Mortgage technology firm BSI Financial Services has launched Portfolio Guardian, an AI-driven predictor model that calculates the likelihood a borrower will refinance their mortgage within the next 90 days.
Portfolio Guardian generates a precise prepayment score for each borrower in BSI’s portfolio, allowing BSI and its clients to strategically target refinancing opportunities and enhance customer retention, the firm says in a release.
The new tool leverages a combination of data sources to generate its predictive scores, including zero-party data directly provided by borrowers, real-time industry data like current mortgage rates, and demographic information such as education completed and length of homeownership.
BSI reports that it has also implemented model monitoring and state-of-the-art training pipelines for Portfolio Guardian to ensure its ongoing accuracy and adaptability.
These systems continuously evaluate model performance against real-world outcomes and allow the model to adapt to changing market conditions, evolving borrower behaviors, and new data patterns.
With 30-year fixed mortgage rates projected to dip below 6% by the end of 2025 according to the Mortgage Bankers Association, tools like Portfolio Guardian will become crucial for lenders and servicers, the company says.
BSI’s predictive technology enables its subservicing clients to proactively manage and capitalize on borrower behaviors during periods of fluctuating rates and enhance their competitive edge in a dynamic market. It also allows BSI and its clients to focus marketing efforts on borrowers who are more likely to pay off their loans and work to build long-term relationships with them.
“Portfolio Guardian is a valuable tool for boosting customer satisfaction and reducing portfolio churn,” says Gagan Sharma, founder and CEO of BSI Financial Services. “From a retention and recapture perspective, anticipating what our customers are likely to do in the future is a real game-changer.”