CALABASAS, Calif., Sept. 14 /PRNewswire-FirstCall/ -- Countrywide Financial Corporation (NYSE: CFC) released operational data for the month ended August 31, 2006. Key operational results included the following:
* Mortgage loan fundings for the month of August were $40 billion, a
decrease of 24 percent from August 2005. Year-to-date fundings of
$296 billion were down by 4 percent from $309 billion last year.
- Monthly purchase volume in August was $19 billion as compared to
$25 billion for August 2005. Year-to-date purchase activity was
$138 billion as compared to $148 billion last year.
- Adjustable-rate loan fundings for the month of August were
$18 billion as compared to $27 billion in August 2005. Year-to-date
adjustable-rate volume was $143 billion as compared to $166 billion
last year.
- Home equity loan fundings for August were $4.1 billion, essentially
flat from August 2005. Year-to-date home equity fundings were
$31 billion, 14 percent higher than last year.
- Nonprime loan fundings in August were $3.7 billion, compared with
$4.5 billion for the year-ago period. Year-to-date nonprime loan
funding volume of $27 billion was down 3 percent from the comparable
period last year.
- Consolidated pay-option loan fundings for the month of August were
$5.4 billion, compared with $10.4 billion in August of last year.
Year-to-date pay-option fundings were $49.7 billion, as compared to
$60.2 billion from the same period last year.
- It should be noted that the various mortgage loan funding categories
listed above are not mutually exclusive and are not intended to
total 100 percent of total fundings.
* Average daily mortgage loan application activity in August was
$2.6 billion, down 17 percent from last year. The mortgage loan
pipeline was $64 billion at August 31, 2006 as compared to $78 billion
at August 31, 2005.
* The mortgage loan servicing portfolio totaled $1.2 trillion at
August 31, 2006, an increase of 20 percent from August 31, 2005.
* Total assets for Banking Operations were $87 billion at August 31,
2006, an increase of 21 percent from last year.
* Securities trading volume in the Capital Markets segment of
$353 billion for the month of August 2006 was up from $346 billion in
August 2005. Year-to-date securities trading volume reached
$2.5 trillion, an increase of 8 percent from last year.
* Net earned premiums from the Insurance segment were $111 million for
August 2006, compared with $69 million for the year-ago period.
Year-to-date net earned premiums were $769 million, rising 36 percent
from last year.
"Total mortgage loan fundings were up 12 percent sequentially, but declined year over year as a result of the expected industry slowdown," said Angelo R. Mozilo, Chairman and Chief Executive Officer. "While purchase funding volume was down significantly from August 2005, purchase volume year-to-date was down only 6 percent from 2005 which was an all-time high. The servicing portfolio continued its growth, increasing $208 billion from last year to reach $1.2 trillion at the end of August. Other business segments also demonstrated year-over-year growth with Banking Operations' assets rising $15 billion, Capital Markets securities trading volume increasing $7 billion, and Insurance net earned premiums advancing $42 million from August 2005."
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/.
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; 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; changes in generally accepted accounting principles or in the legal, regulatory and legislative environments in the markets in which the Company operates; 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.
(tables follow)
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
OPERATING STATISTICS(1)
(Dollars in Millions)
Month Ended Year-to-Date
August 31, August 31, August 31,
2006 2005 2006
LOAN PRODUCTION
Number of Working Days in the
Period 23 23 169
Average Daily Mortgage Loan
Applications $2,645 $3,168 $2,599
Mortgage Loan Pipeline
(loans-in-process) $64,125 $78,062
Commercial Real Estate Loan
Pipeline (loans-in-process) $296 $458
Loan Fundings:
Consumer Markets Division $14,021 $16,133 $102,916
Wholesale Lending Division 8,193 10,855 66,413
Correspondent Lending Division 16,185 23,744 113,264
Capital Markets 1,782 2,335 13,346
Total Mortgage Loan Fundings 40,181 53,067 295,939
Commercial Real Estate Fundings 273 397 2,663
Total Loan Fundings $40,454 $53,464 $298,602
Bank Mortgage Loan Fundings (2) $13,233 $5,309 $61,740
Loan Fundings in Units:
Consumer Markets Division 88,698 102,357 666,286
Wholesale Lending Division 40,740 51,526 322,949
Correspondent Lending Division 82,777 117,470 567,804
Capital Markets 6,978 8,148 51,279
Total Mortgage Loan Fundings
in Units 219,193 279,501 1,608,318
Commercial Real Estate 39 30 310
Total Loan Fundings in Units 219,232 279,531 1,608,628
Bank Mortgage Loan Units (2) 82,746 44,162 428,081
Mortgage Loan Fundings: (3)
Purchase $19,368 $25,079 $138,368
Non-purchase 20,813 27,988 157,571
Total Mortgage Loan Fundings $40,181 $53,067 $295,939
Mortgage Loan Fundings by Product:
Government Fundings $1,161 $1,114 $8,400
ARM Fundings $17,978 $27,267 $143,285
Home Equity Fundings $4,141 $4,122 $31,463
Nonprime Fundings $3,722 $4,504 $27,487
MORTGAGE LOAN SERVICING (4)
Volume $1,228,518 $1,020,416
Units 7,890,954 7,089,887
Subservicing Volume (5) $23,179 $28,868
Subservicing Units 209,126 259,688
Prepayments in Full $19,783 $25,111 $138,982
Bulk Servicing Acquisitions $534 $3,393 $740
Portfolio Delinquency - CHL (6) 4.15% 3.68%
Foreclosures Pending - CHL (6) 0.50% 0.42%
LOAN CLOSING SERVICES (units)
Credit Reports 920,379 914,659 6,922,299
Flood Determinations 302,948 318,626 2,260,329
Appraisals 117,367 123,082 835,183
Automated Property Valuation
Services 939,734 750,312 5,504,996
Other 19,918 16,786 133,229
Total Units 2,300,346 2,123,465 15,656,036
CAPITAL MARKETS
Securities Trading Volume (7) $353,106 $345,998 $2,544,422
BANKING
Banking Operations Assets
(in billions) $87 $72
INSURANCE
Net Premiums Earned:
Carrier $92.1 $53.7 $624.7
Reinsurance 18.7 14.8 144.1
Total Net Premiums Earned $110.8 $68.5 $768.8
Period-end Rates
10-Year U.S. Treasury Yield 4.74% 4.02%
FNMA 30-Year Fixed Rate MBS Coupon 5.93% 5.15%
(1) This 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) These loans are processed for Countrywide Bank by the Company's
Mortgage Banking production divisions 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.
(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 for others, including those under subservicing agreements.
(5) Subservicing volume for non-Countrywide entities.
(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 Segment.