Editor’s Note: Fintech Launches AI-Driven Prepayment Predictor Model To Identify Borrowers Likely To Refinance
BSI Financial Services, a mortgage fintech platform, has launched Portfolio GuardianSM, an AI-driven predictor model that calculates the likelihood a borrower will refinance their mortgage within the next 90 days. Portfolio Guardian generates a precise prepayment score for each borrower in BSI’s portfolio, allowing BSI and its clients to strategically target refinancing opportunities and enhance customer retention.
Portfolio Guardian leverages a sophisticated combination of data sources to generate its predictive scores, including zero-party data directly provided by borrowers, real-time industry data like current mortgage rates, and demographic information such as education completed and length of homeownership.
BSI has also implemented model monitoring and state-of-the-art training pipelines for Portfolio Guardian to ensure its ongoing accuracy and adaptability. These systems continuously evaluate model performance against real-world outcomes and allow the model to adapt to changing market conditions, evolving borrower behaviors, and new data patterns.
With 30-year fixed mortgage rates projected to dip below 6% by the end of 2025 according to the Mortgage Bankers Association, tools like Portfolio Guardian will become crucial for lenders and servicers. BSI’s predictive technology enables its subservicing clients to proactively manage and capitalize on borrower behaviors during periods of fluctuating rates and enhance their competitive edge in a dynamic market. It also allows BSI and its clients to focus marketing efforts on borrowers who are more likely to pay off their loans and work to build long-term relationships with them.
“Portfolio Guardian is a valuable tool for boosting customer satisfaction and reducing portfolio churn,” said BSI Founder and CEO Gagan Sharma. “From a retention and recapture perspective, anticipating what our customers are likely to do in the future is a real game-changer.”
Having developed and refined Portfolio Guardian on its own portfolio, BSI is now offering this model to its subservicing clients.
Tony Garritano is the founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 20 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting PROGRESS in Lending Association was the next step for someone like Tony, who has dedicated his entire career to providing mortgage executives with the information that they need to make informed technology decisions to help their businesses succeed.
