Source: Walker & Dunlop / #Multifamily #Finance
BETHESDA, MD - Walker & Dunlop announced that it has completed the purchase of a $3.8 billion commercial mortgage servicing portfolio from a subsidiary of Oppenheimer Holdings 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.