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Clayton Holdings launches new underwriting program for “fix and flip” lending

Company offers end-to-end underwriting, valuation and due diligence solution

Clayton Holdings, a provider of loan due diligence, surveillance, REO management, consulting, valuation, title and settlement services to the mortgage industry and a subsidiary of Radian Group, announced that it recently began offering an underwriting solution specifically designed for the “fix and flip” market.

According to Clayton President Jeff Tennyson, the currently low interest rate environment is driving growth in “fix and flip” buyers and the company’s new underwriting solution offers lenders new tools to serve those buyers.

“Low interest rates, rising home prices and tight inventory are all driving the growth of the fix and flip investment market and attracting new liquidity from Wall Street and private investors,” Tennyson said.

“We have designed an integrated, one-stop solution for warehouse and hard-money lenders that draws on Clayton’s deep experience in underwriting and the unique skill sets in valuing and monitoring single-family rental properties that reside within our Green River Capital and Red Bell Real Estate subsidiaries,” Tennyson added.

According to Clayton, the solution is already in use by “several major warehouse lenders,” and includes the following features:

  • Borrower underwriting: review of the borrower’s professional track record; business plan, credit and financial standing; liquidity analysis of balance sheet and tax statements; and synopsis of corporate structure.
  • Property underwriting: review of purchase/sales agreement; title and loan reviews; BPO with “as-is” and “as-repaired” values; desktop and automated valuation reviews of original appraisals; plan and budget analysis.
  • Project monitoring: twice-monthly reporting on rehab status, including building permits, HOA requirements, budgets and schedule; draw and release requests; property inspections and photos; and lien waivers, etc.
  • Portfolio surveillance: Clayton’s RAMP surveillance solution can deliver customizable reports providing ongoing visibility into operational and financial aspects of the portfolio at the borrower, loan, and property level. 

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