BLOG VIEW: In case you haven’t noticed, mortgage software, data and analytics company Black Knight Financial Services has been pumping out news lately, starting with the release of its fourth-quarter and full-year 2016 financial results on Feb. 1.
Company revenues for 2016 increased 10% to $1.026 billion, and adjusted revenues increased 10% to $1.033 billion, the company reported. For the full year, net earnings were $45.8 million, or $0.67 per diluted share, while adjusted net earnings were $175.4 million, or $1.15 per diluted share.
Revenues in the fourth quarter increased 10% to reach $261.5 million. Fourth-quarter adjusted revenues increased 10% to $263.0 million. Net earnings in the fourth quarter reached $11.8 million, or $0.17 per diluted share, while adjusted net earnings reached $45.2 million, or $0.30 per diluted share.
On Jan. 31, a day before the financial results were released, the firm announced that mortgage subservicer Cenlar FSB had renewed its contract for LoanSphere MSP, Black Knight’s loan servicing system, for another five years.
Cenlar has also been growing rapidly lately, having recently picked up a major chunk of business from Citigroup, which is reportedly in the process of getting out of mortgage servicing altogether.
In a statement, Michael Blair, executive vice president and director of loan administration for Cenlar FSB, says the platform’s ability to scale was key to the decision to renew. The ability to service both first mortgages and home equity lines and loans on a single platform was also a key factor.
Cenlar has been using MSP for 30 years, Black Knight says. That’s pretty amazing customer retention.
In a flurry of new subscriptions and renewals, on Feb. 7, Black Knight announced that Evergreen Home Loans, a full-service direct lender with regional offices throughout the Western U.S., had signed a contract for MSP; on Feb. 8, the firm announced that RoundPoint Mortgage Servicing Corp., one of the nation’s largest non-bank mortgage servicing companies, had renewed its contract for MSP; and on Feb. 14, the company announced that The Huntington National Bank, a primary subsidiary of Huntington Bancshares Inc., had signed a multiyear contract extension for MSP.
And it’s not just folks signing up for MSP: On Feb. 1, it was announced that MUFG Union Bank had signed up for Black Knight’s LoanSphere Data Hub in order to gain broader and deeper insight into its mortgage portfolio, as well as to help reduce operational risk and improve efficiency.
Data Hub helps clients identify when a borrower’s home is put on the market and automatically notifies a call center or loan officer of that potential lead through a lender’s sales management system, the firm explains in a release. It can also be used to alert servicers when a loan in a portfolio is approaching critical dates, based on regulatory directives and client configurations, so appropriate action can be taken before a deadline passes.
And on Feb. 2, the firm announced that HomDNA’s mobile technology offering – which delivers mobile technology and workflow solutions that span the borrower-to-homeowner experience – is now integrated with the LoanSphere Expedite platform. This integration will help mortgage lenders optimize the lending experience, increase borrower loyalty and extend customer value.
More recently, the company launched iOnTitle, a new risk mitigation tool that helps title companies identify potential liabilities and reduce title insurance claims. The solution leverages Black Knight’s vast title plant data and applies analytics to discover potential liabilities. It also automatically alerts users when potential risk is detected – thus, it reduces the time and money spent on correcting manual errors.
iOnTitle is available in TitlePoint, Black Knight’s Web-based title search and order management solution. It can be readily integrated with any title company’s XML-based system for minimal workflow impact.
If recent research is any indication, Black Knight, which seems to be on fire lately, will continue to see strong growth in 2017, as mortgage servicers, in particular, continue to invest in technology in order to automate processes and reduce operating costs.