Attachment 10785
This is the quality the retail lenders are offered - after Harmoney picks the respectable stuff first?:D
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Attachment 10785
This is the quality the retail lenders are offered - after Harmoney picks the respectable stuff first?:D
I have an issue...one's repayments are close to a third of their net income and the other is nearly half. That's not responsible lending and when they can't afford the repayments we lenders will carry the can as the borrowers will have a justifiable out resultant from the irresponsible lending!
Harmoney have made statements which basically state that they are shifting away from the retail P2P. Is there any independent protection oversight for their retail P2P lenders to make sure that Harmoney does not just provide the "dregs" of the loans for the retail P2P lenders, whom it seems are now just a distracting annoyance for Harmoney?
It is up to lenders to winnow the offering Bjauck - anyone taking on the two loans above has a much higher risk profile than I. The loans were filled so either there were a lot of "desperate" Retail lenders or the main wholesale lenders were used to fill the void. Although I am frustrated by the quality of loans on offer to Retail, I am more concerned that Harmoney continues to provide satisfactory management services on those loans that Retail are invested in, and not focus its resources on its own book. After reviewing my loans in arrears over recent months, I feel that Retail can have no guarantee on this matter.
I understand that individual retail investors/lenders make a selection out of those loans that Harmoney makes available to them. However Harmoney may have already winnowed the loans to favour themselves or other corporate sweethearts.
As Harmoney is a mixed P2P/Traditional Finance Company do the retail investors/lenders, who tend to be less sophisticated than the corporate lenders, have any protection from such discrimination arising within Harmoney and of which they may not even be aware?
We are becoming such a small % it would surely hardly be worth taking on crappy loans and sifting them to retail. Clearly there is a lot of competition for P2P exposure so not surprising that the loans that hang around tend to be the dregs that the algorithm missed! I understand the frustrations but if you really don't trust them best stop investing. If I thought they were capable of such cynical behavior I would certainly stop investing. I think Harmoney has been captured by its financiers. Hopefully Lending Crowd can step up and deliver the benefits of the P2P to both borrowers and lenders.
My possibly final observation on the matter - it's only since Harmoney borrowed bank money and started investing in its own right that all the changes to loan quality, quantity and substantially increased rewrites have occurred. If it looks, talks, walks like a duck.............
No...if there is a possibility of discriminatory behaviour favouring corporate lenders over its retail P2P lenders by a P2P licensed operator shouldn’t it indicate that the P2P regulatory environment is inadequate?
Sure that is what happened in the past in NZ - retail investors have felt that the NZ financial environment operates under the law of the jungle. Hence one of the reasons why we end up investing so much in expensive residential real estate instead. Is that a difference between NZ and (other) developed countries?