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
"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.