Western Resources Title Completes SOC1 Audit
Western Resources Title has announced the successful completion of its first SSAE 16 audit based on ALTA Best Practices. On April 13, 2012 the Consumer Financial Protection Bureau (CFPB) issued Bulletin 2012-03 titled “Service Providers”. The CFPB bulletin included expectations around supervised banks and nonbanks (i.e. lenders) to oversee business relationships with their service providers in a manner that ensures compliance with Federal consumer financial law, which is designed to protect the interests of consumers and avoid consumer harm.
The escrow & title marketplace has been baffled on the best way to demonstrate adherence to the new guidance. Amid the fog of uncertainty, the SSAE 16 (also known as SOC 1 audits) audit is the prevailing compliance vehicle of choice when meeting the CFPB requirements. In response to the CFPB bulletin, many title and escrow companies have been in search of specific guidance to follow to come into compliance. One of the more popular sources of guidance has come from the American Land Title Association® (ALTA®). ALTA® has created the Title Insurance and Settlement Company Best Practices. To test compliance with these best practices, many in the title and escrow industry are using the SSAE 16 audit as the “go-to” compliance vehicle of choice.
“Western Resources Title has undergone a rigorous process to implement a strong internal control environment,” says Jim Jimenez, Managing Partner at SSAE 16 Professionals, LLP.
The audit undergone by Western Resources Title was conducted in accordance with the AICPA SOC reporting standards. The audit was conducted by SSAE 16 Professionals (http://www.ssae16professionals.com) a full service accounting firm providing SSAE 16 (SOC 1) audits, SOC 2 audits, and other IT compliance audits.