A Voice for the Industry Advancing Private Lending
Building Community and Strengthening the Industry’s Legislative Voice
By Jon Hornik, Esq.
For decades, private lenders operated independently of one another, with little need for a unifying body to guide or protect our interests. With the influx of institutional investment, private lending has become a more sophisticated and high-profile industry. We need a collective voice and vision to help usher us into this new space. Today the National Private Lenders Association (NPLA) fills that void.
Founded in September 2019 by Leonard and Kathleen Rosen, the NPLA was created to support, protect and advance the Private Lending Industry. Since its inception, our organization has served as a platform where industry peers collaborate, share expertise and information, and support the continued growth of Private Lending.
In November 2022, we (Jon Hornik, Esq. and Private Lender Law, the practice group of LaRocca Hornik Rosen & Greenberg) acquired the NPLA. The organization is also guided by Managing Director, Amy Kame, and 2023 Advisory Council, including Jeff Tennyson, Lima One Capital; Eric Abramovich, Roc Capital; Jeffrey Tesch, RCN Capital; Stephan Leccese, Sharestates; and Chip Cummings, Northwind Financial.
As we move into a new era with new leadership, the NPLA is focused on three foundational pillars:
» Industry Advancement
» Building Community through Education and Mentorship
» Strengthening the Industry’s Legislative Voice
Industry Advancement
The NPLA is made up of capital providers, lenders, brokers, developers, and industry service providers. Our organization harnesses the experience and knowledge of the brightest minds in our space. These individuals have a deep understanding of how capital markets flow and how credit decisions are made. This includes understanding interest rate and credit spread risk as well as real estate underwriting and how the concepts relate.
Over the last decade, we have seen incredible advancements in the Private Lending industry. Prior to 2015, our lending environment was fragmented, consisting of family offices and individuals providing capital where conventional lenders would not.
In 2015, Wall Street discovered Private Lending as an alternative asset class and transformed the industry we see today. Its participation provided legitimacy while companies formed and grew with cheaper capital. During this time, conventional lending guidelines and underwriting standards became mainstream.
We are on the cusp of further innovation and advancement in the next decade. As we navigate these changes, our Best Practices and Ethics Committees will continue to set standards for the industry, ensuring our asset class becomes more institutional and attractive to additional sources of capital.
Building Community Through Education and Mentorship
The NPLA is about fostering community.
Our role is to provide a much-needed platform for our membership base to stay connected, especially in times of market volatility and uncertainty. The NPLA is uniquely positioned to serve as a space for industry leaders to collaborate while educating and mentoring the next generation of Private Lending professionals.
With the issues facing the housing market today, including low housing stock, eroding affordability, and an uncertain interest rate environment, members understand the need to collaborate on solutions.
One of our most trusted resources is our bi-weekly video conference call. At the meetings, members and guest speakers discuss critical issues facing our industry, including macroeconomic changes, demographic and geographic trends, supply chain issues, legislative developments, and more.
The NPLA’s pillar of mentorship focuses on facilitating partnerships and expanding members’ knowledge and perspectives. We understand that the continued growth and success of Private Lending depends on members adhering to best practices and ethical lending standards. It is up to us to move the industry forward.
Strengthening the Industry’s Legislative Voice
The collective voice of NPLA members will define the Private Lending Industry for years to come.
Our Legislative Committee plays a significant role in this effort, as it monitors all state and federal regulatory changes that may affect our industry. The committee keeps members informed through quarterly legislative reports and timely legislative alerts, and we have built a strong track record of legislative success over the last three years.
For example, we successfully lobbied against the following New York bills to protect the interests of Private Lenders:
» Senate Bill 3060E (Transfer Tax)
» Senate Bill 1061 (Commercial Finance Licensing)
» Senate Bill 5470 (Commercial Financing Disclosure)
We partnered with industry groups, led by Robert Finlay from Wright, Finlay & Zak, on the Coalition Opposition to defeat California Senate Bill 1323, which proposed to amend California’s foreclosure process.
Furthermore, after a strong lobbying effort from the NPLA, Governor Murphy conditionally vetoed New Jersey Assembly Bill 793. The “Community Wealth Preservation Program” proposed to revise procedures for the sale of residential foreclosure properties and would have curtailed lending in the state.
As we look ahead, there is a common theme in recently proposed legislation to restrict the ability of business entities to own residential housing. Legislators across the country are selling a narrative that investors are driving up home prices, taking affordable housing stock off the market, and limiting home-buying options.
To contest legislation such as this, we need to continue our collective messaging about the critical role we play in improving neighborhoods and providing access to housing across the country.
The legislative landscape changes quickly. Our responsibility is to be the industry’s voice while presenting a more accurate and positive image of Private Lending to the public and legislators across America.
The Importance of Giving Back
As we work to support one another professionally, we also understand the need to look beyond ourselves and give back to those who are most vulnerable. That is why we are committed to partnering with organizations that positively impact our communities.
In 2022, NPLA members raised $31,000 for Habitat for Humanity of Greater Miami. Donations went directly to support the construction of affordable homes in the Miami community. Since 1989, Habitat for Humanity of Greater Miami has helped over 1,300 families achieve the goal of affordable home ownership across the county.
In 2023, we are proud to announce our partnership with St. Jude Children’s Research Hospital. The mission of St. Jude is to advance cures and means of prevention for pediatric catastrophic diseases through research and treatment.
We will continue this critical work as our members understand the collective impact they can make on communities and families across America.
What This Means for You
Becoming a member of the NPLA means you become part of a tight-knit, resourceful, and knowledgeable group of professionals.
We have an engaged and passionate membership base of individuals who want to advance Private Lending, foster community, and proactively protect our legislative interests. With the NPLA serving as a unifying force, the Private Lending community can now leverage its collective power. We want you to join us in this important work.
The NPLA is the Voice of Private Lending.
Resources available to NPLA members: Bi-Weekly Video Conference Calls, timely legislative updates, member events (golf tournaments, private dinners, meetings, etc.), data and presentations from industry experts, the member portal, allowing easy access to important information, including the NPLA member directory, active lender directory, bi-weekly conference call recordings and more.
Interested in learning more? Visit https://nplaonline.com/
We are proud to announce an additional membership option that will be released in January 2023. Our Affiliate Membership will expand our base and provide a new opportunity for companies wanting to join the NPLA community.
