Black Knight Updates Capture Solution to Help Originators Increase Production and Recapture Business as Retention Rates Hit Record Lows

Rhea-AI Summary

Black Knight, Inc. (NYSE: BKI) announced an update to its Capture lead analytics platform, aiming to enhance borrower retention among lenders and servicers. With historical low retention rates in Q4 2020, the integration of Capture with Optimal Blue PPE is designed to identify refinancing opportunities based on equity and rates. The platform automates lead generation and calculates pricing scenarios to improve recapture rates. Despite high origination volumes, 2.3 million borrowers were lost, highlighting the critical need for timely and personalized outreach.

Positive

• Integration of Capture with Optimal Blue PPE enhances lead identification and pricing accuracy.
• Automation of lead generation potentially increases lender recapture rates.
• Addresses critical borrower retention issues in a competitive market.

Negative

• Q4 2020 saw the lowest borrower retention rates in history, indicating potential operational challenges.
• 2.3 million refinancing borrowers were lost to competitors in Q4 2020, reflecting significant market leakage.

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.

For more information:
Michelle Kersch	Mitch Cohen
Black Knight, Inc.	Black Knight, Inc.
904.854.5043	704.890.8158
michelle.kersch@bkfs.com	mitch.cohen@bkfs.com

 

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SOURCE Black Knight, Inc.

FAQ

What is the latest update from Black Knight, Inc. regarding its Capture platform?

Black Knight updated its Capture lead analytics platform to help lenders improve borrower retention and identify refinancing opportunities.

When was the Capture update announced by Black Knight, Inc.?

The Capture update was announced on March 30, 2021.

How does the Capture platform help lenders retain borrowers?

Capture automates lead generation and provides real-time pricing scenarios to identify the best refinancing opportunities for borrowers.

What was the borrower retention rate in Q4 2020 for Black Knight?

In Q4 2020, borrower retention rates hit the lowest point in history, with just 18% of refinancing borrowers retained.

What significant loss did Black Knight's servicing division experience in Q4 2020?

In Q4 2020, Black Knight lost 2.3 million refinancing borrowers to market competitors.