Black Knight, Inc.

Last updated
Black Knight, Inc.
Type Subsidiary
  • NYSE: BKI (2017–2023)
  • NYSE: BKFS (2015–2017)
Industry Financial services
Headquarters Jacksonville, Florida, U.S.
Key people
Anthony Jabbour (Chairman)
Joe Nackashi (CEO)
Kirk Larsen (President & CFO)
Parent Intercontinental Exchange
Website blackknightinc.com

Black Knight, Inc. is an American corporation that provides integrated technology, services, data and analytics to the mortgage lending, servicing and real estate industries, as well as the capital and secondary markets. Black Knight is also known for its monthly benchmark data reports: Mortgage Monitor, a month-end analysis of mortgage performance statistics derived from Black Knight's loan-level database representing the majority of the national mortgage market; and Originations Market Monitor, the industry's earliest and most comprehensive view of single-family residential mortgage originations based on daily rate lock data from Black Knight's Optimal Blue PPE. In 2023, Intercontinental Exchange acquired the company for $11.7 billion.

Contents

Operations

Black Knight provides integrated technology, data and analytics solutions that help the real estate and housing finance industries serve clients, mitigate risk and operate more efficiently.

The company's product offerings serve four primary market segments:

Corporate evolution

1962 – Black Knight's earliest predecessor company, Computing and Statistical Services, (CSS) is founded in Jacksonville, Fla.

1969 – CSS incorporates under its new name: Computer Power Inc. (CPI).

1992 – ALLTEL Corporation purchases CPI, which becomes a part of ALLTEL Information Services. ALLTEL Information Services' financial services division provides technology applications for mortgage, banking and other financial services. [1]

2003 – Fidelity National Financial (FNF) purchases ALLTEL Information Services, renames it Fidelity Information Systems (FIS), and relocates FNF's headquarters from Santa Barbara, Calif., to Jacksonville, Fla. [2]

2006 – FNF spins off FIS into a separate company. [3]

2008 – FIS spins off mortgage processing and services into Lender Processing Services, Inc. (LPS). [4]

2008 – LPS acquires McDash Analytics, one of the largest loan-level mortgage performance databases, which becomes the basis for a new Applied Analytics division. [5]

2014 – LPS is re-acquired by FNF and renamed Black Knight Financial Services. [6]

2015 – Black Knight Financial Services begins trading on the New York Stock Exchange under the ticker symbol "BKFS." [7]

2016 – Black Knight acquires eLynx and Motivity Solutions, creating the foundation for Black Knight's Origination Technologies division. [8] [9]

2017 – FNF liquidates its majority holding in Black Knight Financial Services, resulting in a new public company, Black Knight, Inc. [10]

2018 – Black Knight acquires artificial intelligence, and machine learning (AI/ML) start-up HeavyWater and Ernst Publishing Co., a provider of mortgage fees and closing cost data for the real estate and home finance industries. [11] [12]

2019 – Black Knight acquires Compass Analytics, provider of lender pricing solutions and secondary market analytics. [13]

2020 – Black Knight acquires Collateral Analytics, provider of real estate analytics tools and data, and Optimal Blue, creators of the mortgage industry's most widely used pricing engine. [14] [15]

2021 – Black Knight acquires broker-specific technology NexSpring Financial, LLC; eMBS, which provides performance data and analytics on agency-backed securities; and Top of Mind Networks, LLC, a mortgage industry focused marketing automation and customer relationship management (CRM) platform. [16] [17] [18]

2022 – Intercontinental Exchange (ICE) agreed to acquire Black Knight for $13.1 billion in May. [19]

2023 – ICE completed the acquisition of Black Knight for $11.7 billion. [20]

Controversies

The 2010 robo-signing scandal exposed questionable behavior on the part of employees of a small subsidiary of the company. In addition to the federal government, states such as Nevada filed legal proceedings against these employees. [21] The investigation of these business practices were featured in an episode of 60 Minutes. [22] Eventually LPS settled with the federal government and other states and ceased operations of the problematic subsidiary. [23] Some controversy surrounded the resignation of two attorneys who had investigated LPS as part of their work for Florida's Economic Crime Division, as they claimed to have resigned under pressure from Attorney General Pam Bondi, who had received campaign contributions from LPS. [24]

On November 4, 2019, Black Knight took the unprecedented step of taking legal action against one of its clients, PennyMac Financial Services for breach of contract and misappropriation of trade secrets. [25] Within 24 hours, PennyMac had filed a retaliatory lawsuit against Black Knight for alleged anti-competitive practices. [26] The PennyMac case has since been moved from the California court in which the mortgage lender and servicer had filed suit and to Florida, where Black Knight had filed the original complaint. The case went to arbitration in June 2020. [27]

Related Research Articles

<span class="mw-page-title-main">Equifax</span> American consumer credit reporting agency

Equifax Inc. is an American multinational consumer credit reporting agency headquartered in Atlanta, Georgia and is one of the three largest consumer credit reporting agencies, along with Experian and TransUnion. Equifax collects and aggregates information on over 800 million individual consumers and more than 88 million businesses worldwide. In addition to credit and demographic data and services to business, Equifax sells credit monitoring and fraud prevention services directly to consumers.

<span class="mw-page-title-main">Ally Financial</span> American financial services company

Ally Financial is a bank holding company organized in Delaware and headquartered at Ally Detroit Center in Detroit, Michigan. The company provides financial services including car finance, online banking via a direct bank, corporate lending, vehicle insurance, mortgage loans, and other related financing services such as installment sale and lease agreements.

<span class="mw-page-title-main">Fidelity National Financial</span> American financial services company

Fidelity National Financial, Inc., a Fortune 500 company, is an American provider of title insurance and settlement services to the real estate and mortgage industries. FNF generated approximately $8.469 billion in annual revenue in 2019 from its title and real estate-related operations. Fidelity National Financial, Inc. is currently ranked number 238 on FORTUNE's 2022 list of America's Largest Companies.

Rocket Mortgage, LLC, formerly Quicken Loans, LLC, is an American mortgage lender, headquartered in Detroit, Michigan. In January 2018, the company became the largest overall retail lender in the U.S.. Unlike other large mortgage lenders that depend on deposits, Rocket Mortgage relies on wholesale funding to make its loans and uses online applications rather than a branch system. Amrock and One Reverse Mortgage are also part of the Rocket Mortgage Family of Companies. The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017.

<span class="mw-page-title-main">Novation Companies</span> American business

Novation Companies, Inc.(formerly Novastar Financial, Inc.) owns and operates early-stage businesses in the technology-enabled services industry. It trades under the symbol NOVC.

<span class="mw-page-title-main">Intercontinental Exchange</span> American exchange and clearing house company

Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada and Europe, the Liffe futures exchanges in Europe, the New York Stock Exchange, equity options exchanges and OTC energy, credit and equity markets.

<span class="mw-page-title-main">FIS (company)</span> American information technology company

Fidelity National Information Services, Inc. (FIS) is an American multinational corporation which offers a wide range of financial products and services. FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions. Annually, FIS facilitates the movement of roughly $9 trillion through the processing of approximately 75 billion transactions in service to more than 20,000 clients around the globe.

Markit was a British financial information and services company with over 4,000 employees, founded in 2003 as an independent source of credit derivative pricing. The company provides independent data, trade processing of derivatives, foreign exchange and loans, customised technology platforms and managed services. The company aims to enhance transparency, reduce financial risk and improve operational efficiency. Its client base includes institutional participants in the financial marketplace. On 12 July 2016, Markit and IHS Inc. merged in an all-stock merger of equals to form IHS Markit. IHS Markit later merged with S&P Global on 28 February 2022.

Prospect Mortgage was a residential retail mortgage lender that offered a range of home loans. The company was founded in 2007 and was headquartered in Sherman Oaks, California with retail offices across the United States. The company was backed by the private equity firm, Sullivan Partners. In 2011, Prospect Mortgage was ranked number 2 on Mortgage Executive Magazine's list of the Top 100 Mortgage Companies in America and was a top 10 national home purchase lender in 2012.

Cyberhomes is a real estate website owned by Fidelity National Financial and Lender Processing Services (LPS). It lists the most current sales of homes in a neighborhood by similar sales.

FNC, Inc., a subsidiary of CoreLogic, provides data to the real estate industry.

<span class="mw-page-title-main">CoreLogic</span> American business data company

CoreLogic, Inc. is an Irvine, CA-based corporation providing financial, property, and consumer information, analytics, and business intelligence. The company analyzes information assets and data to provide clients with analytics and customized data services. The company also develops proprietary research, and tracks current and historical trends in a number of categories, including consumer credit, capital markets, real estate, fraud, regulatory compliance, natural hazards, and disaster projections. The company reported full 2020 revenue of $1.6 billion. As of 2021, CoreLogic is a Fortune 1000 company.

<span class="mw-page-title-main">Moody's Analytics</span> Analytics and financial services company

Moody's Analytics is a subsidiary of Moody's Corporation established in 2007 to focus on non-rating activities, separate from Moody's Investors Service. It provides economic research regarding risk, performance and financial modeling, as well as consulting, training and software services. Moody's Analytics is composed of divisions such as Moody's KMV, Moody's Economy.com, Moody's Wall Street Analytics, the Institute of Risk Standards and Qualifications, and Canadian Securities Institute Global Education Inc.

<span class="mw-page-title-main">Axos Financial</span> Bank holding company based in Las Vegas, Nevada

Axos Financial is a bank holding company based in Las Vegas, Nevada and is the parent of Axos Bank, a direct bank.

PennyMac Financial Services, Inc. is an American residential mortgage company headquartered in Westlake Village, California. The company's business focuses on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. PennyMac operates through two subsidiaries: PennyMac Loan Services, LLC and PNMAC Capital Management, LLC. The latter manages the PennyMac Mortgage Investment Trust, a mortgage REIT.

CoStar Group, Inc. is a Washington, DC-based provider of information, analytics, and marketing services to the commercial property industry in the United States, Canada, the United Kingdom, France, Germany, and Spain. Founded in 1987 by Andrew C. Florance, the company has grown to include the online database CoStar and many online marketplaces, including Apartments.com, LoopNet, Lands of America, and BizBuySell.

Live Well Financial, Inc. ("LWF") was a privately owned mortgage originator, servicer and investor, licensed in the United States to operate in 46 states. The company offered government-insured Home Equity Conversion Mortgage loans, FHA single family mortgage loans, and Fannie Mae conforming loans. LWF is headquartered in Richmond, Virginia and has 3 retail origination branches, 2 in Richmond, Virginia and 1 in San Diego, California, with origination capabilities throughout the United States.

Homebridge Financial Services, Inc., is a privately held, non-bank loan company based in the United States. The company currently comprises approximately 3,000 associates and over 250 retail branches. The company also includes two separate wholesale loan operations, HomeBridge Wholesale, and REMN Wholesale. HomeBridge holds FNMA, GNMA, FHLMC, FHA and VA approvals, and maintains relationships with 49 investors of other non-agency products.

DocMagic, Inc. is an American technology company. The company was founded by its current President and CEO, Dominic Iannitti, in 1987 and is headquartered in Torrance, California, USA. DocMagic is based on a software as a service (SaaS) model; DocMagic's principal product, its Document Generation Solution, is a software which allows users such as banks or mortgage brokers to input variables to generate documents used in the mortgage process.

nCino is a financial technology company headquartered in Wilmington, North Carolina. The company's cloud-based banking software helps financial institutions to gain efficiencies from digitizing and streamlining processes in commercial banking, small business banking, and retail banking. Pierre Naudé has served as CEO of nCino since its inception. The company's Bank Operating System is used by banks and credit unions with assets ranging from $30 million to $2 trillion. As of 2022, nCino is used in more than 1,750 financial institutions. nCino's customers include TD Bank, Truist Financial, and Santander Bank. nCino's strategic partners include Accenture, Deloitte Digital, PwC and West Monroe Partners.

References

  1. ↑ "Alltel buying Computer Power Inc". American Banker. 1991-12-09. Retrieved 2022-04-20.
  2. ↑ Emshwiller, John R. (2003-01-30). "Fidelity National Will Buy Certain Alltel Operations". Wall Street Journal. ISSN   0099-9660 . Retrieved 2022-04-20.
  3. ↑ "Fidelity National Financial restructures business into two companies". Finextra Research. 2006-04-27. Retrieved 2022-04-20.
  4. ↑ "Fidelity National to spin off lender processing services unit". Reuters. 2007-10-25. Retrieved 2022-04-20.
  5. ↑ "Lender Processing Services Acquires McDash Analytics". HousingWire. 2008-07-22. Retrieved 2022-04-20.
  6. ↑ "Fidelity completes acquisition of Lender Processing Services". HousingWire. 2014-01-02. Retrieved 2022-04-20.
  7. ↑ Armental, Maria (2014-12-23). "Black Knight Financial Services Files for IPO". Wall Street Journal. ISSN   0099-9660 . Retrieved 2022-04-20.
  8. ↑ Barnard, Patrick (2016-05-16). "Black Knight Acquires eLynx". MortgageOrb. Retrieved 2022-04-20.
  9. ↑ "Black Knight Financial Services buys Motivity Solutions". HousingWire. 2016-06-22. Retrieved 2022-04-20.
  10. ↑ "Fidelity National Financial spinning off Black Knight and FNFV as independent companies | Jax Daily Record". Jacksonville Daily Record - Jacksonville, Florida. 2016-12-07. Retrieved 2022-04-20.
  11. ↑ "Black Knight announces acquisition to incorporate AI into its solutions". HousingWire. 2018-06-04. Retrieved 2022-04-20.
  12. ↑ "Black Knight acquires mortgage loan fee provider Ernst". National Mortgage News. 2018-11-07. Retrieved 2022-04-20.
  13. ↑ "Black Knight acquires Compass Analytics". www.spglobal.com. Retrieved 2022-04-20.
  14. ↑ "Black Knight acquires Collateral Analytics". HousingWire. 2020-03-03. Retrieved 2022-04-20.
  15. ↑ "Black Knight to acquire Optimal Blue in $1.8B deal to boost origination offerings". HousingWire. 2020-07-27. Retrieved 2022-04-20.
  16. ↑ "Black Knight Acquires Mortgage Brokers LOS From NexSpring Financial". National Mortgage Professional Magazine. 2021-03-19. Retrieved 2022-04-20.
  17. ↑ "Black Knight acquires analytics firm eMBS Inc". Inman. Retrieved 2022-04-20.
  18. ↑ "Black Knight to buy mortgage marketing firm Top of Mind for $250M". National Mortgage News. 2021-05-28. Retrieved 2022-04-20.
  19. ↑ Stafford, Philip; Asgari, Nikou (2022-05-04). "ICE exchange expands in mortgage tech with $13bn deal for Black Knight". Financial Times. Retrieved 2022-05-05.
  20. ↑ Miller, Michael (2023-09-05). "Intercontinental Exchange Completes Its Acquisition of Black Knight". Morningstar.
  21. ↑ "Nevada Sues Lender Processing Services Claiming Robo-Signing". 2011-12-09.
  22. ↑ "Mortgage paperwork mess: Next housing shock?". 2011-04-23.
  23. ↑ "Update 2-LPS settles U.S. foreclosure fraud criminal probe". 2013-02-15.
  24. ↑ "Political notebook: Pam Bondi under fire after LPS-related resignations".
  25. ↑ "Black Knight CEO Addresses Lawsuit with Former Customer PennyMac" . Retrieved 2020-03-27.
  26. ↑ "PennyMac Financial Services Files Antitrust Lawsuit Against Black Knight for Anticompetitive Behavior" . Retrieved 2020-01-08.
  27. ↑ Robinson, Will (June 26, 2020). "After a few rounds of legal battles, Black Knight's $340 million suit against PennyMac goes into arbitration". www.bizjournals.com. Archived from the original on 2020-08-08. Retrieved 2021-04-16.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.