Today, banks and mortgage servicers are faced with a new landscape of regulation and increased investor demand for transparency and accountability. All mortgage industry stakeholders operating in the new and changing environment seek security: security that they are operating in compliance to avoid legal and headline risk, security that counterparties are operating within expected guidelines, and security that investment values and returns are maximized. The path to achieving desired security leads stakeholders to independent, third-party oversight, embodied by Clayton Surveillance.

To avoid these looming regulations and fraud investigations, you need security: security against legal and headline risk, security against fraudulent counterparties, and security against your general investment risk.  

Why We’re the Best at Surveillance

At Clayton, we recognized the need for proper surveillance capabilities early on—that’s why we’ve created a proprietary surveillance analytical suite.  In 2011 alone, our analytical suite—which combines Exception Management, CRM 7.0, our customized Business Process Management tool, and InCyt—helped our clients save over $145 million in servicing errors and fraudulently underwritten loans.  No other Surveillance or  Due Diligence firm can claim this.    

Credit Risk Management Surveillance  

At Clayton Surveillance, we have experience monitoring all types of mortgage activity.  By leveraging our years of experience and proprietary technologies, we’re able to provide each client with an independent, third-party assessment of asset and counterparty performance.  We can provide this assessment at either the individual loan or transaction level.  Most importantly, Clayton fosters change in loan and transaction performance as we do not stop at issue identification, but rather work to achieve proper issue resolution with industry stakeholders.

Our Credit Risk Management Surveillance service can be broken down into the following components:

  • Exception Management Loan Reviews: We use proprietary risk-filter technology to identify anomalies within your loan performance data.  Exception Management involves monitoring all aspects of performance for an asset or securitization, including default management, third-party oversight, validation, reconciliation, property valuation, repurchase, and cash flow analysis.
  • Servicing Audits: Clayton performs pointed reviews on various aspects of servicing that align with varying corporate objectives.  Clayton is an OCC-approved Independent Consultant reviewing foreclosure and related loss mitigation activity for a bank Consent Order.  We apply expansive audit testing scripts to defined samples of loans.  Servicing Audit offerings can be applied comprehensively or on targeted aspects of post-origination mortgage servicing activities from loan boarding to REO disposition and everything in between.  Additionally, we conduct loan level and data reconciliation testing to the standards of the servicer’s QA plan to satisfy MERS requirements.  Clayton leverages a business process management tool to ensure consistency and transparency required to satisfy clients’ internal and regulatory compliance assessment needs.
  • Data Cleansing & Warehousing: We clean and store your data and provide independent data validations at both the file and record levels.  We ensure that every data set is deep, clean, and timely.
  • Analytics & Reporting: Includes Clayton’s suite of self-service, web-based reporting tools.  These tools are run through InCyt, and can be operated by clients or by our dedicated Analytics Department.  This reporting suite comes with summary dashboard/scorecards, and slice and dice reports focused on delinquencies, losses/severities, prepayment speeds, default timelines, value declines, cure/resolution rates, roll rates, custom indices, and analyst watchlists.

For more information about our surveillance services, or to find out what Credit Risk Management Surveillance can do for your firm, please contact us today.