Black Knight launches tool to help lenders identify refi potential

by Steve Randall19 Mar 2020

With refinance activity increasing, a new tool has been launched to help originators identify their best prospects.

Black Knight’s CompassCapture assesses the equity position and/or current first-lien rate of loans in the lender’s portfolio and leads database, to highlight those that would benefit from refinancing.

As these two rich sources of potential refinance customers are constantly monitored, the lender can determine the right time to contact customers based on lender, rate environment and other market triggers.

The firm’s recent Mortgage Monitor report showed that refinance volume in Q4 2019 hit a 6.5 year high, with the most cash-out lending in 10 years; but retention rates fell, with the business of just one in five borrowers recaptured post-refi.

“Growing and retaining loans are crucial to remaining competitive in today’s market,” said Rich Gagliano, President, Black Knight Origination Technologies. “Rather than reaching out to customers and leads en masse with a generic ‘rates are low, you should consider refinancing’ message, CompassCapture lets lenders use a borrower’s specific attributes and the most up-to-date pricing information to offer a truly personalized option, which greatly increases the chance of recapturing that customer’s business.”

Black Knight says that 45 million borrowers each hold an average of $119,000 in equity.

More market update: