- New requirements from Fannie Mae and Freddie Mac regarding the collection, retention and reporting of Fair Lending, language preference and other data elements go into effect March 1, 2023
- Black Knight has a well-earned reputation of meeting investor and regulatory deadlines and employing deep industry expertise to support clients’ compliance efforts via technology
- The company’s clients include a uniquely representative cross-section of market participants — all sizes, scopes and focuses — across both origination and servicing
- Both Empower and Borrower Digital, Black Knight’s point-of-sale solution, already allow clients to collect and create complete datasets of borrower demographics, including race, ethnicity, sex and age at origination
- Updates to the MSP servicing system expand on existing demographic and language preference capture to support various interpretations of the requirements and to facilitate querying and transferring of data
- Black Knight clients using both Empower and MSP have the added advantage of seamless transfer of these data elements between the two systems
- All necessary updates and associated timelines have been communicated to Black Knight clients and will be in place well before the March 2023 start date
- Black Knight is also ready to incorporate any additional clarifications, additions or other changes that may be added to these new requirements in the months ahead
Today, Black Knight, Inc. (NYSE: BKI) announced that regarding the company’s premier mortgage origination and servicing systems, the Empower LOS is currently ready for new GSE data collection and reporting requirements, and the MSP servicing system will be enhanced before the March 2023 requirement date. Black Knight has a long history of delivering investor and regulatory enhancements prior to deadlines and a well-earned reputation for both deep expertise and concrete technological solutions that support clients’ compliance efforts in a constantly evolving regulatory environment.
“Making sure our clients have the tools they need to meet new investor and regulatory requirements has long been part of Black Knight’s guiding mission — and one of our core strengths,” said Joe Nackashi, CEO of Black Knight. “Our extensive knowledge of the industry is matched by a proven ability to deliver the solutions our clients need — in a timely way — help them achieve greater levels of success and meet ever-changing regulatory requirements.”
This spring, the FHFA — and subsequently the GSEs — announced that originators will be required to collect additional borrower information around language preference, homeownership education and housing counseling gathered on the Supplemental Consumer Information Form (SCIF) as part of the loan application process for applications taken March 1, 2023, and beyond. Further, lenders must report any data collected from the SCIF to the GSE purchasing the loan. The GSEs have provided specific data formats for reporting this new information to them. Both the Empower LOS and Borrower Digital point-of-sale solution already allow lender clients to collect and create a complete data set for borrower demographics, including race, ethnicity, sex and age.
Later in the summer, the same entities also announced servicers must begin collecting and maintaining borrower demographic and language preference data obtained during origination for mortgages originated on or after March 1, 2023. Servicers were instructed to be able to transfer such data in the event of a servicing transfer. Though the data requirements for servicers are less defined, Black Knight is expanding existing data collection to account for a broad interpretation of the new data collection, retention and transfer requirements. The expectation is for the new requirements, as currently written, to be fully integrated into the MSP servicing system beginning in the fourth quarter, with integration in place before the March 1, 2023, effective date.
“The Fannie and Freddie announcements make it clear that servicers must maintain and transfer borrower demographic data starting with originations on or after March 1, 2023,” said George FitzGerald, EVP, Black Knight Servicing Technologies. “Our leadership position in servicing means we’re taking a purposely comprehensive approach to support various interpretations of the requirements as currently expressed. This will help ensure our clients will be well-prepared to gather, maintain and share all necessary information. Of course, Black Knight remains on our standard regulatory readiness footing, so we’re also ready to incorporate any additional clarifications, additions or other changes that may come to these new requirements in the months ahead.”
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 servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com.
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