Black Knight, Inc. - BKI STOCK NEWS

Black Knight demonstrated its technological advancements in the real estate and mortgage sectors during a keynote at the AWS Summit Atlanta. Chief Information Technology Officer James Iredale emphasized the integration of over 60 AWS capabilities to enhance scalability and innovation. Black Knight aims to streamline the mortgage process for both clients and consumers by leveraging machine learning and analytics. The company seeks to bridge client needs with cloud technology without forcing changes, ensuring a smoother transition to digital solutions.

Black Knight's latest Originations Market Monitor report reveals a downward trend in mortgage rate locks for June, marking the third consecutive month of declines. The 30-year mortgage rate spiked to 6% mid-month but settled at 5.79%, while the spread between mortgage rates and Treasury yields widened to 280 basis points. Total lock volumes fell 11%, with significant drops in cash-out refinances and purchase loans. Notably, the average credit score for cash-out refinances decreased to 693, the lowest since 2013, indicating market vulnerability in the current rate environment.

Black Knight, Inc. (NYSE:BKI) has launched the Fee Cures Suite, a tool aimed at helping lenders minimize costly fee cures by integrating data analytics from its Actionable Intelligence Platform and Ernst Fee Service. This suite allows lenders to compare loan estimates and closing disclosures, identify trends, and drill down to specific loan attributes. By providing real-time insights into loan-level data, lenders can address preventable expenses associated with fee cures, which can average hundreds of dollars per loan, potentially saving millions across portfolios.

Black Knight, Inc. (NYSE:BKI) announced that Velocity Credit Union has chosen its Empower loan origination system (LOS) to enhance automation and member experience. The implementation will streamline operations and support growth in retail and home equity lending. Key features include the Optimal Blue PPE for pricing and eligibility, Borrower Digital for loan applications, and machine-learning technology for document processing. These advancements aim to reduce costs per loan and improve efficiency, ultimately serving Velocity's over 88,000 members better.

In May, home price growth slowed in 97 of the 100 largest U.S. housing markets, with the national annual appreciation rate dropping to 19.3%, the largest decline since 2006. Despite this, home prices increased by 1.5% month-over-month, nearly double the historical average for May. Affordability has worsened, with the payment-to-income ratio at 36.2%, while active listings rose by 107,000 in May, yet inventory remains 60% below normal levels. The report from Black Knight highlights the impact of rising interest rates and low inventory on home affordability.

In May 2022, the national loan delinquency rate decreased to 2.75%, marking the third consecutive month of declines. Early-stage delinquencies rose slightly by 0.2%, while serious delinquencies fell by 7%. Foreclosure starts decreased by 12% compared to April, and remain below pre-pandemic levels. However, serious delinquencies are still 45% above pre-pandemic levels. Prepayment activity saw a significant drop of 11.1% month-over-month, contributing to a year-over-year decrease of 59.1% attributable to rising interest rates.

On June 20, 2022, Black Knight (NYSE:BKI) announced a licensing agreement with the California Regional Multiple Listing Service (CRMLS), the largest MLS in the U.S. CRMLS aims to enhance its services by utilizing Black Knight's extensive public-records property data, covering over 99% of U.S. households. This partnership will enable CRMLS to offer broker-centric data solutions and analytics, improving member access to critical property intelligence. Black Knight's data, sourced from county tax assessors, ensures high quality and accuracy, supporting CRMLS's goal of innovative service delivery.

Black Knight, Inc. (NYSE:BKI) released its latest Originations Market Monitor report, indicating a decline in mortgage production despite a temporary plateau in conforming 30-year rates, which ended May at 5.34%. Overall rate locks dropped by 4.8% month-over-month, with refinance activity plummeting 23.6% and purchase locks down 2.3%. Government-backed loans gained market share, while borrower credit scores fell significantly. This reflects a challenging market environment characterized by high prices and limited inventory.

On June 8, 2022, Black Knight (NYSE:BKI) announced its partnership with VanDyk Mortgage Corporation, which has chosen Black Knight's MSP loan servicing system to enhance its servicing operations. This collaboration aims to improve customer experience and operational efficiency. In addition to MSP, VanDyk will utilize Black Knight's Servicing Digital, Customer Service, and Loss Mitigation solutions. The CEO of Black Knight expressed confidence in this partnership, emphasizing the advanced capabilities of MSP to support VanDyk's growth.