eLynx, PCN Network Partner to Offer Managed Disbursement Service

October 23, 2014

eLynx, a portfolio company of American Capital and PCN Network LLC formed a strategic partnership to provide a secure way for lenders to ensure the safe and proper disbursement of escrow funds at the conclusion of a mortgage closing.

Safe Escrow is a managed disbursement service that gives lenders greater assurance that escrow misappropriation can be prevented more effectively and helps large and small settlement agents meet ALTA’s “Title Insurance and Settlement Company Best Practices.”

The proper handling of escrow funds is one of the highest risk areas for lenders and title underwriters in the closing process. Unfortunately, it is also one of the areas where they have the least control. In establishing its set of Best Practices for settlement agents, ALTA emphasized the importance of escrow fund management by requiring “appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation.” Unfortunately, many agencies, particularly smaller, independent ones have neither the infrastructure nor the level of training and expertise needed to comply with this Best Practice, the companies said in a release.

“That’s why we created the Safe Escrow managed disbursement service,” said Pritam Advani, founder and CEO of PCN Network. “By replacing agent-owned escrow accounts with centrally managed ones, using innovative technology to allow for agent involvement and authorization, and providing sound financial processes in the central facility, we ensure even the smallest agent can meet the standards required by both ALTA and lenders.”

“Settlement agents are experts in title and in taking the consumer through the closing process. They shouldn’t have to be experts in escrow account management and bank reconciliations,” said Andy Crisenbery, eLynx senior vice president of business operations. 

Safe Escrow provides a secure and flexible way for settlement agents to manage the escrow process, while complying with the second pillar of ALTA’s Best Practices. Among the key benefits provided by Safe Escrow are:

  • Independent management and reconciliation of escrow accounts by an experienced third-party with over 100,000 escrow transactions completed on behalf of settlement agents
  • A complementary workflow design that maintains the settlement agent as an integral participant in the escrow process while ensuring that the integrity of controls is never compromised
  • Lower risk for all parties, from settlement agent to title underwriter to lender

In partnering with eLynx, the process of managing escrow disbursements is enhanced even further for greater efficiency. eLynx’s Electronic Closing Network (eCN) contains profiles on nearly 100,000 settlement professionals as a result of lenders who use our network to send closing packages to settlement agents. eCN automatically triggers certain Safe Escrow processes when the closing package is delivered ensuring that the funding conforms to the lender’s instructions.

“Adding Safe Escrow to our Electronic Closing Network was an easy choice,” Crisenbery added. “We help initiate certain escrow management procedures immediately upon closing package delivery, which makes the process even more efficient for both lenders and settlement agents. Both participants in the closing process benefit greatly as a result of this connected workflow.”

Contact ALTA at 202-296-3671 or communications@alta.org.