CPR Report: Actual SBA 7(a) Prepays Dip Below 15%

By Bob Judge
Editor, CPR Report

In February, total prepays, including paid excess principal (ACPR), came in at 14.37%, a 13% decrease from last month’s reading of 16.38%.

After correcting for the excess principal being released from the MRF, pool prepays (CCPR) came in at 12.60%, down 13% from the previous reading of 14.45%.

Underlying loan level CPRs (LCPR) came in at 13.89%, also down 13% from the prior level of 15.89%.

As for the largest sector in the market, 20+ years to maturity, the ACPR came in at 15.44%, a decrease of 13% from the previous reading of 17.81%. The CCPR came in at 13.87% versus 15.94% and the LCPR recorded 15.29%, down from 17.54%, previously.

The CDR calculations came out as follows:

Including excess (ACDR) was 1.13%, pool corrected (CCDR) was 0.99% and the loan-level (LCDR) was 1.09%.

As for the CRR, they came is as follows:

ACRR: 13.15%, CCRR: 11.61%, LCRR: 12.79%.

Regarding our maturity buckets, we saw 6 out of 7 buckets decrease.

By order of magnitude, decreases were seen in the actual data in Fixed (-84% to ACPR 2.15%), 13-16 (-50% to ACPR 6.95%), 20+ (-13% to ACPR 15.44%), <8 (-12% to ACPR 18.94%), 10-13 (-10% to ACPR 12.80%) and 16-20 (-1% to ACPR 11.94%).

The lone increase was seen in 8-10, which increased by 5% to ACPR 11.50%.

As for the CCPR, we saw 6 buckets decrease, with the largest one being: Fixed (-83% to CCPR 2.11%), 13-16 (-45% to CCPR 6.57%), <8 (-15% to CCPR 15.37%), 20+ (-13% to CCPR 13.87%), 10-13 (-10% to CCPR 10.81%) and 16-20 (-7% to CCPR 10.04%).

The lone increase was seen in 8-10, which increased by 7% to CCPR 10.38%.

Lastly, for the LCPR, we also witnessed 6 decreases, led by Fixed (-83% to LCPR 2.24%), 13-16 (-45% to LCPR 7.03%), <8 (-15% to LCPR 17.19%), 20+ (-13% to LCPR 15.29%), 10-13 (-10% to LCPR 11.90%) and 16-20 (-7% to LCPR 11.95%).

The lone increase was seen in 8-10, which increased by 7% to LCPR 10.87%.

Next month expect another slight decrease in speeds.

Read the Full CPR Report