BETHESDA, Md., March 9, 2017 /PRNewswire/ -- Walker & Dunlop, Inc. (WD) (the "Company") announced today that it has closed a $222 million portfolio through the U.S. Department of Housing and Urban Development's (HUD) Interest Rate Reduction (IRR) program. The borrower used the IRR program to obtain lower interest rates on 30 existing HUD loans backed by senior living and healthcare properties.
HUD created the IRR program in 2013 as an alternative to its other refinance options to allow existing HUD multifamily borrowers to more easily take advantage of historically low interest rates. Through the program, the mortgage interest rate is reduced without affecting the maturity date or other mortgage terms. HUD loan servicers like Walker & Dunlop are only able to facilitate the IRR process for existing loans within their servicing portfolios.
Michael Vaughn and Kevin Giusti, both senior vice presidents, led the Walker & Dunlop team on the transaction. Mr. Vaughn commented, "Underwriting, rate locking, and closing 30 IRR loans in a condensed time frame was a huge accomplishment. The hard work and collaboration of Walker & Dunlop and HUD enabled us to lock the interest rates before rates jumped significantly." Mr. Giusti added, "The cost effective and streamlined IRR program has been advantageous to Walker & Dunlop's HUD borrowers by allowing them to significantly increase their properties' cash flow."
In 2016, Walker & Dunlop closed over $400 million in IRR loans. Because the IRR process simply modifies an existing loan in Walker & Dunlop's servicing portfolio, the Company does not recognize IRR loans as part of its reported HUD loan origination volume.
About Walker & Dunlop
Walker & Dunlop (WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 500 professionals in over 25 offices across the nation with an unyielding commitment to client satisfaction.
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