Is this 20% fee shown in the RAR?
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I think RAR does reflect the lender fees. Although the increased fees only apply to loans invested in from 13 June so it will take a while to see how much of an impact the new fees have on your returns.
Just to add to what Kelvin said, 10% may be 'good' but does it reflect the risk. I was getting a high proportion of defaults even though the economy has been going strong. So what will happen during a recession? So while the return may be good now, does it reflect a good risk/return ratio.
Also the lack of liquidity. i expected a secondary market to be created but apparently they surveyed lenders and fond out it wasn't a top priority. Because of this I dont want to invest a large sum of money as I already have enough illiquid investments.
The RAR does reflect fees but the higher fees are only new so the impact wont show yet. I modelled my return dropping below 10%.
*note: my write offs are high so maybe I have just been unlucky and/or not properly diversified (I had 100's of loans so should have been).
Interesting that none of the borrowers on today's loans have any income. Must be "free money day".
Harmoney seem to be having a Lot of issues over past few days ... i see currently 10 loans on offer .. one C loan wont even display detail and rest all have zero income YET OMG! They are almost fill.
^^ an example of one of the many reasons I no longer invest with Harmoney
REVIEW
Over the past year I have found the following:
-10% of Harmoney loans are worth investing and match my own personal criteria.
-Any arrears I get are often limited to the poorer grades. If |I get an arrear in better grades they seem to be resolved fast.
-Unsure how they grade them. Often they can be a "B" but have high repayments per month or be for a poor reason. Why does someone need a high interest loan for a 25k car when a 15k car will be satisfactory?
-Loans come online at random times of day, as there is no notification option you would need to constantly login during day to find good deals.
-Good criteria loans go fast ( less than 1 hr) but in saying that the high risk ones also get taken but sit around many hours longer.
-Customer service is hit and miss. Often the person on end of phone can be nice but you don't get a followup with answers you rang for
I see a few at the moment. It really is pretty sloppy. But my experience from UK, is that they are not alone, but they probably are the worst.
Re a secondary market, I think some issues around that involve whether loan has been in arrears, default etc. and what info you pass on, and/or whether you allow a loan to be sold in those circumstances etc. Think about it the other way, if someone was trying to sell you a loan, what would you wonder about. If nothing, then I've got some loans in arrears to sell you.
Of course these may not be Harmoney's reasons.