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Originally Posted by humvee
Congratulations, an excellent RAR humvee. Most of your loans will be at scorecard 1.0 interest rates rather than the new (and lower) scorecard 1.5 interest rates. The interest rate reductions particularly affect E and F grade loans. The offset is meant to be less charge-offs so it will be a good acid test to compare in say 2 - 3 years time to see if Harmoney's risk/return profile is correct or in fact lenders have taken a drop in returns as a result of the change from scorecard 1.0 to 1.5 (assuming your investment criteria/loan mix remain the same).
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