Black Knight, Inc. - BKI STOCK NEWS

In July 2022, the national loan delinquency rate rose to 2.89%, driven by a 4% increase in early-stage delinquencies. However, this remains just 14 basis points above May's record low. Serious delinquencies decreased, indicating improvements, with loans curing to current dropping from 104K in March to 58K in July. Foreclosure starts fell 25% from June, totaling 17.7K. Prepayment activity decreased by 18%, now down 67% year-over-year due to rising rates, impacting both purchases and refinances.

Black Knight, Inc. (NYSE: BKI) announced that Together Credit Union has chosen the Empower loan origination system (LOS) to enhance its operations and member experience. The decision aims to streamline the loan process for both members and loan officers, fostering anticipated growth for the credit union with its 27 branches. Empower provides a cloud-based, automated ecosystem designed to reduce operational costs while increasing efficiency. Complementary solutions include a product and pricing engine, machine learning for document processing, and a digital point-of-sale solution.

Black Knight, Inc. (NYSE: BKI) has enhanced its Optimal Blue PPE, the leading product pricing and eligibility engine in the mortgage industry. This update introduces location-based pricing incentives, automating the collection of census tract data to offer applicable pricing premiums at the rate quote stage. This feature aligns with the Community Reinvestment Act, promoting affordable housing in underserved markets. Scott Happ, president of Optimal Blue, emphasized the efficiency gains for investors and lenders as part of their commitment to market innovation.

Black Knight, Inc. (NYSE: BKI) reported a decline in mortgage origination activity, with July seeing a 14.4% drop in total lock volumes compared to June. The 30-year mortgage rates slightly decreased to 5.3%, a decline of 49 basis points. Purchase locks fell 25.8% year-over-year, marking the first month below pre-pandemic levels. The average purchase price decreased by $10,000 to $344,000, while the average borrower credit score for cash-out refinances reached 692, the lowest since 2013.

Lake City Bank has chosen Black Knight's cloud-based Empower loan origination system (LOS) to enhance its loan processing and support growth. This solution allows for streamlined workflows and improved borrower experiences. Empower, known for its efficiency and cost-reduction capabilities, facilitates an end-to-end loan experience with integrated solutions including machine-learning technology and document services. Black Knight aims to provide Lake City Bank with advanced technology to deliver high-quality banking solutions across Indiana.

Black Knight (NYSE: BKI) reported Q2 2022 revenues of $394.5 million, a 9% increase from the previous year. Organic revenue growth was 7%. Operating income rose to $77.0 million, an 11% increase. Notably, diluted EPS improved to $0.26. Adjusted EBITDA grew by 7% to $190.7 million. Software solutions generated $339.4 million in revenue, a 11% increase. However, data and analytics revenue decreased by 1%. As of June 30, 2022, cash and cash equivalents stood at $38.0 million with total debt of $2.77 billion.

Black Knight's latest Mortgage Monitor Report reveals a record-setting slowdown in home price growth, dropping from 19.3% to 17.3% year-over-year in June, the largest monthly deceleration since the 1970s. This aligns with a 22% increase in homes listed for sale, although inventory remains 54% below pre-pandemic levels. Significant localized slowdowns are noted, particularly in markets like San Jose (-5.1%), Seattle (-3.8%), and San Francisco (-2.8%). The report indicates that current trends in inventory and sales may continue, impacting home prices and market dynamics.

Black Knight, Inc. (NYSE:BKI) will announce its second quarter 2022 financial results on August 4, 2022, at 7:30 a.m. Eastern Time. The results will be shared via a press release on its Investor Relations website. Notably, the company will not host a conference call or provide any forward-looking guidance due to its proposed transaction with Intercontinental Exchange, Inc. Black Knight specializes in software, data, and analytics solutions serving mortgage and real estate markets.

Black Knight, Inc. (NYSE:BKI) reported a slight rise in the national delinquency rate to 2.84% in June, marking a 9 basis point increase and ending a three-month record low trend. Notably, foreclosure starts surged by 27%, though they remain 40% below pre-pandemic levels. Furthermore, prepayment activity dropped by 7%, reflecting a 64% decrease year-over-year. Overall, the mortgage market shows signs of stress but remains significantly lower than pandemic peaks.