Harmoney

[alistar_mid]

From my 30+ months investment, the average for the last 12 months - early payoff AND principal (exclude interest) repayments - is 6.58%. This is the percentage over the principal outstanding at the beginning of each month. For the last 18 months, I get back between 5.51% to 8.09% of the outstanding principal each month.
As noted above, this figure does not includes interest.
Further Note: My principal outstanding is from my own spreadsheet and not the one on Harmoney's dashboard which includes the effect of Payment Protect.

i correct myself the number harmoney gave me was 3% per month which I forecast with, my actual for the last 12 months has averaged at 5.5%, with 10.43% in December.

[BJ1]

Sorry Harmoney, you are not that far out after all.

I've been investing in Harmoney for 3 years now. I have reviewed my returns very carefully as I manage 3 sub-portfolios within the total invested and I am confident that Harmoney's RAR is accurate provided investors accept two matters: the RAR does not include any money in "cash" awaiting investment and the calculation is rubbish for those few investors with minimal investment who suffer a writeoff in excess of interest earned, within the first 12 months.

[leesal]

Back yet again, this time for an apology. My skills with a calculator are not good. This time done manually as I was somewhat suspicious and worried by my original figures. Sorry for any inconvenience.
Total Loans (all 36m) 88
Full term 8
Still current 3
Invested 6475
Charge off princ. 346
Gross interest 1165
Fees 91
Taxable interest 734
Net return 11,35%

I guess the net return figure is not accurate, as all principle and interest was re-invested over the 3 years.
Still happy even though the charge off's were on the high side
Sorry Harmoney, you are not that far out after all.

I can model a similar scenario (35% early repayment, randomised data, platform 1.0 rates + defaults) and iterate until find a similar result (below). Using the reinvestment assumption gives 12.6% gross pa. Wouldn't swear by it, but gives you an indication. Still pretty good considering the high number of defaults

Starting Capital 6500 Out Principal Y1 2387 Out Principal Y2 866 IRR% 12.64% principal charged 331.15 interest earned 1,170.20 harmoney fee 70.21

[leesal]

One of my arrears....

Last payment amount: $1.42
Payments to date: $0.25

Anyone come across something like this?


Capture.jpg

[beacon]

One of my arrears....

Last payment amount: $1.42
Payments to date: $0.25

Anyone come across something like this?


Capture.jpg

Very interesting, Leesal. On top of slipping investor margins at Harmoney and their sloppy track record of returning investor phone calls, looks like they are bad at accounting and book-keeping too. Here's an interesting case:

Principal Loaned : $50 (18.12.17)
Principal Received : $49 (03.01.18)
Status: Paid-Off

[beacon]

2018 0205 Harmoney Paid Off status with less than principal paid.jpg

Here is a jpg of the above case.

[leesal]

2018 0205 Harmoney Paid Off status with less than principal paid.jpg

Here is a jpg of the above case.

I've got that loan too.

Its sloppy alright. But fortunately in this case we're not getting short changed. For Payment protect transactions, HM have a funny way of showing the early repayment.

[beacon]

Its sloppy alright. ..HM have a funny way of showing the early repayment.

Funny alright, although it's only them laughing...

Another funny thing they do is report $100 Gross Interest received one day, and $98 Gross Interest received the next day on the same account.

[icyfire]

The platform RAR has now dipped below 11% for the first time and it's now sitting at 10.89%.
Is the shine coming off p2p lending?

[myles]

Nope but shares might be in for a bumpy ride