Walker & Dunlop to Acquire Johnson Capital Loan Origination and Servicing Platform

BETHESDA, MD - Walker & Dunlop, Inc. announced that it has agreed to acquire Johnson Capital's loan origination and servicing platform.  Johnson Capital is a leading national commercial real estate mortgage company that maintains long-standing brokerage relationships with many life insurance companies, banks and CMBS conduits.  In addition, Johnson Capital is an approved HUD MAP lender nationally and Ginnie Mae issuer.  As part of the transaction, approximately $590 million in HUD servicing will be added to Walker & Dunlop's $40 billion servicing portfolio.  Johnson Capital also has sourced billions of dollars of Fannie Mae DUS loans as a correspondent to Walker & Dunlop over the past 20 years, and has originated Freddie Mac multifamily loans. Johnson Capital has originated $1.3 billion in commercial loans on average over the past three years.

"As one of Walker & Dunlop's largest mortgage banking correspondents, we know Johnson Capital extremely well and are thrilled to be adding such an exceptional team of real estate finance professionals to our platform," commented Walker & Dunlop Chairman and CEO Willy Walker. "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. Commercial loan refinancing volumes are projected to grow over 70% between 2014 and 2015 and adding the origination capabilities of Johnson Capital to Walker & Dunlop is both timely and strategic."

Guy Johnson, Founder and CEO of Johnson Capital commented, "We have enjoyed a long and mutually beneficial correspondent relationship with Walker & Dunlop and I am very excited to be part of bringing our two great companies together.  Walker & Dunlop's national brand and extremely strong market position will benefit our people and clients immediately."

"I am excited to welcome the Johnson Capital team to Walker & Dunlop and look forward to working with Guy over the coming years to achieve Walker & Dunlop's mission of being the premier commercial real estate finance company in the United States," concluded Walker.

The terms of the cash and stock transaction were not disclosed.  Completion of the acquisition is subject to certain conditions, consents and approvals, and expected to close on or around November 1, 2014.  Walker & Dunlop expects the transaction to be accretive beginning in 2015.