Interesting to note, I have 4 arrears currently and two are C grade and the other 2 are D grade. This is a bit of a worry if you see my spread as I have very few D grade loans.
Snapshot attached
Attachment 8184
Printable View
Interesting to note, I have 4 arrears currently and two are C grade and the other 2 are D grade. This is a bit of a worry if you see my spread as I have very few D grade loans.
Snapshot attached
Attachment 8184
Yes, I did a quick calculation about 2 weeks ago, tallying up my arrears into before March, March, April and May (based on last payment) and then arbitrarily assigning a percentage to each months total - eg, before March 100%, March, 80% and so on.. I estimated that I will get another $2000+ charge-offs in the next few months.
Over the last week I just witnessed my Arrears grow by $50 to $150. I thought here we go many new Write offs coming.
Then over the last 2 days I had 3 loans repaid early.
Then today I see that the Arrears have gone Down correspondingly!
So the moral ( perhaps ) Growing Arrears does not always equal new Write Offs!
Anyone else witnessed this happening?
http://www.nbr.co.nz/article/harmone...-year-b-192115
Who's got an idea where these came from?. Institutional only maybe? "while performance fees when a lender's portfolio beat an agreed return were $798,000"
Definitely. Harmoney will be managing money from the likes of Heartland. One do not imagine Heartland having a few full time staff to go through the loans available and loan so many notes each to every loan. As in all money (funds) management, there is a always a performance fee if you manage to beat a certain benchmark.
Your arrears also drops when there is a charge-off. It is the age of the arrears that matters more. The total amount of arrears fluctuates greatly - sometimes depending on whether Harmoney process the payments from the borrowers. Often there is a backlog and then a sudden increase in cash available (and reduction in the arrears).
By the way, just is case some here (not you Saamee) are unaware of the distinction. The arrears is just the total amount of payments due from the borrowers that are not paid yet (including interest) not the total principal owing by these delinquent borrowers. That amount (at risk) can be at least 10 times more and if you want to find that out, you have to add up all the outstanding principal owing. Most of you will already know this so just a reminder!:)