Flagstar Bancorp Inc., Troy, Mich., is selling its DocVelocity imaging business to Capsilon. Terms of the deal were not disclosed.
A press release said the transaction is not expected to have a material financial impact on Flagstar. A spokeswoman for the company said it would not have any comment beyond what was in the release.
However, Flagstar recently suffered a financial setback when it lost a court decision over its underwriting practices to Assured Guaranty. Because of this and other pending litigation, Flagstar increased its reserves by $161 million, and revised its 4Q12 results to a $94 million loss instead of a $67 million profit.
Capsilon developed much of the technology used by DocVelocity and the press release said the two companies worked closely together. Capsilon focused on developing and operating the technology while DocVelocity marketed, sold and supported it.
DocVelocity won the 2011 Mortgage Technology Award’s Release of the Year. It won the same award in 2008.
“Flagstar has been a great partner for us,” said Sanjeev Malaney, chief executive officer at Capsilon in the press release. “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.”
A request for further comment from San Francisco-based Capsilon has not yet been returned.
Flagstar will continue to use DocVelocity and make it available for its wholesale sellers after the sale is completed.