SBA Hot Topic Tuesday – SBA 7(a) Prepays Inch Above 8%

October 28, 2014

By Bob Judge
Editor, CPR Report

CRPMGraph102814In August, prepays returned to the 8% range. This represents the 5th time in 8 months this year that the CPR has been above this benchmark.

As to the cause, both defaults and voluntary prepayments rose by double digits.

Defaults, off of the second lowest reading on record, rose 61%, but still recorded the 4th lowest reading since 1999.

Voluntary prepayments moved back above 6%, after a one month hiatus. This is also the 5th time this year that we have seen voluntaries above this level.

As for the detail, overall prepayments rose 21% to 8.14% from 6.72% in July. In comparing prepayment speeds for the first five months of 2014 to the same period in 2013, we see that this year is running 6.18% ahead of last year, 7.62% versus 7.18%.

Read the CPR Report here.