SURVEILLANCE
Credit Risk Management
Credit Risk Management (CRM) is the independent monitoring of fixed income asset and transaction performance for the mortgage industry.  Clayton created the business of CRM to reduce losses and provide information transparency and continuity among all players in the mortgage market.  At its core, CRM provides an independent, third-party assessment of asset performance at individual loan and transaction levels.

With a proven ability to identify and resolve issues, CRM results in appropriate loan management and distribution of monies to all parties in a transaction.  The customized approach and independence allow for an unbiased view on mitigating risk and lowering loan losses.  The perspective acquired through the scope of CRM services across the life of the loan provides Clayton with a unique ability to provide insight to its clients in critical areas such as regulatory compliance, loan performance, and industry trends. Investors and dealers gain confidence when they buy and/or sell loans that carry Clayton as credit risk manager, because we recover an average of nine basis points on each security in our portfolio.

Loss Mitigation
Clayton applies proprietary risk-filter technology to identify anomalies within various aspects of loan performance data.  Our independent loan reviews involve analyzing loan performance data to identify and remedy both loan-level and systemic issues as well as to verify that cash flow events occurred as reported to all parties to a transaction.  Loss mitigation involves monitoring all aspects of performance for an asset or securitization, including:
  • Default management (timeline management, loan modification tracking, loan workouts, etc.)
  • Third-party oversight of servicers, master servicers and trustees including adherence of policies and procedures and assessment of operational risk
  • Validation, reconciliation and recalculation of losses, prepayment premiums and mortgage insurance
  • Property valuation and marketing plan reviews
  • Repurchase/indemnification candidate identification
  • Cash flow analysis, interest rate verification and remittance reconciliation
Data Cleansing & Warehousing
Clayton realizes that one of the keys to successful surveillance is to have deep, clean and timely data. As a result, our data has more fields than other leading industry data providers and is higher in quality due to dozens of independent data validations conducted at both the file and record level.  Our team of data professionals ensures that all data received is stored consistently and accurately and is available to our Clients.

Analytics & Reporting
Clayton’s suite of technology solutions and staff professionals provide Clients with various avenues to access data information and reporting.  Clients are provided with self-service, web-based reporting access through InCyt and Client Access as well as full service and custom reporting via our dedicated Analytics Department and/or Client focused teams.  Our technology allows Clients to view Clayton loan-level analysis commentary as well as deal performance and comparison data over time, including:
  • Summary Dashboards/Scorecards
  • Delinquencies
  • Losses/Severities
  • Prepayment Speeds (CPR/PSA)
  • Default Timelines
  • Value Declines
  • Cure/Resolution Rates
  • Roll Rates Origination & Current Distributions
  • Custom Indices
  • Analyst Watchlists
What This Means for Your Business
Partnering with Clayton helps keep your losses to a minimum and your information at a maximum, allowing for better informed decisions and understanding of asset performance.  Our independent collateral surveillance process, coupled with industry leading data aggregation and analytics services allow you to be confident that your interests are being properly served and your concerns are being addressed at every point in the mortgage loan cycle.