The March 2011 LPS Mortgage Monitor, which brings these happy words about the state of mortgages:

•Delinquency rates resumed their decline after an increase in January and foreclosure inventories remain stable, slightly below historic highs.

•Delinquencies continue to improve as new problem loan rates decline and cure rates increase.

•Foreclosure start declines and foreclosure suspensions are reducing the upward pressure on inventories caused by foreclosure sale moratoria.

•An enormous backlog of foreclosures still exists with overhang at every level:
–There are three times the number of loans deteriorating greater than 90+ days delinquent as compared to foreclosure starts.
–There are also three times the number foreclosure starts vs. foreclosure sales.
–Foreclosure inventory levels are over 30 times monthly foreclosure sale volume.

•2010 originations peaked in Q4 2010, with government loans still making up the vast majority. Prepayment rates (an indicator of refinance activity) have dropped sharply since, indicating that this is unlikely to continue into 2011.

Then there is this datum:

30% of loans in foreclosure have not made a payment for at least two years. 47% of those in foreclosure have not made a payment for at least 18 months.

In other words, the easy bad loans have been fixed and at least no more bad loans are being written — which of course is function of no loans being written. What remain are the foreclosure hardcases and refis cannot fix them.