Harmoney

[icyfire]

Also, people just starting out investing in Harmoney loans need to be aware that most borrowers on Harmoney have probably been turned down by the banks as deemed too risky. Borrowers who have a mortgage would get a much lower interest rate loan from the bank. Even the borrowers who don't have a mortgage would get a personal loan at a much lower interest rate from the banks.
Harmoney's risk grades are also often questionable. This week there was a B3 loan where the borrower was asking for $50k with a monthly income of $3,900 and monthly loan payment over $1k. That loan should've been a much higher risk grade.

[RMJH]

Also, people just starting out investing in Harmoney loans need to be aware that most borrowers on Harmoney have probably been turned down by the banks as deemed too risky. Borrowers who have a mortgage would get a much lower interest rate loan from the bank. Even the borrowers who don't have a mortgage would get a personal loan at a much lower interest rate from the banks.
Harmoney's risk grades are also often questionable. This week there was a B3 loan where the borrower was asking for $50k with a monthly income of $3,900 and monthly loan payment over $1k. That loan should've been a much higher risk grade.

So why do institutional investors (Like Heartland Bank and TSB) take the majority of Harmoney listings? And, no, they don't get to cherry pick.

[myles]

Start something different: Post your best borrower comment:

Life is definitely like a box of chocolates you never know what your gonna get - the latest pick was some new shocks for my car. Am not wanting to fly out of the window in this cold so thank you in advance for helping me

[icyfire]

So why do institutional investors (Like Heartland Bank and TSB) take the majority of Harmoney listings? And, no, they don't get to cherry pick.

Why did the banks around the world loan money to anyone with a pulse before the GFC and lost $4.1 trillion? Greed and fear of missing out.

[alistar_mid]

Have you guys look at your arrears, and the loans that represent them, and how much of a $ this is of your overall portfolio and the value of it?

ie the % of your portfolio at risk? - obviously most of these loans in arrears will get back on track, but some will blow up into full defaults.

My % has been going up and up over time (I guess this is expected?) I am 11 months in now and its doubled in the last 5 months (from 3.5% to 7%), representing about $7k of loans. It is a concern because I am guessing its a lead indicator of defaults...

For anyone that has a mature portfolio, what does this % look like?

[icyfire]

I've been in 12 months. 3.21% of my active portfolio is in Arrears

[BJ1]

I've been in 27 months. The outstanding principal of loans recorded by Harmoney as in arrears is 2.4% of total outstanding - it hasn't really altered in 12 months. BUT, of more concern is that I have 3 (out of 175) loans which are well overdue for a payment and they are not showing as in arrears. I had a write off this month on a loan which had not made a payment since the February payment was due and it never appeared in the arrears list. I suggest you aren't seeing everything you should. Easy enough to check by spreadsheet comparison of payments made against payments expected.

[alistar_mid]

I've been in 27 months. The outstanding principal of loans recorded by Harmoney as in arrears is 2.4% of total outstanding - it hasn't really altered in 12 months. BUT, of more concern is that I have 3 loans which are well overdue for a payment and they are not showing as in arrears. I had a write off this month on a loan which had not made a payment since the February payment was due and it never appeared in the arrears list. I suggest you aren't seeing everything you should. Easy enough to check by spreadsheet comparison of payments made against payments expected.

I got triple the % you have (7.7% compared to 2.4%) and you recon I still might have stuff thats not showing up? - ie loans that are in arrears but are not flagged as being so..

And I go by the spreadsheet download, its basically a sumif on outstanding loan value by "arrears" type divided by total principle outstanding.

To further clarify, arrears in total is only $271, but the value of the loans that that represents (principle outstanding) is $7k. When my overall outstanding is $91k, then thats 7.7% so its a worry

[RMJH]

Have you guys look at your arrears, and the loans that represent them, and how much of a $ this is of your overall portfolio and the value of it?

ie the % of your portfolio at risk? - obviously most of these loans in arrears will get back on track, but some will blow up into full defaults.

My % has been going up and up over time (I guess this is expected?) I am 11 months in now and its doubled in the last 5 months (from 3.5% to 7%), representing about $7k of loans. It is a concern because I am guessing its a lead indicator of defaults...

For anyone that has a mature portfolio, what does this % look like?

I have roughly equal weighting of A to D and have built up a portfolio since March 2015. As it stands 4.4% of loans are in arrears and 0.2% in Hardship. Often new loans go into arrears for the first payment and also there are those loans in arrears but with very little owing.

[Cool Bear]

I have about 6000 loans and in for about 24+months. Arrears is currently 7.18% (total principal at risk vs total amount o/s). Mine was higher risk including E and F. RAR still above 14%. Would be better going with RMJH's risk spread.