Black Knight’s Optimal Blue adds location-based pricing feature
Black KnightOptimal Blue’s Product, Pricing and Eligibility (PPE) engine has added location-based pricing functionality amid a slowing mortgage market. The expanded functionality will help investors and lenders promote affordable housing in underserved markets, the company said.
The new feature automates the process of collecting census tract data to provide applicable pricing premiums at quote time. According to Black Knight, the Optimal Blue PPE can support affordable housing under the Community Reinvestment Act, which requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business.
“This expanded functionality is part of Optimal Blue’s ongoing commitment to delivering innovations that meet the latest market needs, as well as the credit needs of low- and middle-income neighborhoods,” said Scott Happ, president of ‘Optimal Blue, a division of the Dark Knight.
Optimal Blue’s expanded functionality in its PPE follows new functionality rolled out for brokers and comes amid declining mortgage origination volume.
In May, the division added Quick Quote to its PPE Loansifter, allowing brokers to make accurate quote offers for products available to consumers. Loansifter PPE, a component of Black Knight’s suite of integrated solutions designed for brokers, is searchable across more than 120 wholesale investors.
Black Knight acquired Optimal Blue in July 2020 in a $1.8 billion deal to boost origination bids. At the time of the acquisition, Optimal Blue, founded in 2002, had about 1,000 originators and 185 investors using the company’s PPE engine, which produced more than 240 million quotes annually, the company said.
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Optimal Blue, which has more than 213,000 users, supports more than $1.9 trillion in rate locks and loan transactions each year, according to the division’s website.
The mortgage tech giant reported net income of $40.3 million, down 90% from $364.6 million in the prior quarter due to a gain on the investment in the credit reporting services company Dun & Bradstreet Holdings.
While Black Knight’s revenue soared to $394.5 million, up 9% from the same period in 2021, the company said organic revenue growth slowed to 7% from the quarter. previous, in line with the company’s expectations for a slowdown in the mortgage industry.