Black Knight Stock Price, News & Analysis

Black Knight, Inc. (NYSE:BKI) reported a significant decline in rate lock volumes for December 2022, with an overall decrease of 19.4% month-over-month. Purchase locks fell by 20.5%, while refinancing activity also decreased, with cash-out refinances down 87% and rate/term refinances down 93% compared to December 2021. This decline in mortgage activity is attributed to high rates and affordability issues, with purchase locks hitting their lowest monthly total since early 2014. The report highlights ongoing challenges in the mortgage market as rate lock counts plummeted almost 70% year-over-year.

In November 2022, Black Knight reported a 15.6% drop in monthly prepayment activity, marking the lowest single month mortality rate at 0.40% since 2000. The national delinquency rate rose by 3.5% to 3.01%, driven by a significant increase in 30-day (31K, +3.9%) and 60-day (25K, +11%) delinquencies. Foreclosure starts climbed 19% to 23,400, although still 30% below pre-pandemic levels. Active foreclosure inventory increased 5.3%, but overall delinquency rates saw a year-over-year decline of 16.18%.

Black Knight, Inc. (NYSE: BKI) has enhanced its Ernst Fee Service to assist mortgage lenders in navigating new, complex real estate transaction tax requirements. Following the November elections, many municipalities are rapidly implementing variable tax increases, creating compliance challenges under TRID regulations. These changes necessitate timely updates to ensure accurate fee disclosures, or lenders risk incurring significant costs from fee cures. The Ernst Fee Service tracks these changes and integrates with Black Knight's loan origination system to streamline compliance while reducing regulatory risks.

The latest Mortgage Monitor Report from Black Knight, Inc. (NYSE: BKI) indicates a continuation of home price declines, with a 0.43% decline in October, the smallest drop since June. Annualized appreciation slowed to 9.3%. New listings in October were 19% below pre-pandemic levels, the largest deficit in six years. Equity risk persists, with 8% of 2022 mortgaged homes underwater, particularly among FHA/VA loans. Although negative equity remains low historically at 0.84%, rising early-payment defaults among FHA borrowers pose a concern.

Black Knight (NYSE:BKI) released its October 2022 mortgage performance statistics, revealing a 16.5% drop in prepayments to a record low of 0.48%. The national delinquency rate rose 4.5% to 2.91%, driven by a 9.4% increase in 30-day delinquencies, with Florida leading in new delinquencies due to Hurricane Ian's impact. Foreclosure starts increased by 7% but remain 55% below pre-pandemic levels. The overall delinquency rate indicates a year-over-year decrease of 22.32%.

Fidelity National Financial (FNF) has announced the acquisition of TitlePoint from Black Knight (BKI) for $225 million in cash. TitlePoint specializes in providing detailed property information and is a leader in real estate property research technology. This acquisition aims to enhance FNF's integration of property data and improve productivity within its operations. The transaction is expected to close in December 2022, pending customary conditions.

Black Knight (NYSE: BKI) has announced the sale of its TitlePoint line of business to Fidelity National Financial (NYSE: FNF) for $225 million in cash. TitlePoint, part of Black Knight's Data & Analytics segment, aids in title searches across the U.S. The decision to sell aligns with Black Knight's strategy to enhance investments in mortgage-specific software and core data analytics, while also addressing revenues sensitive to origination volumes. The transaction is projected to close in December 2022, contingent on customary closing conditions.

On November 15, 2022, Black Knight (NYSE:BKI) announced that All In Credit Union has contracted to implement the Empower loan origination system (LOS). The credit union aims to enhance borrower service and employee retention through robust automation. Empower is selected for its ability to operate efficiently in a down market while also being scalable for future growth. All In Credit Union, which serves over 147,000 members across Alabama and Florida, previously utilized Black Knight's solutions like Ernst Fee Service and Optimal Blue PPE, ensuring a seamless integration with Empower.