BETHESDA, Md., June 21, 2016 /PRNewswire/ -- Walker &
Dunlop, Inc. (NYSE: WD) (the "Company") announced today that it has
completed the purchase of a $3.8
billion commercial mortgage servicing portfolio from a
subsidiary of Oppenheimer Holdings Inc. (NYSE: OPY) for a final
closing price of $44.6 million.
The acquired portfolio, comprised of 480 permanent loans
insured by the U.S. Department of Housing and Urban Development
(HUD), has a weighted average servicing fee of 17 basis
points. Annual servicing revenue from the acquired portfolio
is projected to be approximately $6.4
million.
Of the 480 loans, 361 loans, with an unpaid principal balance of
$2.7 billion, are secured by
multifamily properties. The other 119 loans, with an unpaid
principal balance of $1.1 billion,
are secured by seniors housing and healthcare properties. The
portfolio is geographically diverse with loans in 43 states, the
District of Columbia and the U.S.
Virgin Islands.
The loans in the portfolio have a weighted average note rate of
3.99% and an average age of 44 months. The average remaining life
of the portfolio loans is 31 years. Given the relatively low
average note rate and remaining maturity of the portfolio, the
Company expects limited prepayments of loans over the coming
years.
The portfolio brings with it $230
million in escrow balances and no loss-sharing risk to
Walker & Dunlop. With the addition of this portfolio, the
Company will immediately begin interacting with our new customers
in the process of servicing their loans and meeting their future
financing needs. Walker & Dunlop's HUD servicing
portfolio is projected to exceed $9.3
billion at the end of Q2 2016, making the Company the
largest servicer of HUD Multifamily/Healthcare loans in the United
States.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest
commercial real estate finance companies in the United States providing financing and
investment sales to owners of multifamily and commercial
properties. Walker & Dunlop, which is included in the S&P
SmallCap 600 Index, has over 500 professionals in 26 offices across
the nation with an unyielding commitment to client
satisfaction.
Forward-Looking Statements
The statements in this press release relating to:
projected annual servicing revenues from the acquired portfolio;
the expected limited number of loan prepayments in the portfolio;
and Walker & Dunlop's projected loan servicing portfolio
balance at the end of the second quarter 2016 may constitute
forward-looking statements within the meaning of the federal
securities laws. Forward-looking statements relate to expectations,
projections, plans and strategies, anticipated events or trends and
similar expressions concerning matters that are not historical
facts.
The forward-looking statements contained in this press release
reflect our current views about future events and are subject to
numerous known and unknown risks, uncertainties, assumptions and
changes in circumstances that may cause actual results to differ
significantly from those expressed or contemplated in any
forward-looking statement.
While the forward-looking statements reflect our good faith
projections, assumptions and expectations, they are not guarantees
of future results. Furthermore, we disclaim any obligation to
publicly update or revise any forward-looking statement to reflect
changes in underlying assumptions or factors, new information, data
or methods, future events or other changes, except as required by
applicable law. Factors that could cause our results to differ
materially include, but are not limited to: (1) general economic
conditions and multifamily and commercial real estate market
conditions, (2) regulatory and or legislative changes to HUD, (3)
changes in federal government fiscal and monetary policies,
including any constraints or cuts in federal funds allocated to HUD
for loan originations, (4) actual loan payoff rates for loans in
the acquired portfolio; and (5) changes in interest
rates.
For a further discussion of these and other factors that could
cause future results to differ materially from those expressed or
contemplated in any forward-looking statements, see the section
titled ''Risk Factors" in our most recent Annual Report on Form
10-K, as it may be updated or supplemented by our Quarterly Reports
on Form 10-Q and our other filings with the SEC. Such filings
are available publicly on our Investor Relations web page
at www.walkerdunlop.com.
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SOURCE Walker & Dunlop, Inc.