Date of Report: June 8, 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 June 8, 2004, the Company issued a press release announcing information regarding its operational statistics for the month ended May 31, 2004, a copy of which is attached as Exhibit 99.12. On June 8, 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 99.13.
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: June 8, 2004
| COUNTRYWIDE FINANCIAL CORPORATION |
| By: /S/ STANFORD L. KURLAND Stanford L. Kurland President and Chief Operating Officer |
EXHIBIT INDEX
| Exhibit No. | Description |
| 99.12 | Press Release issued by Countrywide Financial Corporation (the “Company”) pertaining to its operational statistics for the month ended May 31, 2004. |
| 99.13 | 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 (June 8, 2004) – Countrywide Financial Corporation (NYSE: CFC), a diversified financial services provider, released operational data for the month ended May 31, 2004. Highlights included the following:
| - | Adjustable-rate fundings reached $16 billion, up 147 percent over May 2003, bringing year-to-date volume to $65 billion, which exceeds total Company production for the full calendar year of 2000. |
| - | Home equity fundings rose 65 percent over May 2003 to $2.3 billion, driving year-to-date volume to $10 billion. |
| - | Subprime volume surpassed $3 billion, an increase of 89 percent over last year. Year-to-date volume reached $13 billion. |
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“Countrywide delivered excellent operational results in May, despite the continued rise in rates and decline in refinance activity,” said Stanford L. Kurland, President and Chief Operating Officer. “Within the industry, trends for home purchase mortgage activity remain strong, with industry forecasts for a record $1.3 trillion in purchase volume for the year(1). In addition, home sales are estimated at a record high of 7.7 million units(2). Borrowers continue to seek out alternatives to fixed rate mortgages, evidenced by the increased use of adjustable-rate loans, which accounted for 49 percent of Countrywide’s total production in May 2004, as compared to just 16 percent one year ago. According toInside Mortgage Finance Countrywide was the #1 adjustable-rate mortgage lender for the first quarter of 2004. As the overall market shifts towards purchase mortgages and adjustable-rate mortgage products, Countrywide’s strength in these areas has enabled us to widen our lead as America’s largest originator of home loans.
“Strong production efforts have led to substantial growth in our servicing portfolio, which surpassed the $700 billion mark this month, and has grown at an average rate of $600 million each business day since the beginning of the year,” Kurland concluded. “With solid overall results also coming from our diversified businesses, Countrywide continues to demonstrate its ability to manage its businesses successfully across a continuum of interest rate environments.”
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Founded in 1969, Countrywide Financial Corporation is a member of the S&P 500, Forbes 2000 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.
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.
(1) Source: Fannie Mae
(2) Source: National Association of Realtors (existing home sales); National Association of Home Builders (new home sales)
(tables follow)
May May Year-to-Date
---------------- ----------------- -----------------
2004 2003
MORTGAGE BANKING
- ----------------
Production
Average Daily Loan Applications $1,945 $3,190
Total Mortgage Loan Pipeline (loans in process) $49,675 $74,086
Consumer Markets Divisions' Fundings $9,815 $9,486 $43,989
Wholesale Lending Division Fundings 6,208 8,481 29,573
---------------- -- ----------------- -----------------
Correspondent Lending Division Fundings 11,986 18,484 55,135
Capital Markets Fundings 1,875 1,897 5,693
Treasury Bank Fundings (2) 1,931 1,174 9,474
Total Loan Fundings $31,815 $39,522 $143,864
Consumer Markets Divisions' Units 68,759 73,732 317,419
Wholesale Lending Division Units 34,247 49,106 166,746
---------------- -- ----------------- -----------------
Correspondent Lending Division Units 65,425 112,650 310,754
Capital Markets Units 6,740 7,250 21,488
Treasury Bank Units 21,779 15,097 98,480
Total Loan Units 196,950 257,835 914,887
Purchase Fundings (3) $14,575 $10,183 $60,085
Non-purchase Fundings (3) $17,240 $29,339 $83,779
Government Fundings $1,235 $2,251 $6,534
ARM Fundings $15,745 $6,369 $65,127
Home Equity Fundings $2,272 $1,375 $9,803
Subprime Fundings $3,044 $1,608 $12,701
Loan Closing Services (units)
Credit Reports 574,524 696,983 3,019,538
Flood Determinations 214,494 330,951 1,123,094
---------------- -- ----------------- -----------------
Appraisals 58,912 60,867 289,532
Automated Property Valuation Services 456,663 412,313 2,059,159
Other 13,583 12,275 74,988
Total Units 1,318,176 1,513,389 6,566,311
Servicing (4)
Volume $706,943 $537,198
Units 5,443,555 4,467,789
Subservicing Volume (5) $15,289 $11,739
Subservicing Units 163,931 148,801
Prepayments in Full $17,593 $21,249 $81,944
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May May Year-to-Date
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2004 2003
INSURANCE
- ---------
Net Premiums Earned
Carrier $48 $50 $256
Reinsurance $13 $11 $63
CAPITAL MARKETS
- ---------------
Securities Trading Volume (7) $292,116 $278,016 $1,257,416
BANKING
- -------
Assets held by Treasury Bank (billions) $25.6 $11.8
Global Home Loans
- -----------------
GHL Subservicing Volume (billions) $111 $97
Period-end Rates
- ----------------
10-Year U.S. Treasury Yield 4.655% 3.353%
FNMA 30-Year Fixed Rate MBS Coupon 5.752% 4.405%
| (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. |
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YTD
May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Total
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MORTGAGE BANKING
- ----------------
Loan Production
Working Days 21 21 22 21 21 23 19 22 20 19 23 22 20 104
Average Daily Applications $3,190 $3,243 $2,529 $1,808 $1,858 $1,564 $1,479 $1,339 $1,776 $1,968 $2,455 $2,041 $1,945 $2,050
Mortgage Loan Pipeline
(loans-in-process) $74,086 $82,490 $70,377 $53,576 $47,182 $42,650 $38,841 $32,969 $38,354 $43,760 $57,422 $54,836 $49,675
Consumer Markets Divisions'
Fundings $9,486 $11,478 $12,911 $12,283 $9,392 $8,198 $6,954 $7,670 $6,211 $7,326 $9,522 $11,115 $9,815 $43,989
Wholesale Lending Division
Fundings $8,481 $10,517 $10,531 $7,222 $5,632 $6,235 $4,725 $4,902 $3,844 $4,801 $6,993 $7,727 $6,208 $29,573
Correspondent Lending Division
Fundings $18,484 $22,749 $24,258 $17,870 $13,225 $10,908 $8,598 $9,390 $8,240 $8,518 $12,029 $14,362 $11,986 $55,135
Capital Markets Fundings $1,897 $2,231 $2,884 $2,059 $3,066 $2,314 $829 $1,489 $1,013 $1,046 $1,265 $494 $1,875 $5,693
Treasury Bank Fundings (1) $1,174 $1,463 $1,255 $1,541 $1,802 $1,310 $1,100 $1,698 $1,312 $1,582 $2,502 $2,147 $1,931 $9,474
---------- --------- ---------- ---------- --------- ---------- --------- --------- --------- --------- ---------- --------- ---------- ---------
Total Loan Fundings $39,522 $48,438 $51,839 $40,975 $33,117 $28,965 $22,206 $25,149 $20,620 $23,273 $32,311 $35,845 $31,815 $143,864
Consumer Markets Divisions' Units 73,732 84,939 94,839 92,465 74,566 67,213 57,058 61,031 49,154 54,962 68,664 75,880 68,759 317,419
Wholesale Lending Division Units 49,106 59,244 58,930 42,036 34,660 38,255 28,887 29,638 22,685 27,880 39,820 42,114 34,247 166,746
Correspondent Lending Division
Units 112,650 133,345 139,360 104,396 81,376 67,709 52,969 57,079 49,694 50,250 67,815 77,570 65,425 310,754
Capital Markets Units 7,250 6,966 11,922 6,303 9,718 9,266 4,629 6,357 4,680 3,491 5,114 1,463 6,740 21,488
Treasury Bank Units 15,097 17,716 17,376 18,060 18,352 14,938 13,257 16,861 14,681 16,760 23,351 21,909 21,779 98,480
---------- --------- ---------- ---------- --------- ---------- --------- --------- --------- --------- ---------- --------- ---------- ---------
Total Loan Units 257,835 302,210 322,427 263,260 218,672 197,381 156,800 170,966 140,894 153,343 204,764 218,936 196,950 914,887
Purchase Fundings (2) $10,183 $13,138 $13,352 $12,571 $12,719 $12,366 $9,852 $12,115 $9,274 $9,226 $13,127 $13,883 $14,575 $60,085
Non-purchase Fundings (2) $29,339 $35,300 $38,487 $28,404 $20,398 $16,599 $12,354 $13,034 $11,346 $14,047 $19,184 $21,962 $17,240 $83,779
Government Fundings $2,251 $2,700 $2,790 $2,505 $2,093 $1,774 $1,370 $1,343 $1,161 $1,117 $1,530 $1,491 $1,235 $6,534
ARM Fundings $6,369 $7,378 $8,580 $10,011 $10,072 $10,676 $8,487 $9,679 $9,478 $10,293 $13,872 $15,739 $15,745 $65,127
Home Equity Fundings $1,375 $1,553 $1,694 $1,697 $1,680 $1,752 $1,620 $1,805 $1,564 $1,637 $2,088 $2,242 $2,272 $9,803
Subprime Fundings $1,608 $1,440 $1,726 $1,654 $2,158 $2,424 $2,029 $2,257 $2,009 $2,124 $2,759 $2,765 $3,044 $12,701
Loan Closing Services (units):
Credit Reports 696,983 701,809 624,949 492,787 499,431 518,308 420,843 405,336 533,055 547,704 738,113 626,142 574,524 3,019,538
Flood Determinations 330,951 359,226 308,255 234,552 222,890 217,134 173,044 172,325 188,682 195,380 277,958 246,580 214,494 1,123,094
Appraisals 60,867 70,187 68,677 60,025 51,507 53,783 44,475 47,004 44,146 51,425 69,074 65,975 58,912 289,532
Automated Property Valuation
Services 412,313 397,954 416,691 349,978 358,983 399,559 314,886 319,220 333,803 356,077 439,015 473,601 456,663 2,059,159
Other 12,275 11,541 12,791 12,566 11,769 11,457 9,741 12,096 14,750 14,218 16,379 16,058 13,583 74,988
---------- --------- ---------- ---------- --------- ---------- --------- --------- --------- --------- ---------- --------- ---------- ---------
1,513,389 1,540,717 1,431,363 1,149,908 1,144,580 1,200,241 962,989 955,981 1,114,436 1,164,804 1,540,539 1,428,356 1,318,176 6,566,311
| (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
May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Total
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MORTGAGE BANKING (continued)
- ----------------------------
Servicing (3)
Volume $537,198 $559,124 $576,670 $591,905 $606,095 $621,000 $631,470 $644,855 $657,541 $669,076 $682,848 $693,768 $706,943
Units 4,467,789 4,587,387 4,678,947 4,760,1414,834,943 4,923,935 5,001,743 5,080,621 5,162,726 5,234,634 5,313,058 5,372,526 5,443,555
Subservicing (4)
Volume $11,739 $11,518 $11,645 $11,483 $11,446 $11,921 $13,671 $14,404 $15,871 $15,548 $15,307 $15,028 $15,289
Units 148,801 145,060 143,937 142,527 128,326 139,983 157,785 159,357 166,923 163,190 166,514 163,842 163,931
Prepayments in Full $21,249 $24,069 $33,361 $25,236 $17,463 $14,315 $11,403 $11,845 $9,387 $13,090 $18,317 $23,557 $17,593 $81,944
Bulk Servicing Acquisitions $348 $321 $345 $341 $581 $1,845 $144 $1,054 $3,706 $3,123 $2,349 $1,122 $1,563 $11,863
Portfolio Delinquency - CHL
(5) 3.82% 3.79% 3.78% 3.77% 3.81% 3.54% 3.90% 3.91% 3.71% 3.71% 3.20% 3.19% 3.49%
Foreclosures Pending - CHL (5) 0.49% 0.47% 0.46% 0.46% 0.45% 0.50% 0.43% 0.43% 0.43% 0.44% 0.42% 0.38% 0.36%
INSURANCE
- ---------
Net Premiums Earned
Carrier $50 $47 $54 $55 $51 $59 $54 $51 $56 $52 $50 $50 $48 $256
Reinsurance $11 $11 $11 $11 $10 $11 $13 $13 $12 $13 $12 $13 $13 $63
CAPITAL MARKETS
- ---------------
Securities Trading Volume (6) $278,016 $295,132 $326,751 $255,513 $240,154 $208,429 $196,586 $179,390 $192,618 $221,082 $276,738 $274,862 $292,116 $1,257,416
BANKING
- -------
Assets held by Treasury Bank
(billions) $11.8 $13.1 $14.1 $15.1 $16.4 $17.1 $17.7 $19.4 $20.3 $21.8 $23.7 $24.9 $25.6
Global Home Loans
- -----------------
GHL Subservicing Volume
(billions) $97 $97 $95 $93 $98 $100 $103 $106 $109 $112 $111 $108 $111
Workforce Head Count: (7)
Loan Originations 18,575 19,780 20,903 20,447 19,251 18,968 18,812 18,897 18,989 19,364 20,529 21,696 22,400
Loan Servicing 5,821 5,874 6,003 6,002 6,111 6,087 6,098 6,069 6,017 5,870 5,802 5,828 5,864
Loan Closing Services 1,072 1,090 1,115 1,065 956 955 952 931 941 952 926 938 993
Insurance 1,740 1,738 1,819 1,851 1,904 1,882 1,856 1,823 1,781 1,768 1,762 1,809 1,822
Capital Markets 402 420 429 440 452 470 476 477 484 491 494 513 517
Global Operations 1,999 1,928 1,898 1,897 1,962 1,965 1,997 1,981 1,899 1,948 1,993 1,961 1,965
Banking 775 822 876 808 804 787 810 813 803 823 849 888 956
Corporate Overhead & Other 3,038 3,126 3,270 3,238 3,309 3,282 3,282 3,307 3,347 3,366 3,389 3,441 3,529
---------- --------- --------- -------- --------- --------- --------- --------- --------- ---------- ----------- ----------- -----------
33,422 34,778 36,313 35,748 34,749 34,396 34,283 34,298 34,261 34,582 35,744 37,074 38,046
========== ========= ========= ======== ========= ========= ========= ========= ========= ========== =========== =========== ===========
Period-end Rates
10-Year U.S. Treasury Yield 3.353% 3.530% 4.476% 4.458% 3.939% 4.301% 4.322% 4.261% 4.138% 3.984% 3.840% 4.499% 4.655%
| (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. |