Harmoney

[whitt]

Loan investments $106,075.00.
Charged-off principal 1,951.80.
Have 490 loans paid off ... and 117 in arrears...
with dashboard showing arrears as $229.40 but it's hardly a figure that can be relied upon.
Have 1636 active loans
All loans 2179
Have certainly changed where i take notes.
Am thinking it could well be far too easy for people that have no good intensions of repaying loans, to obtain money through harmoney . ..
But there's still a lot in this mix that are plugging along nicely with regular payments.

Darchie
Thats about a 1.8% default rate based on your charge offs. WHat loan grades do you typically invest in as that is high compared to the predicted figures on Harmoney. Unless of course your portfolio is mostly higher risk grades.

[whitt]

In my opinion the main take-home from the article is to assume that defaults could possibly be more likely than Harmoney predicts. I prefer to keep a large portion of my loans in the A and B borrower grades as I don't particularly enjoy lending money at exorbitant rates to people who are possibly out of their depth.

Interesting information on how lending club investors did during the last recession here: http://www.lendingmemo.com/p2p-lendi...n-performance/

Attachment 8462
An image from this article.

Thanks
That article is gold
My favourite take from it all is this

"What we see is this: during a healthy economic environment the best performing grades are the alphabet in reverse — EDCBA. But when unemployment rises, the grades reverse to read ABCDE. During recessions, the riskier loan grades earn the worst return. During healthier economic times, the riskier loan grades earn the greatest return."

[Darchie]

Darchie
Thats about a 1.8% default rate based on your charge offs. WHat loan grades do you typically invest in as that is high compared to the predicted figures on Harmoney. Unless of course your portfolio is mostly higher risk grades.

tarted investing end sept 2015 ... took a reasonably even spread A through to F ... went through a phase where i was placing 4 or so notes and some A loans up to 20 notes into only a few ... but of coarse they were the ones that continually re-wrote! That didn't work outt well at all! So reverted to the more safer spread of basically one note per loan, and avoided A loans because of the rewrites.... but came the change in fee structure i totally changed investing rules again ... so now mainly B loans with lots of A and pick through and take some C loans ... absolutely no D or E, but do however select one very tight criteria of an F loan but might even drop that as well. So on the reports today i have 2185 total loans made up as:
A - 447
B - 679
C - 429
D - 291
E - 191
F - 148

On dashboard my RAR shows as 14.36%
& gross int received is $10,315.26

[whitt]

I too dropped D,E,F grades several months back.
Looking at my arrears those grades make up 80% of my arrears even though they only represent 12% of my portfolio spread.
The risk is too big which is why I dropped them.

[Investor]

Harmoney has recently added the feature of loan repayment vs income % to the filters in case you guys are unaware

[whitt]

Harmoney has recently added the feature of loan repayment vs income % to the filters in case you guys are unaware

Awesome they must read these forums.. Thats a great new filter option

[whitt]

Has any body else noticed investor loans have dried up in last few days?
I would have assumed as xmas is near that loan volumes could increase. However lately there has been very few.

[Investor]

Has any body else noticed investor loans have dried up in last few days?
I would have assumed as xmas is near that loan volumes could increase. However lately there has been very few.

I have noticed the same I'm sure Christmas will bring momentum.

[RGR367]

There's really no truth in marketing! Harmoney fined $292k for misleading marketing campaign
http://comcom.govt.nz/the-commission...eting-campaign

[Bjauck]

There's really no truth in marketing! Harmoney fined $292k for misleading marketing campaign
http://comcom.govt.nz/the-commission...eting-campaign

They had an over-aggressive marketing campaign aimed at potential borrowers.

Although different circumstances, many lenders may have been encouraged to invest through Harmoney after the interest rates increased, with the service charges at the old lower rate, only to face the steep lender fee charge increase some months later.