Black Knight Expands its MSR Capabilities to Provide More Timely, Detailed Insight Into Portfolio Valuation to Servicers of All Sizes
- The Black Knight MSR Platform gives lenders and servicers of all sizes greater visibility into asset performance relative to servicing activity, market movement and projections
- Integration with Black Knight's best-in-class MSP servicing system enables daily, detailed data updates, providing more timely valuation insight
- Black Knight recently released bulk bidding APIs to enable daily, loan-level pricing of lender pipelines and servicer portfolios using leading servicing broker assumptions for third-party valuation accuracy
- Black Knight is now offering new levels of MSR insight based on a user's business size and growth targets; from daily, high-level portfolio valuation summaries to 24/7 access with loan-level granularity and user-designed, servicer-specific assumption sets
- Deeper valuation insight gives lenders and servicers more knowledge and control over their portfolios to better inform decisioning, avoid balance sheet surprises, improve MSR pricing accuracy and hone lead generation strategies
JACKSONVILLE, Fla., May 12, 2021 /PRNewswire/ -- Today, Black Knight, Inc. (NYSE: BKI) announced the expansion of its mortgage servicing rights (MSR) valuation solution to provide more detailed visibility into the value and performance of servicing assets and market economics. The Black Knight MSR Platform is designed to support the varying needs of lenders and servicers of all sizes and growth stages by providing customized delivery options ranging from high-level, daily reporting to granular, loan-level analytics.
"Servicing rights are often the largest entry on a mortgage bank's balance sheet, but until now, the broader industry has lacked a timely, accurate way to assess the market value of these assets," said Rob Kessel, managing director, Black Knight Secondary Marketing Technologies. "The enhancements we've made to our MSR Platform, including connections to servicing broker assumptions and integration with MSP, bring much-needed valuation insight to the industry. This insight helps lenders and servicers take a more proactive approach to managing the value of their servicing portfolios, whether they are just getting started or looking for more complex analytics."
Servicing assets continue to occupy larger portions of servicers' balance sheets, making it critical to have a consistent cadence of valuation data to inform strategic retain/release decisioning and to maintain transparency between month- and quarter-end reporting. Given the complexity and loan-value sensitivity of accurately calculating MSR valuation, the solutions in the Black Knight MSR Platform connect data directly from a user's instance of MSP, Black Knight's loan servicing system, as well as other servicing systems or pipeline data to MSR broker assumption sets. Since brokers directly trade these assets, this direct connection to them is integral to the platform's ability to deliver up-to-date data with game-changing market value accuracy.
The Black Knight MSR Platform offers several tiered solutions, giving lenders and servicers full MSR value transparency with the opportunity to select the appropriate level of insight for their business needs and growth targets. These tiers range from providing a daily servicing portfolio valuation summary report with broker-managed assumptions to licensing analytics for servicers that maintain their own assumptions and prepayment models. The latter includes daily loan- and scenario-level MSR valuations, the servicer's choice of Black Knight AFT Prepayment and Credit Model or other leading prepayment models, MSR hedging, enterprise reporting, and MSR bidding for aggregators and co-issue buyers.
The MSR Platform is now integrated with the MSP system. This single, end-to-end technology solution helps servicers manage various servicing processes, including loan onboarding, cash management, investor reporting, loss mitigation, and default, while accommodating virtually any size portfolio. Used to service approximately 36 million active first mortgages and home equity loans across the U.S., MSP helps servicers increase operational efficiency, reduce operating costs and improve risk mitigation.
"Black Knight recognizes that there's no one-size-fits-all approach to MSR valuations," said Kessel. "Our expanded capabilities address this by providing tiered options to support the specific MSR valuation needs of lenders and servicers of all sizes and experience levels."
About Black Knight Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com.