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Clayton Holdings Creates New Option for ‘Fix and Flip’ Lending

collaboration BHClayton Holdings LLC, a provider of loan due diligence, surveillance, REO management, consulting, valuation, title and settlement services to the mortgage industry, has developed an end-to-end underwriting, valuation and due diligence option for the “fix and flip” lending market, according to an announcement from the company.

Clayton Holdings LLC states that the option, which is currently being utilized by several warehouse lenders, includes specs such as borrower underwriting, property underwriting project monitoring, and portfolio surveillance.

The new option includes:

  • Borrower underwriting: review of the borrower’s professional track record; business plan, credit and financial standing; liquidity analysis of balance sheet and tax statements; and synopsis of corporate structure.
  • Property underwriting: review of purchase/sales agreement; title and loan reviews; BPO with “as-is” and “as-repaired” values; desktop and automated valuation reviews of original appraisals; plan and budget analysis.
  • Project monitoring: twice-monthly reporting on rehab status, including building permits, HOA requirements, budgets and schedule; draw and release requests; property inspections and photos; and lien waivers, etc.
  • Portfolio surveillance: Clayton’s RAMP surveillance solution can deliver customizable reports providing ongoing visibility into operational and financial aspects of the portfolio at the borrower, loan, and property level.

“Low interest rates, rising home prices and tight inventory are all driving the growth of the fix and flip investment market and attracting new liquidity from Wall Street and private investors,” said Jeff Tennyson, president of Clayton. “We have designed an integrated, one-stop solution for warehouse and hard-money lenders that draws on Clayton’s deep experience in underwriting and the unique skill sets in valuing and monitoring single-family rental properties that reside within our Green River Capital and Red Bell Real Estate subsidiaries.”

About Author: Kendall Baer

Kendall Baer is a recent Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She served as a staff member for The Baylor Lariat, the university’s award-winning colligate newspaper, as both the university’s student activities reporter and the assistant web editor. She is fluent in both English and Italian, and studied in Florence, Italy her senior year of her undergraduate degree. While in school, she worked as an account assistant managing professional associations for Association Management Consultants in Houston, Texas. Born and raised in Texas, Kendall now works as an editor for DS News.
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