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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 Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, TX. Born and raised in Texas, Kendall now works as the online editor for DS News.
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