Exhibit 99.1
NEWS | 
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INVESTOR CONTACT: (818) 225-3550
David Bigelow or Lisa Riordan
MEDIA CONTACT: (800) 796-8448
COUNTRYWIDE REPORTS JUNE 2006 OPERATIONAL RESULTS
CALABASAS, CA (July 13, 2006) — Countrywide Financial Corporation (NYSE: CFC) released operational data for the month ended June 30, 2006. Operational highlights included the following:
· Mortgage loan fundings for the month of June were $42 billion, down 11 percent from June 2005. Second quarter 2006 funding volume totaled $117 billion, a decline of 3 percent from the second quarter of 2005. Year-to-date fundings totaled $220 billion, up 4 percent from last year.
— Monthly purchase volume was $21 billion. This compares to $24 billion for June 2005. Purchase activity for the second quarter of 2006 totaled $55 billion, a decrease of 9 percent from the same year-ago period. Year-to-date purchase activity totaled $102 billion, essentially unchanged from last year.
— Adjustable-rate loan fundings for the month of June were $20 billion, a decrease of 23 percent from June 2005. Adjustable-rate loan production for the second quarter of 2006 fell by 16 percent from the same prior year period to $57 billion. Year-to-date adjustable-rate volume was $108 billion, a decline of 6 percent from last year.
— Home equity loan fundings for June increased by 11 percent on a year-over-year basis to $4.3 billion. Second quarter 2006 home equity activity totaled $12 billion, rising by 13 percent from the same period last year. This brought year-to-date home equity funding volume to $24 billion, which was 19 percent higher than last year.
— Nonprime loan fundings in June were $4.1 billion, compared with $4.2 billion for the year-ago period. Nonprime activity for the second quarter of 2006 reached $11 billion, up 7 percent from the same year-ago period. Year-to-date nonprime loan funding volume of $20 billion was essentially unchanged from the comparable period last year.
— Consolidated pay-option loan fundings for the month were $6.3 billion, compared with $9.5 billion in June of last year. Pay-option fundings for the second quarter of 2006 totaled $19 billion, declining from $25 billion for the second quarter of 2005. Year-to-date pay-option fundings were $39 billion, as compared to $41 billion from the same period last year.
— It should be noted that the various mortgage loan funding categories listed above are not mutually exclusive and are not intended to total 100 percent of total fundings.
· Average daily mortgage loan application activity in June was $2.7 billion, a decrease of 10 percent from last year. The mortgage loan pipeline of $65 billion at June 30, 2006 represented a decline of 16 percent from June 30, 2005.
Investor Relations
4500 Park Granada · Calabasas, CA 91302 · 818-225-3550
http://www.countrywide.com
Countrywide Home Loans, Inc. and Countrywide Bank, N.A. are Equal Housing Lenders. ã2002 Countrywide Financial Corporation.
Trade/service marks are the property of Countrywide Financial Corporation and/or its subsidiaries. All rights reserved.
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· The mortgage loan servicing portfolio totaled $1.2 trillion at June 30, 2006, an increase of $232 billion, or 24 percent, from June 30, 2005.
· Total assets for Banking Operations were $84 billion at June 30, 2006, an increase of $19 billion, or 29 percent, from June 30, 2005.
· Securities trading volume in the Capital Markets segment of $321 billion for the month of June 2006 was down 5 percent from June 2005, but volume increased by 5 percent from the second quarter of 2005 to reach $934 billion for the second quarter of 2006. Year-to-date securities trading volume reached $1.9 trillion, an increase of 11 percent year-over-year.
· Net earned premiums from the Insurance segment were $102 million for June 2006, compared with $77 million for the year-ago period. Second quarter 2006 net earned premiums totaled $284 million, rising 32 percent from the second quarter of 2005. Year-to-date net earned premiums were $564 million, an increase of 36 percent from last year.
“Countrywide’s mortgage loan production results for the month of June and the second quarter of 2006 reflected the year-over-year slowdown in activity across the industry,” said Stanford L. Kurland, President and Chief Operating Officer. “While the Company’s total mortgage loan fundings for the second quarter of 2006 declined by 3 percent year-over-year, they were up 13 percent from the first quarter of 2006, reflecting seasonal improvement. This compared positively to the industry, where industry origination volume for the second quarter of 2006 was estimated by various industry sources to decline, on average, by approximately 13 percent year-over-year. In addition, compared to last month, mortgage loan fundings and average daily applications increased. The mortgage pipeline also remains strong at $65 billion, matching last month and indicative of near-term strength in funding volume for Countrywide.
“The servicing portfolio continued its uninterrupted growth, reaching $1.2 trillion at the end of June. Similarly, our other business segments demonstrated year-over-year growth with Banking Operations’ assets rising 29 percent, Capital Markets securities trading volume increasing 5 percent and Insurance net earned premiums advancing 32 percent over the second quarter of 2005.”
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Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000, and Fortune 500. Through its family of companies, Countrywide: originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. 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 ratings 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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