Good to know. My oldest arrears is April so going by your theory i will predict 60% charge off chance
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Over the last week I just witnessed my Arrears grow by $50 to $150. I thought here we go many new Write offs coming.
Then over the last 2 days I had 3 loans repaid early.
Then today I see that the Arrears have gone Down correspondingly!
So the moral ( perhaps ) Growing Arrears does not always equal new Write Offs!
Anyone else witnessed this happening?
http://www.nbr.co.nz/article/harmone...-year-b-192115
Who's got an idea where these came from?. Institutional only maybe? "while performance fees when a lender's portfolio beat an agreed return were $798,000"
Definitely. Harmoney will be managing money from the likes of Heartland. One do not imagine Heartland having a few full time staff to go through the loans available and loan so many notes each to every loan. As in all money (funds) management, there is a always a performance fee if you manage to beat a certain benchmark.
Your arrears also drops when there is a charge-off. It is the age of the arrears that matters more. The total amount of arrears fluctuates greatly - sometimes depending on whether Harmoney process the payments from the borrowers. Often there is a backlog and then a sudden increase in cash available (and reduction in the arrears).
By the way, just is case some here (not you Saamee) are unaware of the distinction. The arrears is just the total amount of payments due from the borrowers that are not paid yet (including interest) not the total principal owing by these delinquent borrowers. That amount (at risk) can be at least 10 times more and if you want to find that out, you have to add up all the outstanding principal owing. Most of you will already know this so just a reminder!:)
Reading this report http://www.sharechat.co.nz/article/7...irst-year.html it is a little worrying that Harmoney has lost more than double in its second year of operation compared to its first year. I presume the increase in fees will go towards improving profit but now sure that is going to be enough. The peer to peer market is becoming a bit saturated so not sure if the is much growth there either. Wonder if the money owing but not paid due to conditions not being met refer to their IT systems :)
A year ago Harmoney had 50 something staff which I thought was a lot but now, apparently they have 80.!!! How can this be profitable and what would they all be doing????? No wonder their losses are increasing.
I wonder how many of the 80 are employed to chase up accounts in arrears.
First time poster here, found this site while searching for some people's experiences with Harmoney. Reading through this thread it looks like most people have pursued a different strategy to me (targeting lower risk A-C loans) so I thought I would share my results so far. Harmoney has been my first experience with investing outside of my Kiwi Saver and Australian superannuation accounts. I'm also planning to purchase shares in a few ASX and NZX listed gold miners, and maybe a few other companies along the way.
So far I've deposited $5550 into my account and invested in mostly 36 month E grade loans, although I've noticed it's becoming much harder to find any loans at all to invest in over the last month or so. I reinvest any repayments so the total Loan investments (funded) is $8225 across 124 loans. Charged off principal is $47 so far, although I'm expecting that to increase over time. RAR is sitting around 23% which I have been exceptionally pleased with. I guess time will tell whether that is sustainable or if it will decline as more loans get charged off.
Attachment 8190
Looking forward to learn a whole lot more about investing from the community here :)
With a rar that high and minimal write-offs, I am guessing you haven't been going over a year.
What a shame. Harmoney to plead guilty to misleading consumers.
http://www.nzherald.co.nz/business/n...ectid=11685047
Purely as an interested observer, I wonder how P2P lending will perform during a recession?
Anyone have any thoughts about this?