Reverse mortgage subservicer Celink announced recently it has successfully completed the company’s first-ever exam affirming its compliance to reverse mortgage servicing standards.
The Statement on Standards for Attestation Engagements (SSAE) No. 16 Service Organization Control (SOC) 1, Type II examination tests Celink’s internal controls over processes and procedures relevant to reverse mortgage servicing. The exam also includes testing the company’s Information Technology department’s critical functions.
“It attests to the fact that Celink has sufficient controls in place to provide all of our clients with the comfort that our servicing system and practices are sound,” says Ryan LaRose, president and chief operating officer of Celink. “Third-party validation is extremely hard to get, and it essentially confirms that we do what we say we do.”
LaRose emphasized the company’s commitment to an annual SOC 1 examination to provide its clients with continued assurance that Celink is maintaining those internal controls.
SSAE 16 is a regulatory standard issued by the American Institute of Certified Public Accountants (AICPA) and replaces the previous SAS 70 auditing standard. The exam audits control objectives related to availability, change management, data backup, database security, logical access, network and systems availability and monitoring, and network security, then generates a company report.
By successfully completing the exam, Celink has affirmed that its organizational controls meet the standards and industry benchmarks of the AICPA. The third-party validation of servicing controls and processes can make it easier when companies are vetting Celink as a business partner, and the “stamp of approval” will help reassure existing clients as well, says LaRose.
“We are proud to offer our clients this level of assurance that Celink has developed appropriate internal controls over operations, and the SOC 1 Type 2 audit verified our compliance with these internal controls,” he said in a statement. “This report affirms our commitment to providing a stable, sound, and secure environment through financial strength and ongoing investments in compliance, legal, audit, technology, and vendor management practices.”
Written by Alyssa Gerace