Black Knight Inc. has expanded its mortgage servicing rights (MSR) valuation solution to provide more detailed visibility into the value and performance of servicing assets and market economics.
The Black Knight MSR Platform is designed to support the needs of lenders and servicers of all sizes and growth stages by providing customized delivery options ranging from high-level, daily reporting to granular, loan-level analytics.
“Servicing rights are often the largest entry on a mortgage bank’s balance sheet, but until now, the broader industry has lacked a timely, accurate way to assess the market value of these assets,” says Rob Kessel, managing director, Black Knight Secondary Marketing Technologies. “The enhancements we’ve made to our MSR Platform, including connections to servicing broker assumptions and integration with MSP, bring much-needed valuation insight to the industry. This insight helps lenders and servicers take a more proactive approach to managing the value of their servicing portfolios, whether they are just getting started or looking for more complex analytics.”
Servicing assets continue to occupy larger portions of servicers’ balance sheets, making it critical to have a consistent cadence of valuation data to inform strategic retain/release decisioning and to maintain transparency between month- and quarter-end reporting. Given the complexity and loan-value sensitivity of accurately calculating MSR valuation, the solutions in the Black Knight MSR Platform connect data directly from a user’s instance of MSP, Black Knight’s loan servicing system, as well as other servicing systems or pipeline data to MSR broker assumption sets.
Black Knight says its MSR Platform offers several tiered solutions, giving lenders and servicers full MSR value transparency with the opportunity to select the appropriate level of insight for their business needs and growth targets. These tiers range from providing a daily servicing portfolio valuation summary report with broker-managed assumptions to licensing analytics for servicers that maintain their own assumptions and prepayment models. The latter includes daily loan- and scenario-level MSR valuations, the servicer’s choice of Black Knight AFT Prepayment and Credit Model or other prepayment models, MSR hedging, enterprise reporting, and MSR bidding for aggregators and co-issue buyers. “Black Knight recognizes that there’s no one-size-fits-all approach to MSR valuations,” said Kessel. “Our expanded capabilities address this by providing tiered options to support the specific MSR valuation needs of lenders and servicers of all sizes and experience levels.”