e8vk

0000950129-05-000236.txt : 20050111 0000950129-05-000236.hdr.sgml : 20050111 20050111111109 ACCESSION NUMBER: 0000950129-05-000236 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20050111 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050111 DATE AS OF CHANGE: 20050111 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: 05522555 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 v04515e8vk.htm COUNTRYWIDE FINANCIAL CORPORATION - DATED 1/11/2005 e8vk

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): January 11, 2005

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):

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

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

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

    ¨     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 99.1
Exhibit 99.2

Item 2.02. Results of Operations and Financial Condition

On January 11, 2005, Countrywide Financial Corporation (the “Company”) issued a press release announcing information regarding its operational statistics for the month ended December 31, 2004, a copy of which is attached as Exhibit 99.1. On January 11, 2005, 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 99.2.

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


99.1		Press Release issued by Countrywide Financial Corporation (the “Company”) pertaining to its operational statistics for the month ended December 31, 2004.

99.2		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: January 10, 2005		/s/ Laura Milleman

		Laura Milleman Managing Director and Chief Accounting Officer

EX-99.1 2 v04515exv99w1.htm EXHIBIT 99.1 exv99w1

Exhibit 99.1

(NEWS & COUNTRYWIDE LOGO)

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

For Immediate Release

COUNTRYWIDE REPORTS DECEMBER 2004 OPERATIONAL DATA
– MONTHLY LOAN PRODUCTION OF $35 BILLION BRINGS YEARLY VOLUME TO $363 BILLION –
– SERVICING PORTFOLIO REACHES $838 BILLION –
– TOTAL ASSETS AT COUNTRYWIDE BANK SURPASS $40 BILLION MARK –

CALABASAS, CA (January 11, 2005) – Countrywide Financial Corporation (NYSE: CFC), a diversified financial services provider, released operational data for the month ended December 31, 2004. Highlights included the following:

• Loan fundings for December were $35 billion, an increase of 11 percent over last month and up 38 percent over December 2003. Fundings for the fourth quarter totaled $95 billion, 4 percent higher than the third quarter of 2004 and 25 percent more than the fourth quarter of 2003. Total fundings for 2004 reached $363 billion, making it the second best year in Company history.

—    Monthly purchase volume rose 9 percent over the last month to $17 billion, 36 percent more than December 2003. Quarterly purchase volume of $47 billion declined by 11 percent from the third quarter, consistent with anticipated seasonal variability, but was 36 percent higher than the fourth quarter of 2003. Total yearly purchase activity set a new record at $176 billion.

—    Adjustable-rate loan fundings of $18 billion for the month were 12 percent higher than last month and 91 percent greater than December 2003. Quarterly adjustable-rate loan volume of $51 billion was down 9 percent from the third quarter, but was 78 percent higher than the fourth quarter of 2003. Adjustable-rate loan fundings for the year reached a new high of $190 billion.

—    Monthly home equity loan fundings of $3.1 billion were up 3 percent compared to last month and 74 percent more than December 2003. Quarterly home equity loan fundings reached a new high of $9.2 billion, up 2 percent over the third quarter and 79 percent higher than the fourth quarter of 2003. Home equity loan volume for 2004 reached a new record high of $31 billion.

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Investor Relations
4500 Park Granada · Calabasas, CA 91302 · 818-225-3550
http://www.countrywide.com
(LOGO) Countrywide Home Loans, Inc. and Countrywide Bank, a division of Treasury Bank, NA, are Equal Housing Lenders. ã2002 Countrywide Financial Corporation.
Trade/service marks are the property of Countrywide Financial Corporation and/or its subsidiaries. All rights reserved.

2-2-2

— Subprime loan volume for December rose by 24 percent over last month to a new monthly record of $4.3 billion, an increase of 91 percent over December 2003. Subprime loan fundings for the fourth quarter totaled $11 billion, a decline of 8 percent from the third quarter, but 65 percent more than the fourth quarter of 2003. As such, yearly subprime loan volume set a new record at $39 billion.

•   Average daily application activity remained at the $2 billion level for the month of December, down 1 percent from November 2004, but 48 percent greater than December 2003.

•   The pipeline of loans-in-process was $48 billion, down 6 percent from last month, but 45 percent higher than December 2003.

•   The servicing portfolio rose to $838 billion, up $193 billion, or 30 percent, over December 2003.

•   Monthly securities trading volume was essentially flat compared to November 2004 at $261 billion, but was 45 percent more than December 2003. Quarterly trading volume reached $760 billion, a decline of 4 percent from the third quarter, but 30 percent greater than the fourth quarter of 2003. This brought total trading volume for the year to a new record high of $3.1 trillion.

•   Total assets at Countrywide Bank continued to climb, reaching $41 billion, an increase of 6 percent over last month and 111 percent more than the level at December 2003.

•   Monthly net earned premiums at Balboa of $69 million rose by 3 percent over last month, and were 8 percent greater than December 2003. Quarterly premium volume totaled $204 million, an increase of 5 percent from the third quarter and up 1 percent from the fourth quarter of 2003. Total annual premium volume reached $782 million.

•   Subservicing volume at Global Home Loans was $118 billion, up 11 percent over December 2003.

“December’s robust operational results provided a strong finish to the 2004 year for Countrywide,” said Stanford L. Kurland, President and Chief Operating Officer. “The overall market in 2004 featured a range in the 10-year U.S. Treasury yield of 119 basis points, although the year-over-year yield change was a decline of only 3 basis points. The MBA’s December 20, 2004 forecast indicates that industry loan production volume for 2004 is expected to have fallen 26 percent from 2003’s record levels. This compares to Countrywide’s annual production volume for 2004 of $363 billion, which declined by 17 percent from the prior year. Countrywide’s strong production results were generated by our sales force

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3-3-3

expansion strategy, our broad product menu, and our operational excellence. During the year, the Company set new records in purchase, adjustable-rate, home equity and subprime lending volume. Robust production activity translated to strong growth in servicing, with the portfolio reaching $838 billion at year-end, almost $200 billion more than December 2003.

“Our mortgage banking activity was supplemented by strong operational performance in each of our diversified businesses,” Kurland concluded. “Assets at Countrywide Bank more than doubled over last year to reach $41 billion. Capital Markets reached a new high in securities trading volume of $3.1 trillion, an increase of 9 percent over 2003. Net premiums earned from our Insurance carrier rose by 7 percent over last year to a new record of $782 million, and the servicing portfolio of Global Home Loans rose by 11 percent over December 2003 to reach $118 billion.”

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. Mortgage banking businesses include loan production and loan servicing principally through Countrywide Home Loans, Inc., which originates, purchases, securitizes, sells, and services primarily prime-quality loans. Also included in Countrywide’s mortgage banking segment is the LandSafe group of companies which provide loan closing services. Diversified financial services encompass banking, capital markets, insurance, and global operations, largely through the activities of Countrywide Bank, a division of Treasury Bank, N.A., a bank offering depository and home loan products; Countrywide Capital Markets, a mortgage-related investment banker; Balboa Life and Casualty Group, whose companies are national providers of property, life and casualty 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, 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: 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; interest rate paths; 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.

(tables follow)

3-3-3

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


	Month Ended						Year-to-Date
	December 31,			December 31,			December 31,
	2004			2003			2004
LOAN PRODUCTION
Number of Working Days in the Period		22			22			254
Average Daily Loan Applications	$	1,983		$	1,339		$	2,024
Mortgage Loan Pipeline (loans in process)	$	47,768		$	32,969
Loan Fundings:
Consumer Markets Division	$	10,440		$	7,670		$	111,375
Wholesale Lending Division		6,992			4,902			72,848
Correspondent Lending Division		13,086			9,390			133,588

Total Mortgage Banking		30,518			21,962			317,811
Capital Markets		2,234			1,489			18,079
Treasury Bank ⁽²⁾		1,978			1,698			27,116

Total Loan Fundings	$	34,730		$	25,149		$	363,006

Loan Fundings in Units:
Consumer Markets Division		72,025			61,031			797,009
Wholesale Lending Division		38,476			29,638			407,323
Correspondent Lending Division		74,305			57,079			760,957

Total Mortgage Banking		184,806			147,748			1,965,289
Capital Markets		9,665			6,357			74,215
Treasury Bank ⁽²⁾		13,389			16,861			259,240

Total Loan Fundings in Units		207,860			170,966			2,298,744

Loan Fundings:
Purchase ⁽³⁾	$	16,533		$	12,115		$	176,486
Non-purchase ⁽³⁾		18,197			13,034			186,520

Total Loan Fundings	$	34,730		$	25,149		$	363,006

Government Fundings	$	875		$	1,343		$	13,247
ARM Fundings	$	18,457		$	9,679		$	189,931
Home Equity Fundings	$	3,148		$	1,805		$	30,893
Subprime Fundings	$	4,306		$	2,257		$	39,441
LOAN SERVICING ⁽⁴⁾
Volume	$	838,322		$	644,855
Units		6,196,487			5,080,621
Subservicing Volume ⁽⁵⁾	$	16,847		$	14,404
Subservicing Units		171,633			159,357
Prepayments in Full	$	17,755		$	11,845		$	184,324
Bulk Servicing Acquisitions	$	4,903		$	1,054		$	40,723
Portfolio Delinquency (%) — CHL⁽⁶⁾		3.83	%		3.91	%
Foreclosures Pending (%) — CHL⁽⁶⁾		0.42	%		0.43	%

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4-4-4

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


	Month Ended						Year-to-Date
	December 31,			December 31,			December 31,
	2004			2003			2004
LOAN CLOSING SERVICES (units)
Credit Reports		580,363			405,336			7,492,515
Flood Determinations		247,978			172,325			2,797,405
Appraisals		82,114			47,004			804,290
Automated Property Valuation Services		496,643			319,220			5,433,328
Other		17,119			12,096			178,018

Total Units		1,424,217			955,981			16,705,556

CAPITAL MARKETS
Securities Trading Volume⁽⁷⁾	$	260,666		$	179,390		$	3,126,672
BANKING
Assets Held by Treasury Bank (in billions)	$	41.0		$	19.4
INSURANCE
Net Premiums Earned:
Carrier	$	55		$	51		$	625
Reinsurance		14			13			157

Total Net Premiums Earned	$	69		$	64		$	782

GLOBAL OPERATIONS
Global Home Loans Subservicing Volume (in billions)	$	118		$	106
Period-end Rates
10-Year U.S. Treasury Yield		4.24	%		4.27	%
FNMA 30-Year Fixed Rate MBS Coupon		5.21	%		5.28	%

⁽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 loans held for sale, loans held for investment, and loans serviced under subservicing agreements for others.

⁽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-99.2 3 v04515exv99w2.htm EXHIBIT 99.2 exv99w2

Exhibit 99.2

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


	Dec-03			Jan-04			Feb-04			Mar-04			Apr-04			May-04			Jun-04			Jul-04			Aug-04			Sep-04			Oct-04			Nov-04			Dec-04			YTD
LOAN PRODUCTION
Number of Working Days in the Period		22			20			19			23			22			20			22			21			22			21			21			21			22			254
Average Daily Loan Applications	$	1,339		$	1,776		$	1,968		$	2,455		$	2,041		$	1,945		$	1,905		$	2,006		$	2,051		$	2,098		$	1,991		$	2,010		$	1,983		$	2,024
Mortgage Loan Pipeline (loans-in-process)	$	32,969		$	38,354		$	43,760		$	57,422		$	54,836		$	49,675		$	47,317		$	48,142		$	50,024		$	50,887		$	51,990		$	50,638		$	47,768
Loan Fundings:
Consumer Markets Division	$	7,670		$	6,211		$	7,326		$	9,522		$	11,115		$	9,815		$	9,804		$	8,841		$	9,288		$	9,164		$	9,666		$	10,183		$	10,440		$	111,375
Wholesale Lending Division		4,902			3,844			4,801			6,993			7,727			6,208			5,913			5,376			6,102			5,881			6,236			6,775			6,992			72,848
Correspondent Lending Division		9,390			8,240			8,518			12,029			14,362			11,986			11,560			10,405			11,152			10,810			9,846			11,594			13,086			133,588

Total Mortgage Banking		21,962			18,295			20,645			28,544			33,204			28,009			27,277			24,622			26,542			25,855			25,748			28,552			30,518			317,811
Capital Markets		1,489			1,013			1,046			1,265			494			1,875			2,230			2,396			1,592			2,123			729			1,082			2,234			18,079
Treasury Bank (1)		1,698			1,312			1,582			2,502			2,147			1,931			2,496			2,686			2,988			3,020			2,740			1,734			1,978			27,116

Total Loan Fundings	$	25,149		$	20,620		$	23,273		$	32,311		$	35,845		$	31,815		$	32,003		$	29,704		$	31,122		$	30,998		$	29,217		$	31,368		$	34,730		$	363,006

Loan Fundings in Units:
Consumer Markets Division		61,031			49,154			54,962			68,664			75,880			68,759			69,912			63,813			67,019			64,123			67,098			75,600			72,025			797,009
Wholesale Lending Division		29,638			22,685			27,880			39,820			42,114			34,247			33,270			30,710			34,422			32,818			33,390			37,491			38,476			407,323
Correspondent Lending Division		57,079			49,694			50,250			67,815			77,570			65,425			65,668			60,992			64,659			60,219			55,413			68,947			74,305			760,957

Total Mortgage Banking		147,748			121,533			133,092			176,299			195,564			168,431			168,850			155,515			166,100			157,160			155,901			182,038			184,806			1,965,289
Capital Markets		6,357			4,680			3,491			5,114			1,463			6,740			8,486			9,949			6,948			10,288			2,868			4,523			9,665			74,215
Treasury Bank (1)		16,861			14,681			16,760			23,351			21,909			21,779			26,627			26,236			28,829			28,736			28,081			8,862			13,389			259,240

Total Loan Fundings in Units		170,966			140,894			153,343			204,764			218,936			196,950			203,963			191,700			201,877			196,184			186,850			195,423			207,860			2,298,744

Loan Fundings:
Purchase (2)	$	12,115		$	9,274		$	9,226		$	13,127		$	13,883		$	14,575		$	17,491		$	17,541		$	17,797		$	17,001		$	14,884		$	15,154		$	16,533		$	176,486
Non-purchase (2)		13,034			11,346			14,047			19,184			21,962			17,240			14,512			12,163			13,325			13,997			14,333			16,214			18,197			186,520

Total Loan Fundings	$	25,149		$	20,620		$	23,273		$	32,311		$	35,845		$	31,815		$	32,003		$	29,704		$	31,122		$	30,998		$	29,217		$	31,368		$	34,730		$	363,006

Government Fundings	$	1,343		$	1,161		$	1,117		$	1,530		$	1,491		$	1,235		$	1,119		$	1,039		$	961		$	934		$	832		$	953		$	875		$	13,247
ARM Fundings	$	9,679		$	9,478		$	10,293		$	13,872		$	15,739		$	15,745		$	17,259		$	17,021		$	18,278		$	21,026		$	16,341		$	16,422		$	18,457		$	189,931
Home Equity Fundings	$	1,805		$	1,564		$	1,637		$	2,088		$	2,242		$	2,272		$	2,787		$	2,838		$	3,056		$	3,164		$	3,036		$	3,061		$	3,148		$	30,893
Subprime Fundings	$	2,257		$	2,009		$	2,124		$	2,759		$	2,765		$	3,044		$	3,745		$	3,785		$	4,275		$	3,894		$	3,276		$	3,459		$	4,306		$	39,441
LOAN SERVICING (3)
Volume	$	644,855		$	657,541		$	669,076		$	682,848		$	693,768		$	706,943		$	726,227		$	746,905		$	765,342		$	785,992		$	805,922		$	821,287		$	838,322
Units		5,080,621			5,162,726			5,234,634			5,313,058			5,372,526			5,443,555			5,547,050			5,668,620			5,773,837			5,889,950			6,018,496			6,113,193			6,196,487
Subservicing Volume (4)	$	14,404		$	15,871		$	15,548		$	15,307		$	15,028		$	15,289		$	16,027		$	16,843		$	16,312		$	17,861		$	16,869		$	17,421		$	16,847
Subservicing Units		159,357			166,923			163,190			166,514			163,842			163,931			163,396			172,602			169,665			174,079			171,273			174,875			171,633
Prepayments in Full	$	11,845		$	9,387		$	13,090		$	18,317		$	23,557		$	17,593		$	14,945		$	12,430		$	13,232		$	13,669		$	14,336		$	16,013		$	17,755		$	184,324
Bulk Servicing Acquisitions	$	1,054		$	3,706		$	3,123		$	2,349		$	1,122		$	1,563		$	1,634		$	4,187		$	4,626		$	3,399		$	8,241		$	1,870		$	4,903		$	40,723
Portfolio Delinquency — CHL (5)		3.91	%		3.71	%		3.71	%		3.20	%		3.19	%		3.49	%		3.48	%		3.51	%		3.57	%		3.73	%		3.92	%		3.85	%		3.83	%
Foreclosures Pending — CHL (5)		0.43	%		0.43	%		0.44	%		0.42	%		0.38	%		0.36	%		0.37	%		0.37	%		0.35	%		0.35	%		0.37	%		0.41	%		0.42	%

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


	Dec-03			Jan-04			Feb-04			Mar-04			Apr-04			May-04			Jun-04			Jul-04			Aug-04			Sep-04			Oct-04			Nov-04			Dec-04			YTD
LOAN CLOSING SERVICES (units)
Credit Reports		405,336			533,055			547,704			738,113			626,142			574,524			631,763			630,223			677,931			657,661			660,351			634,685			580,363			7,492,515
Flood Determinations		172,325			181,697			188,150			267,378			236,776			214,494			239,522			243,241			265,888			239,230			237,386			235,665			247,978			2,797,405
Appraisals		47,004			44,146			51,425			69,074			65,975			58,912			59,839			62,732			74,314			78,118			77,388			80,253			82,114			804,290
Automated Property Valuation Services		319,220			333,803			356,077			439,015			473,601			456,663			480,364			467,030			480,329			463,760			477,592			508,451			496,643			5,433,328
Other		12,096			14,750			14,218			16,379			16,058			13,583			15,332			13,252			13,324			13,678			14,430			15,895			17,119			178,018

Total Units		955,981			1,107,451			1,157,574			1,529,959			1,418,552			1,318,176			1,426,820			1,416,478			1,511,786			1,452,447			1,467,147			1,474,949			1,424,217			16,705,556

CAPITAL MARKETS
Securities Trading Volume (6)	$	179,390		$	192,618		$	221,082		$	276,738		$	274,862		$	292,116		$	314,599		$	266,645		$	240,678		$	287,475		$	239,128		$	260,065		$	260,666		$	3,126,672
BANKING
Assets Held by Treasury Bank (in billions)	$	19.4		$	20.3		$	21.8		$	23.7		$	24.9		$	25.6		$	27.2		$	28.6		$	30.9		$	33.9		$	36.4		$	38.8		$	41.0
INSURANCE
Net Premiums Earned:
Carrier	$	51		$	56		$	52		$	50		$	50		$	48		$	51		$	54		$	51		$	50		$	54		$	54		$	55		$	625
Reinsurance		13			12			13			12			13			13			13			13			13			14			14			13			14			157

Total Net Premiums Earned	$	64		$	68		$	65		$	62		$	63		$	61		$	64		$	67		$	64		$	64		$	68		$	67		$	69		$	782

GLOBAL OPERATIONS
Global Home Loans Subservicing Volume (in billions)	$	106		$	109		$	112		$	111		$	108		$	111		$	110		$	110		$	109		$	110		$	112		$	117		$	118
Workforce Head Count: (7)
Loan Originations		19,018			19,020			19,395			20,560			21,696			22,400			23,035			23,114			23,680			24,334			24,899			25,203			25,071
Loan Servicing		6,069			6,017			5,870			5,802			5,828			5,864			5,908			5,910			5,920			5,961			6,079			6,202			6,331
Loan Closing Services		820			914			925			899			938			993			1,019			1,049			1,072			1,100			1,113			1,123			1,146
Insurance		1,823			1,781			1,768			1,762			1,809			1,822			1,826			1,854			1,845			1,881			1,880			1,880			1,899
Capital Markets		477			484			491			494			513			517			529			540			554			559			566			564			569
Global Operations		1,981			1,899			1,948			1,993			1,961			1,965			1,955			1,929			1,942			1,935			1,949			1,877			1,846
Banking		803			799			819			845			888			956			1,003			1,015			1,083			1,164			1,184			1,213			1,213
Corporate Overhead & Other		3,307			3,347			3,366			3,389			3,441			3,529			3,660			3,814			3,889			4,001			4,033			4,102			4,066

Total Workforce Head Count		34,298			34,261			34,582			35,744			37,074			38,046			38,935			39,225			39,985			40,935			41,703			42,164			42,141

Period-end Rates
10-Year U.S. Treasury Yield		4.27	%		4.16	%		3.99	%		3.86	%		4.53	%		4.66	%		4.62	%		4.50	%		4.13	%		4.14	%		4.05	%		4.36	%		4.24	%
FNMA 30-Year Fixed Rate MBS Coupon		5.28	%		5.19	%		5.00	%		4.94	%		5.59	%		5.75	%		5.59	%		5.48	%		5.16	%		5.23	%		5.11	%		5.27	%		5.21	%

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

⁽³⁾		Includes loans held for sale, loans held for investment, and loans serviced under subservicing agreements for others.

⁽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

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

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

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

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

	—	Monthly purchase volume rose 9 percent over the last month to $17 billion, 36 percent more than December 2003. Quarterly purchase volume of $47 billion declined by 11 percent from the third quarter, consistent with anticipated seasonal variability, but was 36 percent higher than the fourth quarter of 2003. Total yearly purchase activity set a new record at $176 billion.

	—	Adjustable-rate loan fundings of $18 billion for the month were 12 percent higher than last month and 91 percent greater than December 2003. Quarterly adjustable-rate loan volume of $51 billion was down 9 percent from the third quarter, but was 78 percent higher than the fourth quarter of 2003. Adjustable-rate loan fundings for the year reached a new high of $190 billion.

	—	Monthly home equity loan fundings of $3.1 billion were up 3 percent compared to last month and 74 percent more than December 2003. Quarterly home equity loan fundings reached a new high of $9.2 billion, up 2 percent over the third quarter and 79 percent higher than the fourth quarter of 2003. Home equity loan volume for 2004 reached a new record high of $31 billion.

	•	Average daily application activity remained at the $2 billion level for the month of December, down 1 percent from November 2004, but 48 percent greater than December 2003.

	•	The pipeline of loans-in-process was $48 billion, down 6 percent from last month, but 45 percent higher than December 2003.

	•	The servicing portfolio rose to $838 billion, up $193 billion, or 30 percent, over December 2003.

	•	Monthly securities trading volume was essentially flat compared to November 2004 at $261 billion, but was 45 percent more than December 2003. Quarterly trading volume reached $760 billion, a decline of 4 percent from the third quarter, but 30 percent greater than the fourth quarter of 2003. This brought total trading volume for the year to a new record high of $3.1 trillion.

	•	Total assets at Countrywide Bank continued to climb, reaching $41 billion, an increase of 6 percent over last month and 111 percent more than the level at December 2003.

	•	Monthly net earned premiums at Balboa of $69 million rose by 3 percent over last month, and were 8 percent greater than December 2003. Quarterly premium volume totaled $204 million, an increase of 5 percent from the third quarter and up 1 percent from the fourth quarter of 2003. Total annual premium volume reached $782 million.

	•	Subservicing volume at Global Home Loans was $118 billion, up 11 percent over December 2003.