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04-10-2016, 12:18 PM
#1561
It seems to me like the main outcome of the introduction of payment "protect" is actually just a mechanism to re-introduce a fee that's taken from lenders each time meaning Harmoney can benefit from loan churn / rewrites again...
Unless I'm missing something?
Last edited by Ketel One; 04-10-2016 at 12:21 PM.
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04-10-2016, 09:10 PM
#1562
Member
Originally Posted by Ketel One
It seems to me like the main outcome of the introduction of payment "protect" is actually just a mechanism to re-introduce a fee that's taken from lenders each time meaning Harmoney can benefit from loan churn / rewrites again...
To be fair, they clip the ticket by taking a fee on the extra interest too. ;-)
Good to see they've done a couple of examples now. Although it would be good to see an example of an early repayment scenario as humvee experienced last week.
One aspect that appears positive, if I understand correctly, is the margin lenders make on the fee. Harmoney take 35%, waivers are expected to take 24% (or is it 21%?) or 33%, leaving 32% or 41% for lenders. So their modelling would need to be fairly bad not to make money. But I'm not sure I trust their modelling.
I find it interesting that this is done as a waiver product rather than an insurance product. I suppose that does mean we take the risk if the modelling is wrong, rather than Harmoney if they provided it as insurance.
How do other lenders intend to treat it from a tax perspective? Presumably for a lending business the net fee would be income and waived payments would be expenses? But for someone not in the business of lending where bad debts can't be expensed (do I remember that correctly?), presumably a waived payment is a bad debt and can't be expensed? How many lenders will ignore the fee, and just put the interest in their tax return?
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05-10-2016, 07:48 AM
#1563
Member
It seems to me that the ratio of 36 to 60 month loans has moved significantly over the last few months.
There are hardly any 36 month loans these days.
A sign of the times and the deteriorating situation most consumers are finding themselves in?
Last edited by Finite; 05-10-2016 at 07:49 AM.
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05-10-2016, 11:35 AM
#1564
Member
I haven't done a thorough analysis, but my mix of 36 and 60 month loans appears to be pretty much the same, perhaps a few more 60 month loans. It could be that the criteria I use just happens to produce that result.
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05-10-2016, 05:15 PM
#1565
Member
The loan terms have definatley changed for me. In the first year I had 80% 36 month loans and now after 2 years they are running 50% and that is using pretty much the same filters.
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06-10-2016, 11:37 AM
#1566
Junior Member
Originally Posted by humvee
Thanks for this, do you happen to have figures for Loan Purpose?
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06-10-2016, 11:44 AM
#1567
Originally Posted by DrewBroadley
Thanks for this, do you happen to have figures for Loan Purpose?
These breakdowns are very informative and at the same time very telling in the statistics!
Be aware investing in Young Single people who are boarding or renting!
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06-10-2016, 03:16 PM
#1568
Member
Originally Posted by DrewBroadley
Thanks for this, do you happen to have figures for Loan Purpose?
I could try and do the - along with redo with newer data - but I doubt I have time for a week or two as its not a very fast/automated process yet
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08-10-2016, 09:44 AM
#1569
Member
I have sorted data from last month into loan purpose. I just convert exported data from text>column in excel then I can sort A-Z etc. any info I want to see.
Attachment 8347
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09-10-2016, 03:05 PM
#1570
Member
Can the Payment Protect filter be turned off? It seems to apply automatically. I'm starting to get to grips with the Auto Lend feature. Will be interesting to see how this pans out. First impressions are that it favours smaller investors and new investors which is all good. I wonder if we are allowed more than one account.
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