BETHESDA, MD—Walker & Dunlop has agreed to acquire real estate mortgage company Johnson Capital's loan origination and servicing platform, a transaction that will expand W&D's relationships with life insurers, banks, CMBS conduits and possibly open the door to Ginnie Mae business.

The transaction also brings in house some $590 million in HUD servicing, a significant increase to Walker & Dunlop's $40 billion servicing portfolio.

W&D has a history with Johnson Capital, Walker & Dunlop Chairman and CEO Willy Walker noted in a prepared statement. The company has sourced billions of dollars of Fannie Mae DUS loans as a correspondent to Walker & Dunlop over the past 20 years. It has also originated Freddie Mac multifamily loans. Over the past three years, Johnson Capital has originated $1.3 billion in commercial loans on average.

“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," Walker says. He also points to stats that project commercial loan refinancing volumes growing more than 70% between 2014 and 2015, making the addition of Johnson Capital's origination capabilities "both timely and strategic."

The deal is expected to close within a month by Nov. 1, 2014. Walker & Dunlop expects the transaction to be accretive beginning in 2015.

Walker & Dunlop has been steadily expanding its platform beyond its original GSE origination mandate. Over the years the company has built out capabilities in short-term lending, conduits, affordable housing and other asset types such as office and retail and industrial. It has also been adding to its geographic reach.

The company also acquired Column Guaranteed LLC in 2009 and CWCapital LLC in 2012.

The results of these efforts: Walker & Dunlop's current loan servicing portfolio of $40 billion has grown by 473% since the end of 2008.