Walker & Dunlop to Acquire Elkins Mortgage

The Bethesda, Md.-based company will add roughly $1.7 billion in life insurance company servicing to its portfolio.

By Keith Loria, Contributing Editor

Willy Walker, Walker & Dunlop Chairman and CEO
Willy Walker, Walker & Dunlop

Bethesda, Md.Walker & Dunlop Inc. will acquire George Elkins Mortgage Banking Co., with approximately $1.7 billion in life insurance company servicing expected to be added to Walker & Dunlop’s $57.3 billion servicing portfolio.

Complete terms of the transaction were not disclosed, but the acquisition will add 14 commercial real estate originators to Walker & Dunlop’s Capital Markets group and the deal is expected to close before the end of 2016.

“Elkins was started even before my grandfather started Walker & Dunlop, and as one of the oldest, most established mortgage banking companies in the U.S., with a long-standing culture of success, they are a perfect add,” Willy Walker, Walker & Dunlop chairman & CEO, said in a prepared release. “As we have scaled Walker & Dunlop across the country, we have looked to acquire great companies with similar business cultures to ours. George Elkins Mortgage will integrate nicely into Walker & Dunlop’s loan origination footprint and culture, and bring with it a wonderful group of mortgage banking professionals and clients that will add value to Walker & Dunlop.”

Since originating in 1922, Elkins has served as the direct loan origination arm for an array of life insurance companies, banks, trusts, pension funds, thrifts and other private capital sources. It has five offices throughout the state of California and has averaged $800 million a year in brokerage transactions for all types of commercial real estate.

“Walker & Dunlop has built the strongest agency origination platform in the country, along with their proprietary interim loan program,” Jeffrey Hudson, George Elkins Mortgage Banking principal, said in the release. “As our correspondent life company relationships are integrated into Walker & Dunlop’s origination system, our ability to provide direct and unique lending sources to our clients in California and throughout the country is broadened dramatically. We are excited to be a part of this successful and well respected company.”

Walker & Dunlop is included in the S&P SmallCap 600 Index and has more than 500 professionals in 24 offices across the country. The average 12 month target price among brokers that have issued a report on the stock in the last year is $28.44.

“I am very excited to welcome these talented originators onto the Walker & Dunlop platform and look forward to expanding our presence in California, a state with a great amount of untapped business for Walker & Dunlop,” Cliff Carnes, Walker & Dunlop’s senior vice president & capital markets west chief production officer, said in the release. “Elkins also brings with it a robust correspondent network that adds significant potential deal flow and new relationships to Walker & Dunlop.”