Harmoney

[Whippeedo]

Hi, how many loans repaid early?

[Whippeedo]

Hi, how many loans repaid early?

Thanks for that Halebop.
Like you I started investing around 14 months ago after doing a lot of reading on P2P overseas. I have a strong bias to D and E grade loans. Don't do A and very few B. I am happy to take 60 month loans as indications from overseas suggest that these have a similar default profile to 36 month loans. Also in the long term should reduce the amount of work involved in reinvesting. I generally take 1 or 2 units although initially I took up to 5 as I found it difficult to build the portfolio quickly enough in $25 and $50 lots.
my stats;
$75,000 invested.
1450 loans made
124 loans in arrears,
16 written off.
Annualised 20.6% gross - excluding the effect of compounding interest as I reinvest everything.

[Whippeedo]

Hi, how many loans repaid early?

7 months investing with Harmoney. Initially started with larger loan amounts, but have since moved to $25 per loan. My median investment is currently $25, with an average of around $36.

Slowly building up investment over time, with approx $3000 invested at the moment. A mix of loan grades from A to D, with a weighted average return after fees but before tax of 14.6 percent. A tad risk adverse, so no E or F grade loans.

Currently 60% of investment is for 36 month loans. Would like to increase this proportion, but have trouble finding loans with the grades I'm wanting for this term. Currently 86 loans with one in arrears (didn't make the first repayment!). Overall pretty happy, but need to see how repayments are affected by an economic slowdown. Would be interested in the ability to trade on a secondary market.

[Whippeedo]

Hi, 2 write offs from how many loans do you have in total?

Just Had my 2nd write off - Details I have below

LOAN ID: LAI-00015523

RECEIVED PAYMENTS

[Whippeedo]

But early repayments do attract the 1.25% fee to investors. This will be the death of Harmoney if their policy is not changed.

If you are trying to reconcile I think you need to back out the value of early repayments. These don't attract the fee.

When I had a small volume of loans the fees reconciled so I didn't feel any concern.

However the data extra function doesn't deliver the required features to answer this question with 100% accuracy. You could impute it by discounting the interest received on paid off loans to subsequently model what the early repayment of principal was (this won't quite be accurate because the borrower may have also been late on some repayments)... if that doesn't sound like fun Harmoney probably need to strengthen their feature-set; either via the pre-canned reporting or a richer dataset in the extract.

[Whippeedo]

I have ~500 Loans The oldest being issued in Feb 2015.

So far ~1% have been written off and ~10% are in arrears

Strangely I had one loan that was written off when the most recent payment was less then 3 weeks ago. I have asked harmoney to explain why this would happen.

Wow, you must be happy with that write off result. Are your 10% arrears in the higher risk grades disproportionately? What return have you achieved overall?

[Whippeedo]

Harmoney has some very serious structural conflicts of interest due to various policy it has created/adopted.

Some policy shouldn't be allowed and will end up in court and trail-by-media sooner than later.

I believe the Harmoney will not survive unless it adapts to a win-win-win approach with its various policy. Re-writes being the worst issue atm.

Investors will eventually boycott the funding of re-written loans and/or a competitor will emerge which does all the good things Harmoney does, but without the bad things like double dipping on fees charged to its investors and manipulating borrowers for more fees and debt.

A new crowd funded P2P operator might be able look after the interest of investors and borrowers better rather than a corporate backed P2P like Harmoney.

Any thoughts on that? If anyone seconds this idea let me know and we'll get going on this new project.

Unfortunately the current competition to Harmoney does not offer High enough returns. If the competition did it would attract huge amounts of investment and close down Harmoney rather quickly. Harmony loans should be secured like other P2P's do. No fee on early repayments. Maybe no early repayments should be allowed or have a penalty early payment fee to the borrower for cutting the loan short.

Imagine if there was a socially and ethically responsible P2P lending operator in NZ which actually delivered the returns it advertised without a one sided penalty to the investor if the borrower takes up the offer from harmoney to get some more debt.

Harmoney has done a great job in some ways, but there is room and serious need for improvement.

Anyone Else Ever Considered that Just Maybe Harmoney Uses a Few "Fakes Loans"??

I have now invested in just over 200 individual loans with Harmoney.

Just this week 3 have been repaid just a little after 1 Month of being instigated.

I recall back when investing around that time that on a particular Saturday many many of the loans had almost the same borrower criteria ( like a copy and past action! ) same words, same amount, same term length, same eranings maybe just a different south island location!

Just wondering? Harmoney would most likely earn more through the service fee than paying out 1 months inetrest??

[humvee]

Why did my last post appear then disappear? Lucky i still have most of it in copy paste....
OTE=Whippeedo;608138]Hi, 2 write offs from how many loans do you have in total?[/QUOTE]
Im only posting from phone so its hard to get exact stats at the moment but that was quite an old post. I now have 18 loans written off.
And 111 loans in arrears. Along with 108 loans repaid early. Total is over 1000

RAR as at 23/01/16 was just over 18%.
A new RAR should be published 23rd of this month

If you want ill post my grade distribution graph next time im posting from a computer.

[Whippeedo]

Yes I would love to know how the institutional investor side of things works

You guys seem to get all sorts of borrowers. Does make you wonder how they get through the 'screening' process doesn't it

There are several large funders who have put tens of millions to lend out. Wonder if they get the first dibs of all the good ones and leave the likes of you with the 'less attractive' ones. Hard to imagine that Heartland for instance had $25 invested in the cases you have raised.

Just a cynical view and pure speculation

[Whippeedo]

It is kinda fun if we weren't get screwed on early repayment. That's classic corp greed right there