Clayton IPS, the independent pricing unit of risk analysis and loss mitigation firm Clayton Holdings, is branching into the whole loan pricing space. The firm said yesterday it selected CompassPoint to meet the growing demand for performing whole loan valuations. Previously, Clayton IPS focused on valuations of residential and commercial mortgage-backed securities (RMBS and CMBS). “There is significant demand for valuing ‘performing’ collateral that is either held on a bank’s balance sheet (and needs fair market valuation) or verifying asset values that will be sold/acquired in the secondary market," said Clayton IPS president Karl Weiss in a statement provided to HousingWire. “The Compass tool permits us to create prepay and default projections in a manner that nearly matches what we do when valuing securities." CompassPoint is a software licensed by valuation and interest rate risk management solutions provider Compass Analytics. Clayton IPS will use the software's cash flow engine, model and reporting framework to provide market color and collateral performance projections needed to generate pricing and analytics for verifying whole loan portfolio values. "After a lengthy evaluation process, we selected CompassPoint due to the advanced capabilities and the flexibility of its model," Weiss said. "It rounds out our product offering." Write to Diana Golobay.