Harmoney

[humvee]

Yes, I wonder if there is any investor here who had been in for more than 24 months and with a RAR of 15+%

Im at around 30 months - Signed up end of Jan 2015
and im at 15.69%
rar-2017-10-06.PNG
rargraph-sept2017.jpg

[permutation]

Im at around 30 months - Signed up end of Jan 2015
and im at 15.69%
rar-2017-10-06.PNG
rargraph-sept2017.jpg

Well done Humvee, 15.69% is a great RAR. I can see the good result is because you start from C Grade and upward.

I'm wondering through my experience over a similar time frame , whether your E and F grades will have some negative effect on your RAR through defaults.

Analyzing your 2nd graph, your RAR has been slowly descending, or do you think, you have by now flushed out all the bad E,F's?

[humvee]

Well done Humvee, 15.69% is a great RAR. I can see the good result is because you start from C Grade and upward.

I'm wondering through my experience over a similar time frame , whether your E and F grades will have some negative effect on your RAR through defaults.

Analyzing your 2nd graph, your RAR has been slowly descending, or do you think, you have by now flushed out all the bad E,F's?

A Reduction in E & F loans has generally resulted in a reduction in RAR I have attached my graph from june 2016. Most of the shift in grade balance has just happened rather then anything I have tried to do, my autolend rules include F1-F4 grades but many of these f grades loans would be blocked by other rules like income to repayment ratio, home status, time in job etc, so most F grades are manual lends - and increase in autolend volume has diluted the F grade ratio.





rar-2016-06-19.PNG

[joker]

Im at around 30 months - Signed up end of Jan 2015
and im at 15.69%
rar-2017-10-06.PNG
rargraph-sept2017.jpg

Congratulations, an excellent RAR humvee. Most of your loans will be at scorecard 1.0 interest rates rather than the new (and lower) scorecard 1.5 interest rates. The interest rate reductions particularly affect E and F grade loans. The offset is meant to be less charge-offs so it will be a good acid test to compare in say 2 - 3 years time to see if Harmoney's risk/return profile is correct or in fact lenders have taken a drop in returns as a result of the change from scorecard 1.0 to 1.5 (assuming your investment criteria/loan mix remain the same).

[Cool Bear]

Im at around 30 months - Signed up end of Jan 2015
and im at 15.69%
rar-2017-10-06.PNG
rargraph-sept2017.jpg

Thanks for sharing, Humvee. 15.69% per year is a fantastic return for any investment.

[hardt]

Im at around 30 months - Signed up end of Jan 2015
and im at 15.69%
rar-2017-10-06.PNG
rargraph-sept2017.jpg

Solid return, wonder if it would not be beneficial to stop funding F loans entirely and focus on C-E.

How many loans have been written off?

[myles]

To compare RAR figures with ourselves I wouldnt really take much notice of new investors RAR untill they hit 12 or 18 months which is the timeframe my RAR took to stabilise

Agree. Most RAR graphs appear to peak between 6 and 9 months, and then drop to a long term stable value after 12 - 15 months. The drop appears to be from 1% to 1.5%, but that would vary greatly on the loan grade spread etc.

Because I've put money in quickly and have stopped adding 'new money', I *suspect* I'll see a fairly quick and significant drop when it happens (probably early ~ 10 - 12 months in)?

[Investor]

Interesting loan today

BORROWER COMMENTS

the cash will be used to purchase items for me to do airsoft games and in this better my fitness as that of others and keep my car running in tip top safe condition so to enable me to help others to go to the games and enjoy them as much as I do

[Cool Bear]

I remember reading somewhere that Harmoney intends to adjust the RAR to take into account Payment Protect which increases your Outstanding Principal. If they do, it will bump the RAR by about 1% to 1.5%.

At the moment RAR is dropping with the new lower interest rates taking effect - you can see the drop in the Market Stats from early this month. The cynic in me sees HM as trying to present the platform RAR above 10 or 11% as there is a possibility that it could drop below 10% otherwise.

However, even if they do not add the increase principal, the present RAR already reflects the higher repayments to investors due to the increased o/s principal and the slight increase in interest received due to the higher o/s principal. And over time, the total effects of Payment protect will be captured by the present RAR anyway.

[Saamee]

See Harmoney have updated their Log In Screen ( after you have Logged Off ) today