Rules for Signing Mortgages Online Boosts Black Knight
The mortgage industry’s regulatory woes are boosting its standing as investors bet a new crop of lending rules will force more lenders into the cloud -- processing loans on remote servers maintained by companies like Black Knight.
Photographer: JK/BloombergBlack Knight Financial Services Inc. is benefiting from new banking regulations that push mortgage lenders to use automation software, sending the company’s shares surging since its initial public offering two months ago.
Banks are racing to comply with rules taking effect in October that require borrowers to sign the vast majority of home-loan documents electronically, transforming an industry that previously relied on fax machines and in-person delivery. Black Knight, the largest U.S. mortgage-software firm, is gaining as investors bet that more loans will be forced into the cloud and processed on the company’s servers.