Flagstar Agrees to Sell DocVelocity Assets to Capsilon

In Michigan, ""Flagstar Bancorp, Inc."":https://www.flagstar.com/, announced an agreement to sell the assets of ""DocVelocity"":https://www.docvelocity.com/docvelocity/docVelocity.html, its document imaging business for mortgage lenders, to ""Capsilon"":https://www.flagstar.com/, a provider of cloud-based sharing, imaging, and collaboration services for mortgage lenders.

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Capsilon developed much of the technology that DocVelocity has marketed and sold since 2007 and that Flagstar has used to provide paperless processing to its wholesale customers. Flagstar will continue to use the DocVelocity service after the transaction.

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""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, SVP of change management at Flagstar. ""That's a differentiator in the marketplace that we intend to maintain.""

The sale will be seamless for Flagstar customers, who will continue to benefit from the DocVelocity solution, staff, and Flagstar's paperless processing, Flagstar said in a release.

""Flagstar has been a great partner for us,"" said Sanjeev Malaney , CEO at San Francisco-based 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, and the transaction is not expected to have a material financial impact on Flagstar.