CALABASAS, Calif., July 13 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) released operational data for the month
ended June 30, 2006. Operational highlights included the following:
* Mortgage loan fundings for the month of June were $42 billion, down 11
percent from June 2005. Second quarter 2006 funding volume totaled
$117 billion, a decline of 3 percent from the second quarter of 2005.
Year-to-date fundings totaled $220 billion, up 4 percent from last
year.
- Monthly purchase volume was $21 billion. This compares to $24
billion for June 2005. Purchase activity for the second quarter of
2006 totaled $55 billion, a decrease of 9 percent from the same
year-ago period. Year-to-date purchase activity totaled $102
billion, essentially unchanged from last year.
- Adjustable-rate loan fundings for the month of June were $20
billion, a decrease of 23 percent from June 2005. Adjustable-rate
loan production for the second quarter of 2006 fell by 16 percent
from the same prior year period to $57 billion. Year-to-date
adjustable-rate volume was $108 billion, a decline of 6 percent from
last year.
- Home equity loan fundings for June increased by 11 percent on a
year-over-year basis to $4.3 billion. Second quarter 2006 home
equity activity totaled $12 billion, rising by 13 percent from the
same period last year. This brought year-to-date home equity
funding volume to $24 billion, which was 19 percent higher than last
year.
- Nonprime loan fundings in June were $4.1 billion, compared with $4.2
billion for the year-ago period. Nonprime activity for the second
quarter of 2006 reached $11 billion, up 7 percent from the same
year-ago period. Year-to-date nonprime loan funding volume of $20
billion was essentially unchanged from the comparable period last
year.
- Consolidated pay-option loan fundings for the month were $6.3
billion, compared with $9.5 billion in June of last year.
Pay-option fundings for the second quarter of 2006 totaled $19
billion, declining from $25 billion for the second quarter of 2005.
Year-to-date pay-option fundings were $39 billion, as compared to
$41 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 June was $2.7
billion, a decrease of 10 percent from last year. The mortgage loan
pipeline of $65 billion at June 30, 2006 represented a decline of 16
percent from June 30, 2005.
* The mortgage loan servicing portfolio totaled $1.2 trillion at
June 30, 2006, an increase of $232 billion, or 24 percent, from
June 30, 2005.
* Total assets for Banking Operations were $84 billion at June 30, 2006,
an increase of $19 billion, or 29 percent, from June 30, 2005.
* Securities trading volume in the Capital Markets segment of $321
billion for the month of June 2006 was down 5 percent from June 2005,
but volume increased by 5 percent from the second quarter of 2005 to
reach $934 billion for the second quarter of 2006. Year-to-date
securities trading volume reached $1.9 trillion, an increase of 11
percent year-over-year.
* Net earned premiums from the Insurance segment were $102 million for
June 2006, compared with $77 million for the year-ago period. Second
quarter 2006 net earned premiums totaled $284 million, rising 32
percent from the second quarter of 2005. Year-to-date net earned
premiums were $564 million, an increase of 36 percent from last year.
"Countrywide's mortgage loan production results for the month of June
and the second quarter of 2006 reflected the year-over-year slowdown in
activity across the industry," said Stanford L. Kurland, President and
Chief Operating Officer. "While the Company's total mortgage loan fundings
for the second quarter of 2006 declined by 3 percent year-over-year, they
were up 13 percent from the first quarter of 2006, reflecting seasonal
improvement. This compared positively to the industry, where industry
origination volume for the second quarter of 2006 was estimated by various
industry sources to decline, on average, by approximately 13 percent
year-over-year. In addition, compared to last month, mortgage loan fundings
and average daily applications increased. The mortgage pipeline also
remains strong at $65 billion, matching last month and indicative of
near-term strength in funding volume for Countrywide.
"The servicing portfolio continued its uninterrupted growth, reaching
$1.2 trillion at the end of June. Similarly, our other business segments
demonstrated year-over-year growth with Banking Operations' assets rising
29 percent, Capital Markets securities trading volume increasing 5 percent
and Insurance net earned premiums advancing 32 percent over the second
quarter of 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.
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES OPERATING STATISTICS(1)
(Dollars in Millions)
Month Ended Year-to-Date
June 30, June 30, June 30,
2006 2005 2006
LOAN PRODUCTION
Number of Working Days in the Period 22 22 126
Average Daily Mortgage Loan
Applications $2,731 $3,029 $2,600
Mortgage Loan Pipeline
(loans-in-process) $64,979 $77,009
Commercial Real Estate
Loan Pipeline (loans-in-process) $305 $502
Loan Fundings:
Consumer Markets Division $12,885 $13,583 $67,934
Wholesale Lending Division 7,489 7,492 40,760
Correspondent Lending Division 7,892 18,396 64,051
Capital Markets 2,674 1,784 10,620
Countrywide Bank (2) 11,057 6,011 36,662
Total Mortgage Loan Fundings 41,997 47,266 220,027
Commercial Real Estate Fundings 464 285 1,963
Total Loan Fundings $42,461 $47,551 $221,990
Loan Fundings in Units:
Consumer Markets Division 68,434 75,774 388,486
Wholesale Lending Division 34,081 34,497 190,807
Correspondent Lending Division 36,999 89,416 303,862
Capital Markets 9,942 7,183 40,585
Countrywide Bank (2) 75,386 45,933 270,554
Total Mortgage Loan
Fundings in Units 224,842 252,803 1,194,294
Commercial Real Estate 66 31 231
Total Loan Fundings in Units 224,908 252,834 1,194,525
Mortgage Loan Fundings: (3)
Purchase $20,710 $24,023 $101,772
Non-purchase 21,287 23,243 118,255
Total Mortgage Loan Fundings $41,997 $47,266 $220,027
Mortgage Loan Fundings by Product:
Government Fundings $1,161 $1,056 $6,192
ARM Fundings $19,936 $25,952 $108,371
Home Equity Fundings $4,317 $3,879 $23,524
Nonprime Fundings $4,107 $4,202 $20,411
MORTGAGE LOAN SERVICING (4)
Volume $1,196,720 $964,444
Units 7,757,724 6,843,218
Subservicing Volume (5) $21,975 $27,706
Subservicing Units 209,564 258,716
Prepayments in Full $19,685 $22,192 $102,265
Bulk Servicing Acquisitions $29 $9,472 $172
Portfolio Delinquency - CHL (6) 3.92% 3.51%
Foreclosures Pending - CHL (6) 0.47% 0.39%
LOAN CLOSING SERVICES (units)
Credit Reports 893,541 886,555 5,183,317
Flood Determinations 316,722 350,861 1,761,144
Appraisals 119,292 113,910 614,866
Automated Property
Valuation Services 488,613 615,269 4,120,625
Other 17,203 15,109 98,151
Total Units 1,835,371 1,981,704 11,778,103
CAPITAL MARKETS
Securities Trading Volume (7) $320,842 $336,598 $1,912,691
BANKING
Banking Operations Assets (in
billions) $84.3 $65.5
INSURANCE
Net Premiums Earned:
Carrier $83.1 $62.2 $457.1
Reinsurance 18.6 14.5 107.0
Total Net Premiums Earned $101.7 $76.7 $564.1
Period-end Rates
10-Year U.S. Treasury Yield 5.15% 3.94%
FNMA 30-Year Fixed Rate MBS Coupon 6.37% 5.00%
(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. 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.