SHELTON, Conn., Feb. 1, 2016 /PRNewswire/ -- Clayton
Holdings LLC, a leading provider of loan due diligence,
surveillance, REO management, and consulting services to the
mortgage industry, announced today that it was selected by Angel
Oak Capital Advisors, LLC to be the representation and warranty
reviewer for a $150.4 million
private-label securitization of non-prime whole loans.
The transaction, which was closed last month, is comprised of
555 non-prime whole loans originated by two of Angel Oak Capital's
affiliate companies: Angel Oak Mortgage Solutions and Angel Oak
Home Loans. In this role, Clayton will provide an independent
review of certain loans based on triggers defined within the
transaction documents. In the event that a loan becomes seriously
delinquent or is liquidated with a realized loss, Clayton will
complete a set of tests designed to determine whether the loan
complied with the representations and warranties made about the
loans to the trust and whether any observed test failure represents
a material breach. Following Clayton's reporting of a material
breach, the trustee could then request repurchase or other remedy
from the representation provider.
"We selected Clayton for this role based on the company's
extensive experience in loan reviews and private-label
securitization," said John Hsu, Head
of Capital Markets at Angel Oak.
"One of the headwinds that has slowed the return of non-prime
private-label securitization has been a concern over whether the
trustee adequately represents the interests of the investors over
the life of the deal," said Mark
Hughes, executive vice president at Clayton. "By formally
naming a representation and warranty reviewer, Angel Oak has
proactively addressed this concern. Going forward, we expect this
kind of function to be included in other non-prime
securitizations."
About Angel Oak Capital Advisors, LLC
Angel Oak
Capital Advisors is an investment management firm focused on
providing compelling fixed income investment solutions for its
clients. Backed by a value-driven approach, Angel Oak Capital
Advisors seeks to deliver attractive risk-adjusted returns through
a combination of stable current income and price appreciation. Our
experienced investment team seeks the best opportunities in fixed
income with a specialization in mortgage-backed securities and
other areas of structured credit. As of 12/31/15, Angel Oak
Capital has approximately $6 billion
in assets under management across its mutual funds, private funds
and separately managed accounts.
About Clayton Holdings LLC
Clayton Holdings LLC, a
subsidiary of Radian Group Inc. (NYSE: RDN), provides risk-based
analytics, residential loan due diligence, consulting, surveillance
and staffing solutions. The company's subsidiaries include: Green
River Capital, customized REO asset management and single-family
rental services; Red Bell Real Estate, advanced AVMs, BPOs and
technology to acquire and track performance of loan portfolios and
NPLs; ValuAmerica, national title and appraisal management company
and vendor management technology provider; and Clayton Euro Risk,
global services. For more information, call 877.291.5301 or visit
www.clayton.com.
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SOURCE Clayton Holdings LLC