The number of pending foreclosures nationwide, the "foreclosure inventory," reached a milestone in February.  For the first time since December 2007 it has dipped slightly below 800,000.  The total, which still rounds up to 800,000, fell 15,000 from January and is 315,000 units lower than in February 2014.   

Black Knight Financial Services released information on the inventory and other foreclosure data in its "first look" at the months mortgage performance data.  The company will provide more detail on this data in its Mortgage Monitor due to be published on April 6.

The homes in the foreclosure inventory in February represented 1.58 percent of the mortgaged residential properties in the US, a decline of 1.91 percent from January and nearly 29 percent from February 2014.

The delinquency rate also hit a near eight-year low, dropping to 5.36 percent in February, the lowest 30-day rate since August 2007 and a 3.70 decline from January and 10.24 percent from the same month last year.  The rate translates into 2.71 million mortgages which are 30 or more days past due but not in foreclosure, a decrease of 100,000 month-over-month and 278,000 since the previous February.  Of those loans 1.07 million are seriously delinquent, that is over 90 days past due, but not in foreclosure.  This is 45,000 fewer than in January and a -175,000 change on an annual basis.

Foreclosure starts were also down for the month by 15.48 percent to 79,700.  This was a decrease of 13.37 percent year-over-year.

The total number of distressed loans at the end of February - 30 or more days delinquent or in foreclosure - was 3.5 million.  This was 116,000 fewer than in January and a 594,000 improvement over 12 months.

The percentage of non-current loans remains in double digits in four states, Mississippi (13.49 percent), New Jersey (11.67 percent), Louisiana (10.73 percent), and New York (10.18 percent).  Rhode Island rounds out the top five states for delinquencies at 9.99 percent.  In all five states delinquencies have declined over the last year.

Black Knight also reports a significant jump in the prepayment rate for loans in February.  The SMM jumped 31.5 percent from January and was up 75 percent year-over-year.  Prepayment rates are correlated with rates of refinancing.