| 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
On July 9, 2004, the Company issued a press release announcing information regarding its operational statistics for the month ended June 30, 2004, a copy of which is attached as Exhibit 99.14. On July 9, 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 99.15.
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.
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.
| COUNTRYWIDE FINANCIAL CORPORATION |
| Dated: July 9, 2004 | By: /S/ STANFORD L. KURLAND Stanford L. Kurland President and Chief Operating Officer |
| Exhibit No. | Description |
| 99.14 | Press Release issued by Countrywide Financial Corporation (the “Company”) pertaining to its operational statistics for the month ended June 30, 2004. |
| 99.15 | 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 (July 9, 2004) - Countrywide Financial Corporation (NYSE: CFC), a diversified financial services provider, released operational data for the month ended June 30, 2004. Highlights included the following:
| - | Adjustable-rate fundings rose 134 percent over June 2003 to $17 billion, and accounted for 54 percent of monthly funding volume. Second quarter volume of $49 billion was 138 percent greater than the adjustable-rate volume produced during the prior year’s comparable quarter. Year-to-date volume of $82 billion is more than double the $36 billion in adjustable-rate volume produced in all of calendar 2002. |
| - | Home equity fundings reached $3 billion for the month of June 2004, an increase of 79 percent over the same month last year, driving second quarter volume to $7 billion. Year-to-date volume reached $13 billion. |
(more)
| - | Subprime volume of $4 billion in the month was 160 percent more than June 2003. Second quarter subprime production reached $10 billion, and year-to-date volume climbed to $16 billion. |
“The second quarter and first half of 2004 have ended with Countrywide delivering strong operational results,” said Stanford L. Kurland, President and Chief Operating Officer. “Countrywide’s success is a result of our focused strategic efforts within each business line, and effective execution by our outstanding employees.
“Substantial interest rate volatility characterized the first half of 2004, with a corresponding impact on mortgage activity,” Kurland added. “From December 31, 2003 to June 30, 2004, the 10-year U.S. Treasury yield increased by 35 basis points. During that time, however, the yield actually trended across a range of nearly 120 basis points, from a low of 3.69 percent to a high of 4.87 percent. With the drop in the yield occurring near the end of the first quarter, refinance application activity peaked accordingly but by early June receded to its lowest level in more than two years, according to the Mortgage Bankers Association. Despite this volatility, Countrywide’s various businesses generated solid operating metrics.
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“Countrywide’s loan production efforts yielded impressive results for the second quarter, with total volume reaching the $100 billion level,” Kurland continued. “We also established new record levels in various mortgage product categories, including home purchase, adjustable-rate mortgage and home equity activities. This success is due in part to our focused sales force and scalable infrastructure. Exceptional production efforts have led to continuous growth in the servicing portfolio, which reached $726 billion, an increase of $167 billion since June 2003. Similarly, solid results were achieved in our diversified business segments, including growth in total assets at Countrywide Bank to $27 billion.
“Overall, the sound operational infrastructure of our mortgage banking and diversified businesses, the focused leadership of Countrywide’s seasoned management team, and our experienced, motivated workforce favorably position the Company to deliver continued strong performance,” Kurland concluded.
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 operations, 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.
(tables follow)
Month Ended Year-to-Date
----------------------------------- ----------------
June 30, June 30, June 30,
2004 2003 2004
---------------- --------------- ----------------
LOAN PRODUCTION
- ---------------
Average Daily Loan Applications $ 1,905 $ 3,243
Mortgage Loan Pipeline (loans in process) $ 47,317 $ 82,490
Consumer Markets Division Fundings $ 9,804 $ 11,478 $ 53,793
Wholesale Lending Division Fundings
5,913 10,517 35,486
Correspondent Lending Division Fundings
11,560 22,749 66,695
Capital Markets Fundings
2,230 2,231 7,923
Treasury Bank Fundings (2)
2,496 1,463 11,970
---------------- --------------- ----------------
Total Loan Fundings $ 32,003 $ 48,438 $ 175,867
---------------- --------------- ----------------
Consumer Markets Division Units
69,912 84,939 387,331
Wholesale Lending Division Units
33,270 59,244 200,016
Correspondent Lending Division Units
65,668 133,345 376,422
Capital Markets Units
8,486 6,966 29,974
Treasury Bank Units
26,627 17,716 125,107
---------------- --------------- ----------------
Total Loan Units
203,963 302,210 1,118,850
---------------- --------------- ----------------
Purchase Fundings (3) $ 17,491 $ 13,138 $ 77,576
Non-purchase Fundings (3)
14,512 35,300 98,291
---------------- --------------- ----------------
Total Loan Fundings $ 32,003 $ 48,438 $ 175,867
---------------- --------------- ----------------
Government Fundings $ 1,119 $ 2,700 $ 7,653
ARM Fundings $ 17,259 $ 7,378 $ 82,386
Home Equity Fundings $ 2,787 $ 1,553 $ 12,590
Subprime Fundings $ 3,745 $ 1,440 $ 16,446
LOAN CLOSING SERVICES (units)
- -----------------------------
Credit Reports 631,763 701,809 3,651,301
Flood Determinations 239,522 359,226 1,362,616
Appraisals 59,839 70,187 349,371
Automated Property Valuation Services 480,364 397,954 2,539,523
Other 15,332 11,541 90,320
---------------- --------------- ----------------
Total Units 1,426,820 1,540,717 7,993,131
---------------- --------------- ----------------
LOAN SERVICING (4)
- ---------------
Volume $ 726,227 $ 559,124
Units 5,547,050 4,587,387
Subservicing Volume (5) $ 16,027 $ 11,518
Subservicing Units 163,396 145,060
Prepayments in Full $ 14,945 $ 24,069 $ 96,889
Bulk Servicing Acquisitions $ 1,634 $ 321 $ 13,497
Portfolio Delinquency (%) - CHL (6) 3.48% 3.79%
Foreclosures Pending (%) - CHL (6) 0.37% 0.47%
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Month Ended Year-to-Date
----------------------------------- ----------------
June 30, June 30, June 30,
2004 2003 2004
---------------- --------------- ----------------
INSURANCE
- ---------
Net Premiums Earned:
Carrier $ 51 $ 47 $ 307
Reinsurance
13 11 76
---------------- --------------- ----------------
Total Net Premiums Earned $ 64 $ 58 $ 383
---------------- --------------- ----------------
CAPITAL MARKETS
- ---------------
Securities Trading Volume (7) $ 314,599 $ 295,132 $ 1,572,015
BANKING
- -------
Assets Held by Treasury Bank (in billions) $ 27.1 $ 13.1
GLOBAL OPERATIONS
- -----------------
Global Home Loans Subservicing
Volume (in billions) $ 110 $ 97
Period-end Rates
- ----------------
10-Year U.S. Treasury Yield 4.610% 3.530%
FNMA 30-Year Fixed Rate MBS Coupon 5.589% 4.648%
Number of Working Days in the Period 22 21 126
__________
| (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) | ncludes 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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Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 YTD
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ---
LOAN PRODUCTION
- ---------------
Number of Working Days in the Period 21 22 21 21 23 19 22 20 19 23 22 20 22 126
Average Daily Loan Applications $3,243 $2,529 $1,808 $1,858 $1,564 $1,479 $1,339 $1,776 $1,968 $2,455 $2,041 $1,945 $1,905 $2,025
Mortgage Loan Pipeline
(loans-in-process) $82,490 $70,377 $53,576 $47,182 $42,650 $38,841 $32,969 $38,354 $43,760 $57,422 $54,836 $49,675 $47,317
Consumer Markets Division Fundings $11,478 $12,911 $12,283 $9,392 $8,198 $6,954 $7,670 $6,211 $7,326 $9,522 $11,115 $9,815 $9,804 $53,793
Wholesale Lending Division Fundings 10,517 10,531 7,222 5,632 6,235 4,725 4,902 3,844 4,801 6,993 7,727 6,208 5,913 35,486
Correspondent Lending Division
Fundings 22,749 24,258 17,870 13,225 10,908 8,598 9,390 8,240 8,518 12,029 14,362 11,986 11,560 66,695
Capital Markets Fundings 2,231 2,884 2,059 3,066 2,314 829 1,489 1,013 1,046 1,265 494 1,875 2,230 7,923
Treasury Bank Fundings (1) 1,463 1,255 1,541 1,802 1,310 1,100 1,698 1,312 1,582 2,502 2,147 1,931 2,496 11,970
Total Loan Fundings $48,438 $51,839 $40,975 $33,117 $28,965 $22,206 $25,149 $20,620 $23,273 $32,311 $35,845 $31,815 $32,003 $175,867
---------- --------- ---------- ---------- --------- ---------- --------- --------- --------- --------- ---------- --------- ---------- ---------
Consumer Markets Division Units 84,939 94,839 92,465 74,566 67,213 57,058 61,031 49,154 54,962 68,664 75,880 68,759 69,912 387,331
Wholesale Lending Division Units 59,244 58,930 42,036 34,660 38,255 28,887 29,638 22,685 27,880 39,820 42,114 34,247 33,270 200,016
Correspondent Lending Division Units 133,345 139,360 104,396 81,376 67,709 52,969 57,079 49,694 50,250 67,815 77,570 65,425 65,668 376,422
Capital Markets Units 6,966 11,922 6,303 9,718 9,266 4,629 6,357 4,680 3,491 5,114 1,463 6,740 8,486 29,974
Treasury Bank Units 17,716 17,376 18,060 18,352 14,938 13,257 16,861 14,681 16,760 23,351 21,909 21,779 26,627 125,107
Total Loan Units 302,210 322,427 263,260 218,672 197,381 156,800 170,966 140,894 153,343 204,764 218,936 196,950 203,963 1,118,850
---------- --------- ---------- ---------- --------- ---------- --------- --------- --------- --------- ---------- --------- ---------- ---------
Purchase Fundings (2) $13,138 $13,352 $12,571 $12,719 $12,366 $9,852 $12,115 $9,274 $9,226 $13,127 $13,883 $14,575 $17,491 $77,576
Non-purchase Fundings (2) 35,300 38,487 28,404 20,398 16,599 12,354 13,034 11,346 14,047 19,184 21,962 17,240 14,512 98,291
Total Loan Fundings $48,438 $51,839 $40,975 $33,117 $28,965 $22,206 $25,149 $20,620 $23,273 $32,311 $35,845 $31,815 $32,003 $175,867
Government Fundings $2,700 $2,790 $2,505 $2,093 $1,774 $1,370 $1,343 $1,161 $1,117 $1,530 $1,491 $1,235 $1,119 $7,653
ARM Fundings $7,378 $8,580 $10,011 $10,072 $10,676 $8,487 $9,679 $9,478 $10,293 $13,872 $15,739 $15,745 $17,259 $82,386
Home Equity Fundings $1,553 $1,694 $1,697 $1,680 $1,752 $1,620 $1,805 $1,564 $1,637 $2,088 $2,242 $2,272 $2,787 $12,590
Subprime Fundings $1,440 $1,726 $1,654 $2,158 $2,424 $2,029 $2,257 $2,009 $2,124 $2,759 $2,765 $3,044 $3,745 $16,446
LOAN CLOSING SERVICES (units)
- -----------------------------
Credit Reports 701,809 624,949 492,787 499,431 518,308 420,843 405,336 533,055 547,704 738,113 626,142 574,524 631,763 3,651,301
Flood Determinations 359,226 308,255 234,552 222,890 217,134 173,044 172,325 188,682 195,380 277,958 246,580 214,494 239,522 1,362,616
Appraisals 70,187 68,677 60,025 51,507 53,783 44,475 47,004 44,146 51,425 69,074 65,975 58,912 59,839 349,371
Automated Property Valuation
Services 397,954 416,691 349,978 358,983 399,559 314,886 319,220 333,803 356,077 439,015 473,601 456,663 480,364 2,539,523
Other 11,541 12,791 12,566 11,769 11,457 9,741 12,096 14,750 14,218 16,379 16,058 13,583 15,332 90,320
---------- --------- ---------- ---------- --------- ---------- --------- --------- --------- --------- ---------- --------- ---------- ---------
Total Units 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 1,426,820 7,993,131
========== ========= ========== ========== ========= ========== ========= ========= ========= ========= ========== ========= ========== =========
| (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)
Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 YTD
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ---
LOAN SERVICING (3)
- ------------------
Volume $559,124 $576,670 $591,905 $606,095 $621,000 $631,470 $644,855 $657,541 $669,076 $682,848 $693,768 $706,943 $726,227
Units 4,587,387 4,678,947 4,760,141 4,834,943 4,923,9355,001,743 5,080,621 5,162,726 5,234,634 5,313,058 5,372,526 5,443,555 5,547,050
Subservicing Volume (4) $11,518 $11,645 $11,483 $11,446 $11,921 $13,671 $14,404 $15,871 $15,548 $15,307 $15,028 $15,289 $16,027
Subservicing Units 145,060 143,937 142,527 128,326 139,983 157,785 159,357 166,923 163,190 166,514 163,842 163,931 163,396
Prepayments in Full $24,069 $33,361 $25,236 $17,463 $14,315 $11,403 $11,845 $9,387 $13,090 $18,317 $23,557 $17,593 $14,945 $96,889
Bulk Servicing Acquisitions $321 $345 $341 $581 $1,845 $144 $1,054 $3,706 $3,123 $2,349 $1,122 $1,563 $1,634 $13,497
Portfolio Delinquency - CHL (5) 3.79% 3.78% 3.77% 3.81% 3.54% 3.90% 3.91% 3.71% 3.71% 3.20% 3.19% 3.49% 3.48%
Foreclosures Pending - CHL (5) 0.47% 0.46% 0.46% 0.45% 0.50% 0.43% 0.43% 0.43% 0.44% 0.42% 0.38% 0.36% 0.37%
INSURANCE
- ---------
Net Premiums Earned:
Carrier $47 $54 $55 $51 $59 $54 $51 $56 $52 $50 $50 $48 $51 $307
Reinsurance 11 11 11 10 11 13 13 12 13 12 13 13 13 76
Total Net Premiums Earned $58 $65 $66 $61 $70 $67 $64 $68 $65 $62 $63 $61 $64 $383
CAPITAL MARKETS
- ---------------
Securities Trading Volume (6) $295,132 $326,751 $255,513 $240,154 $208,429 $196,586 $179,390 $192,618 $221,082 $276,738 $274,862 $292,116 $314,599 $1,572,015
BANKING
- -------
Assets Held by Treasury Bank (in
billions) $13.1 $14.1 $15.1 $16.4 $17.1 $17.7 $19.4 $20.3 $21.8 $23.7 $24.9 $25.6 $27.1
GLOBAL OPERATIONS
- -----------------
Global Home Loans Subservicing
Volume (in billions) $97 $95 $93 $98 $100 $103 $106 $109 $112 $111 $108 $111 $110
Workforce Head Count: (7)
- -------------------------
Loan Originations 19,780 20,903 20,447 19,251 18,968 18,812 18,897 18,989 19,364 20,529 21,696 22,400 23,035
Loan Servicing 5,874 6,003 6,002 6,111 6,087 6,098 6,069 6,017 5,870 5,802 5,828 5,864 5,908
Loan Closing Services 1,090 1,115 1,065 956 955 952 931 941 952 926 938 993 1,019
Insurance 1,738 1,819 1,851 1,904 1,882 1,856 1,823 1,781 1,768 1,762 1,809 1,822 1,826
Capital Markets 420 429 440 452 470 476 477 484 491 494 513 517 529
Global Operations 1,928 1,898 1,897 1,962 1,965 1,997 1,981 1,899 1,948 1,993 1,961 1,965 1,955
Banking 822 876 808 804 787 810 813 803 823 849 888 956 1,003
Corporate Overhead & Other 3,126 3,270 3,238 3,309 3,282 3,282 3,307 3,347 3,366 3,389 3,441 3,529 3,660
---------- --------- --------- --------- -------- --------- --------- --------- --------- ----------- ---------- ----------- -----------
Total Workforce Head Count 34,778 36,313 35,748 34,749 34,396 34,283 34,298 34,261 34,582 35,744 37,074 38,046 38,935
========== ========= ========= ========= ======== ========= ========= ========= ========= =========== ========== =========== ===========
Period-end Rates
- ----------------
10-Year U.S. Treasury Yield 3.530% 4.476% 4.458% 3.939% 4.301% 4.322% 4.261% 4.138% 3.984% 3.840% 4.499% 4.655% 4.610%
FNMA 30-Year Fixed Rate MBS
Coupon 4.648% 5.722% 5.670% 5.012% 5.335% 5.410% 5.276% 5.192% 5.001% 4.937% 5.592% 5.752% 5.589%
| (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) | Workforce Head Count includes full-time employees, contract, and temporary help. |