BETHESDA, Md., June 7, 2016 /PRNewswire/ -- Walker & Dunlop, Inc. (NYSE: WD) (the "Company") announced today that it has agreed to purchase the commercial mortgage servicing rights associated with a $3.8 billion servicing portfolio from Oppenheimer Multifamily Housing & Healthcare Finance, Inc. a subsidiary of Oppenheimer Holdings Inc. (NYSE: OPY). The portfolio is comprised of over 480 multifamily and healthcare loans insured by the U.S. Department of Housing and Urban Development (HUD). The acquisition is expected to close on June 20, 2016 making Walker & Dunlop the largest HUD Multifamily/Healthcare servicer in the U.S. The Company will be using available capital to fund the approximately $45 million purchase price.
Walker & Dunlop's Chief Financial Officer, Stephen Theobald, stated, "In 2012, Walker & Dunlop set a goal to increase the proportion of revenues that comes from servicing and other non-transaction based fees. Over the past several years, the servicing portfolio has seen steady growth with the value of its revenue streams becoming increasingly apparent in the financial stability and flexibility provided to the business. The opportunity to acquire a portfolio of this size is rare and our strong cash position allowed us to move quickly to accelerate the accomplishment of our goal."