Black Knight Inc. has launched CompassCapture to help lenders identify specific loans within their portfolio or book of leads that could benefit from a refinance based upon equity positions and/or current first-lien rates. Using the lender’s current pricing–including the most up-to-date market and margin structure–the solution helps deliver multiple personalized pricing scenarios via the CompassPPE pricing engine.
“Growing and retaining loans are crucial to remaining competitive in today’s market,” said Rich Gagliano, president of Black Knight Origination Technologies. “Black Knight’s latest data shows that retention rates continue to decrease, which underscores the need for introducing CompassCapture to address precisely this issue. Rather than reaching out to customers and leads en masse with a generic ‘rates are low, you should consider refinancing’ message, CompassCapture lets lenders use a borrower’s specific attributes and the most up-to-date pricing information to offer a truly personalized option, which greatly increases the chance of recapturing that customer’s business.”
Borrowers who refinanced to improve their interest rate or loan term received an average 0.08 percent better rate, which further demonstrates the critical importance for accurate and dynamic pricing. Staying in front of customers and prospects is crucial as well. Competitors are becoming ever more aggressive and successful in their efforts to poach business. With this in mind, but to also avoid spam-like marketing, CompassCapture constantly monitors a lender’s portfolio and lead database to help lenders determine the appropriate time to reach out to a specific borrower based on lender, rate environment and other market triggers.
Using up-to-date home price data on a customer’s specific property, CompassCapture helps lenders target leads for equity offers, such as cash-out refinances or home equity lines of credit (HELOCs). With 45 million borrowers each holding an average of $119,000 in equity and 83 percent of borrowers being lost post-refi, this is an incredibly fertile market that could benefit from the personalized approach offered by CompassCapture. Data can be delivered directly into the lender’s customer relationship management system to alert loan officers to the exact moment a borrower should be contacted for a rate-driven or equity-driven opportunity.
“CompassCapture answers some of the most pressing needs facing the mortgage industry today–such as how to retain the business you’ve worked so hard to secure and how to increase your pipeline with those customers that you still need to engage,” said Gagliano. "The data is clear–lenders and servicers will realize benefits as they improve their growth and retention efforts. When less than a tenth of a percentage point could be the tipping point between either keeping or losing a customer, lenders need to give leads the very best, most personalized and up-to-date offers possible. CompassCapture helps them do exactly that."
