I agree that payment protect loans are best avoided. I have chosen to invest in them for the time being due to a lack in the supply of loans.
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I disagree - Harmoney isn't that quiet. Seems to be averaging $600k+ per day still. I see plenty of loans each day.
I was getting invested in 14 -18 loans per day now I'm struggling to get 10 despite increasing my auto-lend range. Went quiet in late Sept and hasn't recovered. There used to be big blocks of loan listings at 8am, noon and 6pm but not so much now. Also seem to be a lot of payment protect loans that I'm not keen to do. Can't understand why some of these people buy payment protect to be honest. Just a bigger millstone around their neck.
Im at around 30 months - Signed up end of Jan 2015
and im at 15.69%
Attachment 9222
Attachment 9223
Payment-Protect: Of the 1400 all-time loans over 31 months, 195 were PP. Started Oct 9 2016. Of these loans, 25% have been repaid.
Have had 3 charged off and currently have 3 in arrears.
I continue to invest in PP because over time, my RAR will be enhanced.
My Charged off amount has been reduced by 50% in $value by the effect of the current PP balance.
Is Auto invest working at present?
Previous weeks it was picking up loans for me but since 23 sept it seems to not have got any.
My ratio is improving each day as funds available is climbing so that cant be the issue. There appears to still be plenty of loans coming into marketplace too
I put $2500 in on Thursday and got one $50 unit on Friday.
It is working, but I have really fine tuned criteria for Auto-Lend within a limited grade band, so I don't expect to get that many.
When I invest manually I relax my criteria more and use my, gut feeling, about borrowers so to speak; so I do get a few that way.
My RAR has slipped slightly last week to 14.43% due to 4 Charge-offs in the last month. I expect it to pick up again though.
Well done Humvee, 15.69% is a great RAR. I can see the good result is because you start from C Grade and upward.
I'm wondering through my experience over a similar time frame , whether your E and F grades will have some negative effect on your RAR through defaults.
Analyzing your 2nd graph, your RAR has been slowly descending, or do you think, you have by now flushed out all the bad E,F's?:)