Harmoney

[alundracloud]

Thank you Joker- Really appreciate your kind words, and your contributions to the thread!

As Humvee points out in the post above, it's still a very young portfolio- I only really started investing in earnest in March. I'm realistic about the fact that arrears & write-offs will become more frequent as time goes on. I've definitely found myself passing on more and more loans recently- the quality just doesn't seem to be there at the moment. I'm really going to tighten up my criteria (more high B's & C's and only the "best" D's & E's) from now up until Christmas. This is based on some of the comments earlier in the thread about loans taken out in the lead-up to Xmas experiencing a higher rate of defaults.

One thing I would love to see is for Harmoney to allow the retail lenders to have a nibble at the loans that get diverted to the wholesale market. You could still have the wholesale investors taking 75-80%, but why not let the retail lenders fill the first $5k of a $25k loan before getting 'vacuumed up' by the whales? As it stands, us little-guys don't see four out of every five loans Harmoney processes.

[humvee]

I wish Harmoney would include a columns to show the following in their export All of which are missing currently

Date Charged Off
Date Sold
Date Paid Off

The closest I can do to kind of calculate the average charge off age is the following

=[@[Last Payment Date]]-[@Date] filtered for where the status is Charged off and the last payment date is NOT blank

The average of this is 457 Days - which is ALOT older/higher then I was expecting

[Cool Bear]

I wish Harmoney would include a columns to show the following in their export All of which are missing currently

Date Charged Off
Date Sold
Date Paid Off

The closest I can do to kind of calculate the average charge off age is the following

=[@[Last Payment Date]]-[@Date] filtered for where the status is Charged off and the last payment date is NOT blank

The average of this is 457 Days - which is ALOT older/higher then I was expecting

You can get the individual charge off dates for each loan in the report section. It is time consuming but I transcribe the charge off dates for all the loans charged off in each month at the end of the month into a spreedsheet. I will work on a graph later and post it here.

[Cool Bear]

You can get the individual charge off dates for each loan in the report section. It is time consuming but I transcribe the charge off dates for all the loans charged off in each month at the end of the month into a spreedsheet. I will work on a graph later and post it here.

This is my chart as promised. I have been in for just over 39 months (so in my 40th month). The chart shows that most of my charge offs are after 8 months (i.e. in its 9th month). So if you are in for only 1 year and assuming you invested gradually, your average age of your loans is only 6 or 7 months. So your charge off will not be that much yet.

[humvee]

This is my chart as promised. I have been in for just over 39 months (so in my 40th month). The chart shows that most of my charge offs are after 8 months (i.e. in its 9th month). So if you are in for only 1 year and assuming you invested gradually, your average age of your loans is only 6 or 7 months. So your charge off will not be that much yet.

I see the Charge off date in the web page now, Why can they not just include that in their data export ?

Ive got 420 Charged off and sold loans so it would take along time to do all of these manually

[Cool Bear]

I see the Charge off date in the web page now, Why can they not just include that in their data export ?

Ive got 420 Charged off and sold loans so it would take along time to do all of these manually

Yes, investing in Harmoney does take more time than other investments. But alot of it is to get information that is good to know, not all essential.

I used to update my main spreadsheet every week but now only once a month.

More on my 377 defaults in the chart above, the average is 13.26 months from date of loan and that will grow much more the longer I am in. At the moment, I am in for only 39.1 months and my oldest is 36.8 months.

The median is 11.81 months and I expect this to eventually settle at just about 12 months.

[BJ1]

5 charged off out of 262 repaid. Months in for them were 16, 29, 13, 13, 13 - the last one I have been expecting to charge off for 3 months and no payments in that time. Much the same as Cool Bear's portfolio in terms of time in versus losses. I don't worry about losses as it is part of the game, but I do wonder about Harmoney's performance in chasing bad loans - there is no reporting to investors on any audit of their processes and for all we know they could just not bother at all.

[bung5]

Wow I had a loan written off and now I see 100% of it has been recoverd. Great success !

[beacon]

One thing I would love to see is for Harmoney to allow the retail lenders to have a nibble at the loans that get diverted to the wholesale market. You could still have the wholesale investors taking 75-80%, but why not let the retail lenders fill the first $5k of a $25k loan before getting 'vacuumed up' by the whales? As it stands, us little-guys don't see four out of every five loans Harmoney processes.

I'll second that. By doing this, they'll achieve the same wholesale:retail outcomes, while upping the loan volume on both markets and minimizing the rising chatter about poor loan quality in both markets. They have been concerned about this chatter, that is why they had taken the decision to invest their own money as a wholesaler. Upping the volume also makes the sub 10% platform returns more digestible because choice was increased

[beacon]

I'll second that. By doing this, they'll achieve the same wholesale:retail outcomes, while upping the loan volume on both markets and minimizing the rising chatter about poor loan quality in both markets. They have been concerned about this chatter, that is why they had taken the decision to invest their own money as a wholesaler. Upping the volume also makes the sub 10% platform returns more digestible because choice was increased

Obviously, they'll have to dial down the autolender volume from the current 40%+ so the increased choice is available to most lenders in a fair and equitable manner.