- Company Ahead of Schedule To Reach 2010 Goal of 7,500 New Texas Jobs -
- Capital Outlay, Indirect Benefits Multiply Economic Gains on Modest State
Investment -
PLANO, Texas, Nov. 8 /PRNewswire/ -- Countrywide Financial Corporation
(NYSE: CFC) has assured Texas officials that the company expects to meet
its commitments to the Texas Enterprise Fund (TEF), in spite of the current
conditions in the housing market.
In December 2004, Countrywide received a $20 million incentive grant
from the TEF in exchange for its commitment to create at least 7,500 new
jobs in the state by 2010.
"Countrywide has far exceeded the interim annual targets under our
agreement with the Texas Enterprise Fund, already creating great economic
benefits to individual workers, other businesses, and state and local
governments," said Angelo Mozilo, chairman and CEO. "At this point, we
remain confident that we will meet the ultimate goal, as well, and the
tremendously positive effects from this grant will be long-lasting."
With the recent decline in the mortgage market, Countrywide has
announced it is undergoing a reduction of 10,000 to 12,000 positions,
approximately 20 percent, from its worldwide work force by the end of this
year. As the reduction in force began in August, nearly one-fifth of
Countrywide's work force was based in Texas.
Countrywide has reassured the Offices of Governor Rick Perry and
Secretary of State Phil Wilson that the company believes it will meet both
its interim target for 2007 and the total TEF commitment by 2010, despite
the current round of layoffs. The company also points out that the state
already has received far-reaching, ongoing benefits that exceed the $20
million invested from the fund, and these benefits will grow in the coming
years.
Here are some of the key facts.
Under the TEF agreement, Countrywide reports its job gains and other
pertinent information to the state at the end of each year for comparison
to the contractual targets. Countrywide had created 4,530 new jobs during
2005 and 2006, exceeding the target for those two years of 2,500 positions.
The tabulation is a "net" figure of total new hires, minus layoffs and
attrition.
Overall, these have been good quality jobs offering an average salary
of more than $51,000, which exceeds the contractual requirement for average
salary by nearly $10,000.
Countrywide is still determining the final number of jobs in Texas and
other locations that will be affected by its current reduction in force, as
market factors continue to fluctuate and impact the plans. The reduction
should be completed by the end of the year, and the total impact will be
reflected in the company's annual report to the Governor's office in
January.
The third-year target under the TEF agreement is 4,000 new jobs since
the start of 2005. At this time, Countrywide projects the 2007 year-end
figure will remain ahead of that agreed-upon pace for job creation.
While aimed primarily at expanded employment opportunities,
Countrywide's TEF contract further specifies that the grant funds are to be
used directly for property acquisition and improvements related to the
expansion of office centers in the state. At the time of signing,
Countrywide said it expected its capital investment to exceed $200,000 over
the six years of the agreement.
The company eclipsed the projected capital investment during the first
two years of the contract. During that period, Countrywide invested about
$116 million to purchase land and buildings in Texas. Another $143 million
subject to state and local sales taxes was spent on facility improvements
and purchases of personal property, including information technology,
office equipment, furniture and fixtures.
"Countrywide's growth in Texas reflects our strong 15-year relationship
with the state and our confidence that our presence provides great mutual
benefits to the company and people of Texas," Mozilo said. "I am grateful
for the support that the Texas legislature, Governor Perry and other state
and local leaders have demonstrated for Countrywide over the years.
"When we agreed three years ago to add 7,500 jobs to the Texas economy,
other states were courting Countrywide. We haven't wavered from our
decision then that Texas is one of the best places in the nation to do
business, and we don't expect to change our minds about continuing our
expansion in the state as the housing market recovers in the future.
About Countrywide Financial
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.
SOURCE Countrywide Financial Corporation
 back to top
Related links:
http://www.countrywide.com/
CONTACT:
Media Inquiries, Corporate Communications of
Countrywide Financial Corporation, 1-800-796-8448,
pressroom@countrywide.com
|
