NPLA - New Private Lending Glossary

[Robin Simon]

The National Private Lenders Association (NPLA) recently published a new "glossary" of private lending terms to try to standardize and clarify the terminology around private lenders (which I think is a big problem).  What does everyone think of this new effort / new terms? (I think most are good but there are some issues - for example, the private lender definition IMO shouldn't specify lending to LLCs only)

https://nplaonline.com/wp-content/uploads/2023/06/NPLA-Priva...

Sample (full link above)

Broker
An intermediary who connects borrowers
with lenders, helping to facilitate loan
transactions and negotiate terms.

Correspondent Lender
A financial institution that originates and
funds loans on behalf of a larger lender,
such as a bank or mortgage company, with
the larger lender purchasing the loans
shortly after closing.

Direct or Retail Lender
A lender that originates and funds loans
directly to the borrower rather than working
through intermediaries such as brokers or
other financial institutions.

Private Lender

An individual, group, or company that
provides 1-4 family and/or small balance
multifamily/commercial property loans for
real estate transactions. These lenders
generally do not make loans directly to
consumers for personal, family, or household
use; all loans are made to a formal corporate
entity (e.g., corporation, LLC, etc.) on nonowner-occupied real estate.

[David C.]

Re Private Lender definition, if they substituted the word most for all in the sentence “all loans are made …” I think it would be accurate.

They obviously took the definition of Business Purpose Loan and dropped it in at the end of the Private Lender definition without much thought.