A recent report from Black Knight revealed that borrowers are moving on from their servicers once they refinance and retention rates fell in the third quarter.
"That decline came as refinance lending hit its highest point in nearly three years, Black Knight says, up 94% over the last three quarters," according to HousingWire.
"While refinance activity is up across the board, the characteristics of refinancing borrowers – along with their motivation and ‘trigger points’ to refinance – are anything but uniform. Advanced portfolio and market analysis can help servicers better understand changing borrower dynamics and tune their strategies accordingly,” said Black Knight Data & Analytics President Ben Graboske.
The report also revealed that cash-out retention fell 1% to the lowest retention rate in over two years for that particular segment.
"Meanwhile, rate and term refinance retention fell 3%, from 26% to 29% in Q2," according to HousingWire.
To learn more about the drop in servicer retention rates as refinances soar, click on the image above.