Clayton Sees Opportunity to Grow Special Servicing.(Clayton Holdings)

SHELTON, CT -- Clayton Holdings, a provider of information-based analytics, turned in a modest profit from continuing operations in the first quarter, but the company still reported a net loss because of charges related to discontinued earnings.

But the company's leaders say they are well positioned for growth in the long term and are pinning some of their hopes on the special servicing business.

In a conference call with investors and analysts to discuss first-quarter results, Clayton chairman and CEO Frank Filipps said that the evolving subprime market will create increased demand for the company's surveillance and special servicing businesses.

Clayton has doubled its capacity in its Tampa, Fla., office, to take advantage of anticipated growth opportunities.

Clayton currently services about 4,000 loans, but Mr. Filipps said the company recently signed a new client and is in negotiations with other possible clients. Clayton was recently added to Standard & Poor's Select Servicer List.

"Now, as a ranked special servicer, we will be able to service loans that have been securitized," he said. "We believe that in this business, we are firmly positioned for growth."

Clayton executives said they expect their loan servicing count will grow during the second quarter.