SHELTON, Conn., July 13, 2015 /PRNewswire/ -- Clayton Holdings LLC, a leading provider of loan due diligence and surveillance, today announced that it has commenced providing an Asset Representations Reviewer (ARR) service to help issuers of asset-backed securities (ABS), including auto finance, credit card, student loan and equipment-leasing issuers, comply with the requirements of the Securities and Exchange Commission's amendments to Regulation AB (Reg AB II.)
Under Reg AB II, all public ABS issuers will be required to appoint an ARR for each transaction to review the assets for representation and warranty compliance in the event that a certain threshold of delinquencies is breached and if investors vote to conduct a review. The ARR's name, qualifications and prescribed role must be spelled out in the deal documents.
The new offering leverages Clayton's extensive knowledge of underwriting, loan document review and surveillance, as well as the company's proprietary technology. Clayton will provide consulting services on testing procedure design, help clients specify the role of the asset reviewer, and perform asset review pilot testing. As needed by certain clients, Clayton will also perform the defined testing procedures and will report results in accordance with the approach set forth by Reg AB II.
"Our unparalleled experience in the highly-regulated mortgage-backed securities sector market has prepared us to support the compliance needs of the broader universe of ABS issuers," said Joe D'Urso, President of Clayton. "The response to our 'soft-launch' of our ARR service has been extremely positive: to date we have already been engaged by a number of leading issuers across a number of ABS categories."
About Clayton Holdings LLC
Clayton Holdings LLC, a subsidiary of Radian Group Inc. (NYSE :RDN ), provides risk-based analytics, residential loan due diligence, consulting, surveillance and staffing solutions. The company also provides customized REO asset management and single-family rental services through its Green River Capital subsidiary; advanced AVMs, BPOs and technology solutions to monitor loan portfolio performance, acquire and track NPLs, and value and sell REO through its Red Bell Real Estate subsidiary; and a global reach through its Clayton EuroRisk subsidiary. For more information, call 877.291.5301 or visit www.clayton.com.
SOURCE Clayton Holdings LLC