Minimize Risk , Maximize Compliance.
Pacific City Escrow has adopted a comprehensive strategy to insure the utmost in protection within today’s regulatory environment. In addition to our adherence to Escrow Law, our voluntary practices are comprised of pillars from ALTA’s Best Practices and Escrow Institute of California’s Model Policies and Procedures. We conduct ongoing employee training to ensure continual observance of State & Federal obligations. Please contact our office for a full policies and procedures collateral package, the following information is an abridgement for presentation purposes:
- Pricing Procedures
- Third-Party Signing Professional Procedures
- Recording Procedures
- Streamlined & Customized Workflow Tasking within our Escrow Software
INFORMATION & DATA PRIVACY (PROTECTING NPI)
- Physical Security (Clean Desk) of Non-Public Personal Information Procedures
- Network Security of Non-Public Personal Information Procedures
- Disposal & Maintenance of Non-Public Personal Information Procedures
- All new employees are reported to State of California within ten (10) days of their employment
- Background checks by Department of Justice, fingerprinted and photos required
- Prohibition of convicted felons or anyone who has been disbarred from the escrow industry
CONSUMER FEEDBACK & COMPLAINTS
- Pacific City Escrow maintains a secure consumer feedback management system
INSURANCE & BONDING
- Pacific City Escrow maintains errors and omissions insurance policy
- Pacific City Escrow maintains cyber insurance policy
- Pacific City Escrow is a member of Escrow Agents’ Fidelity Corporation
- Pacific City Escrow, Inc maintains Surety bonds in California and Oregon
TRUST ACCOUNTING/FUNDS HANDLING PROCEDURES
- Escrow funds and operating accounts are separately maintained. Escrow Trust Accounts are maintained in Federally Insured Financial Institution
- Three-Way Reconciliation is performed for Escrow Trust Account
- Transactions are conducted by authorized employees only
- Pacific City Escrow, Inc is licensed by the State of California #96DBO-75780
- Pacific City Escrow, Inc is licensed by the State of Oregon #201224658
Consumer Tips from the Escrow Institute of California
Independent, licensed escrow companies are the first line of defense for homebuyers and property owners. Savvy real estate consumers know that buying or selling property doesn’t stop with finding the right buyer or the right investment. And yet, escrow remains one of the least understood elements of the real estate process. That’s why it’s so important to work with an escrow officer who has met strict licensing requirements of the California Department of Financial Protection and Innovation and has undergone a background check and fingerprinting by the Department of Justice.
- Licensed escrow companies are required to complete a financial audit every year to ensure compliance with California regulations, and all licensees are subject to random, surprise examinations by the Dept. of Corporations.
- The Department of Financial Protection & Innovation scrupulously regulates licensed escrow companies. Each licensee is required by law to be a member of the Escrow Agents’ Fidelity Corporation (EAFC), which provides fidelity coverage for member trust accounts.
- EAFC indemnifies member escrow companies against lost of trust funds caused by employee embezzlement, subject to the limitations contained in the California Escrow Law.
- All employees must submit to California Department of Justice fingerprinting and criminal background checks.
You have the right to select your own escrow officer. That’s right, smart consumers can help in the selection of their escrow officer by investigating those companies themselves rather than leaving this important decision to their realty agent or lending institution.
Here’s a checklist to help you choose the right escrow officer for your real estate purchase:
- Ask your realty agent to make three recommendations for both escrow service and title insurance, and ask why the agent likes these companies.
- For escrow, determine whether a company is truly acting as a neutral party, or is under the control of a realty agent or mortgage broker.
- Remember that price is not the only consideration, attention to your specific needs and good service can and in most cases should be more important.
- Contact the state agency that regulates a company to determine if there are any pending complaints or disciplinary actions.
The difference between escrow providers
|Real Estate Broker- Owned Escrow Departments||Title Company Escrow Departments||Bank Escrow Departments||Savings & Loan Escrow Departments|
|State Regulator||Dept. of Business Oversight||Bureau of Real Estate||Dept. of Insurance||FDIC||FDIC|
|Manager-Escrow Experience Required||5 yr E.O.Experience or 4 yr E.0.+ Escrow School||No||No||No||No|
|Regular Audits||Yes (Every 12 mo by the DBO without any prior notice)||No-B.R.E. Auditors go by appointment only||Internal audits at employer’s direction|
|Annual CPA Audit Requirements||Yes||No||No||No||No|
|Trust Funds Insured||Yes, $5,000,000 Escrow Agents Fidelity Corp. (E.A.F.C) Covers all Licensed Escrow Corporations||No-B.R.E. Auditors go by appointment only||Internal audits at employer’s direction|
|Escrow Office Certification||Available to any individual who is a member of the California Escrow Association|
|Financial Liquidity Requirements||Yes||No||No||No||No|
|Escrow License Required||Yes||No||No||No||No|
|Assumed impartial as a third party||Yes||Escrow Officer is an employee of broker, who has influence over the transaction||Title Department has access/control of escrow money and procedures||Yes, unless financing is provided by the bank||Yes, unless financing is provided by the S&L|
|DOJ Investigation of all employees, including Photos and Fingerprints||Yes||No||No||No||No|
Wire fraud in real estate is one of the fastest growing cybercrimes in the country. If you have an escrow or closing transaction with us and you NOT receive an email containing Wire Transfer Instructions. DO NOT RESPOND TO ANY EMAIL CLAIMING TO HAVE WIRE INSTRUCTIONS! Instead, call us immediately, using previously known contact information and NOT the information provided in the email, to verify the information prior to sending funds. Note: We will NEVER send you wire instructions via email and the wire instructions will never change during the transaction.
If you believe you have been contacted by or are the victim of an online fraud scheme, we suggest contacting the local FBI Internet Crime Complaint Center (IC3) field office here. Follow the directions found by clicking on the “File a Complaint” button.
Department of Financial Protection & Innovation #96DBO-75780
Escrow Institute of California
Oregon Real Estate Agency #201224658
Huntington Beach Chamber of Commerce
Orange County Realtors
Department of Business Oversight #96DBO-75780