Jonathan Hornik (pictured top), founding member and owner of the NPLA, said months of hard work have resulted in a critical resource for the private lending sector.
“What we’ve done is we’ve created a database from all the largest credit providers in the space,” Hornik told Mortgage Professional America. “Those that purchase closed loans, those that give credit lines for the loans, because they all had internal data of both individuals, companies, professional companies that they wouldn’t work with.”
Finding bad actors
Because the private lending space continues to grow, it will naturally attract more people interested in scamming others. Hornik said this list is a way to combat those bad actors.
“We figured that because the asset class has continued to become more in focus and continue to grow, what ends up happening is bad actors see an opportunity,” Hornik said. “So we wanted to create a database, which was protected, that our members can search as a due diligence tool to see, ‘Hey, should I be doing business with this company or individual?’
“If they’ve been flagged by one of the credit providers, go in with 100% review goggles on. It doesn’t tell you not to do a deal. It goes, ‘Wait a minute. Somebody who’s in the business of making money by buying or participating in these loans said regardless of our mandate to make money, I’m not doing business with them.’ So that’s relevant.”
Publisher: Source link
