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Numismatics and Bullion as an asset when seeking mortgage

Started by Kominsky Collection,

21 posts in this topic

coinman_23885

coinman_23885

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I lost my job in June of this year, and sold some coins. I was allowed to use my remaining assets (mostly coins) and my "investment" income (the coins I sold) to acquire a $1200/mo. apartment without a regular job (at least not at the time of application).

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RWB

RWB

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They can help, but a banker will never value them at close to their market value due to volatility and difficulty in liquidating if the loan is called.

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Kominsky Collection

Kominsky Collection

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Hi RWB, that is what I figured. Banks don't think outside the box. They make the box and we have to fit inside it. It's too bad we have to be part of their matrix but that's how they end up fleecing the masses, e.g., see the next stock and bond market crash and collapse of the currency. Thanks for the input. DK

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World Colonial

World Colonial

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Hi RWB, that is what I figured. Banks don't think outside the box. They make the box and we have to fit inside it. It's too bad we have to be part of their matrix but that's how they end up fleecing the masses, e.g., see the next stock and bond market crash and collapse of the currency. Thanks for the input. DK

 

I am not sure what you expect them to do. It is only appropriate that they discount them for collaterral purposes and in doing so, it must be one of the few instances where they apply what I would remotely call a conservative approach today.

 

In terms of your last statement, the day stocks and bonds crash for "real", coins are almost certainly going down the tubes with them and given the absurdly inflated levels of today, it won't be a pretty sight either. The only or at least primary thing which saved many collectors from this outcome in 2008 is that the decline was temporary which limited the volume of forced selling.

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Kominsky Collection

Kominsky Collection

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The banking cartel wants us in paper assets. That's much easier to steal than a hard asset. They are selling us on a stock market bubble while behind our backs they are hoarding gold. When the stock market crashes gold and silver spot will soar.

 

What do I expect banks to do? Whatever is in their own best interests, of course.

 

 

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World Colonial

World Colonial

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This post of yours has nothing to do with your original question about obtaining a loan using any hard asset as collaterral. This is what my reply covered.

 

As for your last comments about gold and silver soaring when paper assets crash, we'll see about that. I expect a repeat of 2008, at least initially. Neither soared then by a long shot.

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Kominsky Collection

Kominsky Collection

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Sure it does. The banks who loan want us to have to produce ownership of paper assets that they control through the Federal Reserve and through their trading desks. Banks hate currency they can't control, i.e., bitcoin and gold and silver (although the PM's are manipulated through paper).

 

IMO gold and silver should be credited for at least it's melt value when applying for a loan. I own a ton of the stuff and am looking to buy an additional residence in the next two years. I'm having to bump up my paper assets which I otherwise wouldn't do so I can qualify for a jumbo loan of some magnitude which I would easily qualify for if credited for melt value of my bullion.

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Mr.Mcknowitall

Mr.Mcknowitall

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Sure it does. The banks who loan want us to have to produce ownership of paper assets that they control through the Federal Reserve and through their trading desks. Banks hate currency they can't control, i.e., bitcoin and gold and silver (although the PM's are manipulated through paper).

 

IMO gold and silver should be credited for at least it's melt value when applying for a loan. I own a ton of the stuff and am looking to buy an additional residence in the next two years. I'm having to bump up my paper assets which I otherwise wouldn't do so I can qualify for a jumbo loan of some magnitude which I would easily qualify for if credited for melt value of my bullion.

 

Full disclosure: I have no idea what I am talking about. Having said that, please take a moment to consider the logic (or lack of) of your undertaking. You want to qualify for a jumbo loan, that on paper you are not qualified for. You want to qualify in order to purchase a home in the next 2 years. You want to use gold and bullion which you own in substantial quantities at this time, to qualify for this future (sometime in the next 2 years) purchase. You don't know what the future holds for the value of these bullion assets. However, you believe the value will certainly increase, and you believe the lending institutions should agree with you and credit you full market value now so you can qualify for the future purchase in the next 2 years. Do you see the logic problem? I am not trying to be cute or derisive. I am simply asking you to consider the situation as if you were the Lender and you were approached with this request.

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Kominsky Collection

Kominsky Collection

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All I have to do is sell some real assets - gold and silver - and convert it into some type of dollar paper asset and presto changeo I easily qualify. In fact, I may qualify now I'm just not interested in adding to my paper assets at this time. My problem with dollar based paper assets is the Federal Reserve is debasing the currency at an alarming rate and gold and silver is my hedge.

 

My initial question is what kind of credit do we get for bullion and numismatics when applying for a loan. Although we have had an interesting discussion about my premise for being in metals in the first place no one has actually answered this question. I was hoping that someone had an actual experience they could share. I do appreciate everyone's time and discussion however. Have a blessed day.

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World Colonial

World Colonial

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This is what I thought you meant but you weren't very clear in my opinion.

 

I agree that banks could consider bullion in lending decisions. I disagree that coins should be considered except maybe in isolation and then only at a substantial discount because they aren't very liquid.

 

Having said this, I do not believe it is part of some conspiracy as you appear to be implying. If I were in charge of making loan policy, I don't believe I would care to go to the trouble given the minimal lending it would support or the profits it would likely generate.

 

At a prior employer, my firm sold proprietary mutual funds and also took retail deposits from the same client base. They also made personal loans where they accepted these balances as collaterral. However, controlling the collaterral was easy. They simply placed a 'hold" by using a code in the deposit and mutual fund systems which prevented the client from either selling the funds or withdrawing their money. You cannot do this with physical "stuff" as you know.

 

True, if you have your metals stored with a metal custodian, they could arrange this but why would they want to? I wouldn't because the expense of the associated controls (including contracts and reviews of SSAE 16 documents at minimum) just would not be worth it given the trivial level of business that would go with it. At most I could see a few banks specializing in such lending but just any bank, absolutely not.

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Direct answer:

 

I bought a second home 2 years ago; Chase would not consider any bullion or coins as assests.

Same story when I bought my main home 8 years age. I also mentioned season and sourced.

This is very omportant. You must have had the CASH in your checking or savings acc. For 90 days. Any large deposits except payroll must be sourced, where did they come from?

This is true with most mortgage brokerages.

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Kurtdog

Kurtdog

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It's not collateral. It's a listed asset and used for the debt/equity ratio. Anyone could sell any listed asset, i.e., stocks and bonds, after the loan closes.

Sorry about that. For some reason, when I saw "mortgage" in the question, I read "collateral" into the question. I see, now, what you're asking.

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