Kansas City, MO  – In response to panel conversation during the April 11-12 Geraci Innovate Conference in Newport Beach, CA, the American Association of Private Lenders announced a new effort.

During the hallmark panel on market projections, leaders discussed a growing need to combat rampant borrower fraud, highlighting this fraud class as one of their largest concerns both within their own operations and for the private lending industry. Panelists and attendees called for action from the American Association of Private Lenders, citing the organization’s standing in the industry as their preference to spearhead and organize next steps.

Linda Hyde, AAPL president and in attendance at the panel, agreed.

“Technology has made it easier than ever to perpetuate all kinds of fraud and lenders must now defend themselves on multiple fronts,” said Hyde. “Borrower fraud is one area where our industry stands to lose the most. Whether it be through the many presentations of asset and income fraud, identity theft, appraisal fraud, straw buyer schemes, occupancy fraud, same-day close flipping scams, title fraud, air loans … the list can seem overwhelming and endless, and all with the lender in a losing position.”

In response to the call for action, AAPL is forming a Borrower Fraud Steering Committee to better understand the scope of this pressing challenge and to strategize a path forward for its members, the industry, and the association.

AAPL is now in the initial planning stages to structure the member-led Committee. While the Committee itself will have a finite number of appointments, the association will create online open public comment periods to gather insights on various topics/needs as identified by the Committee. Notifications will be issued via the organization’s newsletter and social media.

The Steering Committee is not AAPL’s first foray into industry fraud defense. Fraud — both what it looks like and how to combat it — is a frequent topic on AAPL webinars; in its trade magazine, Private Lender; and online article archive. Additionally, in 2023 the association launched the industry’s first business identity theft and credentialing scam prevention initiative to both protect AAPL brand assets from usage by bad actors and monitor for cloning of member websites.

About the American Association of Private Lenders

The American Association of Private Lenders is the oldest and largest national organization safeguarding the continued viability and growth of the private real estate lending profession. Formed in 2009, the association identified needs for standardized best practices, ongoing support resources, and self-governance that perseveres today. AAPL’s membership includes private money lenders, mortgage fund managers, brokers, and service providers from across the United States.