Black Knight Financial Services
601 Riverside Avenue
Jacksonville, FL 32204
Black Knight Financial Services owns an impressive repository of mortgage performance data, including data from the top 15 servicers and historical loan assets that cover nearly 150 million loans. This information, combined with Black Knight’s analysis and predictive modeling, provides customers with increased insight for decision-making.
“We cover such a wide portion of the mortgage lifecycle that we are uniquely positioned to correlate data that’s not available anywhere else,” said Kevin Coop, president of Black Knight’s Data and Analytics division. “We can provide an end-to-end solution for any customer or lender in the United States.”
Black Knight offers a comprehensive suite of services, including decision support and operational workflow/case management, compliance and quality control, risk mitigation and revenue optimization.
“The amount of capital that lenders or servicers need to deploy to meet compliance obligations is very expensive and it puts them under a lot of pressure. If we can bring inexpensive and better tools to more accurately and efficiently mitigate those risks and costs, we’re helping to protect their businesses and run their operations more cost-effectively,” Coop said.
Black Knight offers prepayment and default models used in risk, asset liability management, loss reserving, servicing and trading operations across the mortgage finance industry. Smaller lenders often hire Black Knight’s fulfillment team to run data for them, while larger lenders typically have internal teams that use the Black Knight Data and Analytics tool to run their own analysis.
“We see the same information that lenders do, but across a much broader section of the marketplace. Even if you’re a large lender, you see a skewed sampling because of your unique customer base, as opposed to the market as a whole. We have the ability to take what we’ve learned from behavioral and predictive analytics, or patterns in the marketplace, to help lenders make better decisions.”
In an environment where many people touch a mortgage application, better and more informed data is more important than ever.
“Lenders may not even know the person they are making an offer to, so there are all sorts of factors they need to understand around risk. How can they know if the collateral is valued properly? We want to provide better clarity to the industry on how to price and how much risk they want to take,” Coop said.
By pooling the different data elements that Black Knight is able to access, the company can develop derivative products for its customers. For instance, Black Knight can use its various data assets to track an origination decision throughout the mortgage lifecycle and see how it affected performance of the loan over time.
“We can track a loan through the secondary market and calibrate future analytics around the same characteristics of that loan. We observe and characterize performance, which allows us to predict future performance of similar loans,” Coop said.
Changing market dynamics have changed the way lenders use data and analytics. Ten years ago the mortgage market required data and analytics to effectively track a very low interest rate/high-volume market, whereas today’s retail-oriented market needs data and analytics to meet customer demands for speed and compliance.
Generating volume in the current environment is critical, and Black Knight analysts can help clients generate leads by segmenting their customers. The analysts examine large amounts of data to uncover hidden patterns and determine which customers within a portfolio are likely to be intrigued by special offerings, so that lenders and servicers can develop targeted marketing campaigns.
“The market is always changing. Ten years ago the biggest issue was production; today, customers need better insight into capital sufficiency and what they need for regulatory compliance and sustainability. We’re well positioned to help these customers regardless of the way the market will continue to transform,” he said.
For more details about Black Knight’s data and analytics solutions, visit BlackKnightDNA.com.