National Private Lenders Association Launches Watchlist for Advancing Risk Controls

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The National Private Lenders Association (NPLA) has launched the NPLA Watchlist, a searchable, members-only risk-intelligence program designed to help lenders, brokers, and service providers identify high-risk counterparties before funding.

According to the organization, the NPLA Watchlist identifies potentially problematic individuals and entities, thus enabling its members to identify high-risk counterparties before closing, reduce avoidable losses, and support cleaner portfolios across the private real estate lending market. The NPLA added the new platform is designed to complement existing know-your-customer processes, title/settlement verification, valuation review, and closing standards.

“The industry asked for a tool that plugs into intake and pre-funding. This is that tool,” said Jonathan Hornik, executive director of the NPLA and managing partner of Private Lender Law. “Members can search a name or entity, see whether a watchlist match is present, and apply heightened diligence—while keeping submissions confidential and contributors anonymous.”