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DS News October 2018

DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.

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ยป VISIT US ONLINE @ DSNEWS.COM 87 share compared to $0.35 per diluted share in the prior-year quarter. "We are pleased with our results in the second quarter, where we delivered Adjusted Revenues growth of 5 percent and Adjusted EBITDA growth of 6 percent, which drove margin expan- sion of 50 basis points to 48.4 percent," said Bill Foley, Executive Chairman at Black Knight. "We are excited about Black Knight's momentum across the enterprise, and the underlying funda- mentals of our business remain strong." For the six months ending June 30, 2018, Black Knight's revenue increased 5 percent to $546.9 million from $520.3 million in the 2017 period. Net earnings attributable to Black Knight for the six months ended June 30, 2018, were $82.7 million, or $0.56 per diluted share, compared to $20.4 million, or $0.29 per diluted share, in the 2017 period. "Our second-quarter results reflect the con- sistent execution of our strategy to expand rela- tionships with existing clients, and we continue to innovate new solutions and acquire busi- nesses that expand our offering," said Anthony Jabbour, CEO, Black Knight. "Black Knight continues to enhance its leading end-to-end software and data and analytics offering with a focus on helping our clients grow, increase efficiency, and remain compliant." NORTH CAROLINA Inc. 5000 Recognizes MN Servicer North Carolina-based RoundPoint Mortgage Servicing Corporation gained spot number 2,386 on Inc. magazine's 38th annual Inc. 5000 list, a ranking of the nation's fastest- growing private companies. RoundPoint joins the rank of other companies such as Microsoft, Dell, Domino's Pizza, Pandora, Timberland, LinkedIn, Yelp, and Zillow who all gained na- tional exposure as honorees of the Inc. 5000 list. Inc. first unveiled the list on Inc.com, and it will be featured in the September issue of Inc. On average, companies featured in Inc. magazine's Inc. 5000 list experience three-year growth of 538.2 percent. In 2017, the Inc. 5000 accounted for 664,095 jobs, and the aggregate revenue of the featured companies was $206.1 billion. "We are both honored and excited to have been named to this prestigious list. Our ranking is a tangible acknowledgment of our team's hard work and the tremendous growth and success we've experienced over the last three years," said Kevin Brungardt, CEO at RoundPoint Mortgage Servicing Corp. "We truly appreciate the recognition." TEXAS Optimal Blue's Resitrader Acquisition Creates Largest Industry Platform Plano, Texas-based Optimal Blue, a lead- ing provider of secondary marketing automa- tion to the mortgage industry, announced the acquisition of Resitrader, creating the mort- gage industry's largest mortgage loan-trading platform. With this addition, Optimal Blue now supports $750 billion of transactions each year across its Digital Mortgage Marketplace, including nearly $600 billion of rate locks pro- cessed through its product and pricing engine, and more than $150 billion of transactions through its hedging solution. Since its founding in 2015, Resitrader has focused on bringing automation and transpar- ency to the spot market for mortgage loans. Resitrader's interactive trading environment enables buyers, sellers, and their advisors to transact in real-time using an auction process and replaces the widely used method of exchanging bid tapes via email. e solution also helps traders optimize executions by sup- porting shadow-bidding, the posting of axes, chat-based communication, and color reports. Resitrader has achieved remarkable success with its trading platform over the past year, re- cording a 400 percent increase in transactions. "Two years ago, Optimal Blue set out to build a Digital Mortgage Marketplace that facilitates transactions between originators, investors, and the providers both use," said Scott Happ, CEO of Optimal Blue. "is acquisition is another key step in that journey. Resitrader is the clear market leader in bring- ing efficiency, transparency, and security to a critical and expanding segment of the mort- gage market, and we are excited to offer this innovative solution to our clients." e company anticipates major expansion in trading volume in the coming year and will integrate the platform with Optimal Blue's hedging solution, substantially expanding the company's capabilities in the bulk-bid market, an execution widely used by lenders employing a mandatory delivery strategy. More than 50 buyers are already active on the platform, and over 150 sellers are expected on the platform by year-end. Additionally, Optimal Blue seeks to expand third-party relationships with hedge advisors and whole-loan traders needing access to the bulk market. "We are thrilled to join an organization that shares our vision of creating the industry's premier platform for trading mortgage loans," John Ardy, CEO of Resitrader said. "With Optimal Blue's backing, I expect Resitrader to continue its rapid growth, bringing depth and breadth to the market." Ardy, Seever Sulaiman, CIO of Resitrader, and the entire Resitrader team joined Optimal Blue upon close of the transaction. According to Happ, "John and Seever are proven in- novators and bring considerable experience in building trading platforms to our team. ere is no limit to what we can do together." RoundPoint Completes $94M Equity Private Placement of Preferred Stock RoundPoint Mortgage Servicing Cor- poration, a North Carolina-based nonbank mortgage servicing company, announced it completed a $94 million equity private place- ment of convertible preferred stock. "We are excited to work with new partners that share our vision for continued growth at RoundPoint. is capital raise will assist us in our mission to build a leading, fully integrated mortgage banking institution that promotes sustainable homeownership," said Kevin Brun- gardt, CEO of RoundPoint. "e proceeds from the offering will be used primarily to sup- port our ongoing expansion of our firm such as growing the company's leading mortgage servicing rights coissue program and investing in other corporate initiatives that should gener- ate strong market-rate returns, and secondarily for other corporate purposes, such as repaying certain indebtedness." e convertible preferred stock was offered and sold in a transaction that was exempt from the registration requirements of the United States Securities Act of 1933. e convertible preferred stock has not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration, or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. Keefe, Bruyette & Woods, a Stifel Com- pany, was the sole placement agent and initial purchaser in the offering.

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