Clayton Holdings, Shelton, Conn., Tuesday announced the formation of a new securitization group to aid the industry in what it hopes will be a revival of the private label MBS market.
Ron Castro, an 18-year veteran of the company, was named to head the effort and will carry the title of managing director of securitizations. He will report directly to Clayton CEO Paul Bossidy.
Although Clayton hopes to cash in on a PLS revival, there have been very few non-GSE MBS issued in the past three years. The few public deals that came to market were all issued by a division of Redwood Trust, a publicly traded REIT.
Certain sectors of the industry believe that with new, lower GSE loan limits now in effect a jumbo MBS market might rise up.
Clayton, a due diligence provider, said its new securitization unit will have two primary roles: to provide consulting services to help issuers, investors and aggregators align their programs and procedures with new rules; and to deliver loan review and due diligence services.
“Based on our own observations and our ongoing dialogue with clients and other key players in the non-agency market, we believe the market is poised to return,” said Bossidy.
