CALABASAS, Calif., Aug. 16 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) announced today that it has supplemented
its funding liquidity position by drawing on an $11.5 billion credit
facility. In addition, the Company has accelerated its plans to migrate its
mortgage production operations into Countrywide Bank, FSB.
"As we have previously discussed, secondary market demand for
non-agency mortgage-backed securities has been disrupted in recent weeks,"
said David Sambol, President and Chief Operating Officer. "Along with
reduced liquidity in the secondary market, funding liquidity for the
mortgage industry has also become constrained.
"For many years, Countrywide's liquidity management framework has
focused on maintaining a diverse, multi-layered assortment of financing
alternatives," said Sambol. "A primary component of this framework is a
committed, unsecured credit facility of $11.5 billion provided by a
syndicate of 40 of the world's largest banks. In response to
widely-reported market conditions, Countrywide has elected to draw upon
this entire facility to supplement its funding liquidity position. Over 70
percent of this facility has an existing term greater than four years and
the remainder has a term of at least 364 days.
"Countrywide has taken decisive steps which we believe will address the
challenges arising in this environment and enable the Company to meet its
funding needs and continue growing its franchise. Importantly, in addition
to the significant liquidity which we have accessed from our bank lines,
the Company's primary strategy going forward is to fund its production
through Countrywide Bank, FSB. We are already originating in excess of 70
percent of our total origination volume through the Bank, and expect to
accelerate our strategy so that nearly all of our volume will be originated
in our Bank by the end of September.
"Furthermore, as a result of lessened liquidity for loans which are not
eligible for delivery to the GSEs, Countrywide has materially tightened its
underwriting standards for such loans, and, we now expect that 90 percent
of the loans we originate will be GSE-eligible or will meet our Bank's
investment criteria.
"Our objective is to navigate the difficult conditions in today's
market as we complete the transition of our Bank business and funding
strategy," Sambol concluded. "With these changes, we believe we are
well-positioned to leverage opportunities presented by a consolidating
industry."
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: increased cost of debt; reduced access to corporate
debt markets; unforeseen cash or capital requirements; a reduction in
secondary mortgage market investor demand; increased credit losses due to
downward trends in the economy and in the real estate market; increases in
the delinquency rates of borrowers; 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;
reduction in government support of homeownership; the level and volatility
of interest rates; changes in interest rate paths; changes in debt ratings;
changes in generally accepted accounting principles or in the legal,
regulatory and legislative environments in which Countrywide operates; the
judgments and assumptions made by management regarding accounting estimates
and related matters; 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 or
any other information contained herein.
SOURCE Countrywide Financial Corporation
 back to top
Related links:
http://www.countrywide.com
CONTACT:
Investor Contact: 1-818-225-3550, David
Bigelow or Lisa Riordan, Media Contact: 1-800-796-8448
|
