Clayton forms securitization consultancy group
Clayton Holdings formed a new securitization group this week to help issuers, investors and other parties prepare for the, as yet nonexistent, return of the non-agency residential mortgage-backed securities market. Clayton provides risk analysis, loss mitigation support and staffing support for the mortgage and fixed-income industries. It also conducts due diligence on borrower information for mortgages being structured into structured finance pools. The securitization group will provide issuers and investors with consulting services while also providing them with loan review data and performing due diligence on deals to ensure compliance and quality control. Shelton, Conn.-based Clayton named Ron Castro managing director of the securitization group. Castro previously led Clayton's expansion into the United Kingdom, handling operational issues and IT integrations. He also oversaw development and the roll out of Clayton's due diligence and reporting systems on the RMBS market. Aside for a handful of private-label RMBS deals, the private market is largely shut. The government-sponsored enterprises Fannie Mae and Freddie Mac dominate the securitization space. Write to Kerri Panchuk.