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CPR Report: Actual SBA 7(a) Prepays Decrease

July 23, 2020

By Bob Judge
Editor, CPR Report

CPR Report: Actual SBA 7(a) Prepays Decrease

In June, total prepays, including paid excess principal (ACPR), came in at 5.13%, a 58% decrease from last month’s reading of 12.13%.

After correcting for the excess principal being released from the MRF, pool prepays (CCPR) came in at 4.46%, down 60% from the previous reading of 11.13%.

Underlying loan level CPRs (LCPR) came in at 4.85%, down 60% from the prior level of 12.09%.

As for the largest sector in the market, 20+ years to maturity, the ACPR came in at 5.09%, a decrease of 37% from the previous reading of 11.96%. The CCPR came in at 4.46% versus 11.11% and the LCPR recorded 4.85%, down from 12.10%, previously.

The CDR calculations came out as follows:

Including excess (ACDR) was 1.21%, pool corrected (CCDR) was 1.05% and the loan-level (LCDR) was 1.15%.

As for the CRR, they came is as follows:

ACRR: 3.91%, CCRR: 3.40%, LCRR: 3.71%. Regarding our maturity buckets, we saw all 7 buckets decrease.

By order of magnitude, decreases were seen in the actual data in 16-20 (-72% to ACPR 5.15%), 10-13 (-61% to ACPR 4.77%), 8-10 (-59% to ACPR 4.06%), 20+ (-57% to ACPR 5.09%), <8 (-56% to ACPR 6.36%), Fixed (-37% to ACPR 11.50%) and 13-16 (-10% to ACPR 10.76%). As for the CCPR, decreases were seen in: 16-20 (-76% to CCPR 3.96%), <8 (-63% to CCPR 4.74%), 10-13 (-63% to CCPR 4.00%), 20+ (-60% to CCPR 4.46%), 8-10 (-59% to CCPR 3.86%), Fixed (-38% to CCPR 10.97%) and 13-16 (-9% to CCPR 10.26%). Lastly, for the LCPR, we have: 16-20 (-76% to LCPR 4.72%), <8 (-63% to LCPR 5.04%), 10-13 (-63% to LCPR 4.37%), 20+ (-60% to LCPR 4.87%), 8-10 -59% to LCPR 3.91%), Fixed (-38% to LCPR 11.46%) and 13-16 (-9% to LCPR 10.65%).

And so begins the full impact of the virus on prepayment speeds.

Expect more of the same in the months to come.

Download the June CPR Report

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