SBA Hot Topic Tuesday — CPR Report: Actual SBA 7(a) Prepays Remain Low

By Bob Judge
Editor, CPR Report

In March, total prepays, including paid excess principal (ACPR), came in at 7.13%, a 27% decrease from last month’s reading of 9.80%.

After correcting for the excess principal being released from the MRF, pool prepays (CCPR) came in at 6.43%, down 26% from the previous reading of 8.74%.

Underlying loan level CPRs (LCPR) came in at 6.88%, down 26% from the prior level of 9.35%.

As for the largest sector in the market, 20+ years to maturity, the ACPR came in at 6.63%, a decrease of 33% from the previous reading of 9.82%. The CCPR came in at 6.08% versus 8.85% and the LCPR recorded 6.53%, down from 9.50%, previously.

The CDR calculations came out as follows:

Including excess (ACDR) was 1.10%, pool corrected (CCDR) was 0.99% and the loan-level (LCDR) was 1.06%.

As for the CRR, they came is as follows:
ACRR: 6.03%, CCRR: 5.44%, LCRR: 5.82%.

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

By order of magnitude, decreases were seen in the actual data in 13-16 (-63% to ACPR 4.23%), 20+ (-33% to ACPR 6.63%), Fixed (-28% to ACPR 9.82%), 8-10 (-21% to ACPR 6.86%) and 10-13 (-18% to ACPR 8.05%).

Increases were seen in: 16-20 (+42% to ACPR 9.95%) and <8 (+39% to ACPR 11.80%).

As for the CCPR, decreases were seen in: 13-16 (-60% to CCPR 4.28%), 20+ (-31% to CCPR 6.08%), Fixed (-25% to CCPR 9.73%), 8-10 (-23% to CCPR 6.45%) and 10-13 (-18% to CCPR 7.00%).

Increases were seen in: 16-20 (+55% to CCPR 8.03%) and <8 (+41% to CCPR 10.50%).

Lastly, for the LCPR, we have: 13-16 (-60% to LCPR 4.40%), 20+ (-31% to LCPR 6.53%), Fixed (-25% to LCPR 10.00%), 8-10 (-23% to LCPR 6.44%) and 10-13 (-18% to LCPR 7.53%).

Increases were seen in: 16-20 (+55% to LCPR 9.41%) and <8 (+41% to LCPR 11.00%).

After a few months of +10% prepays, we are now trending back down to the mid-single digits. For how long, we shall see.

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