Industry Insights

Why We Are Renewing Our SOC2 Type 2 Certification

February 19, 2021 - Posted by Editor

Artboard 2SOC2 - TypeII - v2

I read something last month that indicated that SOC2 certification was making compliance attractive again. My first thought – I must have missed something; exactly when was compliance ever attractive? I guess one perfect answer would be... at audit time!

Speaking honestly, though, I do understand the sentiment surrounding SOC2. It is smart, prudent, and necessary – a business imperative in our minds.

Developed by the American Institute of CPAs (AICPA), SOC2 defines criteria for managing customer data based on five “trust service principles”—security, availability, processing integrity, confidentiality and, privacy. It is an audit framework to ensure vendors securely manage and protect data, yours and their own.

Having earned our SOC2 Type 1 certification and, most recently, our SOC2 Type 2 certification in March 2020, we see it as a competitive advantage and definitely worth renewing. In talking with Scott Roller, Co-Founder of Vendor Surf, and vendor management pundit, everyone seems to talk it up, SOC2 certification that is, yet it appears so few vendors ever obtain it. “For years, I have advocated for universal SOC2 adoption across mortgage and credit union ecosystems, yet it is still tougher than imagined to find such certified vendors,” Roller said. “If you are a lender serious about not becoming the next information security breach headline, then start putting a premium on SOC2 certification. Your certified vendors have paid a premium for it, granted by an independent authority, saving you sizable time and money while mitigating risk,” Roller added.

The SOC2 Type 2 certification is among the most coveted and hard to obtain information security certifications. It demonstrates that an expertly trained independent accounting and auditing firm has examined an organization’s non-financial reporting control objectives and activities and has actually tested those controls overtime to ensure that they are operating effectively. The classic audit process – say what you do, then do what you say – InfoSec style.

Time and Cost – Quite the Commitment

This SOC2 certification process is neither fast nor cheap. It reviews 12 months of operations, and can cost $20,000 to over $100,000, depending upon the complexity of the infrastructure. Vendors with that time, money, and patience are clearly differentiating themselves when it comes to information security.

“When lenders issue RFPs, they often include a 300-item questionnaire via a basic Excel spreadsheet with rambling and redundant questions,” Roller said. “I have long lobbied to skip the questionnaire and instead seek SOC2 certified vendors, as there is absolutely nothing you will ask of lenders that SOC2 audits have not already tested on a systemic basis. Simply read the vendor’s SOC2 reports, and jot down any subsequent questions you may have, expecting there to be very few”.

5 Reasons We Will Renew our SOC Certification

1. Customer Demand

Our customers are savvy. They get it – and demand it of us - as they should of all of their vendors.

2. Peace of Mind

It gives us peace of mind knowing we are prudent caretakers of private data – our own and our clients’. SOC2 provides reassurance that our controls are properly designed, in place, and effectively protecting sensitive data.

3. Client Value

The certification is expensive, exhaustive, and ongoing, but worth the volumes it speaks to the integrity of the vendor and the value the vendor places on the vendor-client relationship.

4. Competitive Advantage

It makes a ‘statement of dedication’ to those we serve. A badge of honor for us that puts us in a vendor class above the rest.

5. Doing It Right

Few things are more important than compliance – SOC2 Type 2 certification is the pinnacle. You must have processes, policies, procedures, and controls for every department, and most importantly, ensure these items are being consistently followed and implemented throughout your organization.

In Conclusion

Here at CSS, we are proud to have migrated away from talking about our compliance to proving it instead. The Type 2 certification not only helps set CSS apart from the competition but gives our customers the assurances they deserve and should expect when working with a vendor.

Get Started

Subscribe Here!


Why We Are Renewing Our SOC2 Type 2 Certification
Feb 19, 2021 by Editor

I read something last month that indicated that SOC2 certification was making compliance attractive again. My first thought – I must have missed...

Continue Reading
Hybrid Closings
Feb 8, 2021 by Kyle Kauss
{% video_player "embed_player" overrideable=False, type='scriptV4', hide_playlist=True, viral_sharing=False, embed_button=False, autoplay=False,... Continue Reading
The Endless Benefits of a Centralized Title Model
Jan 8, 2021 by Editor

While the long-standing trend has been to migrate to a centralized title model, we recently met with an industry friend that had just left a...

Continue Reading
The Top 5 Takeaways From ALTA One 2020
Nov 6, 2020 by Maura Snabes

The latest annual American Land Title Association (ALTA) One Conference was going to be held in New York, but, due to COVID-19, was held...

Continue Reading
The Benefits and Future of Virtual Appraisal Inspections
Oct 15, 2020 by Editor

They say, ‘Necessity is the mother of invention.’ Truer words have never been spoken when it comes to how the mortgage industry has been flipped...

Continue Reading
Title & Closing for Regional Lenders: Time for a Centralized Model!
Aug 17, 2020 by Jerome Jelinek

While regional lenders have historically narrowed working relationships to a few AMCs and home equity title, valuation & flood vendors, the...

Continue Reading
RON vs. RIN—What’s the Difference?
Jun 3, 2020 by Maura Snabes

When the COVID-19 pandemic hit and stay-at-home orders were passed, businesses were scrambling to figure out how to proceed with their...

Continue Reading
2020 Real Estate Predictions
Dec 30, 2019 by Maura Snabes

1. Mortgage rates remain favorable.

Mortgage rates currently sit at 3.75% according to Freddie Mac’s most recent numbers and there seems to be a...

Continue Reading
Advantage AVM Cascade: Get Better Results and Lower Costs
Apr 22, 2019 by Editor

The Advantage AVM Cascade solution ensures that the best possible AVMs are always in the lead positions of your cascades, guaranteeing the highest...

Continue Reading
Benefits of eSignatures, RON, and Electronic Recording
Mar 19, 2019 by Jerome Jelinek

Many in the lending community still harbor reservations over the use of electronic signatures and remote online notarizations. This article is...

Continue Reading