Clayton Holdings, Inc. Acquires Mortgage Resource Network; Fixed Income Information and Analytics Provider Broadens Capabilities to Origination Market with Addition of Pre-Close Mortgage Processing Specialist

Business Wire, Feb 8, 2006

SHELTON, Conn. -- Clayton Holdings, Inc., an information and analytics provider to the banking and fixed income securities markets, announced today that it has acquired Mortgage Resource Network (MRN), a provider of outsourced mortgage origination support and pre-close due diligence services. The acquisition expands Clayton's presence in the mortgage services sector. Terms of the deal were not disclosed.

MRN provides turnkey front-end fulfillment, imaging, contract underwriting, closing, funding and investor delivery services that are required by mortgage originators and their warehouse lenders. The company has enabled more than 120 clients to originate more than one million loans. In addition, MRN also provides post-transaction and servicing transfer support services, including trailing document management and MERS research and registration. Clayton, well-known to the capital markets for its loan analysis, consulting and outsourcing services that are critical to pre-purchase due diligence and post-securitization bond surveillance, will leverage MRN's products and relationships to further extend its expertise into the lender market.

Clayton provides services to the lender market primarily through its automated compliance software. Clayton also works closely with lenders through its conduit fulfillment services, which, through a combination of analysis and outsourcing services, help loan buyers manage both the risk and the process of purchasing loans from a network of lenders. MRN's services, combined with Clayton's existing outsourcing and analytical capabilities, position Clayton as a valued resource to help lenders improve their underwriting and processing, which enhances asset quality and reduces risk for clients across the asset creation/ownership spectrum.

Paul Anselmo, founder and CEO of MRN, will join Clayton's senior management team.

About Clayton Holdings, Inc.

Clayton Holdings provides a full suite of outsourced services, information-based analytics and specialty consulting for buyers and sellers of, and investors in, mortgage-related loans and securities and other debt instruments. Clayton Holdings services include transaction management, due diligence, conduit support, professional staffing, compliance products and services, credit risk management, securities surveillance, and special servicing. For more information, go to www.clayton.com.

About Mortgage Resource Network

Founded in 1999, Mortgage Resource Network provides turnkey front-end fulfillment and processing services to mortgage brokers and bankers on behalf of warehouse lenders. Comprised of seasoned professionals with expertise in the origination, underwriting, closing, post-closing, sale, and administration of loan assets, the company has completed more than 750 engagements for more than 120 clients, involving over 1 million loans. MRN is headquartered in Dallas, with satellite offices in Chicago, Houston, California and Florida.

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