CPR Report: Actual SBA 7(a) Prepays Go Back Above 16%

CPR Report: Actual SBA 7(a) Prepays Go Back Above 16%

By Bob Judge
Editor, CPR Report

In April, total prepays, including paid excess principal (ACPR), came in at 16.41%, a 17% increase from last month’s reading of 14.07%.

After correcting for the excess principal being released from the MRF, pool prepays (CCPR) came in at 14.97%, up 18% from the previous reading of 12.67%.

Underlying loan level CPRs (LCPR) came in at 16.24%, also up 18% from the prior level of 13.77%.

As for the largest sector in the market, 20+ years to maturity, the ACPR came in at 15.94%, an increase of 8% from the previous reading of 14.69%. The CCPR came in at 14.77% versus 13.27% and the LCPR recorded 16.06%, up from 14.45%, previously.

The CDR calculations came out as follows:

Including excess (ACDR) was 3.46%, pool corrected (CCDR) was 3.15% and the loan-level (LCDR) was 3.42%.

As for the CRR, they came is as follows:

ACRR: 12.95%, CCRR: 11.82%, LCRR: 12.82%.

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

By order of magnitude, increases were seen in the actual data in 13-16 (+178% to ACPR 11.51%), 10-13 (+38% to ACPR 18.48%), Fixed (+12% to ACPR 4.59%), 20+ (+8% to ACPR 15.94%), <8 (+7% to ACPR 18.78%) and 16-20 (+1% to ACPR 20.30%). The lone decrease was seen in 8-10 (-2% to ACPR 8.99%. As for the CCPR, we also saw 6 buckets increase, with the largest one being: 13-16 (+202% to CCPR 10.41%), 10-13 (+37% to CCPR 16.30%), <8 (+13% to CCPR 17.13%), 20+ (+11% to CCPR 14.77%), Fixed (+9% to CCPR 4.55%) and 16-20 (+1% to CCPR 18.87%). Decreases were seen only in 8-10 (-3% to 8.42%). Lastly, for the LCPR, we also witnessed 6 increases, led by 13-16 (+201% to LCPR 10.96%), 10-13 (+37% to LCPR 17.62%), <8 (+13% to LCPR 18.74%), 20+ (+11% to LCPR 16.06%), Fixed (+9% to LCPR 4.78%) and 16-20 (+1% to LCPR 22.00%). Decreases were seen also in 8-10 (=3% to 8.63%). Next month expect a push back up toward 18%, a level we haven’t seen since last November.