Black Knight Updates Capture Solution to Help Originators Increase Production and Recapture Business as Retention Rates Hit Record Lows
Historically Competitive Market Underscores Critical Value of New Integration with Optimal Blue PPE
- Black Knight's Capture is a comprehensive customer retention product that proactively monitors portfolios for loans that could benefit from a refinance based upon a borrower's specific equity position and/or current first-lien rate
- Integration with Black Knight's leading product and pricing engine, Optimal Blue PPE, lets Capture generate even more accurate, borrower-specific pricing scenarios using the lender's current pricing and the most up-to-date market and margin structure
- As rising interest rates impact origination volumes, competition for consumers who are refinancing or purchasing homes will become increasingly fierce, making retention more critical than ever
- As of the end of Q4 2020 - despite record-breaking origination volumes - 82% of refinancing borrowers were lost to other lenders, with small pricing differences often the deciding factor
- By allowing lenders to provide personalized offerings based on the most current pricing available, Capture helps increase growth and retention in an increasingly competitive environment
JACKSONVILLE, Fla., March 30, 2021 /PRNewswire/ -- Today, Black Knight, Inc. (NYSE: BKI) announced 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. 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 – and gain an edge in an increasingly competitive environment.
"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. 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. Black Knight offers digital origination solutions to help the loan officer support the borrower throughout the application process, identify any regulatory issues, and conduct an electronic close and remote online notarization. For clients using the Black Knight MSP servicing and Empower loan origination system, the necessary data is automatically pulled from and uploaded to these platforms.
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. Capture addresses this by continually monitoring a servicer's portfolio and a loan officer's lead database to determine the exact time a borrower should be contacted based on lender, rate environment and other market triggers.
"Despite record levels of lending activity, 2.3 million refinancing borrowers were lost to market competitors in Q4 2020 alone," said Happ. "Seamless integration of the Optimal Blue PPE with Capture will help originators retain the business they worked so hard to earn, and when combined with our powerful servicing and origination solutions, will serve as yet another example of Black Knight delivering advanced capabilities that address market needs."
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.