Countrywide Financial Corporation

0000950129-04-007756.txt : 20041012 0000950129-04-007756.hdr.sgml : 20041012 20041012144515 ACCESSION NUMBER: 0000950129-04-007756 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20041012 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041012 DATE AS OF CHANGE: 20041012 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COUNTRYWIDE FINANCIAL CORP CENTRAL INDEX KEY: 0000025191 STANDARD INDUSTRIAL CLASSIFICATION: MORTGAGE BANKERS & LOAN CORRESPONDENTS [6162] IRS NUMBER: 132641992 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12331-01 FILM NUMBER: 041074588 BUSINESS ADDRESS: STREET 1: 4500 PARK GRANADA BLVD CITY: CALABASAS STATE: CA ZIP: 91302 BUSINESS PHONE: 8182253000 MAIL ADDRESS: STREET 1: 4500 PARK GRANADA BLVD CITY: CALABASAS STATE: CA ZIP: 91302 FORMER COMPANY: FORMER CONFORMED NAME: COUNTRYWIDE CREDIT INDUSTRIES INC DATE OF NAME CHANGE: 19920703 8-K 1 v02322e8vk.htm FORM 8-K Countrywide Financial Corporation - Oct. 12, 2004

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 12, 2004

COUNTRYWIDE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)


Delaware (State or other jurisdiction of incorporation)		1-8422 (Commission File Number)		13-2641992 (IRS Employer Identification No.)


4500 Park Granada, Calabasas, CA (Address of principal executive offices)		91302 (Zip Code)

Registrant’s telephone number, including area code: (818) 225-3000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS


	Item 2.02. Results of Operations and Financial Condition
	Item 9.01. Financial Statements and Exhibits
SIGNATURE
Exhibit 99.21
Exhibit 99.22

Item 2.02. Results of Operations and Financial Condition

On October 12, 2004, Countrywide Financial Corporation (the “Company”) issued a press release announcing information regarding its operational statistics for the month ended September 30, 2004, a copy of which is attached as Exhibit 99.21. On October 12, 2004, the Company also made available an updated version of its thirteen-month statistical data report on its website, www.countrywide.com, a copy of which is attached as Exhibit 99.22.

The information furnished pursuant to this Current Report on Form 8-K (including the exhibits hereto) shall not be considered “filed” under the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, unless the Company expressly states in such filing that such information is to be considered “filed” or incorporated by reference therein.

Item 9.01. Financial Statements and Exhibits


			99.21			Press Release issued by Countrywide Financial Corporation (the “Company”) pertaining to its operational statistics for the month ended September 30, 2004.
			99.22			Thirteen-month statistical data report made available by the Company on its website.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

COUNTRYWIDE FINANCIAL CORPORATION

Dated: October 12, 2004 /s/ Laura Milleman
Laura Milleman
Managing Director and Chief Accounting Officer

EX-99.21 2 v02322exv99w21.htm EXHIBIT 99.21 exv99w21

(COUNTRYWIDE FINANCIAL LOGO)


		INVESTOR CONTACT: (818) 225-3550
		David Bigelow or Lisa Riordan
For Immediate Release		MEDIA CONTACT: (800) 796-8448

COUNTRYWIDE REPORTS SEPTEMBER 2004 OPERATIONAL DATA

– MONTHLY PRODUCTION OF $31 BILLION RESULTS IN VOLUME OF
$92 BILLION FOR THE THIRD QUARTER –
– SERVICING PORTFOLIO GROWS TO $786 BILLION –
– PIPELINE OF APPLICATIONS-IN-PROCESS INCREASES TO $51 BILLION –

CALABASAS, CA (October 12, 2004) – Countrywide Financial Corporation (NYSE: CFC), a diversified financial services provider, released operational data for the month ended September 30, 2004. Highlights included the following:

• Loan fundings totaled $31 billion for the month of September, essentially flat compared to August 2004 and down 6 percent from September 2003. As a result of lower industry-wide refinance activity, third quarter volume of $92 billion declined $8 billion from the second quarter of 2004 and 27 percent from the third quarter of 2003. Year-to-date loan fundings reached $268 billion, a decrease of 25 percent from the first nine months of 2003.

• Monthly purchase activity of $17 billion was 34 percent greater than September 2003. Purchase volume for the third quarter reached $52 billion, an increase of 14 percent over the second quarter of 2004 and 35 percent more than the third quarter of 2003. Year-to-date purchase fundings of $130 billion accounted for 49 percent of total loan fundings, and were 36 percent higher than the first nine months of 2003.

• Adjustable-rate loan fundings for September reached a record high of $21 billion, an increase of 15 percent over the prior month and 109 percent more than September 2003. Adjustable-rate loan production for the third quarter totaled $56 billion, rising 16 percent over the second quarter of 2004 and 97 percent over the third quarter of 2003. Year-to-date adjustable-rate loan volume reached $139 billion, 120 percent more than the first nine months of 2003.

• Home equity loan fundings set a new benchmark at $3.2 billion for the month of September, up 4 percent over August 2004 and 88 percent greater than September 2003. This brought third quarter volume to $9.1 billion, advancing 24 percent over the second quarter of 2004 and 79 percent over the third quarter of 2003. Year-to-date home equity loan volume totaled $22 billion, an increase of 67 percent over the first nine months of 2003.

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Investor Relations
4500 Park Granada • Calabasas, CA 91302 • 818-225-3550
http://www.countrywide.com
(COUNTRYWIDE HOUSE) Countrywide Home Loans, Inc. and Countrywide Bank, a division of Treasury Bank, NA, are Equal Housing Lenders. ©2002 Countrywide Financial Corporation.
Trade/service marks are the property of Countrywide Financial Corporation and/or its subsidiaries. All rights reserved.

2-2-2

• Specialty lending (subprime) volume declined from the prior month by 9 percent to $3.9 billion, but remained 80 percent higher than the volume generated in September 2003. Volume for the third quarter reached $12 billion, an increase of 25 percent over the second quarter of 2004 and 116 percent over the third quarter of 2003. Year-to-date specialty lending fundings totaled $28 billion, an increase of 117 percent over the first nine months of 2003.

• Average daily application activity in September was $2.1 billion, 2 percent higher than the prior month and 13 percent over September 2003. As a result, the pipeline of applications-in-process advanced 2 percent over August 2004 to $51 billion and was 8 percent more than September 2003.

• The servicing portfolio grew by $21 billion from the prior month to $786 billion, which was also $180 billion greater than the balance one year earlier.

• Securities trading volume for the month totaled $287 billion, an increase of 19 percent over last month and 20 percent more than September 2003. This brought third quarter volume to $795 billion, which was down 3 percent from the third quarter of 2003. Year-to-date trading volume reached $2.4 trillion, advancing 4 percent over the first nine months of 2003.

• Total assets at Countrywide Bank continued to climb, reaching $34 billion, an increase of 9 percent over the prior month and more than double the asset level at September 2003.

• Monthly net earned premiums at Balboa were $64 million, an increase of 5 percent over September 2003. Third quarter net earned premiums totaled $195 million, rising 2 percent over the third quarter of 2003. Year-to-date premiums reached $578 million, up 9 percent over the prior year.

• Sub-servicing volume at Global Home Loans remained stable at $110 billion, but was up 12 percent over September 2003.

“Interest rate volatility was the dominant theme throughout this quarter,” said Stanford L. Kurland, President and Chief Operating Officer. “Despite an increase in the Fed Funds rate by 50 basis points during the quarter and market expectations for additional near-term rate hikes, the 10-year U.S. Treasury yield declined 48 basis points from June 30th to September 30th. During the quarter, Countrywide generated volume of $92 billion and portfolio growth of $60 billion, while the pipeline was $51 billion at quarter end.

“Home purchase activity accounted for 57 percent of third quarter production as compared to 46 percent during the second quarter and 31 percent during the third quarter of 2003,” Kurland continued. “Adjustable-rate loan production was 61 percent of 2004 third quarter funding volume, as compared to 23 percent during the third quarter of 2003.”

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3-3-3

Founded in 1969, Countrywide Financial Corporation is a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide provides mortgage banking and diversified financial services in domestic and international markets. Mortgage banking businesses include loan production and servicing principally through Countrywide Home Loans, Inc., which originates, purchases, securitizes, sells, and services primarily prime credit-quality loans. Also included in Countrywide’s mortgage banking segment is the LandSafe group of companies that provide loan closing services. Diversified financial services encompass capital markets, banking, insurance, and global operations, largely through the activities of Countrywide Capital Markets, a mortgage-related investment banker; Countrywide Bank, a division of Treasury Bank, NA, a banking entity offering customers CDs, money market accounts, and home loan products; Balboa Life and Casualty Group, whose companies are national providers of property, liability, and life insurance; Balboa Reinsurance, a captive mortgage reinsurance company; and Global Home Loans, a U.K. mortgage banking joint venture in which Countrywide holds a majority interest.

For more information about the Company, visit Countrywide’s website at 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 future operations, as well as business plans and strategies that 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; general economic conditions in the United States and abroad; loss of investment grade rating 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; the legal, regulatory and legislative environments in the markets in which the Company operates; and other risks detailed 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.

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COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
OPERATING STATISTICS⁽¹⁾
(Dollars in Millions)


	Month Ended						Year-to-Date
	September 30,			September 30,			September 30,
	2004			2003			2004
LOAN PRODUCTION
Number of Working Days in the Period		21			21			190
Average Daily Loan Applications	$	2,098		$	1,858		$	2,034
Mortgage Loan Pipeline (loans in process)	$	50,887		$	47,182
Loan Fundings:
Consumer Markets Division	$	9,164		$	9,392		$	81,086
Wholesale Lending Division		5,881			5,632			52,845
Correspondent Lending Division		10,810			13,225			99,062

Total Mortgage Banking		25,855			28,249			232,993
Capital Markets		2,123			3,066			14,034
Treasury Bank ⁽²⁾		3,020			1,802			20,664

Total Loan Fundings	$	30,998		$	33,117		$	267,691

Loan Fundings in Units:
Consumer Markets Division		64,123			74,566			582,286
Wholesale Lending Division		32,818			34,660			297,966
Correspondent Lending Division		60,219			81,376			562,292

Total Mortgage Banking		157,160			190,602			1,442,544
Capital Markets		10,288			9,718			57,159
Treasury Bank ⁽²⁾		28,736			18,352			208,908

Total Loan Fundings in Units		196,184			218,672			1,708,611

Loan Fundings:
Purchase ⁽³⁾	$	17,001		$	12,719		$	129,915
Non-purchase ⁽³⁾		13,997			20,398			137,776

Total Loan Fundings	$	30,998		$	33,117		$	267,691

Government Fundings	$	934		$	2,093		$	10,587
ARM Fundings	$	21,026		$	10,072		$	138,711
Home Equity Fundings	$	3,164		$	1,680		$	21,648
Subprime Fundings	$	3,894		$	2,158		$	28,400
LOAN SERVICING ⁽⁴⁾
Volume	$	785,992		$	606,095
Units		5,889,950			4,834,943
Subservicing Volume ⁽⁵⁾	$	17,861		$	11,446
Subservicing Units		174,079			128,326
Prepayments in Full	$	13,669		$	17,463		$	136,220
Bulk Servicing Acquisitions	$	3,399		$	581		$	25,709
Portfolio Delinquency (%) — CHL ⁽⁶⁾		3.73	%		3.81	%
Foreclosures Pending (%) — CHL ⁽⁶⁾		0.35	%		0.45	%

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COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
OPERATING STATISTICS⁽¹⁾
(Dollars in Millions)


	Month Ended						Year-to-Date
	September 30,			September 30,			September 30,
	2004			2003			2004
LOAN CLOSING SERVICES (units)
Credit Reports		657,661			499,431			5,617,116
Flood Determinations		239,230			222,890			2,110,975
Appraisals		78,118			51,507			564,535
Automated Property Valuation Services		463,760			358,983			3,950,642
Other		13,678			11,769			130,574

Total Units		1,452,447			1,144,580			12,373,842

CAPITAL MARKETS
Securities Trading Volume ⁽⁷⁾	$	287,475		$	240,154		$	2,366,813
BANKING
Assets Held by Treasury Bank (in billions)	$	33.8		$	16.4
INSURANCE
Net Premiums Earned:
Carrier	$	50		$	51		$	462
Reinsurance		14			10			116

Total Net Premiums Earned	$	64		$	61		$	578

GLOBAL OPERATIONS
Global Home Loans Subservicing Volume (in billions)	$	110		$	98
Period-end Rates
10-Year U.S. Treasury Yield		4.14	%		3.96	%
FNMA 30-Year Fixed Rate MBS Coupon		5.262	%		5.012	%

⁽¹⁾		The above data reflect 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⁾		Treasury Bank funds loans for investment purposes; these loans are processed for Treasury Bank by the production divisions.

⁽³⁾		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.

⁽⁴⁾		Includes warehouse loans and loans under subservicing agreements for other clients.

⁽⁵⁾		Subservicing volume for other clients.

⁽⁶⁾		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.

⁽⁷⁾		Includes trades with Mortgage Banking Division.

###

EX-99.22 3 v02322exv99w22.htm EXHIBIT 99.22 exv99w22

COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
ROLLING THIRTEEN MONTH STATISTICAL DATA
(Dollars in millions)


	Sep-03			Oct-03			Nov-03			Dec-03			Jan-04			Feb-04			Mar-04
LOAN PRODUCTION
Number of Working Days in the Period		21			23			19			22			20			19			23
Average Daily Loan Applications	$	1,858		$	1,564		$	1,479		$	1,339		$	1,776		$	1,968		$	2,455
Mortgage Loan Pipeline (loans-in-process)	$	47,182		$	42,650		$	38,841		$	32,969		$	38,354		$	43,760		$	57,422
Loan Fundings:
Consumer Markets Division	$	9,392		$	8,198		$	6,954		$	7,670		$	6,211		$	7,326		$	9,522
Wholesale Lending Division		5,632			6,235			4,725			4,902			3,844			4,801			6,993
Correspondent Lending Division		13,225			10,908			8,598			9,390			8,240			8,518			12,029

Total Mortgage Banking		28,249			25,341			20,277			21,962			18,295			20,645			28,544
Capital Markets		3,066			2,314			829			1,489			1,013			1,046			1,265
Treasury Bank (1)		1,802			1,310			1,100			1,698			1,312			1,582			2,502

Total Loan Fundings	$	33,117		$	28,965		$	22,206		$	25,149		$	20,620		$	23,273		$	32,311

Loan Fundings in Units:
Consumer Markets Division		74,566			67,213			57,058			61,031			49,154			54,962			68,664
Wholesale Lending Division		34,660			38,255			28,887			29,638			22,685			27,880			39,820
Correspondent Lending Division		81,376			67,709			52,969			57,079			49,694			50,250			67,815

Total Mortgage Banking		190,602			173,177			138,914			147,748			121,533			133,092			176,299
Capital Markets		9,718			9,266			4,629			6,357			4,680			3,491			5,114
Treasury Bank (1)		18,352			14,938			13,257			16,861			14,681			16,760			23,351

Total Loan Fundings in Units		218,672			197,381			156,800			170,966			140,894			153,343			204,764

Loan Fundings:
Purchase (2)	$	12,719		$	12,366		$	9,852		$	12,115		$	9,274		$	9,226		$	13,127
Non-purchase (2)		20,398			16,599			12,354			13,034			11,346			14,047			19,184

Total Loan Fundings	$	33,117		$	28,965		$	22,206		$	25,149		$	20,620		$	23,273		$	32,311

Government Fundings	$	2,093		$	1,774		$	1,370		$	1,343		$	1,161		$	1,117		$	1,530
ARM Fundings	$	10,072		$	10,676		$	8,487		$	9,679		$	9,478		$	10,293		$	13,872
Home Equity Fundings	$	1,680		$	1,752		$	1,620		$	1,805		$	1,564		$	1,637		$	2,088
Subprime Fundings	$	2,158		$	2,424		$	2,029		$	2,257		$	2,009		$	2,124		$	2,759
LOAN SERVICING (3)
Volume	$	606,095		$	621,000		$	631,470		$	644,855		$	657,541		$	669,076		$	682,848
Units		4,834,943			4,923,935			5,001,743			5,080,621			5,162,726			5,234,634			5,313,058
Subservicing Volume (4)	$	11,446		$	11,921		$	13,671		$	14,404		$	15,871		$	15,548		$	15,307
Subservicing Units		128,326			139,983			157,785			159,357			166,923			163,190			166,514
Prepayments in Full	$	17,463		$	14,315		$	11,403		$	11,845		$	9,387		$	13,090		$	18,317
Bulk Servicing Acquisitions	$	581		$	1,845		$	144		$	1,054		$	3,706		$	3,123		$	2,349
Portfolio Delinquency — CHL (5)		3.81	%		3.54	%		3.90	%		3.91	%		3.71	%		3.71	%		3.20	%
Foreclosures Pending — CHL (5)		0.45	%		0.50	%		0.43	%		0.43	%		0.43	%		0.44	%		0.42	%

[Additional columns below]

[Continued from above table, first column(s) repeated]


	Apr-04			May-04			Jun-04			Jul-04			Aug-04			Sep-04			YTD
LOAN PRODUCTION
Number of Working Days in the Period		22			20			22			21			22			21			190
Average Daily Loan Applications	$	2,041		$	1,945		$	1,905		$	2,006		$	2,051		$	2,098		$	2,034
Mortgage Loan Pipeline (loans-in-process)	$	54,836		$	49,675		$	47,317		$	48,142		$	50,024		$	50,887
Loan Fundings:
Consumer Markets Division	$	11,115		$	9,815		$	9,804		$	8,841		$	9,288		$	9,164		$	81,086
Wholesale Lending Division		7,727			6,208			5,913			5,376			6,102			5,881			52,845
Correspondent Lending Division		14,362			11,986			11,560			10,405			11,152			10,810			99,062

Total Mortgage Banking		33,204			28,009			27,277			24,622			26,542			25,855			232,993
Capital Markets		494			1,875			2,230			2,396			1,592			2,123			14,034
Treasury Bank (1)		2,147			1,931			2,496			2,686			2,988			3,020			20,664

Total Loan Fundings	$	35,845		$	31,815		$	32,003		$	29,704		$	31,122		$	30,998		$	267,691

Loan Fundings in Units:
Consumer Markets Division		75,880			68,759			69,912			63,813			67,019			64,123			582,286
Wholesale Lending Division		42,114			34,247			33,270			30,710			34,422			32,818			297,966
Correspondent Lending Division		77,570			65,425			65,668			60,992			64,659			60,219			562,292

Total Mortgage Banking		195,564			168,431			168,850			155,515			166,100			157,160			1,442,544
Capital Markets		1,463			6,740			8,486			9,949			6,948			10,288			57,159
Treasury Bank (1)		21,909			21,779			26,627			26,236			28,829			28,736			208,908

Total Loan Fundings in Units		218,936			196,950			203,963			191,700			201,877			196,184			1,708,611

Loan Fundings:
Purchase (2)	$	13,883		$	14,575		$	17,491		$	17,541		$	17,797		$	17,001		$	129,915
Non-purchase (2)		21,962			17,240			14,512			12,163			13,325			13,997			137,776

Total Loan Fundings	$	35,845		$	31,815		$	32,003		$	29,704		$	31,122		$	30,998		$	267,691

Government Fundings	$	1,491		$	1,235		$	1,119		$	1,039		$	961		$	934		$	10,587
ARM Fundings	$	15,739		$	15,745		$	17,259		$	17,021		$	18,278		$	21,026		$	138,711
Home Equity Fundings	$	2,242		$	2,272		$	2,787		$	2,838		$	3,056		$	3,164		$	21,648
Subprime Fundings	$	2,765		$	3,044		$	3,745		$	3,785		$	4,275		$	3,894		$	28,400
LOAN SERVICING (3)
Volume	$	693,768		$	706,943		$	726,227		$	746,905		$	765,342		$	785,992
Units		5,372,526			5,443,555			5,547,050			5,668,620			5,773,837			5,889,950
Subservicing Volume (4)	$	15,028		$	15,289		$	16,027		$	16,843		$	16,312		$	17,861
Subservicing Units		163,842			163,931			163,396			172,602			169,665			174,079
Prepayments in Full	$	23,557		$	17,593		$	14,945		$	12,430		$	13,232		$	13,669		$	136,220
Bulk Servicing Acquisitions	$	1,122		$	1,563		$	1,634		$	4,187		$	4,626		$	3,399		$	25,709
Portfolio Delinquency — CHL (5)		3.19	%		3.49	%		3.48	%		3.51	%		3.57	%		3.73	%
Foreclosures Pending — CHL (5)		0.38	%		0.36	%		0.37	%		0.37	%		0.35	%		0.35	%

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COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
ROLLING THIRTEEN MONTH STATISTICAL DATA
(Dollars in millions)


	Sep-03			Oct-03			Nov-03			Dec-03			Jan-04			Feb-04			Mar-04
LOAN CLOSING SERVICES (units)
Credit Reports		499,431			518,308			420,843			405,336			533,055			547,704			738,113
Flood Determinations		222,890			217,134			173,044			172,325			188,682			195,380			277,958
Appraisals		51,507			53,783			44,475			47,004			44,146			51,425			69,074
Automated Property Valuation Services		358,983			399,559			314,886			319,220			333,803			356,077			439,015
Other		11,769			11,457			9,741			12,096			14,750			14,218			16,379

Total Units		1,144,580			1,200,241			962,989			955,981			1,114,436			1,164,804			1,540,539

CAPITAL MARKETS
Securities Trading Volume (6)	$	240,154		$	208,429		$	196,586		$	179,390		$	192,618		$	221,082		$	276,738
BANKING
Assets Held by Treasury Bank (in billions)	$	16.4		$	17.1		$	17.7		$	19.4		$	20.3		$	21.8		$	23.7
INSURANCE
Net Premiums Earned:
Carrier	$	51		$	59		$	54		$	51		$	56		$	52		$	50
Reinsurance		10			11			13			13			12			13			12

Total Net Premiums Earned	$	61		$	70		$	67		$	64		$	68		$	65		$	62

GLOBAL OPERATIONS
Global Home Loans Subservicing Volume (in billions)	$	98		$	100		$	103		$	106		$	109		$	112		$	111
Workforce Head Count:(7)
Loan Originations		19,251			18,968			18,812			18,897			18,989			19,364			20,529
Loan Servicing		6,111			6,087			6,098			6,069			6,017			5,870			5,802
Loan Closing Services		956			955			952			931			941			952			926
Insurance		1,904			1,882			1,856			1,823			1,781			1,768			1,762
Capital Markets		452			470			476			477			484			491			494
Global Operations		1,962			1,965			1,997			1,981			1,899			1,948			1,993
Banking		804			787			810			813			803			823			849
Corporate Overhead & Other		3,309			3,282			3,282			3,307			3,347			3,366			3,389

Total Workforce Head Count		34,749			34,396			34,283			34,298			34,261			34,582			35,744

Period-end Rates
10-Year U.S. Treasury Yield		3.96	%		4.33	%		4.34	%		4.27	%		4.16	%		3.99	%		3.86	%
FNMA 30-Year Fixed Rate MBS Coupon		5.012	%		5.335	%		5.410	%		5.276	%		5.192	%		5.001	%		4.937	%

[Additional columns below]

[Continued from above table, first column(s) repeated]


	Apr-04			May-04			Jun-04			Jul-04			Aug-04			Sep-04			YTD
LOAN CLOSING SERVICES (units)
Credit Reports		626,142			574,524			631,763			630,223			677,931			657,661			5,617,116
Flood Determinations		246,580			214,494			239,522			243,241			265,888			239,230			2,110,975
Appraisals		65,975			58,912			59,839			62,732			74,314			78,118			564,535
Automated Property Valuation Services		473,601			456,663			480,364			467,030			480,329			463,760			3,950,642
Other		16,058			13,583			15,332			13,252			13,324			13,678			130,574

Total Units		1,428,356			1,318,176			1,426,820			1,416,478			1,511,786			1,452,447			12,373,842

CAPITAL MARKETS
Securities Trading Volume (6)	$	274,862		$	292,116		$	314,599		$	266,645		$	240,678		$	287,475		$	2,366,813
BANKING
Assets Held by Treasury Bank (in billions)	$	24.9		$	25.6		$	27.2		$	28.6		$	30.9		$	33.8
INSURANCE
Net Premiums Earned:
Carrier	$	50		$	48		$	51		$	54		$	51		$	50		$	462
Reinsurance		13			13			13			13			13			14			116

Total Net Premiums Earned	$	63		$	61		$	64		$	67		$	64		$	64		$	578

GLOBAL OPERATIONS
Global Home Loans Subservicing Volume (in billions)	$	108		$	111		$	110		$	110		$	109		$	110
Workforce Head Count:(7)
Loan Originations		21,696			22,400			23,035			23,114			23,680			24,334
Loan Servicing		5,828			5,864			5,908			5,910			5,920			5,961
Loan Closing Services		938			993			1,019			1,049			1,072			1,100
Insurance		1,809			1,822			1,826			1,854			1,845			1,881
Capital Markets		513			517			529			540			554			559
Global Operations		1,961			1,965			1,955			1,929			1,942			1,935
Banking		888			956			1,003			1,015			1,083			1,164
Corporate Overhead & Other		3,441			3,529			3,660			3,814			3,889			4,001

Total Workforce Head Count		37,074			38,046			38,935			39,225			39,985			40,935

Period-end Rates
10-Year U.S. Treasury Yield		4.53	%		4.66	%		4.62	%		4.50	%		4.13	%		4.14	%
FNMA 30-Year Fixed Rate MBS Coupon		5.592	%		5.752	%		5.589	%		5.484	%		5.162	%		5.262	%

(1)		Treasury Bank funds loans for investment purposes; these loans are processed for Treasury Bank by the production divisions.

(2)		Purchase fundings include first trust deed and home equity loans used as purchase money debt in the acquisition of a home.

(3)		Non-purchase fundings include first trust deed refinance loans, home equity refinance loans, and stand-alone home equity loans.

(4)		Subservicing volume for other clients.

(5)		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.

(6)		Includes trades with Mortgage Banking Division.

(7)		Workforce Head Count includes full-time employees, contract, and temporary help.

# # #

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Table of Contents

Table of Contents


	o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


	o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


	o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


	COUNTRYWIDE FINANCIAL CORPORATION
Dated: October 12, 2004	/s/ Laura Milleman
	Laura Milleman
	Managing Director and Chief Accounting Officer

	•		Monthly purchase activity of $17 billion was 34 percent greater than September 2003. Purchase volume for the third quarter reached $52 billion, an increase of 14 percent over the second quarter of 2004 and 35 percent more than the third quarter of 2003. Year-to-date purchase fundings of $130 billion accounted for 49 percent of total loan fundings, and were 36 percent higher than the first nine months of 2003.

	•		Adjustable-rate loan fundings for September reached a record high of $21 billion, an increase of 15 percent over the prior month and 109 percent more than September 2003. Adjustable-rate loan production for the third quarter totaled $56 billion, rising 16 percent over the second quarter of 2004 and 97 percent over the third quarter of 2003. Year-to-date adjustable-rate loan volume reached $139 billion, 120 percent more than the first nine months of 2003.

	•		Home equity loan fundings set a new benchmark at $3.2 billion for the month of September, up 4 percent over August 2004 and 88 percent greater than September 2003. This brought third quarter volume to $9.1 billion, advancing 24 percent over the second quarter of 2004 and 79 percent over the third quarter of 2003. Year-to-date home equity loan volume totaled $22 billion, an increase of 67 percent over the first nine months of 2003.

	•		Average daily application activity in September was $2.1 billion, 2 percent higher than the prior month and 13 percent over September 2003. As a result, the pipeline of applications-in-process advanced 2 percent over August 2004 to $51 billion and was 8 percent more than September 2003.

	•		The servicing portfolio grew by $21 billion from the prior month to $786 billion, which was also $180 billion greater than the balance one year earlier.

	•		Securities trading volume for the month totaled $287 billion, an increase of 19 percent over last month and 20 percent more than September 2003. This brought third quarter volume to $795 billion, which was down 3 percent from the third quarter of 2003. Year-to-date trading volume reached $2.4 trillion, advancing 4 percent over the first nine months of 2003.

	•		Total assets at Countrywide Bank continued to climb, reaching $34 billion, an increase of 9 percent over the prior month and more than double the asset level at September 2003.

	•		Monthly net earned premiums at Balboa were $64 million, an increase of 5 percent over September 2003. Third quarter net earned premiums totaled $195 million, rising 2 percent over the third quarter of 2003. Year-to-date premiums reached $578 million, up 9 percent over the prior year.

	•		Sub-servicing volume at Global Home Loans remained stable at $110 billion, but was up 12 percent over September 2003.