Black Knight Stock Price, News & Analysis

Black Knight (NYSE:BKI) announced that BluPeak Credit Union has selected its Empower loan origination system to support growth in a challenging market. With nearly 60,000 members and over $1.2 billion in assets, BluPeak aims to enhance its loan processing efficiency and improve member experience through automation. Empower will enable BluPeak to streamline workflows and reduce operational costs. The partnership includes additional technology solutions from Black Knight to strengthen BluPeak's retail lending channels and promote steady growth.

According to the Black Knight Mortgage Monitor Report, median home prices decreased by 0.52% in September, marking three consecutive months of declines but at a slower rate. Homeowner equity saw a record drop of $1.3 trillion in Q3, the largest decline since 2009, with average borrower equity falling by $30K. Despite these corrections, equity levels remain strong, with homeowners holding $5 trillion above pre-pandemic levels. The report also highlights the impact of Hurricane Ian, affecting 2.5 million mortgaged homes in Florida.

Black Knight reported Q3 2022 revenues of $386.7 million, a 2% increase year-over-year, with organic growth of 2%. However, operating income fell 18% to $68.2 million, and net earnings dropped to $30.0 million from $53.4 million, resulting in a diluted EPS of $0.19 compared to $0.34. Year-to-date, revenues reached $1,168.4 million, up 7%, with net earnings significantly boosted by a $303.3 million gain from DNB investment. The company remains optimistic about long-term growth amidst current market challenges.

Black Knight, Inc. (NYSE:BKI) will release its third quarter 2022 financial results on November 3, 2022, at 8:30 a.m. ET. The results will be available on its Investor Relations website. Notably, due to its pending transaction with Intercontinental Exchange, there will be no conference call or forward-looking guidance offered alongside the financial results. Black Knight provides essential software, data, and analytics solutions across the mortgage, real estate, and capital markets industries.

Black Knight, Inc. (NYSE:BKI) reports significant declines in mortgage performance metrics for September 2022. The monthly prepayment activity decreased by 14.9%, reaching a 20-year low of 0.57%. The national delinquency rate fell slightly by 0.2% to 2.78%, with serious delinquencies only 24% above pre-pandemic levels. Notably, foreclosure starts declined by 9% to 18,400, remaining 53% below pre-pandemic figures. The report indicates a steadiness in active foreclosure inventory, and variations in delinquency rates across states are outlined.

Black Knight (NYSE: BKI) announced that its Empower LOS and MSP servicing systems are ready to meet new GSE data collection requirements, effective March 1, 2023. The updates will enhance the collection and transfer of borrower demographic data, including language preferences. Both systems allow clients to compile comprehensive datasets to comply with new regulations. Black Knight has communicated all necessary updates to clients, ensuring readiness ahead of the deadline. They are prepared to adapt to any future changes in these requirements.

Optimal Blue, a division of Black Knight, has unveiled CompassEdge, the first-of-its-kind hedging and trading platform for the capital markets. This launch integrates existing solutions like CompassPoint and Optimal Blue Secondary Services into a single, user-friendly interface. CompassEdge is designed for all originators, offering robust analytics, risk management tools, and mobile functionality. With features that promote transparency and ease of use, it allows users across organizations to access data without extensive training, enhancing efficiency in loan trading.

Black Knight (NYSE:BKI) announced a new integration between its Servicing Digital application and Surefire marketing automation tool, enhancing automated, personalized communications for mortgage servicers. This integration allows servicers to provide homeowners with valuable, educational content directly within the Servicing Digital platform, improving customer engagement and retention. The first content release features an educational video on escrow analysis, addressing common inquiries and reducing hold times. Black Knight aims to leverage digital capabilities to foster meaningful connections between servicers and customers.

Black Knight, Inc. (NYSE: BKI) reported a significant decline in mortgage origination activity in September 2022, driven by rising interest rates and affordability challenges. The 30-year mortgage rate surged to 6.72%, the highest in over 15 years. Overall lock volumes fell nearly 10% from August and 60% year-over-year, with refinances plummeting to just 16% of the month’s lock volume. Cash-out refinances dropped 26.2% from August and 78% from September 2021. Purchase lending volumes decreased by 7.6% from August and 29.4% from last year, indicating a challenging market landscape.