Securitization Solutions

The recent financial crisis prompted a broad range of regulatory reform and rating agency requirements seeking to strengthen the overall securitization process and provide transparency for investors.  While there are still a number of unknowns, the direction is clear; all phases of non-agency securitization will require a whole new level of disclosure, coordination and due diligence.  All securitization participants will be playing by a new set of rules and must adapt their policies, procedures and systems in order to execute on transactions successfully.

In anticipation of the return of non-agency securitization, Clayton has invested significantly in our resources and infrastructure to ensure our service offerings satisfy all the new regulations and prepare our clients for the increased regulation.

Clayton offers:

  • An experienced management team responsible for overall securitization offerings.
  • A state-of-the-art platform for pre-securitization due diligence and representation and warranty repurchase reviews.
  • Upgraded post-securitization portfolio surveillance capabilities.

Clayton provides the independence, transparency and disclosure required by rating agencies and industry regulation.


Clayton is an approved S&P RMBS third party review provider and meets the standards of Moody’s, Fitch Ratings, DBRS and Kroll Bond Ratings for pre-securitization due diligence.


Securitization Readiness

As the market leader in third-party review (TPR) due diligence, Clayton has the expertise required to assess your loans and loan programs for Private Label Securitization readiness.  Our TPR preparedness review approach completes the steps described below to comprehensively assess your readiness for a TPR review and ongoing oversight as part of a live PLS.

Clayton can assist you with:

  • Guideline / Program Assessment and Advisory
  • Loan Level TPR Preparedness Review
  • Originator / Seller Assessments
  • Ongoing Oversight Advisory and Setup

Pre-Securitization Review Process

Clayton will work with your team during the pre-due diligence and set-up phase to perform sampling & the initial data analysis, report on your requirements, and select the scope.  

  • Pre-Due Diligence Setup Phase: Scope selection, sampling and data analysis.
  • Due Diligence Phase: Due diligence review, issue tracking, reporting and resolution.
  • Post-Due Diligence Phase: Review close, final reports and data upload delivery.

Post-Securitization Reviews

Servicer practices and policies vary greatly, yet they have a profound influence on the loan performance. Fortunately, Clayton has relationships with some of the top servicers in the world, allowing our clients to find answers to any specific policy question that could affect their loans.  

Our Post-Securitization Reviews include the following solutions:

  • Vertical Risk Retention: Includes Surveillance Reconciliation Focus & Process, and focuses on Origination and Underwriting Repurchases, Default Management and Loss Mitigation, Modifications, Cash Reconciliation, and Mortgage Insurance.  Reporting includes Exposure, Performance Trending, and Comparative reporting.
  • Expanded Data Availability: Includes 147 origination fields, 247 performance fields, 127 modification data (HAMP) fields, and 147 fields for planned additions or expansions.  We offer over 10 years of data validation and analysis experience with 60+ dedicated analysts.
  • Repurchase Focus: Assists in monitoring put backs from initial submission to removal, including reconciliation of relevant cash flow implications.
  • Waterfall Cash Flow Modeling: Provides aggregate cash flows and verifies your cash flow allocations as outlined in the governing transaction documents.  We offer extensive knowledge of RMBS structures and depth of experience in identifying remittance errors.
  • Reg AB Compliance Reporting: Includes performing deep dive forensic file reviews and ongoing surveillance on Items 1122 and 1123 of Reg AB. 

RMBS Acquisition

Clayton works with each client to analyze its particular residential mortgage backed security (RMBS) acquisition strategy.  We advise our clients on acquisition best practices, which play a central role in our Risk Management Solutions.  Our RMBS Acquisition review process is supported by InCyt, which provides loan level, transaction level, vintage, and portfolio level analysis.  These reports are interactive, allowing clients to quickly and easily manipulate data to meet their specific needs.

To learn more about our Securitization Solutions, please contact us today.