That has been my concern all along.
Quote:
Originally Posted by
Finite
The shortage of loans is getting me concerned - the product does not really seem to be taking off with borrowers.
Harmoney will also be concerned and be considering dropping their credit criteria to let more lower ranked borrowers in.
This is the problem with this whole model - it's not Harmoneys money at stake.
Fortunately I have only had 2 loans default both of which I had only contributed $25 each thank goodness. But one of the loans was for $25675 which means a lot of investors got stung. It was a 'D2' category loan but I would have though they would not have lent such a large amount to a D2 category borrower. I have another one which is a A1 category loan where I have contributed $500. The borrower appears to have only paid 2 installments since September so waiting to take a big hit on this one.