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An Industry-Leading MSR Valuation and Analytic Platform

An Industry-Leading MSR Valuation and Analytic Platform

Today’s mortgage market is constantly evolving. To keep up, mortgage originators, servicers, investors and secondary marketing departments are leveraging real-time analytics and valuation models to help drive financial performance and decision-making.

Never before has there been such a strong demand for solutions that deliver advanced automation, reporting and robust insights to help industry professionals meet demands and stay ahead of a rapidly changing market.

Reviewing Important Portfolio Insights Daily

Relying on quarterly, or even monthly, valuations is simply not timely enough for servicers to make the most informed decisions possible. Rather, highly accurate information needs to be accessible daily to provide insight on changes from day-to-day.

Meanwhile, originators need to review various market event impacts and assumption changes on their portfolios through scenario analysis. This ability enables them to plan and strategize for a range of possible scenarios and best position their business for success.

Enter Black Knight’s CompassPoint.

A Proven MSR Valuation Tool

CompassPoint is an industry-standard MSR model that provides insight on over 90 percent of servicing assets in the country. CompassPoint can help originators and servicers address:

  • Seamless mapping, auditing and importing of portfolio loan data
  • Simplified daily and/or monthly P&L reconciliation with flexible reporting and data extracts
  • Integration with third-party MSR valuation providers to deliver valuations using the same model assumptions used to create current monthly or quarterly marks
  • Integration with Black Knight’s AFT Prepayment and Credit model, which evaluates multiple risk factors and forecasts expected mortgage outcomes
  • Dashboard/profitability reporting
  • MSR hedge reporting and analytics designed to assist users in developing an MSR hedging policy
  • Streamlined and expanded scenario reporting, including prepayment, delinquency, and rate scenarios

Improve Retention to Boost Profitability

In a market where growing profitability can be challenging, CompassPoint can help by leveraging recapture analytics. Servicing portfolios are scanned nightly for leads based on rate differential, changes in home equity and data triggers. Loans eligible for rate and term refinances, as well as cash-outs on an aggregate and loan-level basis, can be compiled into effective leads to maintain or boost portfolio standings.

These leads include pertinent data such as eligible cash-out amounts and monthly/annual payment savings that will arm the production team with the data needed to make a tailored, borrower-specific pitch, instead of relying on generic estimated monthly savings.

Understanding Performance

Branch and loan officer-level prepayment reporting helps to assess how origination patterns impact servicing performance for financial institutions that originate loans and retain MSRs. With this information, servicers can make better retain/release decisions in light of originator performance and can use the data to help adjust their profit margin strategy. This information can be leveraged during an originator’s loan sale process to support a true best execution, and not just achieving a price.

Start Driving Portfolio Profitability Today

With Black Knight’s CompassPoint, you can gain accurate, real-time insight into your portfolio and start making more informed decisions that matter. Start taking advantage of one of the industry’s most robust MSR valuation models today by contacting a Black Knight representative.