Clayton Holdings Expands Securitization Group

-Involved in More Than 68 Percent of Due Diligence Deals to Date in 2013-

Oct 07, 2013, 09:00 ET from Clayton Holdings LLC

SHELTON, Conn., Oct. 7, 2013 /PRNewswire/ -- Clayton Holdings LLC, a leading provider of loan due diligence, surveillance and consulting services to the mortgage industry, announced today that it has significantly expanded its securitization group and has added space at its Atlanta underwriting operation center.

To manage the expanded group, Clayton also announced that Dan Pinero was named director of securitization for operations and Joe Ozment as director of securitization for client services. Both executives report to Scott Mowry, senior vice president and head of transaction management at Clayton.

The expansion is driven by growing demand for due diligence services within the recovering private-label securitization market. In 2013, Clayton performed due diligence on all but a handful of the new issues that came to market, reviewing more than 7,700 loans year-to-date. Clayton's due diligence process involves reviewing each loan file to verify that the loan accurately reflects the seller's stated guidelines. Specific data points that are verified include borrower credit, property valuation, compliance and fraud risk on the loans within a portfolio.

Clayton has secured an additional 18,000-square foot space in Atlanta to accommodate its expanding securitization business. Currently, there are 80 due diligence professionals based in the Atlanta facility and an additional 220 professionals based in Clayton's Tampa facility. To create this highly trained cadre of due diligence experts, Clayton has worked closely with rating agencies and invested more than one million dollars in the professional development of its internal staff and team of consultants in 2013. Most of the focus has been on the securitization process­­: quality and the new expectations for effective underwriter commentary on loans and exceptions.

"The gradual reemergence of the private-label market has been a long, deliberate process and those reentering the market are operating in a rapidly evolving regulatory and business environment," said Mowry. "As a result, issuers are now routinely requesting more extensive reviews of loan pools and of individual files. As the market leader in due diligence, Clayton is investing in personnel, training, technology and facilities to be ready for new regulations—like QM and QRM—and the eventual return of the private RMBS market."

About Clayton Holdings LLC
Clayton Holdings, headquartered in Shelton, Connecticut, provides information and services that financial institutions, investors and government entities use to evaluate, acquire, securitize service and monitor loans and asset-backed securities. Clayton offerings include risk-based analytics, residential and commercial loan due diligence, consulting, surveillance and staffing solutions. The company provides customized solutions including REO management, BPOs and a short sale program through its Green River Capital subsidiary. A global reach in the financial services industry is provided by the company's European subsidiary, Clayton EuroRisk.

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SOURCE Clayton Holdings LLC