Mortgage fintech platform BSI Financial Services has introduced Portfolio GuardianSM, an artificial intelligence-driven model that predicts the likelihood of borrowers refinancing their mortgages within a 90-day window.
This AI tool generates an accurate prepayment score for each borrower in BSI’s portfolio, providing the company and its clients with a strategic advantage in targeting refinancing opportunities and enhancing customer retention efforts.
Portfolio Guardian utilizes a comprehensive array of data sources to generate its predictive scores, according to an announcement.
These include zero-party data supplied directly by borrowers, industry data such as real-time mortgage rates, and demographic factors like education level and the duration of homeownership.
By leveraging these data points, BSI is able to offer precise predictions that help lenders and servicers better understand borrower behavior and tailor their refinancing strategies accordingly.
The AI model is supported by continuous monitoring and advanced training pipelines designed to maintain its accuracy over time.
These systems enable Portfolio Guardian to adapt to evolving market conditions, shifts in borrower behavior, and emerging data trends.
Regular evaluations of the model’s performance against real-world outcomes ensure that it remains a reliable tool for predicting borrower actions, particularly in fluctuating interest rate environments.
With the Mortgage Bankers Association projecting 30-year fixed mortgage rates to drop below 6% by the end of 2025, BSI expects Portfolio Guardian to play a key role for lenders and servicers looking to capitalize on refinancing trends.
The model’s ability to proactively identify borrowers likely to refinance allows BSI and its clients to focus marketing efforts on these borrowers, improving retention and fostering long-term relationships.
BSI Financial initially refined Portfolio Guardian within its own portfolio before making the technology available to its subservicing clients.
The tool not only improves customer satisfaction but also reduces portfolio churn by enabling lenders to anticipate and respond to borrower refinancing behaviors in advance.
BSI Financial Services is recognized for its innovative approach to mortgage servicing, with nearly $50 billion in mortgages under its management.
The company is approved as a servicer by major entities like Fannie Mae, Freddie Mac, FHA, VA, and USDA, and is highly rated by credit rating agencies such as S&P, Fitch, and DBRS.