CALABASAS, Calif., Oct. 11 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) released operational data for the month
ended September 30, 2007. Key operational results included the following:
-- Mortgage loan fundings for the month of September 2007 totaled $21
billion, a 44 percent decline from September 2006.
-- Average daily mortgage loan application activity for September 2007 was
$1.7 billion, a 39 percent decrease from September 2006. The mortgage
loan pipeline was $42 billion at September 30, 2007, as compared to $65
billion for the same period last year.
-- The mortgage loan servicing portfolio continued to grow, reaching $1.46
trillion at September 30, 2007. This is an increase of $215 billion,
or 17 percent, from September 30, 2006.
-- Commercial real estate funding volume for the month of September 2007
was $242 million, which compares to $646 million in September 2006.
-- Banking Operations' assets were $101 billion at September 30, 2007,
which compares to $88 billion at September 30, 2006.
-- Securities trading volume in the Capital Markets segment of $272
billion for September 2007 was 10 percent lower when compared to the
same month last year.
-- Net earned premiums from the Insurance segment were $131 million in
September 2007, up 37 percent from September 2006.
"September's production volume is reflective of current market
conditions and more restrictive underwriting," said David Sambol, President
and Chief Operating Officer. "For the third quarter of 2007, total mortgage
loan production volume declined 27 percent from the second quarter of 2007
and 19 percent from the third quarter last year. Countrywide's mortgage
loan pipeline and average daily applications declined 39 percent and 45
percent, respectively, from June 2007 to $42 billion and $1.7 billion for
September 2007, illustrating the significant drop in overall activity
throughout the industry.
"The delinquency rate as a percentage of loans serviced continued to
increase in September. However, we estimate that approximately 40 basis
points of the 82 basis point month-over-month increase was attributable to
four fewer business days in September as opposed to August," Sambol
explained. "The Company is continuing to take the necessary steps to assist
borrowers with foreclosure avoidance and investors with loss mitigation.
"The integration of loan production with our Bank remains on track,"
Sambol stated. "During the month of September, 89 percent of the Company's
total loan production was originated through the Bank, which compares to 31
percent for September 2006. Assets in our Banking Operations surpassed the
$100 billion mark at the end of September, which compares to $90 billion at
June 30, 2007. The increase was driven by the Company's decision to retain
more investment-quality loans in its portfolio. Excluding escrows, deposits
increased by $2.1 billion in September 2007 to reach $44 billion. This
included a net increase in retail deposits of $1.7 billion to reach $26
billion by month's end. These net increases were driven primarily by new
retail deposit production of $2.7 billion in September, an all-time monthly
record for the Bank."
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,
financial results, 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, and the statements made in this press release
are current as of the date of this release only.
(tables follow)
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
OPERATING STATISTICS(1)
(Dollars in Millions)
Month Ended Year-to-Date
September 30 September 30 September 30 September 30
2007 2006 2007 2006
LOAN PRODUCTION
Number of Working
Days in the
Period 19 20 189 189
Average Daily
Mortgage Loan
Applications $1,740 $2,836 $2,775 $2,624
Mortgage Loan
Pipeline
(loans-in-process) $41,507 $65,316
Commercial Real
Estate Loan
Pipeline
(loans-in-process) $1,323 $1,415
Loan Fundings (2):
Retail Lending $9,330 $12,436 $116,022 $115,352
Wholesale Lending 3,100 7,229 60,908 73,642
Correspondent
Lending 8,609 16,534 154,218 129,798
Capital Markets
Purchases 137 1,596 4,887 14,942
Banking Operations
Purchases(2) 43 292 3,723 6,863
Total Mortgage
Loan Fundings 21,219 38,087 339,758 340,597
Commercial Real
Estate Lending 242 646 6,714 3,309
Total Loan
Fundings $21,461 $38,733 $346,472 $343,906
Total Bank Loan
Fundings (3) $19,182 $11,998 $167,452 $80,309
Loan Fundings in
Units (2):
Retail Lending 56,520 78,388 683,172 744,674
Wholesale Lending 15,844 35,448 296,244 358,397
Correspondent
Lending 42,914 85,213 776,022 653,017
Capital Markets
Purchases 226 5,832 15,581 57,111
Banking Operations
Purchases (2) - 807 37,597 50,628
Total Mortgage
Loan Fundings 115,504 205,688 1,808,616 1,863,827
Commercial Real
Estate Lending 88 56 940 366
Total Loan
Fundings 115,592 205,744 1,809,556 1,864,193
Total Bank Loan
Fundings (3) 105,553 74,449 979,385 552,351
Mortgage Loan
Fundings (2)(4):
Purchase $9,637 $17,677 $143,954 $157,811
Non-purchase 11,582 20,410 195,804 182,786
Total Mortgage
Loan Fundings $21,219 $38,087 $339,758 $340,597
Mortgage Loan
Fundings by
Product (2):
Government
Fundings $1,657 $1,036 $15,375 $9,436
ARM Fundings $3,826 $15,778 $99,133 $165,118
Home Equity
Fundings $1,600 $3,766 $29,875 $37,092
Nonprime
Fundings $255 $3,058 $16,928 $30,545
MORTGAGE LOAN
SERVICING (5)
Volume $1,459,136 $1,244,311
Units 8,982,308 7,964,033
Subservicing
Volume (6) $22,921 $20,552
Subservicing
Units 220,898 193,536
Prepayments in
Full $10,829 $16,907 $160,296 $155,889
Bulk Servicing
Acquisitions $64 $2,375 $21,662 $3,115
Servicing
Portfolio
Performance -
CHL (7)
Delinquency as a
percentage of:
unpaid principal
balance 5.85% 4.04%
number of loans
serviced 5.87% 4.50%
Foreclosures
Pending as a
percentage of:
unpaid principal
balance 1.27% 0.51%
number of loans
serviced 0.92% 0.52%
LOAN CLOSING
SERVICES (units)
Credit Reports 746,947 788,458 8,689,618 7,710,757
Flood Determinations 276,625 273,293 2,620,370 2,533,622
Appraisals 132,067 104,930 1,159,736 940,113
Automated Property
Valuation
Services 1,251,064 699,238 7,683,926 6,204,234
Other 30,267 17,471 250,536 150,700
Total Units 2,436,970 1,883,390 20,404,186 17,539,426
CAPITAL MARKETS
Securities Trading
Volume (8) $272,229 $301,179 $3,164,327 $2,845,601
BANKING
Banking Operations
Assets (in billions) $101 $88
INSURANCE
Net Premiums Earned:
Carrier $105.5 $76.5 $873.8 $701.2
Reinsurance 26.0 19.5 202.7 163.6
Total Net
Premiums Earned $131.5 $96.0 $1,076.5 $864.8
Period-end Rates
10-Year U.S. Treasury
Yield 4.59% 4.64%
FNMA 30-Year Fixed
Rate MBS Coupon 5.97% 5.86%
(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 processed for Countrywide Bank by the Company's
Mortgage Banking production divisions and Countrywide Commercial Real
Estate Finance, Inc., purchased from non-affiliates or originated by
Countrywide Bank and are included in "Total Loan Fundings" above. The
amounts include loans funded for both investment and for sale and
commercial real estate loans processed by Countrywide Bank. 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) Excluding subserviced loans and portfolios purchased at a discount due
to their non-performing status. Delinquencies as a percentage of
unpaid principal balance and numbers of loans serviced exclude loans
in foreclosure.
(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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