Black Knight, Inc. (NYSE: BKI) has launched the CA Property Condition AVM, an automated valuation model that incorporates property conditions for precise valuations. Traditional models often neglect property condition due to data challenges, limiting valuation accuracy. The new AVM analyzes residential sales data from public records and MLS, achieving a 95% hit rate. It evaluates properties across six conditions, enhancing valuation reliability and reducing the need for physical inspections. This advancement marks a significant step in improving property valuation processes.
Black Knight (NYSE:BKI) released its Q1 2020 Mortgage Monitor Report, noting cash-out refinances decreased despite record-high tappable equity of $6.5 trillion. While the overall refinance lending reached a 7-year high, cash-out refinances fell to 42% of total refinance loans, the lowest since Q1 2016. $38.7 billion was withdrawn via cash-out, down 8% from the previous quarter. Conversely, 13.6 million homeowners could save an average of $283 monthly if they refinanced, indicating a potential boost to the economy.
On June 22, 2020, Black Knight, Inc. (NYSE:BKI) released mortgage performance statistics for May 2020, showing a total U.S. loan delinquency rate of 7.76%, a month-over-month increase of 20.43% and a year-over-year increase of 130.78%. Foreclosure starts dropped to 5,100, marking an 86.92% decrease year-over-year. Additionally, the prepayment rate fell to 2.29%, a 1.78% decline from the previous month. Notably, Mississippi led in non-current percentages, while Alaska saw a significant deterioration.
Black Knight announced the pricing of an underwritten public offering of 6,200,000 shares of its common stock, expected to generate gross proceeds of $435,550,000. The offering includes a 30-day option for underwriters to purchase an additional 930,000 shares. The proceeds will be used to repay amounts under its revolving credit facility and for general corporate purposes, possibly including future acquisitions. The offering is set to close on June 19, 2020, subject to customary conditions.
Black Knight intends to offer 5,600,000 shares of its common stock, with an option for underwriters to purchase an additional 840,000 shares. The offering will utilize a shelf registration statement filed with the SEC on June 16, 2020. Proceeds will be allocated to repay revolving credit and for general corporate purposes, including potential acquisitions. BofA Securities and J.P. Morgan are leading the offering. The stock has the potential for financial growth, but investors should review SEC filings before investing.