BORROWER COMMENTS: continue to save for a house - on a $28K loan... WTF
From memory I think I read that Harmoney are audited by PWC annually - this would/should include the entire borrow/loan process. PWC don't miss much.
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BORROWER COMMENTS: continue to save for a house - on a $28K loan... WTF
From memory I think I read that Harmoney are audited by PWC annually - this would/should include the entire borrow/loan process. PWC don't miss much.
To hold a peer-to-peer lending licence the FMA require an Annual Audit - so it will be happening. I doubt they would make it public if that's what you're after?
The Platform RAR had a pretty big drop today from 11.03% to 10.33%
It appears all the RARs have been reduced have a look at the platform charts. My personal rate has gone down by the same amount, 14.87>14.18%, even though it is usually one week behind and normally changes on a Sunday..
It would be nice of Harmoney to explain what they are up to!
Mine also dropped by about 0.6%.
An email just arrived explaining the RAR calculation changes. Apparently there was an error when calculating the RAR on Payment Protect loans. From the FAQ:
Quote:
What was the issue found with the previous calculation?
Payment Protect loans have two principal outstanding amounts:
- the investor principal amount (which is the amount that lenders invest), and
- the borrower principal amount (the amount the borrower owes the lender)
When Payment Protect was introduced, the RAR calculation should have updated to use the borrower principal amount, but continued to use the investor principal amount as it had always done. Prior to the introduction of Payment Protect, the borrower principal amount and the investor principal amount had matched. After launch, this wasn’t the case.
The knock on effect of this was that when using a lower principal balance, this resulted in some Lenders seeing a higher RAR than they should have.
Down 19 pips
So. have I got this right. Harmoney introduces an option to increase investor revenue and now produces a calculation change which shows that investor revenue streams have fallen because of it? Why should the RAR calculation have updated to use the borrower principal amount? The point of the exercise was to increase investor returns? It seems to me that some techo has noticed the disparity between the borrower and investor principal amounts, panicked, and pushed the "correct" button when no correction was needed. The correct denominator is what the investor has invested - it is the investor's RAR, not the borrower's.