HomePress RoomPress ReleasesOptimal Blue, a Division of Black Knight, Adds ICE Mortgage Rate Lock Index Futures to CompassPoint, Leading Hedge Analytics and MSR Valuation Platform

Optimal Blue, a Division of Black Knight, Adds ICE Mortgage Rate Lock Index Futures to CompassPoint, Leading Hedge Analytics and MSR Valuation Platform

Expanded suite of futures delivers further support for hedging mortgage servicing rights, jumbo loans or loans with extended lock terms to better manage interest rate risk

Optimal Blue, a Division of Black Knight, Adds ICE Mortgage Rate Lock Index Futures to CompassPoint, Leading Hedge Analytics and MSR Valuation Platform
  • The CompassPoint platform is offered by Optimal Blue, a division of Black Knight, and is relied on by originators and investors to support critical functions such as pricing, hedging, trading and MSR valuation
  • The new futures innovation will provide lenders with an additional tool for hedging conforming and jumbo loans and mortgage servicing rights
  • This capability adds to Optimal Blue’s industry-leading hedge advisory solutions and further improves the service and expertise provided to its clients

JACKSONVILLE, Fla. – Sept. 7, 2022 – Black Knight, Inc. (NYSE:BKI) announced today the addition of ICE Mortgage Rate Lock Index Futures within CompassPoint, the leading risk management and loan sale platform offered by Optimal Blue, a division of Black Knight. This expanded suite of futures will help lenders better manage their interest rate risk by offering new techniques for hedging conforming and jumbo mortgage loans and mortgage servicing rights. These additional tools also underscore Optimal Blue’s commitment to deliver leading secondary markets functionality.

“We work with hundreds of clients every day to hedge the interest rate risk of mortgage pipelines, and we’re excited to bring yet another innovation to the market that helps our lenders avoid basis risk and additional transaction costs when hedging certain mortgage loans,” said Scott Happ, president of Optimal Blue, a division of Black Knight. “While the to-be-announced (TBA) marketplace is very effective at hedging the majority of our lenders’ pipelines, the addition of the ICE Mortgage Rate Lock Index Futures with CompassPoint will deliver expanded support for hedging mortgage servicing rights, jumbo loans or loans with extended lock terms.”

The ICE Mortgage Rate Lock Index Futures can be added to CompassPoint, which is used by industry professionals to hedge more than $100 billion of closed loan volume monthly.  CompassPoint is offered by Optimal Blue, a leader in end-to-end technology solutions designed specifically for the secondary marketing industry. Optimal Blue delivers the industry’s leading Product, Pricing and Eligibility (PPE) engine that prices over 40% of locks in the U.S. mortgage industry and is fully integrated with the CompassPoint platform. Optimal Blue’s secondary solutions then extend into loan trading with ResiTrader, the leading loan trading platform, which represented $1.4 trillion of loan trades in 2021.

The addition of the ICE Mortgage Rate Lock Index Futures expands Optimal Blue’s leading hedge advisory solutions and serves to provide improved expertise and service to clients.

“With the introduction of this new futures instrument, we further improve the ability to match the right hedge with the right loan for our clients and demonstrate our commitment to providing the secondary market with the most innovative capabilities to help them make informed decisions,” Happ continued. “We’re pleased that these new capabilities complement our leading analytics, valuation tools, BESTX pricing engines and trading platform in our end-to-end secondary marketing technology ecosystem.”

The addition of ICE Mortgage Rate Lock Index Futures to CompassPoint is effective now and is not related to Black Knight’s proposed transaction with Intercontinental Exchange, Inc. that was announced on May 4, 2022.  

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.

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