The suite is based on Black Knight’s property and mortgage datasets and modeling and analytics techniques
Black Knight Financial Services has launched a series of indices aimed to provide insights into the housing and mortgage markets, the company announced.
The Black Knight Index Suite adds to the existing Home Price Index (HPI) with the Mortgage Market Index, Housing Market Index, and a Home Listing Index. The suite is based on the company’s property and mortgage datasets and employs its refined modeling and analytics techniques.
Designed to provide benchmarks for measuring the performance of the housing and mortgage markets, the suite can be used as a tool for economic forecasting, decision-making, risk management, research and modeling, and a range of other applications.
“Developing the index suite was a natural, logical progression for Black Knight,” said Julian Grey, mortgage market leader for Black Knight’s data and analytics division. “HPIs have long served as valid analytic proxies for gauging the value of real property in a given geography, and today, they’re widely used as an acceptable alternative to AVMs (automated valuation models) for marking portfolios to market. The beauty of an HPI is that it takes vast amounts of data and presents it in a very simple, easy-to-digest-and-process form. We sought to take a page from that proven HPI model and put it to work in other data-heavy aspects of the industry.”
The Mortgage Market Index Series and the Housing Market Index Series make up the index suite. Through Mortgage Origination and Mortgage Performance Indices, the mortgage series tracks changes in portfolio risk profiles. An enhanced version of the existing HPI and an upcoming Home Listing Index (HLI) make up the housing series. The enhanced HPI now processes matching with credit risk transfer data and Freddie Mac and Fannie Mae single-family mortgage performance data as it features support for three-digit ZIP codes. Meanwhile, the upcoming HLI will offer insights into the housing market’s supply side.
Related stories:
Low downpayment purchases at 7-year high says Black Knight
Delinquencies steady, prepayments up in June says Black Knight
The Black Knight Index Suite adds to the existing Home Price Index (HPI) with the Mortgage Market Index, Housing Market Index, and a Home Listing Index. The suite is based on the company’s property and mortgage datasets and employs its refined modeling and analytics techniques.
Designed to provide benchmarks for measuring the performance of the housing and mortgage markets, the suite can be used as a tool for economic forecasting, decision-making, risk management, research and modeling, and a range of other applications.
“Developing the index suite was a natural, logical progression for Black Knight,” said Julian Grey, mortgage market leader for Black Knight’s data and analytics division. “HPIs have long served as valid analytic proxies for gauging the value of real property in a given geography, and today, they’re widely used as an acceptable alternative to AVMs (automated valuation models) for marking portfolios to market. The beauty of an HPI is that it takes vast amounts of data and presents it in a very simple, easy-to-digest-and-process form. We sought to take a page from that proven HPI model and put it to work in other data-heavy aspects of the industry.”
The Mortgage Market Index Series and the Housing Market Index Series make up the index suite. Through Mortgage Origination and Mortgage Performance Indices, the mortgage series tracks changes in portfolio risk profiles. An enhanced version of the existing HPI and an upcoming Home Listing Index (HLI) make up the housing series. The enhanced HPI now processes matching with credit risk transfer data and Freddie Mac and Fannie Mae single-family mortgage performance data as it features support for three-digit ZIP codes. Meanwhile, the upcoming HLI will offer insights into the housing market’s supply side.
Related stories:
Low downpayment purchases at 7-year high says Black Knight
Delinquencies steady, prepayments up in June says Black Knight
