Black Knight, Inc. - BKI STOCK NEWS

Intercontinental Exchange (NYSE: ICE) is opposing the Federal Trade Commission's (FTC) challenge to its acquisition of Black Knight (NYSE: BKI). ICE argues that this merger will advance a more efficient housing finance system by automating and enhancing transparency in the mortgage industry. The company previously agreed to divest Black Knight's Empower loan origination system to facilitate regulatory clearance. Despite the FTC's litigation, ICE is confident in prevailing and aims to finalize the acquisition by Q3 or Q4 2023.

On March 9, 2023, Black Knight (NYSE: BKI) announced a renewed agreement with LoanCare, a leading mortgage loan subservicer, to implement its Loss Mitigation solution. This strategic partnership aims to enhance payment assistance for borrowers facing financial difficulties. The Loss Mitigation system will work alongside Black Knight's MSP loan servicing system, improving operational efficiency and customer service. With over 30 years of collaboration, this renewal reflects both companies' commitment to innovation and customer satisfaction in the mortgage servicing industry.

Intercontinental Exchange (ICE) and Black Knight (BKI) announced a divestiture of Black Knight's Empower loan origination system to Constellation Software. This divestiture is crucial for securing regulatory clearance under the Hart-Scott Rodino Act for ICE's acquisition of Black Knight. The amended merger terms value Black Knight at $75 per share, amounting to approximately $11.7 billion. Shareholders can choose between cash or stock, with equalization at closing. The merger is under FTC review, with closing contingent upon regulatory approvals and shareholder consent. ICE plans to litigate for merger approval if necessary.

Black Knight's Mortgage Monitor Report reveals a significant decline in for-sale housing inventory, marking four consecutive months of decrease, with January 2023 showing a 0.24% drop in home prices from December. Approximately 90% of U.S. markets are experiencing inventory shortages, while affordability is tightening, with home sales at a seven-year low. Rising interest rates have made homes unaffordable for many, consuming 33.2% of median household income for monthly payments. Despite a consistent decline in prices, the decrease in January was the smallest thus far, indicating that supply constraints are stabilizing home prices.

Black Knight, Inc. (BKI) reported its unaudited financial results for Q4 and full-year 2022, revealing revenues of $1,551.9 million, up 5%. Organic revenue growth was 4%, while operating income fell 8% to $278.2 million, resulting in a 17.9% operating margin. Net earnings surged to $452.5 million or $2.91 EPS, boosted by a $306.7 million gain from the investment in Dun & Bradstreet. Fourth-quarter revenues declined 1% to $383.5 million, with net earnings decreasing 71% to $17.6 million. The company remains optimistic about long-term growth despite short-term challenges, and it has postponed guidance due to a pending transaction with Intercontinental Exchange.

Black Knight (NYSE:BKI) has expanded its McDash loan-level mortgage data set, enhancing public performance metrics to analyze over 200M active and historical mortgages. This comprehensive data now includes contributions from over 80 servicers, providing deeper insights into nonbank and smaller portfolios. The enhanced reporting also incorporates eMBS agency securities data, reflecting a more accurate mortgage landscape. In January, the national delinquency rate decreased by 10 basis points month-over-month and 15.1% year-over-year, showing improvement overall, while foreclosure starts rose by 17%, remaining significantly below pre-pandemic levels.

Black Knight, Inc. (NYSE: BKI) has announced an agreement with Wolters Kluwer Compliance Solutions to integrate eNote and eVault capabilities into its Expedite Close digital closing solution. This partnership aims to enhance the digital mortgage process by providing lenders with essential tools to perform seamless digital closings. Black Knight's solutions will allow for cost savings per transaction and a streamlined process that securely stores data in the eVault. The integration is expected to support lenders in creating and managing digital loans while ensuring compliance with industry standards.

In January, Black Knight (NYSE: BKI) reported a significant rebound in rate lock volumes, increasing by 32% month-over-month, driven by declining mortgage rates, which dropped 36 basis points to 6.16%. Both purchase and refinance volumes saw proportional increases, with cash-out refinances up 25%. However, despite this rise, purchase lending remains challenged with dollar volumes down 44% year-over-year. The report indicates that overall rate lock activity is still more than 60% lower than the same period last year, highlighting ongoing market pressures. The update reflects a cautious optimism amid persistent affordability challenges.