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COUNTRYWIDE REPORTS JULY 2005 OPERATIONAL DATA
– SERVICING PORTFOLIO REACHES $991 BILLION –
– MORTGAGE LOAN PIPELINE STANDS AT $77 BILLION –
– TOTAL ASSETS AT COUNTRYWIDE BANK REACH $70 BILLION –
CALABASAS, CA (August 10, 2005) – Countrywide Financial Corporation (NYSE: CFC) released operational data for the month ended July 31, 2005. Highlights included the following:
| | • | | Mortgage loan fundings for the month of July totaled $44 billion, an increase of 48 percent from July 2004. Year-to-date mortgage loan fundings were $256 billion. |
| | – | | Monthly purchase volume of $21 billion was 20 percent higher than July 2004. Year-to-date purchase activity totaled $123 billion. |
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| | – | | Adjustable-rate loan fundings for the month reached $23 billion, rising 37 percent from July 2004. Year-to-date adjustable-rate fundings totaled $139 billion. |
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| | – | | Monthly home equity loan fundings for July increased by 28 percent from July 2004 to reach $3.6 billion, bringing year-to-date home equity production to $23 billion. |
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| | – | | Nonprime loan fundings totaled $3.7 billion in July, a decline of 3 percent from July 2004. This brought year-to-date nonprime fundings to $24 billion. |
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| | – | | Countrywide Bank funded $3.0 billion of pay-option ARM loans and $0.5 billion of interest-only loans during the month of July 2005. On a consolidated basis, Countrywide funded $8.6 billion in pay-option ARM loans and $8.3 billion in interest-only loans for the month of July 2005. |
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| | – | | It should be noted that the various mortgage loan funding categories listed above are not mutually exclusive and will not necessarily equal 100 percent of total fundings. |
| | • | | Average daily mortgage loan application activity in July was $3.0 billion, 48 percent greater than the July 2004 level. The mortgage loan pipeline increased by 60 percent from July 2004 to reach $77 billion at July 31, 2005. |
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| | • | | The mortgage loan servicing portfolio continued to rise, reaching $991 billion at July 31, 2005, an increase of $244 billion, or 33 percent, from July 2004. |
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| | • | | Total assets at Countrywide Bank reached $70 billion at July 31, 2005, an increase of 143 percent, or $41 billion, from July 2004. |
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| | • | | Securities trading volume at Capital Markets totaled $296 billion in July, 11 percent higher than July 2004. Year-to-date securities trading volume surpassed $2.0 trillion. |
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| | • | | Monthly net earned premiums from the Insurance segment were $82 million, up 21 percent from July 2004. Year-to-date net earned premiums totaled $497 million. |
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| | • | | Subservicing volume at Global Home Loans was $106 billion at July 31, 2005, down 4 percent from July 2004. |
“Countrywide began the second half of 2005 with solid operational performance for the month of July,” said Stanford L. Kurland, President and Chief Operating Officer. “Production highlights included $44 billion in mortgage loan fundings, led by robust growth in purchase, adjustable-rate and home equity production on a year-over-year basis. August began with a $77 billion pipeline of mortgage loan applications-in-process, indicative of continued strong mortgage loan production for the near-term. The servicing portfolio of $991 billion is poised to exceed the $1 trillion mark, which positions the servicing sector to perform well in a rising rate environment.Inside Mortgage Financerecently reported that Countrywide expanded its lead as the #1 mortgage originator and servicer, with origination share reaching 15.6 percent for the second quarter of 2005 and servicing share increasing to 11.4 percent at June 30, 2005. Total assets at Countrywide Bank reached $70 billion at July month-end, creating a larger base from which to generate net interest income. Both the Capital Markets and Insurance segments produced strong year-over-year operational growth.”
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. Mortgage banking businesses include loan production and loan servicing principally through Countrywide Home Loans, Inc., which originates, purchases, securitizes, sells, and services prime and nonprime mortgage loans. Also included in Countrywide’s mortgage banking segment is the LandSafe group of companies which provide loan closing services. Diversified financial services encompass banking, capital markets, insurance, and global operations, largely through the activities of Countrywide Bank, a division of Treasury Bank, N.A., a bank offering depository and home loan products; Countrywide Capital Markets, a mortgage-related investment banker; Balboa Insurance Group, whose companies are national providers of property, life and casualty 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, among other things, the Company’s future operations, business plans and strategies, as well as industry and market conditions, all of which 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; changes in general business, economic, market and political conditions in the United States and abroad from those expected; 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; changes in interest rate paths; changes in generally accepted accounting principles or in the legal, regulatory and legislative environments in the markets in which the Company operates; the ability of management to effectively implement the Company’s strategies; and other risks noted 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.
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