CALABASAS, Calif., Sept. 7 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) today announced a plan of action to
address changing market conditions that positions the Company for continued
growth and success. Central elements of this plan include:
-- Reductions in workforce which will occur in areas most impacted by
lower mortgage market origination volumes. The Company presently
estimates a total workforce reduction of 10,000 to 12,000 over the next
three months representing up to 20 percent of its current workforce.
Actual reductions could be lower should the interest rate environment
and related market volume outlook improve. Based on current interest
rate levels, Countrywide presently expects that total market
origination volumes will decline approximately 25 percent in 2008
compared to 2007 levels.
-- Migration of the Company's residential lending business into its
federally chartered thrift entity, Countrywide Bank, FSB, will
continue. This is expected to enhance and strengthen Countrywide's
business model by delivering greater and more stable liquidity, reduced
borrowing costs and greater operational efficiencies. By September 30,
2007, the Company expects that almost all residential loan production
will be originated within the Bank.
-- Product guideline revisions have been made to ensure that all loans
which the Company produces can be sold into the secondary market or are
high quality prime loans to be held in Countrywide Bank's investment
portfolio. This includes the Company's recent decision to no longer
originate any subprime loans other than those eligible for sale or
securitization under programs supported by Fannie Mae, Freddie Mac or
the FHA. In spite of these changes, it is important to emphasize that
Countrywide continues to offer among the broadest and most competitive
product menus in the industry.
-- Growth plans will continue in areas of opportunity. Countrywide's
retail and wholesale lending divisions plan to continue aggressively
pursuing the increased opportunities presenting themselves in the
current environment for profitable market share growth. Countrywide
Bank, in addition to housing the Company's mortgage banking activities,
will also focus on growing its residential and commercial loan
investment portfolio and expanding its financial centers and deposit
franchise. Countrywide's insurance segment will continue to grow both
its institutional and personal lines insurance businesses.
"We are taking decisive action to ensure that Countrywide continues to
be well-positioned for further success," said Angelo Mozilo, Chairman and
Chief Executive Officer. "As we carry out our plan, the Company's
overarching focus is exactly where it has always been: to remain an
industry leader in the U.S. residential lending business, to deliver value
and world-class service to our customers and business partners, to enhance
shareholder value, and to provide career opportunities for our people."
"Each employee at Countrywide is considered an important member of the
Countrywide family," said David Sambol, President and Chief Operating
Officer. "While workforce reductions are therefore always very difficult,
these decisions are being made with the utmost attention and sensitivity to
the impact they will have on our Company and our people."
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 residential and commercial
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:
Investors, David Bigelow or Lisa Riordan,
+1-818-225-3550, or Media, 1-800-796-8448, all of Countrywide
Financial Corporation
|
