Flagstar Bancorp (FBC) in Troy, Mich., has agreed to sell DocVelocity, its document-imaging business, to mortgage tech company Capsilon.
The San Francisco firm will acquire DocVelocity for an undisclosed sum, the two companies said Thursday. Capsilon, which offers cloud-based document-sharing and imaging services to mortgage lenders, has developed much of the technology behind DocVelocity. The Flagstar unit offers a web-based product designed to streamline loan-document submission.
The terms of the deal were not disclosed, but it is not expected to have a material financial impact on Flagstar, the two companies said.
Flagstar will continue to use DocVelocity following the sale, according to a press release.
"DocVelocity has played an important part in establishing and solidifying Flagstar's position as a leader in paperless mortgage processing for our customers," Flagstar senior vice president for change management Jason Dufner said in the release. "That's a differentiator in the marketplace that we intend to maintain."
Earlier this month, the $14.1 billion-asset Flagstar lost a lawsuit over its mortgage-underwriting practices and was ordered to pay $90 million to bond insurer Assured Guaranty Municipal Corp. The company set aside $161 million to cover that judgment and possible losses in similar suits.
Following the court's decision, the Treasury Department delayed its auction of $266 million in Flagstar equity it holds through the Troubled Asset Relief Program.