New National Organization Establishes Code of Ethics for Private Hard Money Lenders

WASHINGTON, Sept. 8 /PRNewswire/ -- The American Association of Private Lenders (AAPL) has established the first code of ethics for private hard money lenders in the United States. These ethical standards are the foundation of how AAPL members conduct themselves in their business operations.

"The purpose of this code is to establish the highest standard of conduct for the industry," said Wallace Groves, AAPL Executive Director. "Both borrowers and investors can use it as an important indication of professionalism for the lenders with which they are dealing."

Key sections of the Code of Ethics include strictly adhering to all related real estate lending laws, nondiscrimination in lending, and honesty in all dealings. A copy of the full code can be seen at http://aaplonline.com/aapl-code-ethics

Private lending is the oldest form of financing and predates the banking system. With the multitude of banking scandals and failures over the past few years, people don't trust banks as they once did. Borrowers are frustrated because they can't get the credit they need.

Increasingly, private lenders are being seen as a viable alternative for both borrowing and investing.

"For many people the only option for getting the loan they need to secure a home or start a business is through a private lender," said Groves. "By looking for businesses who adhere to this Code of Ethics, they can help assure they are dealing with a reputable professional."

Historically, the private hard money industry was composed of small, scattered, disconnected companies. The American Association of Private Lenders was established early this year to provide a unifying source of ethics and education for the profession.

Members include not just private lenders, but also brokers, attorneys, accountants, mortgage fund managers, loan servicers, debt buyers, and consultants throughout the United States.

For more information on American Association of Private Lenders and their Code of Ethics, go to http://www.aaplonline.com

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SOURCE American Association of Private Lenders