New Algorithm in CompassPoint Tool Enhances Secondary Execution


Black Knight Inc. has rolled out enhanced capabilities in its CompassPoint risk management and loan sale platform that help identify the most profitable loan pool composition.

CompassPoint’s existing Pool Optimizer is used to eliminate the manual process of sorting and sifting through closed loan inventory to find the optimal combination of pools that comply with SIFMA pooling minimums and tolerances. A new algorithm, now available within the latest release of Pool Optimizer, can quickly and efficiently solve for the optimal combination of pools based on the company’s configurations and given SIFMA requirements, as well as credit stipulations and volume thresholds imposed by servicing buyers and the GSEs.

The solution helps lenders incorporate the borrower FICO score, property type, property state and other considerations, simplifying complex best-execution analysis and helping to deliver consistent credit across key investor relationships.

The new enhancement is available through an API integration and can be leveraged without using the full CompassPoint product suite.

“The new algorithm we’ve created for our Pool Optimizer enhancement goes beyond the complexities of solving for best price by enabling our customers to incorporate the preferences of their investor partners with one click,” says James Baublitz, managing director, pipeline analytics, for Black Knight Secondary Marketing Technologies. “The latest enhancement to CompassPoint represents Black Knight’s continued focus on innovation for the secondary market to help market participants improve profit margins and reduce risk.” 

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