Walker & Dunlop Snaps Up $4B Mortgage Servicing Portfolio
The company made the purchase for $44.6 million.
Bethesda, Md.—Walker & Dunlop Inc. has completed the purchase of a $3.8 billion commercial mortgage servicing portfolio from a subsidiary of Oppenheimer Holdings Inc. for $44.6 million. The portfolio consists of 480 permanent loans insured by HUD.
The portfolio is geographically diverse, with loans in 43 states, the District of Columbia and the U.S. Virgin Islands. Walker & Dunlop projects that the annual servicing revenue from the acquired portfolio will be about $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 loans have a weighted average note rate of 3.99 percent 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 over the coming years. The acquisition brings Bethesda, Md.-based Walker & Dunlop’s HUD servicing portfolio to over $9.3 billion (as of at end of Q2 2016), making it the largest servicer of HUD multifamily/healthcare loans in the country.