Just as a matter of interest, has anyone had a full repayment since 20 March, or seen any loans on the marketplace?
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Just as a matter of interest, has anyone had a full repayment since 20 March, or seen any loans on the marketplace?
Well that's the end of HM P2P.... Just got the offical reminder Email.
What happens to THIS thread now????
Brutal drop in the stock market? Hardly, the NZ50 is only back to approx where it was about a year ago. You ain't seen nothing yet. We have been in an asset bubble for a few years now, something was going to prick it although I must admit I didn't see this coming, I was expecting a repeat of the GFC. Some companies will come out the other end albeit with much lower valuations e.g. the industrial and office property companies, the freight companies ,the ports and the utility companies. IMO anything connected to tourism such Air New Zealand, Auckland Airport, Tourism Holdings and Sky City will not survive. Due to their national importance AIA and AIR will be nationalised but what the shareholders will be left with is anybody's guess, that's the risk of being a part owner of a business.
As far as Harmoney is concerned they will want to clear the decks asap so it will be convenient to write off or sell delinquent loans, it is already happening. They don't have to worry about their investors base anymore.
I hope I'm not being to gloomy but as a survivor of the 1972/3 oil shocks, the 1987 sharemarket crash, the 2000 tech crash and the 2008 GFC I think this one will be worse than any of them. I hope I am wrong.
Happy Days
The NZX50 index includes gross dividends. So capital values have fallen by about 4% in the year. Meanwhile house prices actually increased in the March quarter and by about 6% in the past year! As it is so much easier to leverage your purchase of housing, prices have been inflated based on borrowers ability to repay, from their income, capital and interest repayments. House prices still have yet to reflect the realities of the drastic Covid response measures and their effects on incomes.
Who knows what the effect of quantitative easing this time round will be. The money sloshing around will have to find a home somewhere?
Hi all,
Has anyone else experienced a sharp increase in charge-offs since April 1st (closure of Retail lending)?
My charge offs are now 3 times higher than March 31st.
Given the collection process timeline I don't believe this would be a reflection of Covid-19 related defaults.
[QUOTE=Skene;807290]Hi all,
Has anyone else experienced a sharp increase in charge-offs since April 1st (closure of Retail lending)?
Personally....... NO..... ( Not as Yet!! )
[QUOTE=Saamee;807294]Cant say I have seen an increase in charge offs but there are a lot in the wings if one looks closely at the arrears. Also, as I have been in full withdrawal for a year or more I have noticed a slow down in repayments since the last week of March. I guess this is to be expected.
No charge off or arrears change for me yet - but my full repayments (from Harmoney refinancing ?) appear to have slowed - but that could be a function of my total lending now being down from $121k at peak to under $40k now. How quickly the world changes - I've gone from being frustrated that Harmoney were "stealing" all my loans to hoping they hurry up and "steal" the rest.
The refinancing has definitely slowed (my estimate is down 80%) but I expect that start creeping back up. I also haven't noticed increased in arrears yet, but expect that to increase significantly soon.
I'm wondering if Harmoney will drop interest rates and do a big refinance campaign? ( that's assuming they can still get the wholesale funding )
I was just thinking today, at the stroke of a pen, HARMONEY decided no more loans for the little guys!!.
Now i feel, they are just another finance company.
Under the P2P rules they say... "We cannot purchase any investor loans under the P2P licence.!!
Well Harmoney, I believe that you are no longer a P2P lender and I want my $$MONEY back!!!
What exactly is your complaint? Harmoney have provided plenty of detail of the changes that they have made. All existing loans were taken out as P2P, that hasn't changed?
Well Myles, I feel it is no longer a P2P lender, I want my money back!!
In my view Harmoney was never a P2P lender, but a facilitator of such activity. It found that it couldn't get the market big enough to make money from being the facilitator/administrator so found the only way to remain viable and keep control of everything was to become a lender in its own right. That it did so by in part refinancing the real P2P lenders was disappointing to me but as long as Harmoney continues to honestly and effectively manage the remaining investor loans, then I don't see how such investors have a valid complaint about matters. As previously said on this page, the Covid world change has resulted in my feelings changing but that is not Harmoney's fault.
I'm with you on this, BJ1.
It is disappointing that HM has ceased to be a P2P lender, but so far, they haven't failed to behave as what we've signed for. Of course, time will tell, and we'll be monitoring closely how they manage the investors' remaining investments, but so far, no complaints.
So far I've seen minimal increases in charge-offs/arrears. I expect the worst is yet to come, but so far, so good. I haven't seen any communication from Harmoney on their hardship policies, though. I'd much rather they (for example) suspend repayments for a few months than to chuck everything to collections, both for myself and for the sake of the borrowers.