Walker & Dunlop Inc. is purchasing a $3.8 billion commercial mortgage servicing rights portfolio from Oppenheimer Holdings Inc.
The sale, consisting of more than 480 permanent loans insured by the U.S. Department of Housing and Urban Development, represents substantially all of the assets of Oppenheimer Multifamily Housing & Healthcare Finance Inc. (OMHHF), a subsidiary of Oppenheimer Holdings.
So far, Walker & Dunlop has forked over cash proceeds of approximately $45 million for the portfolio. The sale of the remainder of OMHHF’s operating assets is expected to be completed in the near future, Oppenheimer Holdings says in a release.
As previously reported, Oppenheimer Holdings had determined that OMHHF was a non-core business of the Oppenheimer financial services franchise and the company’s board of directors approved the sale of assets of OMHHF.
“We formed OMHHF in 1998 and successfully grew the business into one of the top ten commercial mortgage loan servicers in the U.S.,” says Albert G. Lowenthal, chairman and CEO of Oppenheimer Holdings Inc., in a release. “I would like to thank Jim Moore, president of OMHHF, for his many years of service. We believe that the sale of this non-core business will allow us to continue to focus on growing our core banking and wealth management franchise.”