Press and News

Receives independent certification for technology, security and customer service

(April 3, 2008) Honolulu, HI — PCLender.com, a fully hosted web based software and services solutions provider to mid-sized mortgage bankers and financial institutions, in Q1 2008 successfully completed a service auditor's review, commonly known as a SAS 70 Type II audit, of its InHouse Mortgage (IHM) and PCApproved applications. The audit was performed by SAS 70 Solutions, a nationally recognized independent auditing firm, and was completed in January, 2008. Included in the scope of the audit were PCLender.com, Inc.'s customer service control activities, as well as the general controls that support these activities.

SAS 70 is an acronym for the American Institute of Certified Public Accountants (AICPA) Statement on Auditing Standard (SAS) No. 70, titled “Reports on the Processing of Transactions by Service Organizations.” SAS No. 70 defines the professional standards used by a service auditor to assess the internal controls of a service organization and issue a service auditor's report.

"A Type I report describes the service organization's description of controls at a specific point in time (e.g. June 30, 2003). A Type II report not only includes the service organization's description of controls, but also includes detailed testing of the service organization's controls over a minimum six month period (e.g. January 1, 2003 to June 30, 2003).

"In a Type I report, the service auditor will express an opinion on (1) whether the service organization's description of its controls presents fairly, in all material respects, the relevant aspects of the service organization's controls that had been placed in operation as of a specific date, and (2) whether the controls were suitably designed to achieve specified control objectives.

"In a Type II report, the service auditor will express an opinion on the same items noted above in a Type I report, and (3) whether the controls that were tested were operating with sufficient effectiveness to provide reasonable, but not absolute, assurance that the control objectives were achieved during the period specified."

In order to complete the audit, PCLender.com, Inc. management developed control objectives for the significant areas of internal control that support the InHouse Mortgage enterprise lending platform and PCApproved online applications. The control objectives in the 2008 report addressed Computer Operations, Information Security, Application Development and Maintenance Activities, Data Communications, and Customer Service.

The service auditor performed extensive testing of the control activities implemented by PCLender.com and, following this rigorous examination, the auditing firm was able to issue an unqualified opinion.

PCLender.com, Inc. management recognizes that Sarbanes-Oxley legislation has placed an increased focus on the internal controls of valued business partners. The SAS 70 audit report is designed to provide clients with a certain level of assurance regarding the controls that are maintained by PCLender.com, Inc. management.

The auditor's SAS 70 report addresses all five components of internal control outlined in the Sarbanes-Oxley legislation, namely the control environment, risk assessment activities, control activities, information and communication systems, and monitoring activities.

“PCLender.com management understands the ever increasing importance of corporate governance, as well as the impact of our services on our clients' system of internal controls,” said PCLender.com founder and president Lionel Urban. “The successful completion of the 2008 SAS 70 Type II audit is only part of PCLender.com's continued commitment to maintaining a high level of internal control. PCLender.com, Inc. has engaged its service auditor to a long-term contract whereby PCLender.com, Inc. will undergo a Type II audit on an annual basis.”

Honolulu-based PCLender has for more than a decade helped mortgage bankers accelerate business performance goals through technology-enabled best practices guidance, services and solutions. PCLender's fully hosted enterprise mortgage lending platform InHouse Mortgage™ eliminates traditional “barriers to entry” for mortgage bankers seeking business process improvements on par with the Fortune 500. For more information about PCLender contact Lionel Urban at lurban@PCLender.com.