Lendersecure is the most comprehensive protection on the market today.
Data, Documents and Dollars are the principal concerns of lenders’ today. Since 2001, clear regulatory mandates have required lenders to safeguard customer information, both in their direct operations and through the use of their Service Providers.
The CFPB April Bulletin put the lenders on notice that this new federal agency will actively enforce these Service Provider management regulatory mandates.
The handling of mortgage disbursement proceeds, or escrow funds have also come into question as scores of title and settlement companies have exploited their control over these funds.
Lenders, for risk management reasons, have sought solutions to ensure that these funds are secure and ultimately tendered for the designated purposes.
IIn response to these concerns, their new vendor agreements will require specific evidence of controls, systems, and procedures that demonstrate ongoing compliance and safeguards of their funds, their documents, and their data.
Lenders cannot and will not rely on “snap shop” assessments…and they need assurances that there are systems in place that are ongoing and validate these processes.
ALTA’s Best Practices identifies scores of specific processes and procedures that settlement agents must have in place in order to meet ALTA’s certification standards for loan (Escrow) funds and information security.
In addition, lenders will likely require agents to undergo expensive and rigorous independent auditor scrutiny such as SSAE 16* (SOC 2 equivalent).
While most agents are not prepared for this heightened level of scrutiny, they will need solutions that will enable them to meet these requirements and survive these independent audits.
* SSAE 16 engagements are generally performed by audit, risk, and control oriented professionals who have experience in accounting, auditing, and information security.
A SSAE 16 engagement allows a service organization to have its control policies and procedures evaluated and tested (in the case of a Type II engagement) by an independent party.