Countrywide Financial Corporation released operational data for the month ended September 30, 2007. Key operational results included the following:

— Mortgage loan fundings for the month of September 2007 totaled $21
billion, a 44 percent decline from September 2006.
— Average daily mortgage loan application activity for September 2007 was
$1.7 billion, a 39 percent decrease from September 2006. The mortgage
loan pipeline was $42 billion at September 30, 2007, as compared to $65
billion for the same period last year.
— The mortgage loan servicing portfolio continued to grow, reaching $1.46
trillion at September 30, 2007. This is an increase of $215 billion,
or 17 percent, from September 30, 2006.
— Commercial real estate funding volume for the month of September 2007
was $242 million, which compares to $646 million in September 2006.
— Banking Operations’ assets were $101 billion at September 30, 2007,
which compares to $88 billion at September 30, 2006.
— Securities trading volume in the Capital Markets segment of $272
billion for September 2007 was 10 percent lower when compared to the
same month last year.
— Net earned premiums from the Insurance segment were $131 million in
September 2007, up 37 percent from September 2006.

“September’s production volume is reflective of current market conditions and more restrictive underwriting,” said David Sambol, President and Chief Operating Officer. “For the third quarter of 2007, total mortgage loan production volume declined 27 percent from the second quarter of 2007 and 19 percent from the third quarter last year. Countrywide’s mortgage loan pipeline and average daily applications declined 39 percent and 45 percent, respectively, from June 2007 to $42 billion and $1.7 billion for September 2007, illustrating the significant drop in overall activity throughout the industry.

“The delinquency rate as a percentage of loans serviced continued to increase in September. However, we estimate that approximately 40 basis points of the 82 basis point month-over-month increase was attributable to four fewer business days in September as opposed to August,” Sambol explained. “The Company is continuing to take the necessary steps to assist borrowers with foreclosure avoidance and investors with loss mitigation.

“The integration of loan production with our Bank remains on track,” Sambol stated. “During the month of September, 89 percent of the Company’s total loan production was originated through the Bank, which compares to 31 percent for September 2006. Assets in our Banking Operations surpassed the $100 billion mark at the end of September, which compares to $90 billion at June 30, 2007. The increase was driven by the Company’s decision to retain more investment-quality loans in its portfolio. Excluding escrows, deposits increased by $2.1 billion in September 2007 to reach $44 billion. This included a net increase in retail deposits of $1.7 billion to reach $26 billion by month’s end. These net increases were driven primarily by new retail deposit production of $2.7 billion in September, an all-time monthly record for the Bank.”

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 residential and commercial 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, financial results, 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: increased cost of debt; reduced access to corporate debt markets; unforeseen cash or capital requirements; a reduction in secondary mortgage market investor demand; increased credit losses due to downward trends in the economy and in the real estate market; increases in the delinquency rates of borrowers; 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; reduction in government support of homeownership; the level and volatility of interest rates; changes in interest rate paths; changes in debt ratings; changes in generally accepted accounting principles or in the legal, regulatory and legislative environments in which Countrywide 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, and the statements made in this press release are current as of the date of this release only.

Posted: 10|11|07 at 4:48 pm. Filed under: News.