CALABASAS, Calif., March 12 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) released operational data for the month
ended February 28, 2007. Key operational results included the following:
* Mortgage loan fundings for the month of February were $35 billion, an
increase of 10 percent from February 2006.
-- Monthly purchase volume of $13 billion was down 7 percent from
February 2006.
-- Home equity loan fundings declined 13 percent from February 2006
to $3.0 billion at February 2007.
-- Nonprime loan fundings for the month of February were $2.6 billion,
as compared to $2.8 billion in February 2006.
-- On a consolidated basis, Countrywide funded $2.4 billion in
pay-option loans during the month as compared to $6.0 billion in
February 2006. Year-to-date pay-option loan fundings totaled
$5.1 billion, as compared to $12.9 billion for the same prior year
period.
-- 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 February 2007 was
$3.0 billion, up 20 percent from February 2006. The mortgage loan
pipeline was $64 billion at February 28, 2007 as compared to
$59 billion at February 28, 2006.
* The mortgage loan servicing portfolio continued to grow, totaling
$1.33 trillion at February 28, 2007. This is an increase of
$195 billion, or 17 percent, from February 28, 2006.
* Banking Operations' assets were $84 billion at February 28, 2007, which
compares to $75 billion at February 28, 2006.
* Securities trading volume in the Capital Markets segment of
$289 billion for February 2007 was down 1 percent when compared to the
same month last year.
* Net earned premiums from the Insurance segment totaled $111 million, up
22 percent from February 2006.
"February mortgage loan fundings were $35 billion, up 10 percent from
the same period a year ago," said David Sambol, President and Chief
Operating Officer. "Importantly, retail volume was up 11 percent year over
year, demonstrating the positive impact from our retail salesforce growth
initiatives. In fact, Countrywide captured the #1 spot in retail
originations for the fourth quarter of 2006 according to Inside Mortgage
Finance.
"The nonprime lending industry is currently experiencing significant
volatility and instability," Sambol continued. "As a result, many nonprime
competitors have recently exited the market and other lenders have
suggested their continued viability is in question. Aggressive industry
underwriting guidelines and lower home price appreciation have resulted in
increasing delinquencies and defaults. Furthermore, as a result of investor
concerns about nonprime loan performance, yield requirements have increased
and secondary market liquidity has been reduced. These factors will
adversely impact residual valuations and gains on sale of nonprime loans
until market conditions improve.
"In response to market factors, management has implemented changes to
our origination policies to mitigate future exposure including further
tightening of underwriting guidelines. Nonprime fundings were only 7
percent of total mortgage loan fundings in February and recent nonprime
application volumes have declined as a result of our recent policy changes.
At December 31, 2006, our nonprime residuals amounted to $402 million,
which represents 0.2 percent of the Company's assets.
"Management views that the long term impact of the current nonprime
market dynamics is positive for both the industry and Countrywide," Sambol
concluded. "The industry should benefit from more rational underwriting and
pricing as excess lending capacity is eliminated. Countrywide is well
positioned to take advantage of this market disruption due to its
experience, operating controls, strong liquidity profile and relatively low
exposure to nonprime. Nonetheless, the Company may experience short term
earnings volatility during this transition period."
About Countrywide
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 such as slower or negative home price appreciation;
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; increases in the delinquency rates of borrowers;
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.
(tables follow)
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
OPERATING STATISTICS(1)
(Dollars in Millions)
Month Ended Year-to-Date
February 28 February 28 February 28 February 28
2007 2006 2007 2006
LOAN PRODUCTION
Number of Working
Days in the Period 19 19 40 39
Average Daily
Mortgage Loan
Applications $3,009 $2,505 $2,910 $2,455
Mortgage Loan
Pipeline
(loans-in-process) $63,945 $59,336
Commercial Real
Estate Loan Pipeline
(loans-in-process) $2,381 $792
Loan Fundings(2):
Retail Lending $11,955 $10,809 $24,602 $21,113
Wholesale Lending 6,874 7,159 14,029 14,300
Correspondent Lending 14,896 11,223 31,157 25,456
Capital Markets
Purchases 566 1,746 875 2,701
Banking Operations
Purchases(2) 278 393 1,019 544
Total Mortgage
Loan Fundings 34,569 31,330 71,682 64,114
Commercial Real
Estate Lending 693 268 1,347 503
Total Loan Fundings $35,262 $31,598 $73,029 $64,617
Total Bank Mortgage
Loan Fundings(3) $13,669 $4,218 $29,189 $8,552
Loan Fundings in
Units(2):
Retail Lending 67,241 72,924 137,453 141,997
Wholesale Lending 32,665 34,947 66,983 69,682
Correspondent Lending 73,413 55,858 153,608 126,907
Capital Markets
Purchases 1,817 6,737 2,768 10,514
Banking Operations
Purchases(2) 2,670 1,147 12,065 1,580
Total Mortgage
Loan Fundings 177,806 171,613 372,877 350,680
Commercial Real
Estate Lending 64 24 124 50
Total Loan Fundings 177,870 171,637 373,001 350,730
Total Bank Mortgage
Loan Fundings(3) 78,823 31,854 169,999 63,909
Mortgage Loan
Fundings(2)(4):
Purchase $12,633 $13,620 $25,901 $28,069
Non-purchase 21,936 17,710 45,781 36,045
Total Mortgage
Loan Fundings $34,569 $31,330 $71,682 $64,114
Mortgage Loan Fundings
by Product(2):
Government Fundings $1,033 $816 $2,133 $1,672
ARM Fundings $12,533 $16,068 $26,281 $33,054
Home Equity Fundings $2,977 $3,411 $6,563 $6,887
Nonprime Fundings $2,587 $2,845 $5,526 $5,887
MORTGAGE LOAN
SERVICING(5)
Volume $1,332,485 $1,137,344
Units 8,347,533 7,542,493
Subservicing
Volume(6) $16,455 $28,776
Subservicing Units 170,625 250,832
Prepayments in Full $17,810 $14,463 $36,936 $28,011
Bulk Servicing
Acquisitions $6,136 $37 $7,239 $77
Portfolio Delinquency
- CHL(7) 4.71% 4.29%
Foreclosures Pending
- CHL(7) 0.70% 0.47%
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
OPERATING STATISTICS(1)
(Dollars in Millions)
Month Ended Year-to-Date
February 28 February 28 February 28 February 28
2007 2006 2007 2006
LOAN CLOSING SERVICES
(units)
Credit Reports 823,272 788,038 1,721,190 1,610,005
Flood Determinations 247,297 253,647 557,637 529,193
Appraisals 104,652 80,234 213,102 166,737
Automated Property
Valuation Services 1,257,809 497,300 1,797,248 1,465,196
Other 23,599 15,718 49,355 31,584
Total Units 2,456,629 1,634,937 4,338,532 3,802,715
CAPITAL MARKETS
Securities Trading
Volume(8) $288,731 $292,307 $601,397 $607,165
BANKING
Banking Operations
Assets (in billions) $84 $75
INSURANCE
Net Premiums Earned:
Carrier $89.1 $73.2 $179.8 $152.6
Reinsurance 21.6 17.4 42.4 34.4
Total Net
Premiums Earned $110.7 $90.6 $222.2 $187.0
Period-end Rates
10-Year U.S.
Treasury Yield 4.56% 4.55%
FNMA 30-Year Fixed
Rate MBS Coupon 5.72% 5.73%
(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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