According to the company, the new Mortgage Market Index Series will track changes in portfolio risk profiles via proprietary Mortgage Origination and Mortgage Performance Indices. The new Housing Market Indices will include an enhanced version of the Black Knight HPI plus a yet-to-be released Home Listing Index, and it will be able to use the three digits of a standard five-digit ZIP code for easier matching with credit risk transfer data and Freddie Mac and Fannie Mae single-family mortgage performance data.
“Developing the Index Suite was a natural, logical progression for Black Knight,” said Julian Grey, Mortgage Market Leader for Black Knight’s Data & Analytics division. “HPIs have long served as valid analytic proxies for gauging the value of real property in a given geography, and today, they’re widely used as an acceptable alternative to AVMs for marking portfolios to market. The beauty of an HPI is that it takes vast amounts of data and presents it in a very simple, easy-to-digest-and-process form. We sought to take a page from that proven HPI model and put it to work in other data-heavy aspects of the industry.”