.3bn in commercial loans over the past three years and sourced billions of dollars in Fannie Mae DUS loans as a correspondent to Walker & Dunlop.
Walker & Dunlop expects the transaction to be accretive beginning in 2015.