NEW ISSUE VS. SEASONED BANK PAPER
Typically if a seller is looking for POF upfront before evidencing ownership of anything…the same so-called "seller" historically doesn’t own anything no matter how loudly they and their often complementary brain-washed brokers protest.
SEASONED/REGISTERED/ISSUED PAPER
A legitimate seller of issued/registered paper shouldn’t have any problems evidencing ownship of the amount of paper the seller says they own and have a right to sell.
Evidence of ownership can often be as simple as evidence of one and/or a combination of the following:
- Current titlepage screenshots
- Current custodial account statements
- Statements of attestation under credible notarization
NEW ISSUE PAPER
A new issue seller/provider that says they possess a commitment(s) to have issued fresh cut (FC) paper should be able to easily evidence such a commitment to issue such paper from the issuing bank in order for the seller to be taken seriously …right? Evidencing a commitment(s) can be as simple as an issuer issuing a letter stating that the issuer is prepared to issue paper as per whatever is agreed between the issuer and the provider/applicant/(seller).
Anybody that says they have a commitment(s) and and cannot evidence such facts...most likely has no actual commitment from any issuer no matter how many "sellside" brokers are brain-washed to advertise otherwise. Stands to reason.
ARBITRAGE
A "seller" that insists on seeing POF before POP or evidencing their ability to deliver should be categorized as a party trying to commit what is known within the industry as “arbitrage”.
That said …Magister Operis™ can actually work with sellers that don’t own anything IF/WHEN the seller's organization can professionally evidence their ability to deliver the paper predictably as agreed.