Monthly mortgage originations dropped to their lowest level in at least 14 years, according to a new report from real estate data and analytics provider Black Knight Financial Services, formerly LPS. 

"February’s data showed the continued trend of declining origination activity we’ve been observing since mid-2013, with monthly originations falling to their lowest recorded point since at least 2000," Herb Blecher, senior vice president of Black Knight’s data and analytics division, said in a statement. "In spite of this decline, residential real estate sales have remained strong due at least in part to investor activity and the fact that cash sales account for almost half of all transactions. In addition, while total transaction levels were flat on a year-over-year basis, traditional, or ‘non-distressed,’ sales were up almost 15 percent from last year as the share of distressed transactions continues to decrease.  Credit standards have shown little sign of easing – only about 30 percent of 2013 loans went to borrowers with credit scores below 720 – which indicate that significant opportunity to expand mortgage origination activity is available, if risk appetites allow."

Blecher added that Black Knight expects the number of loan modifications to increase in 2014, after activity levels fell to new low at the end of last year, due to changes to FHA’s Home Affordable Modification Program. According to Black Knight, far fewer borrowers are experiencing re-defaults than in the early years post-crisis. But more than 95 percent of the roughly 2.5 million interest rate reduction modifications still face rate resets, with many of these set to begin adjusting this fall.

Foreclosure sales hit the lowest levels since 2007 in February. The total U.S. loan delinquency rate for February was 5.97 percent, down 4.87 percent from January.