Clayton Holdings Forms New Securitization Group

""Clayton Holdings LLC"":http://www.clayton.com announced this week the formation of a new securitization group dedicated to helping the private market prepare for the return of non-agency residential mortgage-backed securities (RMBS).

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Clayton Holdings provides customized risk analysis, loss mitigation, operational solutions, and staffing services to the mortgage and fixed income industries. The Connecticut-based firm's new securitization group will have two primary roles as it readies the secondary market for greater private sector involvement.

The first will be to provide consultative services to help issuers, investors, and aggregators align their programs and procedures with the new rules that will govern the issuance and ratings of RMBS.

The second is to deliver loan reviews and due diligence services that will assure transparency, quality, and compliance, not only for new issues, but also for re-securitizations and pre-securitization readiness.

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""Based on our own observations and our ongoing dialogue with clients and other key players in the non-agency market, we believe the market is poised to return,"" said Paul Bossidy, president and CEO of Clayton Holdings.

""In preparation,"" Bossidy added, ""we've created a dedicated team who are well-versed in all aspects of the new rules governing future securitizations and who have the skills that issuers, conduits, and whole loan investors and warehouse lenders need now.""

Ron Castro has been appointed managing director of securitization for Clayton Holdings. Prior to being named head of the new group, Castro led Clayton's expansion into the United Kingdom, where he was responsible for operational and IT integrations.

An 18-year veteran of Clayton, Castro has been responsible for the development and implementation of Clayton's core due diligence and reporting systems within the RMBS market.

Castro describes the group of individuals working with him as the ""securitization SWAT team.""

""[W]e have assembled…senior leaders who are intimately familiar with the new rules, the current economics, and the market's changing expectations for RMBS,"" Castro said. ""Our group can answer specific questions about loan reviews, sampling, ratings requirements, compliance, fraud, credit, or evaluations. At the same time, they can deliver any or all of these services on a programmatic basis for our clients.""

Bossidy adds that the group will work closely with Clayton's Denver-based servicer surveillance business. ""This will be especially important to our customers when the RMBS market comes back,"" he said.