Selecting Your Next Escrow Holder | Is Your IN-HOUSE in the DOG HOUSE?

It has been common practice for many Brokerages to push their "in house" or preferred escrow companies to maintain control over the transaction or to secure extra revenue for the Brokerage through the affiliation with the Escrow Holder.?Ultimately, using an Escrow Holder that is affiliated with you or your Broker is not the best choice for your clients or the transaction at hand - this creates an inherent conflict of interest as the Brokerage and Agent have a financial stake in the Escrow Holders performance.?I have seen a large shift of Agents moving away from their "in-house" escrow over the last few years - citing complaints of poor service, poor communication, and technological issues.

Oftentimes, Buyer's and Seller's don't have the knowledge needed to make an informed decision on choosing an Escrow Holder - which is a very important facet to the real estate transaction.?Selecting an Escrow Holder can make or break your closing.?That's why it is critical to make sure your clients are educated on the importance of choosing the right Escrow Holder for this important financial transaction. Check out the graphic?below?to see the important differences between an independent Escrow Holder like Glen Oaks Escrow versus those affiliated with a Real Estate Brokerage, Title Company, or Lender.

So - what should you know about the Escrow Holder? First, the Escrow Holder should truly be an independent company - devoid of any ties to a Real Estate Brokerage or Lender. Independent Escrow Holders must comply with stricter operational and CPA auditing, bonding requirements, financial liquidity requirements, and trust fund insurance guidelines. Non-independent firms are not held to this higher standard.

Second, with the ever-evolving regulations mandated by the Consumer Finance Protection Bureau (CFBP), the Escrow Holder should hold a Statement on Standard of Attestation Engagement No 18 (SSAE-18) SOC 1 and SOC 2 Type 1 and Type 2 Audits. What exactly is that? 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, which include controls over information technology and related processes.?SOC 2 focuses on vital policies and procedures not directly tied to revenue. SOC 2 was created to protect companies from hackers that attempt to steal financial and computing resources, as well as personal information.

Glen Oaks Escrow and the Pango Group family of companies were the first independent escrow company in California to complete these audits to ensure our clients non-public personal information (NPPI) is protected. This is a great accomplishment which allows us to continue our top-notch service in a changing regulatory environment. It also shows our forward-thinking and proactive nature - being ahead of changing regulations and pioneering the escrow process.

Lastly but certainly not least important, is service. Can you reach your Escrow Holder after-hours and on weekends? Does the Escrow Officer reply to your questions timely? Have you researched them on public review sites like YELP? When you recommend an Escrow Holder, this recommendation becomes a direct reflection on you and your business. I understand that entirely and treat your clients with the highest level of professionalism and offer unprecedented access for any questions or concerns that may occur after-hours or on weekends - I work when you work. My dedication to my clients is reflected in the over 400+ 5-STAR REVIEWS I have received on my YELP! profile.

I invite you to experience the difference that working with a top Escrow team can have for you and your clients. It matters who you work with and I look forward to earning the opportunity to serve you and your clients!

Christopher Arce-Dale | Escrow Officer & Branch Manager Office: (949)625-6751 | Mobile/Text: (714)906-7131