Harmoney

[Saamee]

I've noticed over the past few weeks my charged off amount is creeping down, i.e. it's less than it was previously. Only by 1.5%. Anyone else seen this? Does it mean debt collection has reclaimed some of what was lost?

PP > Harmoney added a new section a month or so back on the main page - see below... maybe answers your questions?

HM.PNG

[Wsp]

http://qz.com/420576/the-words-peopl...-pay-you-back/

Thought some of you might be interested in this

[Wsp]

http://idealog.co.nz/venture/2014/11...nding-platform

This article is also interesting. Harmoney tested their credit models against data from baycorp and got a 60% success rate which they claim is good. I presume this means that 40 percent of the time they got it wrong?!

[PennyPicker]

@Saamee, you're right of course, the difference value is present in the Recoveries field. Of note, the Charged-Off principal field still shows the original amount, not adjusted for the money recovered.

[RMJH]

http://idealog.co.nz/venture/2014/11...nding-platform

This article is also interesting. Harmoney tested their credit models against data from baycorp and got a 60% success rate which they claim is good. I presume this means that 40 percent of the time they got it wrong?!

I expect they were given historical data and used their algorithm to predict which went bad. Given loans go bad due to unforeseen events that would seem a pretty good hit rate. So far default rates have been pretty low so Harmoney seem to be doing a good job in managing risk for us imo.

[777]

@Saamee, you're right of course, the difference value is present in the Recoveries field. Of note, the Charged-Off principal field still shows the original amount, not adjusted for the money recovered.

I am finding that the dashboard does not always update. If I withdraw some funds it then does an update.

[Whippeedo]

Looks like you have got at least some of your wishes - 45 columns of data now! Time to update my spreadsheet to allow the import of this data.

Wow! That's great news. Thanks for letting me know.

Big thanks to the Harmoney team for making this happen. This is exactly what is was asking and hoping for. You have given investors a great tool for loan performance reporting and analysis.

I think lenders will have more confidence and invest more now.

HM you will also benefit by spending less time on the phone and emails with investors asking questions which your new exportable fields give many of the answers to.

I'll be sending a thank you gift to your office.

Thanks again Harmoney. You have made my week!

[Whippeedo]

I think they may have just added this functionality... go to Reports > Investments > Loans > Export...

You will then receive a link by email with a .csv of all the borrower data for your loans - it includes Age Band, Marital Status, Residential Status, Time at Residence, Time at Employer, last payment date, etc (40+ columns..?)

Also, this is my first post, hello!

Edit: Someone beat me to it! oh well...

Hello, welcome, thank you and good luck with your investing.

[Whippeedo]

Strategy Paying Off....... Maybe??

Almost 6 months ago now we opened a HM account in my Wife's name and invested in 40 loans.

The loans were picked on experience from my own HM trading account with 300 loans....

What we did was Invest only in Re-Writes, that were at or near to being maxed limited out.

The theory being: The likely hood of No more rewrites to come....

So how has that theory gone in practice? Well no Write offs, No Arrears ( ever ) and No Rewrites....

Attachment 8260

Thanks for sharing that. Interesting

I think it proves the point I made that data mining analysis of borrowers performance leads to better insights and investment decisions going forward.

Now imagine if all HM investors could get all of HM's loan/borrower/payment data (every individual loan) since HM started, in the newly expanded data export format.

Then we'd really be cooking with gas. The bigger the data set the better I reckon.

Cheers

[Whippeedo]

I need to do some number crunching to get some actual figures but here are some general observations (based on 2000+ loans in all status) I have attached grade and length distribution graph to give some more context

* No loans to home owners have been charged off
* Home owners and living with parents are over represented in canceled loans - Im assuming they both find cheaper finance sources before drawing down (or within cooling off period)
* It does NOT appear home owners are over represented in early repayments(including rewites)


Attachment 8261

Thanks for this humvee, I like your thinking.

It's great to see the power of good data mining analysis in action.

I read something not long ago somewhere saying people with existing mortgages/home owners are the most reliable payers of any other unsecured loans they have too.

So when I am considering to choose a loan/borrower to invest in, if they already have a mortgage/home owner, I don't have to worry so much about if they have low income vs. high monthly payment commitments and all the other variables that I usually assess and consider.

Over the long term I think we'll see the market share of big banks, and maybe traditional finance companies, drop right off and be seriously challenged as the P2P industry develops. P2P could collectively and eventually have a bigger market share than the big banks, like 20 years into the future.