Black Knight, Inc. - BKI STOCK NEWS

Black Knight, Inc. (NYSE:BKI) reports a significant rise in U.S. home prices, up 42% since the pandemic began, with 19.9% annual growth as of April 2022. Affordability has worsened, with the monthly principal and interest payment increasing by 44% since the start of the year, nearing levels last seen in July 2006. Despite challenges for homebuyers, current mortgage holders gained $2.8 trillion in tappable equity over the past year, averaging over $207,000 per borrower. Active listings remain low, 67% below pre-pandemic levels, exacerbating the affordability crisis.

Black Knight, Inc. (NYSE: BKI) has unveiled a new lead-quoting API designed for lead-aggregation vendors, enhancing access to accurate product and pricing information through its Optimal Blue PPE. This API facilitates real-time rate displays from lenders, streamlining integration for vendors and providing borrowers with valuable mortgage data. The Optimal Blue PPE is integral to 40% of U.S. mortgages, processing $2.1 trillion in rate locks. This development underscores Black Knight's commitment to innovation and efficiency in the mortgage industry.

Black Knight (NYSE:BKI) has formed a strategic alliance with Percy, a data analytics and marketing company. This partnership aims to enhance consumer engagement in the real estate sector by utilizing Percy’s machine learning technology to analyze billions of consumer behavior data points. Homeowners will benefit from continuous insights about their properties, including valuation estimates and refinancing options. The alliance is particularly timely, given the current housing market challenges, as it offers a means to generate inventory and boost demand for purchases.

Black Knight, Inc. (NYSE: BKI) reported a national delinquency rate of 2.80% for April, marking a 4 basis points decrease from March and a 40% decline year-over-year, showcasing a continual recovery in the mortgage market. Notably, while serious delinquencies have decreased, they remain over 55% above pre-pandemic levels. Foreclosure starts fell by 12% month-over-month, with active foreclosure slightly rising. However, prepayment activity plummeted by 19.1% from March due to rising interest rates.

Black Knight, Inc. (NYSE:BKI) revealed its latest Originations Market Monitor, highlighting a sharp rise in conforming 30-year mortgage rates to 5.42%, the highest level in nearly 13 years. Overall rate-lock activity plunged by 20% from March, driven by a notable 50% decrease in rate/term refinance activity. The cash-out refinance locks also fell 40%, resulting in a record low refi market share of 20%. Despite an 11% decline in purchase locks from March, year-over-year metrics remained steady, indicating ongoing demand.

Black Knight reported Q1 2022 results with revenues of $387.2 million, an increase of 11%. Operating income rose 18% to $80.2 million, while diluted EPS jumped to $2.35 from $0.35. Notably, a gain of $305.4 million from acquiring Optimal Blue significantly boosted net earnings. The company announced a definitive agreement to be acquired by Intercontinental Exchange for $85 per share, valued at $13.1 billion. The transaction is expected to close in H1 2023, pending approvals.

Intercontinental Exchange (NYSE: ICE) has announced its agreement to acquire Black Knight (NYSE: BKI) for $85 per share, valuing the software firm at $13.1 billion. This strategic move enhances ICE’s mortgage technology ecosystem and aims to streamline the U.S. residential mortgage process. The deal is projected to generate $200 million in cost synergies and $125 million in revenue synergies by year five, and is anticipated to be accretive to adjusted EPS in the first year after closing.

Black Knight (NYSE: BKI) announces the launch of Quick Quote, a new feature in its Loansifter pricing engine, designed to improve accessibility of real-time mortgage rates for brokers and consumers. This digital tool enhances user experience by enabling brokers to provide personalized quotes directly on their corporate websites. Quick Quote's easy setup and customization options empower brokers to enhance their brand while improving customer engagement. The Loansifter PPE supports searches across over 120 investors, keeping brokers competitive in the mortgage market.

Black Knight, Inc. reported a 2.3% increase in home prices for March, reflecting significant appreciation trends despite a slight decline in annual growth to 19.9% from 20.1% in February. With 30-year mortgage rates at 5.11%, homeowners now allocate 32.5% of median income for principal and interest payments, nearing 2006's record high of 34.1%. Affordability pressure is evident, particularly as 95 of the 100 largest U.S. markets fall short of long-term affordability benchmarks. The report also highlights increased popularity of adjustable-rate mortgages amidst these conditions.