Black Knight Financial Services announced the launch of its Black Knight Index Suite, a series of indices expanding on its existing Home Price Index (HPI). The series was created to provide insights into the housing and mortgage markets with comprehensive depth, coverage, and currency.
Making up the new indices are the Mortgage Market Index, Housing Market Index, and Home Listing Index, which are based on the company’s property and mortgage datasets, and employs refined modeling and analytics techniques. This collection of indices also provides useful tools for economic forecasting, decision-making, risk management, research, and modeling.
“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 Automated Valuation Models (AVMs) 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. The company sought to take a page from that proven HPI model and put it to work in other data-heavy aspects of the industry, said Grey.
In addition, the improved series now includes support for three-digit ZIP codes for easier matching with Credit Risk Transfer data, as well as Freddie Mac and Fannie Mae single-family mortgage performance data. It also provides historical monthly home price movements; HPI forecast scenarios, and time coverage extending back to 1975. The forthcoming HLI will provide previously unavailable insights into the supply side of the housing market.
The Black Knight Index Suite can also be used in situations including, helping senior management, constructing and validating mortgage performance models, and helping with financial planning and reporting.