CALABASAS, Calif., Jan. 12 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) released operational data for the month
ended December 31, 2006. Key operational results included the following:
* Mortgage loan fundings for the month of December were $42 billion, down
7 percent from December 2005, but were 9 percent higher than November
2006. Total mortgage loan funding volume for the fourth quarter of
2006 was $122 billion and was the highest quarterly mortgage loan
funding volume for 2006; however, this represented a decline of 9
percent compared to the fourth quarter of 2005.
-- Monthly purchase volume of $17 billion was down 20 percent from
December 2005. Fourth quarter purchase volume of $51 billion
declined 18 percent from the same prior year quarter.
-- Home equity loan fundings were down 19 percent from December 2005 to
$3.3 billion at December 2006. Fourth quarter 2006 home equity
volume of $11 billion decreased by 5 percent as compared to the last
quarter of 2005.
-- Nonprime loan fundings for the month of December were $3.7 billion,
as compared to $4.4 billion in December 2005. Nonprime activity for
the fourth quarter of 2006 of $10 billion was down by 17 percent as
compared to the same quarter last year.
-- On a consolidated basis, Countrywide funded $2.9 billion in
pay-option loans during the month as compared to $8.0 billion in
December 2005. Fourth quarter 2006 pay-option fundings were $10
billion as compared to $24 billion for 2005's fourth quarter. For
the 2006 full year, pay-option fundings were $64 billion, which
compares to $95 billion for 2005.
-- It should be noted that the various mortgage loan funding categories
listed above are not mutually exclusive and are not intended to
equal 100 percent of total fundings.
* Average daily mortgage loan application activity in December was $2.7
billion, up 11 percent from December 2005. The mortgage loan pipeline
was $57 billion at December 31, 2006 as compared to $60 billion at
December 31, 2005.
* The mortgage loan servicing portfolio continued to grow, reaching $1.3
trillion at December 31, 2006. This is an increase of $187 billion, or
17 percent, from December 31, 2005.
* Banking Operations' assets were $83 billion at December 31, 2006, an
increase of 14 percent from December 31, 2005.
* Securities trading volume in the Capital Markets segment totaled $362
billion for December 2006, rising 26 percent as compared to December
2005. For the fourth quarter of 2006, securities trading volume was
$987 billion, surpassing last year's fourth quarter by 14 percent.
* Net earned premiums from the Insurance segment totaled $106 million,
down 13 percent from December 2005. Net earned premiums for the 2006
fourth quarter totaled $307 million, which compares to $299 million for
the fourth quarter of 2005.
"Despite a transitional and challenging mortgage market throughout
2006, Countrywide produced strong operational results for the year," said
Angelo R. Mozilo, Chairman and Chief Executive Officer. "While the 2006
mortgage market reflected excess capacity and strong competition,
Countrywide's total mortgage loan funding volume of $463 billion for the
year was down less than 7 percent from the record level set in 2005. This
compares favorably to the industry, which is forecasted to decline by 15 to
20 percent. Our servicing portfolio continued its upward path, reaching
$1.3 trillion at year-end. And strong operational metrics were achieved in
all our other business segments -- $83 billion in Banking Operations'
assets, $3.8 trillion in securities trading volume and $1.2 billion in net
earned premiums."
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 http://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; failure to
attract and retain a highly skilled workforce; 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.
(tables follow)
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
OPERATING STATISTICS (1)
(Dollars in Millions)
Month Ended Year-to-Date
December 31 December 31 December 31 December 31
2006 2005 2006 2005
LOAN PRODUCTION
Number of Working
Days in the Period 20 21 252 252
Average Daily
Mortgage Loan
Applications $2,735 $2,467 $2,643 $2,700
Mortgage Loan
Pipeline (loans-
in-process) $57,217 $59,651
Commercial Real
Estate Loan
Pipeline (loans-
in-process) $1,991 $803
Loan Fundings (2):
Retail Lending $13,949 $12,735 $155,779 $155,290
Wholesale Lending 7,781 8,607 95,537 102,742
Correspondent
Lending 18,370 18,266 185,331 211,887
Capital Markets
Purchases 1,575 4,506 17,658 21,028
Banking Operations
Purchases (2) 55 628 8,196 4,429
Total
Mortgage
Loan
Fundings 41,730 44,742 462,501 495,376
Commercial Real
Estate Lending 1,093 362 5,671 3,925
Total
Loan
Fundings $42,823 $45,104 $468,172 $499,301
Total
Bank
Mortgage
Loan
Fundings (3) $15,744 $5,108 $129,772 $54,515
Loan Fundings in
Units (2):
Retail Lending 78,754 81,628 982,135 1,007,615
Wholesale Lending 38,199 41,380 466,265 508,753
Correspondent
Lending 89,483 91,459 926,467 1,080,139
Capital Markets
Purchases 5,860 17,250 67,763 81,828
Banking Operations
Purchases (2) 183 1,549 63,801 51,539
Total
Mortgage
Loan
Fundings 212,479 233,266 2,506,431 2,729,874
Commercial Real
Estate Lending 87 28 620 258
Total
Loan
Fundings 212,566 233,294 2,507,051 2,730,132
Total
Bank
Mortgage
Loan
Fundings (3) 87,509 36,665 838,174 468,857
Mortgage Loan
Fundings (2)(4):
Purchase $17,147 $21,302 $208,321 $233,822
Non-purchase 24,583 23,440 254,180 261,554
Total
Mortgage
Loan
Fundings $41,730 $44,742 $462,501 $495,376
Mortgage Loan
Fundings by
Product (2):
Government
Fundings $1,240 $890 $13,093 $10,714
ARM Fundings $15,222 $22,984 $210,902 $261,216
Home Equity
Fundings $3,271 $4,020 $47,876 $44,850
Nonprime Fundings $3,739 $4,405 $40,596 $44,637
MORTGAGE LOAN
SERVICING (5)
Volume $1,298,394 $1,111,090
Units 8,198,873 7,431,949
Subservicing
Volume (6) $18,275 $29,901
Subservicing Units 179,293 261,078
Prepayments in Full $21,315 $17,810 $216,801 $227,771
Bulk Servicing
Acquisitions $6,589 $1,686 $15,781 $51,377
Portfolio
Delinquency - CHL (7) 5.02% 4.61%
Foreclosures
Pending - CHL (7) 0.65% 0.44%
LOAN CLOSING SERVICES
(units)
Credit Reports 675,767 657,448 9,968,400 9,603,815
Flood Determinations 260,263 294,120 3,376,840 3,575,409
Appraisals 109,116 96,598 1,277,405 1,202,848
Automated Property
Valuation Services 447,833 457,504 8,093,544 7,410,611
Other 22,031 15,261 214,493 183,037
Total Units 1,515,010 1,520,931 22,930,682 21,975,720
CAPITAL MARKETS
Securities Trading
Volume (8) $361,725 $286,037 $3,832,900 $3,551,483
BANKING
Banking Operations
Assets (in billions) $83 $73
INSURANCE
Net Premiums Earned:
Carrier $85.6 $105.6 $947.8 $773.0
Reinsurance 20.3 16.5 223.5 180.7
Total Net
Premiums
Earned $105.9 $122.1 $1,171.3 $953.7
Period-end Rates
10-Year U.S. Treasury
Yield 4.71% 4.39%
FNMA 30-Year Fixed
Rate MBS Coupon 5.79% 5.75%
(1) This data reflects 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) During December 2006, the Company began reporting Banking Operations
purchases from third parties. Prior months have been restated to
reflect these purchases.
(3) These loans are either processed for Countrywide Bank by the
Company's Mortgage Banking production divisions or purchased from
non-affiliates and are included in "Total Mortgage Loan Fundings"
above. The amounts include loans funded for both investment
purposes and for sale. The Company will report the amount of such
loans subsequently sold on a quarterly basis.
(4) 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.
(5) Includes loans held for sale, loans held for investment, and loans
serviced for others, including those under subservicing agreements.
(6) Subservicing volume for non-Countrywide entities.
(7) 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.
(8) Includes trades with Mortgage Banking Segment.
SOURCE Countrywide Financial Corporation
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Related links:
http://www.countrywide.com
CONTACT:
Investors, David Bigelow or Lisa Riordan,
+1-818-225-3550, or Media, +1-800-796-8448, all of Countrywide
Financial Corporation
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