Black Knight’s second quarter profits took a hit due to weakened mortgage volumes and unforeseen effects from the proposed ICE deal. According to the financial report, the number of loans acquired by Black Knight declined by 14% relative to the same period the previous year. Additionally, the sales of the company’s backlog dropped by 27%. Further complicating the situation was a decrease in revenue derived from the sale of technology, including loan servicing systems.
The previously announced acquisition of Black Knight by the Intercontinental Exchange (ICE) also contributed to the decline in profits. The company’s expenses had increased significantly as a result of the additional costs associated with closing the transaction. A decrease in its operating cash flow compared to last year’s quarter was also reported.
Key Points:
• Decrease in loan acquisitions, sales of backlog, and technology revenues
• Additional costs associated with closing proposed ICE deal
• Decrease in operating cash flow compared to last year’s quarter
You can read this full article at: https://www.housingwire.com/articles/black-knight-reports-slimmer-q2-profit-ahead-of-trial-on-ice-deal/(subscription required)
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