Pango Group Passes Its SSAE 18 Type II Audit for Sixth Consecutive Year
With the ever-evolving regulations mandated by the Consumer Financial Protection Bureau (CFPB), Pango Group is proud to be one of the first independent escrow companies in California to complete this Type II audit. By establishing and implementing systems that meet the guidelines of ALTA Best Practices and Escrow Institute Model Policies and Procedures, Pango Group is in the best position to be compliant with many of the lender requirements due to the CFPB regulations.
Here’s what CEO Scott Akerley had to say about this achievement: “We realize that consumer’s most trusted advisors in the real estate transaction are their REALTORS® and lenders, so we feel a responsibility to provide them with the assurance that we are leaders in compliance. We have invested the resources needed over the years into these audits to ensure that our systems are secure. Recognizing our role in the industry and providing a safe haven to our clients remains our foremost responsibility. This is a great accomplishment and will allow us to continue our top-notch service and protection to our clients in a changing regulatory environment.”
Unlike Pango Group’s 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 a twelve-month period.
As part of the process, Squar Milner, the largest independent accounting and advisory firm in California and one of the largest 75 accounting firms in the nation, performed both of these extensive audits, testing over 270 controls.
Akerley went on to add, “We’re incredibly grateful that we have these types of systems in place, especially amidst a pandemic, so that our clients can concentrate on growing their businesses instead of worrying about compliance issues. We will continue on this path to comply with industry best practices and go above and beyond.”
What is SSAE 18?
In both the Escrow and Title Industries, SSAE 18 SOC 1 and SOC 2 Type I and Type II audits are becoming the industry standard, designed to provide an overview of a 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 16 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 report, 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 team is here for you, so please reach out if we can help support your next escrow or if you have any questions about our services. We’re here to help!