Flagstar Sells DocVelocity to Capsilon
TROY -- Flagstar Bancorp Inc. (NYSE: FBC) is selling the document imaging business for mortgage lenders it built in 2007 to the company that developed much of the technology it uses.
Flagstar said Thursday it had agreed to sell the assets and operations of DocVelocity to San Francisco-based Capsilon, a provider of cloud-based document sharing, imaging and collaboration technology 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.
Flagstar wouldn't say specifically how many people work for DocVelocity in the Detroit area or if they will be affected by the merger. The bank did say that for Flagstar customers the deal will be seamless, 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 paperless service.
Flagstar said that since the collaboration with Capsilon began, Capsilon has focused to date mainly on developing and operating the technology. Through Flagstar, DocVelocity has marketed, sold and supported a complete system for over 100 lenders.
Terms of the transaction were not disclosed. The transaction is not expected to have a material financial impact on Flagstar.
With $14.1 billion in total assets at Dec. 31, Flagstar is the largest bank headquartered in Michigan. Flagstar originates loans nationwide and is one of the leading originators of residential first mortgage loans. For more information, visit www.flagstar.com.
Since 2004, San Francisco-based Capsilon has been a provider of cloud-based document sharing, imaging and collaboration products and services. More at www.capsilon.com.
