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CPR Report: Actual SBA 7(a) Prepays Go Above 17%

July 15, 2019

By Bob Judge
Editor, CPR Report

CPR Report: Actual SBA 7(a) Prepays Go Above 17%

In May, total prepays, including paid excess principal (ACPR), came in at 17.68%, an 8% increase from last month’s reading of 16.41%.

After correcting for the excess principal being released from the MRF, pool prepays (CCPR) came in at 16.07%, up 7% from the previous reading of 14.97%.

Underlying loan level CPRs (LCPR) came in at 17.41%, also up 7% from the prior level of 16.24%.

As for the largest sector in the market, 20+ years to maturity, the ACPR came in at 17.91%, an increase of 12% from the previous reading of 15.94%. The CCPR came in at 16.63% versus 14.77% and the LCPR recorded 18.06%, up from 16.06%, previously.

The CDR calculations came out as follows:

Including excess (ACDR) was 3.43%, pool corrected (CCDR) was 3.11% and the loan-level (LCDR) was 3.37%.

As for the CRR, they came is as follows:

ACRR: 14.25%, CCRR: 12.95%, LCRR: 14.03%.

Regarding our maturity buckets, we saw 4 out of 7 buckets increase.

By order of magnitude, increases were seen in the actual data in Fixed (+224% to ACPR 14.91%), 8-10 (+30% to ACPR 11.72%), 13-16 (+17% to ACPR 13.47%) and 20+ (+12% to ACPR 17.91%).

Decreases were seen in: <8 (-6% to ACPR 17.62%), 16-20 (-4% to ACPR 19.58%) and 10-13 (-2% to ACPR 18.07%).

As for the CCPR, we also saw 4 buckets increase, with the largest one being: Fixed (+232% to CCPR 15.12%), 8-10 (+29% to CCPR 10.84%), 13-16 (+23% to CCPR 12.76%) and 20+ (+13% to CCPR 16.63%).

Decreases included: <8 (-13% to CCPR 14.85%), 16-20 (-27% to CCPR 13.75%) and 10-13 (-2% to CCPR 15.92%).

Lastly, for the LCPR, we also witnessed 4 increases, led by Fixed (+231% to LCPR 15.84%), 8-10 (+28% to LCPR 11.09%), 13-16 (+22% to LCPR 13.40%) and 20+ (+12% to LCPR 18.06%).

Decreases by magnitude were seen in: 16-20 (-27% to LCPR 16.15%), <8 (-13% to LCPR 16.26%) and 10-13 (-2% to LCPR 17.20%).

Expect more of the same over the next few months as prepays remain above 17%.

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