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

January 23, 2019

By Bob Judge
Editor, CPR Report

In December, total prepays, including paid excess principal (ACPR), came in at 14.36%, a 26% decrease from last month’s reading of 19.42%.

After correcting for the excess principal being released from the MRF, pool prepays (CCPR) came in at 12.35%, down 28% from the previous reading of 17.24%.

Underlying loan level CPRs (LCPR) came in at 13.61%, also down 28% from the prior level of 18.96%.

As for the largest sector in the market, 20+ years to maturity, the ACPR came in at 15.31%, a decrease of 26% from the previous reading of 20.56%. The CCPR came in at 13.38% versus 18.52% and the LCPR recorded 14.76%, down from 20.38%, previously.

The CDR calculations came out as follows:

Including excess (ACDR) was 1.69%, pool corrected (CCDR) was 1.45% and the loan-level (LCDR) was 1.60%.

As for the CRR, they came is as follows:

ACRR: 12.67%, CCRR: 10.90%, LCRR: 12.01%.

Regarding our maturity buckets, we saw 5 out of 7 buckets fall.

By order of magnitude, decreases were seen in the actual data in 13-16 (-56% to ACPR 7.85%), 16-20 (-53% to ACPR 9.36%), 8-10 (-42% to ACPR 10.38%), 20+ (-26% to ACPR 15.31%) and 10-13 (-23% to ACPR 13.68%).

Increases were seen in Fixed (+267% to ACPR 7.96%) and <8 (+18% to ACPR 11.08%).

As for the CCPR, we saw 5 buckets decrease, with the largest one being: 13-16 (-62% to CCPR 6.49%), 16-20 (-54% to CCPR 8.07%), 8-10 (-42% to CCPR 9.15%), 20+ (-28% to CCPR 13.38%) and 10-13 (-25% to CCPR 11.35%).

Increases were seen in Fixed (+201% to CCPR 6.31%) and <8 (+1% to CCPR 7.51%).

Lastly, for the LCPR, we also witnessed 5 decreases, led by 13-16 (-54% to LCPR 6.96%), 16-20 (-54% to LCPR 9.60%), 8-10 (-42% to LCPR 9.62%), 20+ (-28% to LCPR 14.76%) and 10-13 (-25% to LCPR 12.46%).

Increases were seen in Fixed (+201% to LCPR 6.67%) and <8 (+1% to LCPR 8.41%).

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