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.
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.