TROY, Mich. and SAN FRANCISCO, Feb. 14, 2013 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) has agreed to sell the assets and operations of DocVelocity, its document imaging business for mortgage lenders, to Capsilon, a provider of cloud-based document sharing, imaging and collaboration solutions for mortgage lenders.
Capsilon developed much of the technology that DocVelocity has marketed and sold since 2007, and which Flagstar has used to provide paperless mortgage processing to its wholesale customers. Following the transaction, Flagstar will continue to use the DocVelocity service.
"DocVelocity has played an important part in establishing and solidifying Flagstar's position as a leader in paperless mortgage processing for our customers," said Jason Dufner, senior vice president, Change Management at Flagstar. "That's a differentiator in the marketplace that we intend to maintain."
The sale of DocVelocity will be seamless for Flagstar customers, as they will continue to benefit from the DocVelocity solution, staff and Flagstar's paperless processing. Customers will deal with the same people, call the same sales and support team, use the same application and get the same best-in-class paperless service.For six years, Flagstar and Capsilon have worked closely together to replace inefficient paper-based processes in mortgage lending with an innovative technology solution. While Capsilon has focused to date mainly on developing and operating the technology, DocVelocity has marketed, sold and supported a complete solution for over 100 lenders. Flagstar has a long history as a leader in paperless mortgage processing. Other lenders who are current DocVelocity customers will benefit from this sale, as they will now have a direct relationship with the company that develops and provides the technology. "Flagstar has been a great partner for us," said Sanjeev Malaney, chief executive officer at Capsilon. "Their vision and leadership in the mortgage industry was key in driving adoption of our technology in the market. Our growth has allowed us now to integrate vertically, taking responsibility for everything from software development to sales and service. DocVelocity customers will benefit from our focus and additional capabilities." Terms of the transaction were not disclosed. The transaction is not expected to have a material financial impact on Flagstar.