Lockdown activity suggests Q1 2021 refi origins will stay near record highs as Cloud Q2 Outlook rate increases; Service agent retention hits new low


JACKSONVILLE, Florida, March 8, 2021 / PRNewswire / – Today, the Data & Analytics division of Black Knight, Inc. (NYSE: BKI) released its latest Mortgage Monitor report, based on industry-leading mortgage, real estate and the public records of the company. This month’s report looks at the 2020 creation volumes as well as rate lockdown data from Black Knight’s secondary marketing technology division to get a sense of where the market is going as rates start to climb. to augment. According to the president of Black Knight Data & Analytics Ben Graboske, despite a recent surge in interest rates to over 3.2% according to daily tracking data from the company’s Optimal Blue Mortgage Market Index, first quarter 2021 refinancing volumes are expected to remain close to the record for the fourth quarter. quarter 2020.

“About 2.8 million homeowners refinanced their mortgages in the last quarter of 2020, which was a record high $ 869 billion in refinancing loans, ”Graboske said. “Assuming a 45-day shutdown deadline, Black Knight’s daily rate foreclosure data through mid-February suggests refi activity may remain stable in Q1 2021. Of course, that’s before. a recent spike. in 30-year rates should start to impact loan volumes closed at the end of the first quarter or the start of the second quarter. Yet by the end of March, an additional 2.8 million homeowners will have taken advantage of near-record rates to refinance their mortgages. It’s important to remember that this would come with a 25% reduction from Q4 2020 in purchase loans, resulting in an overall quarterly drop of 10%.

“With rates rising, the incentives to refinance have been drastically reduced. Just under 13 million high-quality refinancing applicants remain in the market – a drop of nearly 30% in the past three weeks. Added to this, the retention of what is now a declining number of refinanced borrowers remains at an all-time high, with just 18% of borrowers retained by their services. Approximately 2.3 million borrowers were unsuccessful in Q4 2020 alone. The current rate volatility serves to underscore the critical nature of both precise and strategic pricing and pricing. advanced retention analyzes to help identify borrowers who still have incentives and are transacting in the market. “

Exploring the latest retention data provides an interesting context. Rate / term refinancings were retained at a much higher rate (23%) than those withdrawing money as part of the transaction (11%). Borrowers who took out their previous mortgage in 2019 continued to generate the highest volume of refinancing arrangements (20%) and were also held at one of the highest rates (24%). Those who took out their previous mortgages earlier in 2020 completed 8% of all Q4 2020 refinances, which is a significant volume of early refinancing activity. Among the higher credit quality rate / term GSE refinances, borrowers who left their manager received a rate more than an eighth of a percent lower than those who refinanced and stayed with their current manager. Much more detail can be found in Black Knight’s January 2021 Mortgage monitoring report.

About the Mortgage Monitor
Black Knight’s Data & Analytics division manages the leading national repository of residential mortgage-level loan-level data and performance information covering the majority of the global market, including tens of millions of loans across the country. range of credit products and over 160 million historical records. . Black Knight HPI’s combined home price and real estate data overview and Collateral Analytics provide one of the most comprehensive, accurate and timely home price metrics available, covering 95% of US residential properties up to level. postal code. Additionally, the company maintains one of the strongest public property records databases available, covering 99.9% of the U.S. population and households in more than 3,100 counties.

Black Knight’s research experts carefully analyze this data to produce a summary supplemented with dozens of tables and charts that reflect trends and point observations for the Monthly Mortgage Watch Report. To view the full report, visit: https://www.blackknightinc.com/data-reports/

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 services and real estate industries, as well as in capital markets and secondary. Businesses leverage our robust integrated solutions throughout the homeownership lifecycle to help retain existing customers, gain new customers, mitigate risk and operate more efficiently.

Our customers rely on our proven, comprehensive and scalable products and our unwavering commitment to providing superior customer support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com/.

SOURCE Black Knight, Inc.

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