Harmoney

[Darchie]

I know I got 9 Early repayments/Rewrites on Saturday.

And over the weekend Early Repayments + Principal + Interest was greater then I could find new loans to invest in.

Based on a reply to an email I received - I believe they most likely had people in the office on Saturday at least

Many months ago i was told by Harmoney that a person comes in over weekend & manually attends to various payments ... releases those that've been held up ... general tidy up, so forth .. hence the activity on Sunday
Yes seems to be a big drop in loans being listed up over weekends ...
& total agree basically interest & principal seems to be paid out to us mainly Thursday to Saturday

[humvee]

Can some one check my maths on this - because to me it does not add up. Issued over 1 year ago the interest alone should have been $7+ How is it so little in arrears - with so little paid?

Attachment 8046

The harmoney staff I have been corresponding with are very adamant that the numbers shown on this loan are correct. That the interest rate has not been discounted and that the borrower is paying the 27.18% interest shown. No matter how add it up I cannot come up with anything even close to what is shown.

Before I send them a 7th email in the chain about it - can anyone explain what I am getting wrong or how the harmoney numbers shown are correct

[Saamee]

The harmoney staff I have been corresponding with are very adamant that the numbers shown on this loan are correct. That the interest rate has not been discounted and that the borrower is paying the 27.18% interest shown. No matter how add it up I cannot come up with anything even close to what is shown.

Before I send them a 7th email in the chain about it - can anyone explain what I am getting wrong or how the harmoney numbers shown are correct

Humvee, In my humble opinion - It IS wrong. You should have received at least ( I make ) $6.79 Interest over the last 12 months PLUS Capital share...

[Darchie]

The harmoney staff I have been corresponding with are very adamant that the numbers shown on this loan are correct. That the interest rate has not been discounted and that the borrower is paying the 27.18% interest shown. No matter how add it up I cannot come up with anything even close to what is shown.

Before I send them a 7th email in the chain about it - can anyone explain what I am getting wrong or how the harmoney numbers shown are correct

I reckon they are wrong ... tell em to clean their glass'

I may be being quite basic with my calculation but. To me it's more like $4.76 arrears like:
9.3.15 to 9.3.16 is a year
25.00 x 27.18% = 6.795
Then 30 april & another 23days in this month
25.00 x 27.18% ÷ 365 x 53 days = .9866
6.795 plus .9866 = $7.78 - $3.02 interest already paid is $4.76 interest owing & $25.00 principal owing ...

[Darchie]

If your subject had paid off some principal then it would've made the calculation very different. ..

[Monica@Harmoney]

Hi Monica

Has there been any progress on this or what is the likely timeframe?

Yes - it's in the pipeline and going through testing. Will keep you informed as I can. Monica

[Saamee]

RAR's just been updated ....

[JohnMac]

The harmoney staff I have been corresponding with are very adamant that the numbers shown on this loan are correct. That the interest rate has not been discounted and that the borrower is paying the 27.18% interest shown. No matter how add it up I cannot come up with anything even close to what is shown.

Before I send them a 7th email in the chain about it - can anyone explain what I am getting wrong or how the harmoney numbers shown are correct

My calculation is after 14 months - you should receive $6.75 in interest if the borrower paid monthly and at the beginning of the period and not the end. The reality is that the borrower may have paid weekly and not monthly or any other erratic schedule this will make a difference. The above calculation was done with the traditional Excel Cumipmt calculation. Unfortunately Harmoney do not use the standard method of calculating interest. They use the Secant method (Google it) which they maintain is more suitable to erratic payment and or early payments. In all my calculations this method always resulted in lower interest being earned on all my loans that I tested. I spent a lot of time trying to get my head around the secant method without success. I did lodge an inquiry with FSCL and after much investigation they came back and said that although not common many financial institutions use this method and it is quiet acceptable.

[humvee]

My calculation is after 14 months - you should receive $6.75 in interest if the borrower paid monthly and at the beginning of the period and not the end. The reality is that the borrower may have paid weekly and not monthly or any other erratic schedule this will make a difference. The above calculation was done with the traditional Excel Cumipmt calculation. Unfortunately Harmoney do not use the standard method of calculating interest. They use the Secant method (Google it) which they maintain is more suitable to erratic payment and or early payments. In all my calculations this method always resulted in lower interest being earned on all my loans that I tested. I spent a lot of time trying to get my head around the secant method without success. I did lodge an inquiry with FSCL and after much investigation they came back and said that although not common many financial institutions use this method and it is quiet acceptable.

I finally received an answer that makes sense - and mine and pretty much every one elses maths here was approx correct.

"I just spoke to our Data Scientist and he says that the reason this loan is not adding up properly is because the borrower successfully filed for "Unforeseen Hardship" so we've amended their contract to allow them to catch up on their payments.

Currently, we do not have any field to identify these loans on the dashboard although we're planning on it in the near future.


I'll speak to our Product Manager, Dan York, about getting a field included on the dashboard so this is more apparent to investors which loans have successfully filed for hardship."

[JohnMac]

I finally received an answer that makes sense - and mine and pretty much every one elses maths here was approx correct.

"I just spoke to our Data Scientist and he says that the reason this loan is not adding up properly is because the borrower successfully filed for "Unforeseen Hardship" so we've amended their contract to allow them to catch up on their payments.

Currently, we do not have any field to identify these loans on the dashboard although we're planning on it in the near future.


I'll speak to our Product Manager, Dan York, about getting a field included on the dashboard so this is more apparent to investors which loans have successfully filed for hardship."

I presume from the attachment he was only $1.73 in arrears after 14 months therefore you would have only been short of the interest that you should have received on the $1.73. That would not have brought it up to anywhere near to $6.75? Whatever arrangement Harmoney has made with the borrower should not impact on what you should be earning. Unless there is something else that I am not aware of.