REVIEW
Over the past year I have found the following:
-10% of Harmoney loans are worth investing and match my own personal criteria.
-Any arrears I get are often limited to the poorer grades. If |I get an arrear in better grades they seem to be resolved fast.
-Unsure how they grade them. Often they can be a "B" but have high repayments per month or be for a poor reason. Why does someone need a high interest loan for a 25k car when a 15k car will be satisfactory?
-Loans come online at random times of day, as there is no notification option you would need to constantly login during day to find good deals.
-Good criteria loans go fast ( less than 1 hr) but in saying that the high risk ones also get taken but sit around many hours longer.
-Customer service is hit and miss. Often the person on end of phone can be nice but you don't get a followup with answers you rang for
Thanks for your first year appraisal.
Re: the 25k car instead of a 15k one. It is an issue that goes to the basis of a consumer finance industry However there could be valid reasons - a large family requiring a reliable and efficient vehicle etc. If from Auckland, to find affordable accommodation you may have to live on the periphery away from public transport. Consequently a good car that will not breakdown or overheat when dawdling in traffic jams is increasingly more important.
I see a few at the moment. It really is pretty sloppy. But my experience from UK, is that they are not alone, but they probably are the worst.
Re a secondary market, I think some issues around that involve whether loan has been in arrears, default etc. and what info you pass on, and/or whether you allow a loan to be sold in those circumstances etc. Think about it the other way, if someone was trying to sell you a loan, what would you wonder about. If nothing, then I've got some loans in arrears to sell you.
Of course these may not be Harmoney's reasons.
They do in in the US. A loan which has been in arrears might sell for 80c in the dollar. A high risk loan but with no arrears in the first year might sell for $1.10 (though probably not with Harmoney as they will just refinance!).
Thanks for your first year appraisal.
Re: the 25k car instead of a 15k one. It is an issue that goes to the basis of a consumer finance industry However there could be valid reasons - a large family requiring a reliable and efficient vehicle etc. If from Auckland, to find affordable accommodation you may have to live on the periphery away from public transport. Consequently a good car that will not breakdown or overheat when dawdling in traffic jams is increasingly more important.
If from Auckland a decent size car to sleep in also
Rar just updated.. Cant complain really. I don't see any investment vehicles that will yield this much, even if you take into account the write-offs. RAR might go down as the loans mature, who knows, we'll see.
Offtopic but Lendingcrowd has been good to me so far, too
Rar just updated.. Cant complain really. I don't see any investment vehicles that will yield this much, even if you take into account the write-offs. RAR might go down as the loans mature, who knows, we'll see.
Offtopic but Lendingcrowd has been good to me so far, too
still investing with HM and LC
wow, 16.06 is very high! May I know how many loans you are in and how long? I am now at over 2000 loans after about 12 months and RAR of 13+ with $000 of chargeoffs. With the new fees, I reckon my RAR will be about the same in both HM and LC at best.
700+ loans around 20k+ NZD invested, weighted towards A and B loans. Mostly single notes, but some loans have 4 notes or more. 80% for 60 months 20% for 36 months.
I've gone as high as 17% but it doesnt hover around there for too long. Also invested the bulk before june.
My rar might drop to 12% - 13% after most of the pre-june loans get paid or written off.
2000+ loans with no write-offs is very impressive, in your case. The bulk of my arrears come from E and F loans. What loan grades do you prefer?
700+ loans around 20k+ NZD invested, weighted towards A and B loans. Mostly single notes, but some loans have 4 notes or more. 80% for 60 months 20% for 36 months.
I've gone as high as 17% but it doesnt hover around there for too long. Also invested the bulk before june.
My rar might drop to 12% - 13% after most of the pre-june loans get paid or written off.
2000+ loans with no write-offs is very impressive, in your case. The bulk of my arrears come from E and F loans. What loan grades do you prefer?
Sorry for the miscommunication. I have 47 charge offs - "$000" ($thousands) of charge-off. Mostly in E and F.
Have been in since June 2015. So, far, the charge offs comes between 5 to 9 months of the loans with an average so far of 6.8months. The soonest was 2.1months and the slowest was 11.8months.
When you said June, did you mean June 2016 or June 2015? If you only started this year, then do be prepared for the charge offs to come later.
started late 2015 but, i wouldnt be surprised if the future charge-offs degrade my RAR. I m hoping since the bulk of my loans are less risky A and B, I might not see as much write-offs.
started late 2015 but, i wouldnt be surprised if the future charge-offs degrade my RAR. I m hoping since the bulk of my loans are less risky A and B, I might not see as much write-offs.
with the new fees and the way defaults are going, I reckon my RAR will eventually (maybe after another year) to drop to between 11 to 12% which will be less than my LC's RAR (at the moment above 12%). But then I am in LC for only about 5 months so early days yet to compare the two.
Originally Posted by whitt
However there could be valid reasons - a large family requiring a reliable and efficient vehicle etc. If from Auckland, to find affordable accommodation you may have to live on the periphery away from public transport. Consequently a good car that will not breakdown or overheat when dawdling in traffic jams is increasingly more important.
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