Clayton Holdings, a provider of loan due diligence, surveillance, real estate owned property management, consulting, valuation, title and settlement services to the mortgage industry, reports that it has developed an end-to-end underwriting, valuation and due diligence solution for the growing “fix and flip” lending market.
As per a company press release, the solution, which is currently being utilized by several major warehouse lenders, includes the following:
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; business process outsourcing 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, homeowners association requirements, budgets and schedule; draw and release requests; property inspections and photos; and lien waivers, etc.
Portfolio surveillance – RAMP surveillance solution can deliver customizable reports, providing ongoing visibility into operational and financial aspects of the portfolio at borrower, loan and property levels.
“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,” says 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.”