The National Private Lenders Association (NPLA) has recently unveiled a comprehensive Private Lending Glossary, a first-of-its-kind resource in the industry. This glossary is a result of a collective effort from some of the industry’s leading figures, including Jonathan Hornik, Jeff Tennyson, Eric Abramovich, John Beacham, Stephan Leccese, Jeffrey Tesch, and Chip Cummings.
The private lending industry has seen rapid growth and evolution, making the need for standardized terminology more pressing than ever. This glossary aims to ensure clarity in communication and mutual understanding among all stakeholders, from legislators to the public. It is a critical step forward for an industry transitioning from a niche sector to a more institutionalized landscape.
The glossary takes into account the significant transformation of the private lending industry over the past decade. Sparked by recognition from Wall Street and institutional capital, the industry has seen increased transparency, predictability, and integration of more conventional lending standards. This resource now provides a common language, fostering cohesion across industry firms.
For newcomers to private lending — legislators, developers, and the general public—the glossary offers a roadmap for understanding the sector’s complexities. It also bridges knowledge gaps for commercial and residential real estate developers—making the industry more approachable to those who might pursue private lending as a viable alternative to traditional funding sources.
The glossary is organized into several categories, including lender types, loan types, property types, loan servicing related terms, loan documents, loan tape data items, and other terms. Some of the terms defined include:
- Lender Types: Broker, Correspondent Lender, Direct or Retail Lender, Private Lender, Table Funder, White Label Lender, and Wholesale Lender.
- Loan Types: Blanket/Portfolio Loans, Bridge Loan, Ground Up Construction Loan, Mezzanine Loan, Non-Performing Loan (NPL), Private Loan, Rehab Loan or Fix-n-Flip, Residential Transitional Loan (RTL), Second Lien Loan, Small Balance Commercial, and Term Loan.
- Property Types: Commercial, Ground-Up, Mixed Use, Multifamily, Real Estate Owned (REO), and Single Family Residence (SFR).
- Loan Servicing Related: Amortization Schedule, Debt Service, Default, Delinquency Rate, Escrow Account, Forbearance, Foreclosure, Late Fees or Default Interest, Loan Assumption, Loan Delinquency, Loan Extension, Loan Modification, Loan Payoff, Loan Servicer, Loan Servicing, Principal and Interest (P&I), Reconveyance, and Rehab Draw Management or Construction Management.
The NPLA anticipates the need to revise the glossary and add new terms, ensuring it remains a living, ever-changing document that reflects the industry’s dynamic nature. The glossary is available for free at www.nplaonline.com.
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