Mortgage lender software provider DocMagic has ended a three-year lawsuit against Ellie Mae (Ellie) over allegations that Ellie created a competing software product using information from DocMagic's own system.

The two firms inked a deal to end the dispute and plan to renew their former business relationship.

Jonathan Corr, chief operating officer at Ellie Mae, said the parties agreed to settle the dispute with neither side admitting guilt or paying fees and damages.

Over the years, Corr says Ellie Mae filed its own countersuits to the complaint, but "what you have here is this has been resolved," he said Wednesday. 

The case broke out three years ago when Torrance, Calif.-based DocMagic filed suits in state and federal courts, claiming Ellie Mae used information from DocMagic's software system to create a competing product. Ellie Mae was officially accused of violating antitrust law, interfering with contractual relationships and unfair competition.

DocMagic claimed its regulation-compliant loan document software was made available to parties using Ellie Mae's Encompass loan origination software system and ePass workflow program. DocMagic filed a suit, accusing Ellie of using that business connection to copy and design a competing software product.

The allegations broke the parties mutual business relationship, but those tensions have been smoothed over, allowing them to rekindle their partnership.

As part of the settlement agreement, both parties agreed to drop all pending lawsuits in California and within the U.S. District Courts.

"We are very happy that it's resolved and that DocMagic is coming back on as a partner," Corr told HousingWire. "We think highly of Don, and the entire team. We had some business disagreement, but it's been resolved and put behind us.