EX-99.1 2 a07-13686_1ex99d1.htm EX-99.1

Exhibit 99.1

NEWS

 

 

 

INVESTOR CONTACT:    (818) 225-3550

 

David Bigelow or Lisa Riordan

 

 

 

MEDIA CONTACT: (800) 796-8448

 

COUNTRYWIDE REPORTS APRIL 2007 OPERATIONAL RESULTS

CALABASAS, CA (May 9, 2007) — Countrywide Financial Corporation (NYSE: CFC) released operational data for the month ended April 30, 2007.  Key operational results included the following:

·                  Mortgage loan fundings for the month of April totaled $40 billion, an increase of 11 percent from April 2006.

—           On a consolidated basis, Countrywide funded $2.7 billion in pay-option loans during the month as compared to $6.7 billion in April 2006.  Year-to-date fundings for pay-option loans totaled $12.3 billion, as compared to $28.4 billion for the same prior year period.  These amounts include pay-option loans that have a fixed rate for five years, which totaled $1.3 billion in April 2007 and $3.7 billion year-to-date.

·                  Average daily mortgage loan application activity for April 2007 was $3.1 billion, up 20 percent from April 2006.  The mortgage loan pipeline was $69 billion at April 30, 2007 as compared to $64 billion at April 30, 2006.

·                  The mortgage loan servicing portfolio continued to grow, totaling $1.4 trillion at April 30, 2007.  This is an increase of $207 billion, or 18 percent, from April 30, 2006.

·                  Banking Operations’ assets were $86 billion at April 30, 2007, which compares to $79 billion at April 30, 2006.

·                  Securities trading volume in the Capital Markets segment of $309 billion for April 2007 was 10 percent higher when compared to the same month last year.

·                  Net earned premiums from the Insurance segment totaled $110 million, up 20 percent from April 2006.

(more)

Investor Relations

4500 Park Granada · Calabasas, CA  91302 ·  818-225-3550

http://www.countrywide.com

Countrywide Home Loans, Inc. and Countrywide Bank, FSB 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.

 

 



“Residential mortgage loan production for the month of April 2007 increased 11 percent as compared to April 2006,” said David Sambol, President and Chief Operating Officer.  “Refinance activity remains elevated, accounting for 61 percent of total monthly production activity, which compares to 54 percent one year ago.  Indicative of underwriting guideline tightening, nonprime production declined to 4 percent of monthly origination volume, compared to 9 percent in April of last year.  Reflecting a pick-up in mortgage activity, mortgage loan application volume and ending pipeline were up 20 percent and 8 percent, respectively, as compared to the year-ago period.

“Strong year-over-year improvement in all other business lines rounded out the month.  The loan servicing portfolio continued its uninterrupted climb, increasing by 18 percent; Banking Operations assets rose 9 percent; Capital Markets trading volume rose 10 percent; and Insurance net earned premiums increased by 20 percent.”

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 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 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 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; loss of investment grade ratings 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; changes in interest rate paths; increases in the delinquency rates of borrowers; changes in generally accepted accounting principles or in the legal, regulatory and legislative environments in the markets in which the Company 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.

(tables follow)

2

Investor Relations

4500 Park Granada · Calabasas, CA  91302 ·  818-225-3550

http://www.countrywide.com

Countrywide Home Loans, Inc. and Countrywide Bank, FSB 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.

 



3-3-3

COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES

OPERATING STATISTICS(1)

(Dollars in Millions)

 

 

Month Ended

 

Year-to-Date

 

 

 

April 30

 

April 30

 

April 30

 

April 30

 

 

 

2007

 

2006

 

2007

 

2006

 

LOAN PRODUCTION

 

 

 

 

 

 

 

 

 

Number of Working Days in the Period

 

20

 

20

 

82

 

82

 

Average Daily Mortgage Loan Applications

 

$

3,084

 

$

2,562

 

$

3,013

 

$

2,546

 

Mortgage Loan Pipeline (loans-in-process)

 

$

68,747

 

$

63,739

 

 

 

 

 

Commercial Real Estate Loan Pipeline (loans-in-process)

 

$

2,845

 

$

709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Fundings(2):

 

 

 

 

 

 

 

 

 

Retail Lending

 

$

13,578

 

$

12,413

 

$

52,589

 

$

47,039

 

Wholesale Lending

 

7,963

 

8,419

 

30,151

 

32,068

 

Correspondent Lending

 

18,294

 

13,263

 

68,067

 

54,399

 

Capital Markets Purchases

 

192

 

1,943

 

2,021

 

5,950

 

Banking Operations Purchases(2)

 

453

 

307

 

2,616

 

2,421

 

Total Mortgage Loan Fundings

 

40,480

 

36,345

 

155,444

 

141,877

 

Commercial Real Estate Lending

 

930

 

252

 

2,941

 

1,218

 

Total Loan Fundings

 

$

41,410

 

$

36,597

 

$

158,385

 

$

143,095

 

 

 

 

 

 

 

 

 

 

 

Total Bank Mortgage Loan Fundings(3)

 

$

16,048

 

$

5,303

 

$

59,770

 

$

19,976

 

 

 

 

 

 

 

 

 

 

 

Loan Fundings in Units(2):

 

 

 

 

 

 

 

 

 

Retail Lending

 

78,759

 

81,216

 

296,894

 

312,184

 

Wholesale Lending

 

38,582

 

40,501

 

144,501

 

155,843

 

Correspondent Lending

 

90,113

 

65,684

 

336,112

 

269,189

 

Capital Markets Purchases

 

738

 

7,749

 

6,390

 

23,134

 

Banking Operations Purchases(2)

 

2,723

 

5,863

 

22,340

 

12,312

 

Total Mortgage Loan Fundings

 

210,915

 

201,013

 

806,237

 

772,662

 

Commercial Real Estate Lending

 

89

 

32

 

301

 

120

 

Total Loan Fundings

 

211,004

 

201,045

 

806,538

 

772,782

 

 

 

 

 

 

 

 

 

 

 

Total Bank Mortgage Loan Fundings(3)

 

94,593

 

43,776

 

352,252

 

149,562

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loan Fundings(2)(4):

 

 

 

 

 

 

 

 

 

Purchase

 

$

15,866

 

$

16,629

 

$

59,032

 

$

63,639

 

Non-purchase

 

24,614

 

19,716

 

96,412

 

78,238

 

Total Mortgage Loan Fundings

 

$

40,480

 

$

36,345

 

$

155,444

 

$

141,877

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loan Fundings by Product(2):

 

 

 

 

 

 

 

 

 

Government Fundings

 

$

1,532

 

$

1,045

 

$

5,071

 

$

3,923

 

ARM Fundings

 

$

11,424

 

$

17,344

 

$

52,382

 

$

71,066

 

Home Equity Fundings

 

$

3,480

 

$

4,192

 

$

14,019

 

$

15,255

 

Nonprime Fundings

 

$

1,682

 

$

3,292

 

$

9,563

 

$

12,497

 

 

 

 

 

 

 

 

 

 

 

MORTGAGE LOAN SERVICING(5)

 

 

 

 

 

 

 

 

 

Volume

 

$

1,370,760

 

$

1,164,010

 

 

 

 

 

Units

 

8,522,364

 

7,637,270

 

 

 

 

 

Subservicing Volume(6)

 

$

16,338

 

$

22,541

 

 

 

 

 

Subservicing Units

 

171,381

 

216,296

 

 

 

 

 

Prepayments in Full

 

$

20,088

 

$

16,540

 

$

77,920

 

$

63,543

 

Bulk Servicing Acquisitions

 

$

2,962

 

$

16

 

$

15,399

 

$

117

 

Servicing Portfolio Performance - CHL(7)

 

 

 

 

 

 

 

 

 

Delinquency as a percentage of:

 

 

 

 

 

 

 

 

 

unpaid principal balance

 

4.23

%

3.56

%

 

 

 

 

number of loans serviced

 

4.45

%

4.06

%

 

 

 

 

Foreclosures Pending as a percentage of:

 

 

 

 

 

 

 

 

 

unpaid principal balance

 

0.85

%

0.43

%

 

 

 

 

number of loans serviced

 

0.69

%

0.46

%

 

 

 

 

 

(more)

 



4-4-4

COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES

OPERATING STATISTICS(1)

(Dollars in Millions)

 

 

Month Ended

 

Year-to-Date

 

 

 

April 30

 

April 30

 

April 30

 

April 30

 

 

 

2007

 

2006

 

2007

 

2006

 

LOAN CLOSING SERVICES (units)

 

 

 

 

 

 

 

 

 

Credit Reports

 

982,765

 

820,238

 

3,813,833

 

3,383,123

 

Flood Determinations

 

274,407

 

276,384

 

1,137,258

 

1,130,712

 

Appraisals

 

116,062

 

99,621

 

452,234

 

379,194

 

Automated Property Valuation Services

 

634,281

 

1,048,619

 

3,005,461

 

3,104,163

 

Other

 

24,020

 

12,634

 

97,554

 

62,412

 

Total Units

 

2,031,535

 

2,257,496

 

8,506,340

 

8,059,604

 

 

 

 

 

 

 

 

 

 

 

CAPITAL MARKETS

 

 

 

 

 

 

 

 

 

Securities Trading Volume(8)

 

$

308,694

 

$

281,690

 

$

1,306,636

 

$

1,260,045

 

 

 

 

 

 

 

 

 

 

 

BANKING

 

 

 

 

 

 

 

 

 

Banking Operations Assets (in billions)

 

$

86

 

$

79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INSURANCE

 

 

 

 

 

 

 

 

 

Net Premiums Earned:

 

 

 

 

 

 

 

 

 

Carrier

 

$

89.3

 

$

73.1

 

$

360.2

 

$

301.1

 

Reinsurance

 

20.9

 

18.7

 

84.2

 

70.5

 

Total Net Premiums Earned

 

$

110.2

 

$

91.8

 

$

444.4

 

$

371.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period-end Rates

 

 

 

 

 

 

 

 

 

10-Year U.S. Treasury Yield

 

4.63

%

5.07

%

 

 

 

 

FNMA 30-Year Fixed Rate MBS Coupon

 

5.76

%

6.10

%

 

 

 

 

(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 either processed for Countrywide Bank by the Company’s Mortgage Banking production divisions or purchased from non-affiliates and are included in “Total Mortgage Loan Fundings” above.  The amounts include loans funded for both investment purposes and for sale.  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.

(8)             Includes trades with Mortgage Banking Segment.

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