Black Knight, Inc. made an update to its Capture lead analytics platform that helps lenders and servicers identify specific loans in their servicing portfolio or lead database that could benefit from refinancing based on equity positions and/or current first-lien rates, according to a press release.
With Q4 2020 borrower retention rates hitting the lowest point in history despite record-breaking origination volumes, Black Knight has now integrated Capture with its leading product and pricing engine, Optimal Blue PPE, to help lenders increase growth and retention.
"Borrower retention remains a top concern for many lenders as market recapture rates continue to dwindle," said Scott Happ, president, Black Knight Secondary Marketing Technologies. "Drawing upon Black Knight's best-in-class Optimal Blue PPE, Capture tackles this challenge directly by enabling lenders to more effectively identify actionable leads, determine the right time for outreach, and calculate timely, personalized pricing."
Capture helps increase recapture rates for lenders and servicers by automating lead generation and calculating near-real-time pricing scenarios via the Optimal Blue PPE, according to the press release. Scenario calculations include borrower-specific attributes and the lender's current pricing – including the most up-to-date market and margin structure – to deliver highly accurate results.
When combined with Black Knight's Servicing Digital solution, servicers can also present these same loan scenario calculations to existing customers. The refi can be accepted in Servicing Digital, and can be automatically directed to Borrower Digital, Black Knight's comprehensive point-of-sale application.
According to the January 2021 Black Knight Mortgage Monitor report, just 18% of refinancing borrowers were retained in Q4 2020, despite an all-time high in such originations. Among higher-credit quality rate/term GSE refis, borrowers who refinanced with a different lender on average received more than an eighth of a percent lower rate than those who refinanced and remained with their current servicer. Providing accurate and dynamic pricing scenarios and engaging borrowers at the appropriate time is critical to business retention.
