The Tightly-Knit Mortgagetech Sector Gets Even Tighter as Ellie Mae Acquires Capsilon

Ellie Mae announced today it has acquired fellow mortgagetech company Capsilon for an undisclosed amount. This news comes after Ellie Mae was acquired by Thoma Bravo earlier this year for $3.7 billion.

With a mission to “automate everything automate-able” when it comes to the mortgage process, Ellie Mae sees today’s acquisition as a step forward. “This is a significant day for the mortgage industry, as with the acquisition of Capsilon we are bringing together two market-leading companies and adding to our platform the pioneer of AI-powered intelligent automation leveraged by some of the largest lenders and servicers in the industry,” said Ellie Mae President and CEO Jonathan Corr.

Ellie Mae will combine its Encompass digital lending platform with Capsilon’s technology to create a more fully digital mortgage solution. Specifically, Ellie Mae will leverage Capsilon IQ, which is used by six of the top 10 mortgage loan originators to automate manual tasks; and Capsilon Instant Underwriter, which the company launched earlier this year to bring consistency and accuracy to the underwriting process.

“By joining forces with Ellie Mae, we are excited to extend our capabilities and deliver unprecedented functionality through deep integrations with the Encompass Digital Lending Platform,” said Sanjeev Malaney, CEO and Founder of Capsilon.

Mortgagetech is one of the least crowded sub-sectors in fintech, and partnerships among players are common. In the past few years both companies have partnered with Finicity, while Capsilon has partnered with Blue Sage, Home Point Financial, and Optimal Blue; and Ellie Mae has teamed up with AI Foundry, Roostify, First Data, Blend, and Lender Price.

Founded in 1997, Ellie Mae demonstrated Encompass Consumer Connect at FinovateSpring 2017. The online lead generation tool turns consumer interest into a mortgage application by letting the borrower complete an application, provide and receive information, and order services from a single platform. Ellie Mae is headquartered in California.

Founded in 2004, and with eight offices around the globe, Capsilon processes 15% of U.S. mortgages. At FinovateSpring 2019 the company demoed how its instant, digital underwriting solution helps lenders make more informed decisions.

Capsilon, which processes 2 million pages of mortgage documents per day, has 450 employees and 100,000+ users. The California-based company has raised $21 million.

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FinovateSpring Sneak Peek: Capsilon

A look at the companies demoing live at FinovateSpring on May 8 through 10, 2019 in San Francisco, California. Register today and save your spot.

Capsilon will demo Capsilon Digital Underwriter, the automated underwriting solution that helps mortgage lenders cut underwriting time and improve critical decision-making with clean data.

Features

  • Automatically calculates income, analyzes credit, and performs due-diligence checks
  • Standardizes the underwriting process, enabling consistent, unbiased decisions
  • Speeds up underwriting and improves the borrower experience


Why it’s great
Capsilon Digital Underwriter helps mortgage lenders and investors make rapid, informed loan eligibility decisions with perfected data.

Presenters

Steve Viarengo, Senior Vice President of Digital Mortgage Solutions
Since joining Capsilon in 2017, Viarengo has been instrumental in driving Capsilon’s evolution from an enterprise-wide document management platform to an end-to-end mortgage automation engine.
LinkedIn

Allen Boyce, Sr. Director Product Management, Digital Mortgage Solutions
Boyce spearheads a talented product and user experience team dedicated to making mortgage automation mainstream and eliminating unnecessary workload so underwriters can focus on underwriting.
LinkedIn

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Capsilon Beta Launches Digital Underwriter

Mortgage technology company Capsilon announced the beta launch of Capsilon Digital Underwriter, a suite of cloud-based mortgage applications for lenders.

The launch comes in collaboration with Home Point Financial, a national mortgage origination and servicing company. The tool aims to help lenders leverage data to make more informed loan eligibility decisions faster by automating the underwriting process.

Steve Viarengo, SVP of Digital Mortgage Solutions, pointed out that compliance and regulatory guidelines have complicated the mortgage underwriting process, declining the mortgage underwriting velocity to 85% in the past 10 years.

Capsilon Digital Underwriter runs on Capsilon IQ, the company’s digital mortgage platform that gathers mortgage data by leveraging machine learning and natural language processing. Because Capsilon collects data from the original loan record, lenders have evidence of data points behind each decision. “You can’t automate underwriting without trusted data,” said Bill Shuler, Chief Information Officer of Home Point Financial. “Capsilon elegantly combines the ability to capture and perfect mortgage data with robust automation capabilities.”

Phil Shoemaker, Chief Business Officer of Home Point Financial, said “Capsilon Digital Underwriter will significantly improve our underwriting productivity and in some cases, we believe loans can be underwritten without any human intervention. This will enable us to significantly speed up the loan origination process while focusing our talented ops team on providing best-in-class customer service to our business partners, helping them originate more loans.”

Founded in 2004, and with eight offices around the globe, Capsilon processes 15% of U.S. mortgages, and managed $400 billion in new loans in 2017 alone. At FinovateSpring 2017 the company showcased its Mortgage Velocity program that speeds up loan delivery by eliminating the need for manual tasks and human error.

Capsilon has raised $21 million and is headquartered in San Francisco, California. Sanjeev Malaney is CEO. The company will demo its latest technology at FinovateSpring, held May 8 through 10 in San Francisco. Book your ticket now.

Capsilon and Blue Sage Drive Automation in MortgageTech

Blue Sage’s lending clients are about to get some help when it comes to managing loan originations. The company has announced a partnership with Capsilon that integrates document recognition and data extraction technology into its digital lending platform.

Capsilon IQ perfectly and seamlessly complements our robust workflow tools and enhances our ability to deliver a truly unique, digital mortgage experience,” Blue Sage CEO Joe Langner said. “Not only will Capsilon’s technologies help save our lending clients time and money, but they will also improve quality and efficiency at every stage of the mortgage lifecycle.”

Blue Sage offers a browser-based Digital Lending Platform that can be deployed over a variety of mortgage channels, including retail, wholesale, and correspondent lending. Capsilon IQ, Capsilon’s flagship digital mortgage solution, will be integrated into the platform via Blue Sage’s APIs to capture mortgage data from relevant documents and reduce the amount of manual labor involved in the process.

Capsilon CEO Sanjeev Malaney praised Blue Sage’s solutions as “(the) cutting edge of today’s mortgage origination technology, and noted that the two companies both aim to “help drive down origination costs while helping our mutual customers take on more volume, scale appropriately, and create key competitive advantages that drive their business growth.”

A pioneer in end-to-end web-based loan origination system development, and a multiple-time recipient of HousingWire’s HW Tech100 Awards, Blue Sage is based in Englewood Cliffs, New Jersey. The company’s technology was developed by the core team of Palisades Technology Partners in 2011, and has since expanded to include support for consumer direct and mobile lending.

Capsilon demonstrated its Mortgage Velocity Platform at FinovateSpring 2017. Founded in 2004 and headquartered in San Francisco, California, Capsilon announced the beta launch of its digital underwriter solution earlier this month. At the beginning of the year, the company announced that Capsilon IQ enabled companies to save more than five million people hours in 2018. Capsilon has raised $21.4 million in funding and includes Francisco Partners among its investors.