General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIs there some smart financial person who can explain to me how Professional Bank in Coral Gables
with assets of less than $900K, according to its website, lent millions to Trump for a mortgage on the $11 million house he bought from his sister?
Is there some special category of a bank that doesn't include its customers assets under its assets?
ON EDIT: Never mind, FBaggins pointed me to the answer, at #3 below.
https://myprobank.com/wp-content/uploads/2019/05/Professional-Bank-2019-Q1-Financials.pdf
dhol82
(9,353 posts)Simple.
kimbutgar
(21,290 posts)It this was money laundering the traceable assets were depleted years ago after the mortgage was initiated. Todays financial records are meaningless. Id like to see the bank asset records when the original mortgage was taken out and the year after.
FBaggins
(26,799 posts)The reported figure is "in thousands"... which means they have $832.5 million.
Added to that... most mortgages are sold (e.g. to Fannie/Freddie), so the bank doesn't commit all of those assets to the loan.
pnwmom
(109,028 posts)and there it was in the gray print in the corner.
FBaggins
(26,799 posts)"$ in thousands"
Looking at their most recent quarterly report, it's on the top-left of each page. https://myprobank.com/wp-content/uploads/2019/05/Professional-Bank-2019-Q1-Financials.pdf
For the record - you can't possibly run a bank with a million dollars in assets. Even with a spectacular net-interest-margin of 5%, you would barely have enough to pay one employee (let alone actually run the company). I'd estimate that it takes closer to 100mil.
pnwmom
(109,028 posts)till you told me. And even then, I had to look at that page twice!
Sneederbunk
(14,319 posts)CincyDem
(6,421 posts)One that's particularly common is that Professional Bank "brokered" the mortgage...meaning that they resold it into the commercial mortgage market. It's likely, with only 900k in assets, they actually wrote the mortgage on someone else's paper.
I've seen financial institutions with 70-80milion in assets that have done 3-4 billion in mortgages. But what they were really doing was managing the paperwork for a third party. The issue here is that the loan was likely qualified by Professional Bank and then represented to the commercial market. The guy currently holding the mortgage likely doesn't even know the mortgage holder.
What this will do for Trump is ensure that the details of his loans will be held very very closely at a bank that has no financial ties or regulatory obligations outside a friendly state (aka Florida). It's like Wells, BofA, Chase...someone like that probably holds the actual note but they probably don't know that it's a Trump property. Therefore when they're subpoenaed they won't have to disclose it.
Squirrelly for sure but it's how a lot of the mortgage business still works.