Harmoney

[777]

Best email HM direct, as far as i can see only year ending 2016 is on their site

Well that is the latest one and is required for Tax Return. 2017 is yet to happen.

[Vermeer_paul]

Best email HM direct, as far as i can see only year ending 2016 is on their site

Thanks Knot, Darchie and 777 for the quick response. 2015/2016 has this information - but the statement 2014/2015 doesn't... :-( So back to HM to get some details ...

Anyway - not too pleased about the lack of information around the write-offs and their new fee structure setup.
They simply could have allowed investors who bought notes from their already owned 'to be rewritten loan' waive the principal fee part as it transfers into the new loan anyway. Many benefits for everyone from such an approach ..
The incentive 'invest more and get a better deal' doesn't stack up as there are simply not enough loans available to invest in, and as per Harmoney's top dog adviser's statement 'diversification' is important to stay within the RAR averaged data.

And for that reason ... 'I'm out' ...

I gave it a 1 year trial with $10k and if things would change again, I might re-consider putting in more. For now, it's solely going to be 'Withdraw funds' from now on.

[Broke]

Lets face it. As retail investors, we are just a bunch bottomfeeders. We provide only 25 percent of the funds that sustains the loan market. If all of us dissapeared tomorrow, HM would still function and be going strong. Institutional lenders can absorb the fees and delinquencies quite easily. From a business perspective: HM doesnt really owe us anything. If you dont like the fees. Then dont invest after mid june.

[Art]

Lets face it. As retail investors, we are just a bunch bottomfeeders. We provide only 25 percent of the funds that sustains the loan market. If all of us dissapeared tomorrow, HM would still function and be going strong. Institutional lenders can absorb the fees and delinquencies quite easily. From a business perspective: HM doesnt really owe us anything. If you dont like the fees. Then dont invest after mid june.

I tend to agree. But what would make it a whole lot easier to continue to invest with Harmoney (albeit with a lower return due to the new fees) would be the option to automate investment. Investing at the moment is very time consuming, having to login frequently to find out what funds you have awaiting investment, then not having suitable investments available meaning you need to keep on checking until you are fully invested. The returns could never be good enough to justify the work involved currently. I hope they really are working on a good fix for this - and before I get bored with the platform.

[Broke]

I tend to agree. But what would make it a whole lot easier to continue to invest with Harmoney (albeit with a lower return due to the new fees) would be the option to automate investment. Investing at the moment is very time consuming, having to login frequently to find out what funds you have awaiting investment, then not having suitable investments available meaning you need to keep on checking until you are fully invested. The returns could never be good enough to justify the work involved currently. I hope they really are working on a good fix for this - and before I get bored with the platform.

better put alotta notes per loan then. Auto invest probably wont be available for a long time

[permutation]

Everyone, don't panic!; I have made a few calculations from my own experience.
Investing for over 12 months now and my Rar is about 14%.

From the account summary page, my principal received repayments in $ terms are about 45% of my total loan investments to date.
I have had over 500 original loans which represent a good cross-section of the loans in the market, I expect the repayment % to continue in the future.

So till now P+I fees are 1.25%. Breaking down the fee components, 17% of the fee was for my interest received and the remaining 83% was for principal.

Hypothetically from June 13 (plus 30 days) if the gross interest payment fee was 20% and I applied it to my current calculation above, the fee increase would be 175%.
From the email it appears that it applies to new loans taken and so the total fee creep of 175% on all my investments would take 2 more years.

Harmoney are excited that they have delivered returns above their target so I guess they want to grab some of this lovely lolly for themselves.
Even after the increase I think my Rar will still be over 11.5%.

[Harvey Specter]

.

So till now P+I fees are 1.25%. Breaking down the fee components, 17% of the fee was for my interest received and the remaining 83% was for principal.

Hypothetically from June 13 (plus 30 days) if the gross interest payment fee was 20% and I applied it to my current calculation above, the fee increase would be 175%.
.

So what percentage of interest has the fee been. It sounds like you've been hit by heaps of rewrites if it's that high.

Fees/interest is about 5% so this will be a 3-4x increase in fees.

[Finite]

Everyone, don't panic!; I have made a few calculations from my own experience.
Investing for over 12 months now and my Rar is about 14%.

From the account summary page, my principal received repayments in $ terms are about 45% of my total loan investments to date.
I have had over 500 original loans which represent a good cross-section of the loans in the market, I expect the repayment % to continue in the future.

So till now P+I fees are 1.25%. Breaking down the fee components, 17% of the fee was for my interest received and the remaining 83% was for principal.

Hypothetically from June 13 (plus 30 days) if the gross interest payment fee was 20% and I applied it to my current calculation above, the fee increase would be 175%.
From the email it appears that it applies to new loans taken and so the total fee creep of 175% on all my investments would take 2 more years.

Harmoney are excited that they have delivered returns above their target so I guess they want to grab some of this lovely lolly for themselves.
Even after the increase I think my Rar will still be over 11.5%.

That seems a good way to look at it.
You seem to have had more repayment/rewrites than me. My principle repayments make up 78% of my payments (I'm about 70% invested in 3 year loans with a RAR of just under 14%). Which leads to a 200% increase in fees for me , from $323 to $975

[permutation]

So what percentage of interest has the fee been. It sounds like you've been hit by heaps of rewrites if it's that high.

Fees/interest is about 5% so this will be a 3-4x increase in fees.

As clearly stated, 17% of the total fees charged was for interest received. i.e. If I paid $100 in total fees P+I, the interest part of the fee was $17.

So the old system of 1.25% for P+I was much cheaper even with lots of rewrites. There were lots of posts here complaining about the fees charged on rewrites, so I guess we get the new structure as a result.

[IntheRearWithTheGear]

time for me to stick my neck out again.

Heres is another spreadsheet with graphs.

The fee increase is different depending on when a person rewrites or what loan types they have. It coule be argued that its more advantageous to us now with the lower risk loans as per the attached graphs (at %15 anyway).