We are excited to announce that our parent company – Pango Group – successfully completed a Statement on Standards for Attestation Engagements No. 18 (SSAE 18) SOC 1 & SOC 2 Type II audit for its seventh consecutive year.
With the ever-evolving regulations mandated by the Consumer Financial Protection Bureau (CFPB), we are proud to be one of California’s first independent escrow companies to complete this Type II audit. Additionally, by establishing and implementing systems that meet the guidelines of ALTA Best Practices and Escrow Institute Model Policies and Procedures, we are in the best position to be compliant with many of the lender requirements due to the CFPB regulations.
Our CEO, Scott Akerley, explained why this process is so important to him and our organization. “We know that consumers put their trust in everyone who plays a role in the real estate transaction, so we are grateful that we can provide them with the highest level of compliance. Our team invests a great deal of time, energy, and resources to make our systems stable and secure, which allows us to continue to provide exceptional service and protection to our clients in a changing regulatory environment.”
Unlike our previous achievement in completing the SSAE 18 SOC 1 and SOC 2 Type I audit, the Type II audit provides an opinion on the operating effectiveness of the controls in place. The controls that were implemented for the Type I audit were tested for their effectiveness and compliance over 12 months. As part of the process, Baker Tilly, the ninth largest accounting firm in the world, performed both of these extensive audits, testing over 270 controls.
Scott added, “Knowing that our clients can trust us to manage compliance so that they don’t have to worry about it is a wonderful feeling. It’s just one more way that we can live out our mission of enhancing the lives of the people, partners, and communities we serve.”
What is SSAE 18?
In both the Escrow and Title Industries, SSAE 18 SOC 1 and SOC 2 Type I and Type II audits have become the industry standard designed to provide an overview of Service Organization’s description of internal controls and processes relevant to their customers.
The audit is helpful for Service Organizations to gain an understanding of the quality and type of controls and processes that are in place. An SSAE 18 SOC 1 and SOC 2 Type II audit has an audit opinion and a description of services relevant to the services under review as of a point in time. An Independent External Auditor provides an audit opinion describing the type and quality of controls a company has in place, which is designed to comply with industry best practices.
The SOC 1 report audits the controls relevant to a Service Organization’s financial reporting systems. A SOC 1 audit is widely recognized because it represents that a Service Organization has been through an in-depth audit of their control activities, including controls over information technology and related processes. By obtaining a SOC 1 designation, Pango Group has demonstrated that they have adequate controls and safeguards when they host or process data belonging to their customers.
A SOC 2 engagement is an audit of a Service Provider that is relevant to compliance or operations. SOC 2 reports specifically address one or more of the following five fundamental system principles: security, availability, processing integrity, confidentiality, or privacy. SOC 2 reports follow a set of criteria to examine whether the Service Organization’s controls are effective in delivering their services to their customers. Pango Group is proud to have met or exceeded the stringent SOC 2 criteria.
What is CFPB?
The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. Mandated by Dodd-Frank, Congress established the CFPB to protect consumers by carrying out federal consumer financial laws. Other functions of the CFPB include researching consumer behavior, monitoring financial markets for new risks to consumers, and promoting financial education.
Our company’s mission of running exceptional real estate service businesses that enhance the lives of the people, partners, and communities we serve has been an integral part of our success. Most recently, we were named one of the Best Places to Work for the eighth year in a row in Los Angeles.
To learn more about CFPB regulations and how we can help protect your clients, please contact our VP of Escrow Operations, Milly Miller, at (818) 863-1334 or email@example.com.
And if you need general escrow support or have questions about our escrow services, please also get in touch. We are here to support you!