Countrywide reports robust fourth quarter

Countrywide Financial Corp. reported a record year for operational activity, according to data released today for the period ended Dec. 31, 2003.

Fourth quarter purchase volume was $34 billion, an increase of 33 percent over the fourth quarter of 2002. Full-year purchase activity reached $130 billion, up 50 percent over the purchase volume record set in calendar 2002.

Fourth quarter volume of $29 billion drove full-year adjustable-rate loan fundings to $92 billion, two and one-half times greater than the $36 billion produced in all of calendar 2002.

Home equity volume reached a record $5.2 billion during the fourth quarter. Annual home equity production reached $18 billion, an increase of 55 percent over full-year 2002 results.

Subprime fundings rose to a record quarterly volume of $6.7 billion, driving full-year fundings to $20 billion, and far exceeding 2002's record volume of $9.4 billion.

Fourth quarter production volume reached $76 billion, driving full-year fundings to an all-time high of $435 billion, a rise of 73 percent over the prior record of $252 billion set in calendar 2002.

The servicing portfolio climbed to a new high of $645 billion in 2003, a gain of $192 billion over the portfolio at Dec. 31, 2002.

"The fourth quarter brought to a close a record year for Countrywide," said Stanford L. Kurland, president and chief operating officer. "As anticipated, refinance activity declined during the quarter due to higher mortgage rates. Accordingly, our strategic efforts aimed at the purchase market and less interest-rate-sensitive products were successful. Our 7,000-strong production sales force fueled our robust purchase production of $34 billion this quarter – the company's second highest quarterly purchase volume on record. Other noteworthy achievements for the fourth quarter included our 145 percent increase in adjustable-rate loan fundings over the fourth quarter of 2002, and record levels of subprime and home equity production."

Countrywide Financial Corp. (NYSE: CFC) provides mortgage banking and diversified financial services in domestic and international markets. Mortgage banking businesses include loan production and servicing principally through Countrywide Home Loans Inc., which originates, purchases, securitizes, sells and services primarily prime-quality loans.

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