Harmoney

**Harvey Specter** · 13-04-2016, 02:21 PM

Originally Posted by Bjauck

It sounds like you have hit a rough patch. Is your gross return over the past 12 months getting close to Squirrel's 8.5%?

Not yet but I think I will have more write offs this month than interest - a negative return. Will give an update when they update the RAR.

**Dan@Harmoney** · 13-04-2016, 04:23 PM

Originally Posted by kiwi_on_OE

Inadequate

Always happy to provide more detail. When something like this happens the borrower payment is backdated otherwise there would be interest accrued and owed on the borrower account when this is actually a cancellation in the cooling off period.

In the investors statement we show the cash movement. That means the funds being deployed to the loan on 21/1 and then the cash being returned and principal reduced on 19/3.

This was an edge case and since my last update we have been working automating the fix which should prevent further issues like what was picked up happened here. We have processed over 5 million transactions to date and have had a low number of processing issues. While understandably frustrating be assured our focus is on reducing issues like this happening again to minimise the impact on lenders and borrowers. If you have any further questions I am happy for you to contact me directly at dan@harmoney.co.nz

**Saamee** · 13-04-2016, 04:41 PM

Dan \ Monica,

Do you have an ETA for delivery of the End of Financial Year Tax Certificates yet?

**Dan@Harmoney** · 13-04-2016, 04:51 PM

Originally Posted by Saamee

Dan \ Monica,

Do you have an ETA for delivery of the End of Financial Year Tax Certificates yet?

Hi, yes they will be available mid May.

**Broke** · 13-04-2016, 06:35 PM

Originally Posted by Darchie

Their marketing to borrowers seems to have little or no regard to how it hurts their lenders ..

While true at a glance. At this point, ive just come to trust in the statistics, which i find accurate, hovering at around 11%. If i counted all my defaults and arrears, I'd just get a headache.

**emveha** · 13-04-2016, 06:49 PM

Originally Posted by Harvey Specter

Trying to predict those that wont make a payment is impossible in my view.

I totally agree, which is why I am surprised that Harmoney thinks that repayment history during the first months can be a good predictor of future defaults (except for cases of fraud where the borrower had no intent to repay anything from the get go).

According to the statistics (https://www.harmoney.co.nz/assets/Pe...loss-march.png), default rate remains very close to zero during the first 5 months, then takes off (note the discrepancy with Harmony's model, which doesn't predict this flat start on the curve).

What is certain however is that Harmoney has a vested interest in encouraging rewrites (by reducing the borrower's rate). Investors end up paying fees multiple times and with an underestimated default rate.

**kiwi_on_OE** · 13-04-2016, 10:03 PM

Originally Posted by Dan@Harmoney

Always happy to provide more detail. When something like this happens the borrower payment is backdated otherwise there would be interest accrued and owed on the borrower account when this is actually a cancellation in the cooling off period.

In the investors statement we show the cash movement. That means the funds being deployed to the loan on 21/1 and then the cash being returned and principal reduced on 19/3.

This was an edge case and since my last update we have been working automating the fix which should prevent further issues like what was picked up happened here. We have processed over 5 million transactions to date and have had a low number of processing issues. While understandably frustrating be assured our focus is on reducing issues like this happening again to minimise the impact on lenders and borrowers. If you have any further questions I am happy for you to contact me directly at dan@harmoney.co.nz

You have not yet fully answered the questions I originally asked.

**Jinx** · 13-04-2016, 10:24 PM

Originally Posted by emveha

What is certain however is that Harmoney has a vested interest in encouraging rewrites (by reducing the borrower's rate). Investors end up paying fees multiple times and with an underestimated default rate.

This seems to be a recurring theme.