Date of Report: May 10, 2004
Date of Earliest Event Reported: Not Applicable
| Delaware (State or other jurisdiction of incorporation) | 1-8422 (Commission file number) | 13-2641992 (IRS Employer Identification No.) |
| 4500 PARK GRANADA, CALABASAS CA (Address of principal executive offices) | 91302 (Zip Code) |
Registrant's telephone number, including area code: (818) 225-3000
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 10, 2004, the Company issued a press release announcing information regarding its operational statistics for the month ended April 30, 2004, a copy of which is attached as Exhibit 99.10. On May 10, 2004, the Company also made available an updated version of its thirteen-month statistical data report on its website,www.countrywide.com, a copy of which is attached as Exhibit 99.11.
The information furnished pursuant to this Current Report on Form 8-K (including the exhibits hereto) shall not be considered “filed” under the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, unless the Company expressly states in such filing that such information is to be considered “filed” or incorporated by reference therein.
| SIGNATURE |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf of the undersigned hereunto duly authorized.
Dated: May 10, 2004
| COUNTRYWIDE FINANCIAL CORPORATION |
| By: /S/ STANFORD L. KURLAND Stanford L. Kurland President and Chief Operating Officer |
EXHIBIT INDEX
| Exhibit No. | Description |
| 99.10 | Press Release issued by Countrywide Financial Corporation (the “Company”) pertaining to its operational statistics for the month ended April 30, 2004. |
| 99.11 | Thirteen-month statistical data report made available by the Company on its website. |
| NEWS | COUNTRYWIDE FINANCIAL |
| INVESTOR CONTACT: | (818) 225-3550 David Bigelow Lisa Riordan |
| MEDIA CONTACT: | (800) 796-8448 |
For Immediate Release
CALABASAS, CA (May 10, 2004) – Countrywide Financial Corporation (NYSE: CFC), a diversified financial services provider, released operational data for the month ended April 30, 2004. Highlights included the following:
| - | Adjustable-rate fundings reached a record $16 billion, rising 134 percent over April 2003, and up 13 percent over last month. Year-to-date volume reached $49 billion. |
| - | Home equity fundings of $2 billion, up 55 percent over the same month last year, drove year-to-date home equity lending to nearly $8 billion. |
| - | Subprime volume reached $3 billion, rising 129 percent over April 2003. Total subprime lending year-to-date climbed to $10 billion. |
2-2-2
“As April results demonstrate, Countrywide continues to navigate successfully through changes in the interest rate environment,” said Stanford L. Kurland, President and Chief Operating Officer. “Our scalable production infrastructure enabled the Company to generate loan origination volume during this latest mini refi-boom, increasing the Company’s overall market share. Equally important, our ability to grow purchase market share and recapture loans that refinance fuel growth in our servicing portfolio, which at $694 billion is $174 billion larger than a year ago. The Capital Markets group continues to expand its menu of products, increasing our level of customer activity and securities trading volume to $965 billion for the year. Additionally, operational results from our other diversified businesses were robust: asset growth at Countrywide Bank continues, driving the expansion of future spread income; the Insurance segment continues to generate strong levels of premiums earned; and the sub-servicing portfolio at Global continues to expand.
“Countrywide was the number one loan originator during the first quarter of 2004 (according toInside Mortgage Finance), with a market share of 13 percent, which was nearly 2 percentage points greater than the next closest competitor. April’s operating results provide an early indication of solid performance in the second quarter as well.”
Founded in 1969, Countrywide Financial Corporation is a member of the S&P 500, Forbes 500 and Fortune 500. Through its family of companies, Countrywide provides mortgage banking and diversified financial services in domestic and international markets. Mortgage banking businesses include loan production and servicing principally through Countrywide Home Loans, Inc., which originates, purchases, securitizes, sells, and services primarily prime-quality loans. Also included in Countrywide’s mortgage banking segment is the LandSafe group of companies that provide loan closing services. Diversified financial services encompass capital markets, banking, insurance, and global, largely through the activities of Countrywide Capital Markets, a mortgage-related investment banker; Countrywide Bank, a division of Treasury Bank, NA, a banking entity offering customers CDs, money market accounts, and home loan products; Balboa Life and Casualty Group, whose companies are national providers of property, liability, and life insurance; Balboa Reinsurance, a captive mortgage reinsurance company; and Global Home Loans, a U.K. mortgage banking joint venture in which Countrywide holds a majority interest.
For more information about the Company, visit Countrywide's website at www.countrywide.com.
3-3-3
This Press Release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to future operations, as well as business plans and strategies that are subject to change. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: competitive and general economic conditions in each of our business segments; general economic conditions in the United States and abroad; loss of investment grade rating that may result in an increase in the cost of debt or loss of access to corporate debt markets; reduction in government support of homeownership; the level and volatility of interest rates; the legal, regulatory and legislative environments in the markets in which the Company operates; and other risks detailed in documents filed by the Company with the Securities and Exchange Commission from time to time. Words like “believe,” “expect,” “anticipate,” “promise,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
(tables follow)
April 2004 April 2003 Year-to-Date
---------------- ----------------- -----------------
MORTGAGE BANKING
- ----------------
Production
Average Daily Loan Applications $2,041 $2,286
Total Mortgage Loan Pipeline (loans in process) $54,836 $56,516
Consumer Markets Divisions' Fundings $11,115 $10,251 $34,174
Wholesale Lending Division Fundings 7,727 9,721 23,365
Correspondent Lending Division Fundings 14,362 19,644 43,149
Capital Markets Fundings 494 1,357 3,818
---------------- -- ----------------- -----------------
Treasury Bank Fundings (2) 2,147 1,277 7,543
Total Loan Fundings $35,845 $42,250 $112,049
Consumer Markets Divisions' Units 75,880 78,832 248,660
Wholesale Lending Division Units 42,114 56,288 132,499
Correspondent Lending Division Units 77,570 118,535 245,329
Capital Markets Units 1,463 4,880 14,748
---------------- -- ----------------- -----------------
Treasury Bank Units 21,909 16,148 76,701
Total Loan Units 218,936 274,683 717,937
Purchase Fundings (3) $13,883 $9,576 $45,510
Non-purchase Fundings (3) $21,962 $32,674 $66,539
Government Fundings $1,491 $2,296 $5,299
ARM Fundings $15,739 $6,739 $49,382
Home Equity Fundings $2,242 $1,445 $7,531
Subprime Fundings $2,765 $1,208 $9,657
Loan Closing Services (units)
Credit Reports 626,142 583,797 2,445,014
Flood Determinations 246,580 271,860 908,600
Appraisals 65,975 61,060 230,620
Automated Property Valuation Services 473,601 331,797 1,602,496
---------------- -- ----------------- -----------------
Other 16,058 12,494 61,405
Total Units 1,428,356 1,261,008 5,248,135
Servicing (4)
Volume $693,768 $519,872
Units 5,372,526 4,369,450
Subservicing Volume (5) $15,028 $11,464
Subservicing Units 163,842 146,167
Prepayments in Full $23,557 $23,689 $64,351
Bulk Servicing Acquisitions $1,122 $386 $10,300
Portfolio Delinquency (%) - CHL (6) 3.19% 3.82%
(more)
April 2004 April 2003 Year-to-Date
------------------ ------------------ -----------------
INSURANCE
- ---------
Net Premiums Earned
Carrier $50 $40 $208
Reinsurance $13 $10 $50
CAPITAL MARKETS
- ---------------
Securities Trading Volume (7) $274,862 $238,706 $965,300
BANKING
- -------
Assets held by Treasury Bank (billions) $24.9 $10.1
Global Home Loans
- -----------------
GHL Subservicing Volume (billions) $108 $93
Period-end Rates
- ----------------
10-Year U.S. Treasury Yield 4.499% 3.857%
FNM 30-Year Fixed Rate MBS Coupon 5.592% 4.908%
Working Days 22 22 84
| (1) | The above data reflect current operating statistics and do not constitute all factors impacting the quarterly and annual financial results of the company. All figures are unaudited and monthly figures may be adjusted in the reported financial statements of the company. Such financial statements are provided by the company quarterly. The company makes no commitment to update this information for changes in circumstances or events which occur subsequent to the date of this release. |
| (2) | Treasury Bank funds loans for investment purposes; these loans are processed for Treasury Bank by the production divisions. |
| (3) | We have enhanced our disclosure of the first trust deed and home equity loan funding mix to reflect purchase and non-purchase fundings. Purchase fundings include first trust deed and home equity loans used as purchase money debt in the acquisition of a home. Non-purchase fundings include first trust deed refinance loans, home equity refinance loans and stand-alone home equity loans. |
| (4) | Includes warehouse loans and loans under subservicing agreements for other clients. |
| (5) | Subservicing volume for other clients. |
| (6) | Expressed as a percentage of the total number of loans serviced, excluding subserviced loans and portfolios purchased at a discount due to their non-performing status. |
| (7) | Includes trades with mortgage banking division. |
(more)
YTD
Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 Total
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
MORTGAGE BANKING
- ----------------
Loan Production
Working Days 22 21 21 22 21 21 23 19 22 20 19 23 22 84
Average Daily Applications $2,286 $3,190 $3,243 $2,529 $1,808 $1,858 $1,564 $1,479 $1,339 $1,776 $1,968 $2,455 $2,041 $2,075
Mortgage Loan Pipeline
(loans-in-process) $56,516 $74,086 $82,490 $70,377 $53,576 $47,182 $42,650 $38,841 $32,969 $38,354 $43,760 $57,422 $54,836
Consumer Markets Divisions'
Fundings $10,251 $9,486 $11,478 $12,911 $12,283 $9,392 $8,198 $6,954 $7,670 $6,211 $7,326 $9,522 $11,115 $34,174
Wholesale Lending Division
Fundings $9,721 $8,481 $10,517 $10,531 $7,222 $5,632 $6,235 $4,725 $4,902 $3,844 $4,801 $6,993 $7,727 $23,365
Correspondent Lending Division
Fundings $19,644 $18,484 $22,749 $24,258 $17,870 $13,225 $10,908 $8,598 $9,390 $8,240 $8,518 $12,029 $14,362 $43,149
Capital Markets Fundings $1,357 $1,897 $2,231 $2,884 $2,059 $3,066 $2,314 $829 $1,489 $1,013 $1,046 $1,265 $494 $3,818
Treasury Bank Fundings (1) $1,277 $1,174 $1,463 $1,255 $1,541 $1,802 $1,310 $1,100 $1,698 $1,312 $1,582 $2,502 $2,147 $7,543
---------- --------- ---------- ---------- --------- ---------- ---------- --------- --------- -------- ---------- ---------- --------- ---------
Total Loan Fundings $42,250 $39,522 $48,438 $51,839 $40,975 $33,117 $28,965 $22,206 $25,149 $20,620 $23,273 $32,311 $35,845 $112,049
Consumer Markets Divisions' Units 78,832 73,732 84,939 94,839 92,465 74,566 67,213 57,058 61,031 49,154 54,962 68,664 75,880 248,660
Wholesale Lending Division Units 56,288 49,106 59,244 58,930 42,036 34,660 38,255 28,887 29,638 22,685 27,880 39,820 42,114 132,499
Correspondent Lending Division
Units 118,535 112,650 133,345 139,360 104,396 81,376 67,709 52,969 57,079 49,694 50,250 67,815 77,570 245,329
Capital Markets Units 4,880 7,250 6,966 11,922 6,303 9,718 9,266 4,629 6,357 4,680 3,491 5,114 1,463 14,748
Treasury Bank Units 16,148 15,097 17,716 17,376 18,060 18,352 14,938 13,257 16,861 14,681 16,760 23,351 21,909 76,701
---------- --------- ---------- ---------- --------- ---------- ---------- --------- --------- -------- ---------- ---------- --------- ---------
Total Loan Units 274,683 257,835 302,210 322,427 263,260 218,672 197,381 156,800 170,966 140,894 153,343 204,764 218,936 717,937
Purchase Fundings (2) $9,576 $10,183 $13,138 $13,352 $12,571 $12,719 $12,366 $9,852 $12,115 $9,274 $9,226 $13,127 $13,883 $45,510
Non-purchase Fundings (2) $32,674 $29,339 $35,300 $38,487 $28,404 $20,398 $16,599 $12,354 $13,034 $11,346 $14,047 $19,184 $21,962 $66,539
Government Fundings $2,296 $2,251 $2,700 $2,790 $2,505 $2,093 $1,774 $1,370 $1,343 $1,161 $1,117 $1,530 $1,491 $5,299
ARM Fundings $6,739 $6,369 $7,378 $8,580 $10,011 $10,072 $10,676 $8,487 $9,679 $9,478 $10,293 $13,872 $15,739 $49,382
Home Equity Fundings $1,445 $1,375 $1,553 $1,694 $1,697 $1,680 $1,752 $1,620 $1,805 $1,564 $1,637 $2,088 $2,242 $7,531
Subprime Fundings $1,208 $1,608 $1,440 $1,726 $1,654 $2,158 $2,424 $2,029 $2,257 $2,009 $2,124 $2,759 $2,765 $9,657
Loan Closing Services (units):
Credit Reports 583,797 696,983 701,809 624,949 492,787 499,431 518,308 420,843 405,336 533,055 547,704 738,113 626,142 2,445,014
Flood Determinations 271,860 330,951 359,226 308,255 234,552 222,890 217,134 173,044 172,325 188,682 195,380 277,958 246,580 908,600
Appraisals 61,060 60,867 70,187 68,677 60,025 51,507 53,783 44,475 47,004 44,146 51,425 69,074 65,975 230,620
Automated Property Valuation
Services 331,797 412,313 397,954 416,691 349,978 358,983 399,559 314,886 319,220 333,803 356,077 439,015 473,601 1,602,496
Other 12,494 12,275 11,541 12,791 12,566 11,769 11,457 9,741 12,096 14,750 14,218 16,379 16,058 61,405
---------- --------- ---------- ---------- --------- ---------- ---------- --------- --------- -------- ---------- ---------- --------- ---------
1,261,008 1,513,389 1,540,717 1,431,363 1,149,908 1,144,580 1,200,241 962,989 955,981 1,114,4361,164,804 1,540,539 1,428,356 5,248,135
| (1) | Treasury Bank funds loans for investment purposes; these loans are processed for Treasury Bank by the production divisions. |
| (2) | We have enhanced our disclosure of the first trust deed and home equity loan funding mix to reflect purchase and non-purchase fundings. Purchase fundings include first trust deed and home equity loans used as purchase money debt in the acquisition of a home. Non-purchase fundings include first trust deed refinance loans, home equity refinance loans and stand-alone home equity loans. |
(more)
YTD
Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 Total
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
MORTGAGE BANKING (continued)
- ----------------------------
Servicing (3)
Volume $519,872 $537,198 $559,124 $576,670 $591,905 $606,095 $621,000 $631,470 $644,855 $657,541 $669,076 $682,848 $693,768
Units 4,369,450 4,467,789 4,587,387 4,678,9474,760,141 4,834,943 4,923,935 5,001,743 5,080,621 5,162,726 5,234,634 5,313,058 5,372,526
Subservicing (4)
Volume $11,464 $11,739 $11,518 $11,645 $11,483 $11,446 $11,921 $13,671 $14,404 $15,871 $15,548 $15,307 $15,028
Units 146,167 148,801 145,060 143,937 142,527 128,326 139,983 157,785 159,357 166,923 163,190 166,514 163,842
Prepayments in Full $23,689 $21,249 $24,069 $33,361 $25,236 $17,463 $14,315 $11,403 $11,845 $9,387 $13,090 $18,317 $23,557 $64,351
Bulk Servicing Acquisitions $386 $348 $321 $345 $341 $581 $1,845 $144 $1,054 $3,706 $3,123 $2,349 $1,122 $10,300
Portfolio Delinquency - CHL
(5) 3.82% 3.82% 3.79% 3.78% 3.77% 3.81% 3.54% 3.90% 3.91% 3.71% 3.71% 3.20% 3.19%
Foreclosures Pending - CHL (5) 0.50% 0.49% 0.47% 0.46% 0.46% 0.45% 0.50% 0.43% 0.43% 0.43% 0.44% 0.42% 0.38%
INSURANCE
- ---------
Net Premiums Earned
Carrier $40 $50 $47 $54 $55 $51 $59 $54 $51 $56 $52 $50 $50 $208
Reinsurance $10 $11 $11 $11 $11 $10 $11 $13 $13 $12 $13 $12 $13 $50
CAPITAL MARKETS
- ---------------
Securities Trading Volume (6) $238,706 $278,016 $295,132 $326,751 $255,513 $240,154 $208,429 $196,586 $179,390 $192,618 $221,082 $276,738 $274,862 $965,300
BANKING
- -------
Assets held by Treasury Bank
(billions) $10.1 $11.8 $13.1 $14.1 $15.1 $16.4 $17.1 $17.7 $19.4 $20.3 $21.8 $23.7 $24.9
Global Home Loans
- -----------------
GHL Subservicing Volume
(billions) $93 $97 $97 $95 $93 $98 $100 $103 $106 $109 $112 $111 $108
Workforce Head Count: (7)
Loan Originations 17,941 18,575 19,780 20,903 20,447 19,251 18,968 18,812 18,897 18,989 19,364 20,529 21,696
Loan Servicing 5,774 5,821 5,874 6,003 6,002 6,111 6,087 6,098 6,069 6,017 5,870 5,802 5,828
Loan Closing Services 1,052 1,072 1,090 1,115 1,065 956 955 952 931 941 952 926 938
Insurance 1,713 1,740 1,738 1,819 1,851 1,904 1,882 1,856 1,823 1,781 1,768 1,762 1,809
Capital Markets 391 402 420 429 440 452 470 476 477 484 491 494 513
Global Operations 2,069 1,999 1,928 1,898 1,897 1,962 1,965 1,997 1,981 1,899 1,948 1,993 1,961
Banking 779 775 822 876 808 804 787 810 813 803 823 849 888
Corporate Overhead & Other 2,990 3,038 3,126 3,270 3,238 3,309 3,282 3,282 3,307 3,347 3,366 3,389 3,441
---------- --------- --------- -------- --------- --------- --------- --------- --------- ---------- ----------- ----------- -----------
32,709 33,422 34,778 36,313 35,748 34,749 34,396 34,283 34,298 34,261 34,582 35,744 37,074
========== ========= ========= ======== ========= ========= ========= ========= ========= ========== =========== =========== ===========
Period-end Rates
10-Year U.S. Treasury Yield 3.857% 3.353% 3.530% 4.476% 4.458% 3.939% 4.301% 4.322% 4.261% 4.138% 3.984% 3.840% 4.499%
| (3) | Includes warehouse loans and loans under subservicing agreements for other clients. |
| (4) | Subservicing volume for other clients. |
| (5) | Expressed as a percentage of the total number of loans serviced, excluding subserviced loans and portfolios purchased at a discount due to their non-performing status. |
| (6) | Includes trades with mortgage banking division. |
| (7) | Head Count includes full-time employees, contract, and temporary help. |