Countrywide Reports June 2007 Operational Results

CALABASAS, Calif., July 16 /PRNewswire-FirstCall/ -- Countrywide Financial Corporation (NYSE: CFC) released operational data for the month ended June 30, 2007. Key operational results included the following:

  --  Mortgage loan fundings for the month of June totaled $45 billion, an
      increase of 4 percent from June 2006.
  --  Commercial real estate funding volume for the month of June was $814
      million, up 75 percent from June 2006.
  --  Average daily mortgage loan application activity for June 2007 was
      $3.1 billion, up 15 percent from June 2006.  The mortgage loan
      pipeline was $69 billion at June 30, 2007 as compared to $65 billion
      at June 30, 2006.
  --  The mortgage loan servicing portfolio continued to grow, reaching $1.4
      trillion at June 30, 2007.  This is an increase of $219 billion, or 18
      percent, from June 30, 2006.
  --  Banking Operations' assets were $90 billion at June 30, 2007, which
      compares to $84 billion at June 30, 2006.
  --  Securities trading volume in the Capital Markets segment of $450
      billion for June 2007 was 40 percent higher when compared to the same
      month last year.
  --  Net earned premiums from the Insurance segment were $125 million, up
      23 percent from June 2006.

"Market conditions became increasingly challenging throughout the second quarter of 2007," said David Sambol, President and Chief Operating Officer. "The housing market continues to soften, and delinquencies and defaults continue to rise. Additionally, interest rates, price competition in the residential lending markets and secondary market volatility have all increased. However, Countrywide's residential funding volume in June was strong, driven primarily by seasonal purchase activity and higher application volumes in preceding months."

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 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 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.

            COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
                         OPERATING STATISTICS (1)
                          (Dollars in Millions)

                                   Month Ended             Year-to-Date
                               June 30     June 30     June 30     June 30
                                 2007        2006        2007        2006
  LOAN PRODUCTION
    Number of Working Days
     in the Period                  21          22         126         126
    Average Daily Mortgage
     Loan Applications          $3,144      $2,731      $3,031      $2,600
    Mortgage Loan Pipeline
     (loans-in-process)        $68,533     $64,979
    Commercial Real Estate
     Loan Pipeline
     (loans-in-process)         $2,206      $1,297

    Loan Fundings (2):
      Retail Lending           $14,043     $14,708     $81,009     $75,917
      Wholesale Lending          7,413       9,283      45,641      50,434
      Correspondent Lending     21,875      15,332     110,745      83,056
      Capital Markets
       Purchases                 1,558       2,674       4,463      10,620
      Banking Operations
       Purchases (2)               374       1,434       3,269       4,014
          Total Mortgage
           Loan Fundings        45,263      43,431     245,127     224,041
      Commercial Real
       Estate Lending              814         464       4,912       1,963
          Total Loan Fundings  $46,077     $43,895    $250,039    $226,004

          Total Bank Loan
           Fundings (3)        $20,699     $12,491     $99,794     $40,676

    Loan Fundings in
     Units (2):
      Retail Lending            83,664      92,204     466,459     495,294
      Wholesale Lending         36,209      44,785     220,223     244,411
      Correspondent Lending    109,615      77,911     548,149     414,004
      Capital Markets
       Purchases                 4,651       9,942      14,377      40,585
      Banking Operations
       Purchases (2)             6,638      25,473      31,088      40,429
          Total Mortgage
           Loan Fundings       240,777     250,315   1,280,296   1,234,723
      Commercial Real
       Estate Lending              137          66         608         231
          Total Loan Fundings  240,914     250,381   1,280,904   1,234,954

          Total Bank Loan
           Fundings (3)        121,778     100,859     585,071     310,983

    Mortgage Loan
     Fundings (2)(4):
      Purchase                 $20,739     $21,072     $98,413    $103,045
      Non-purchase              24,524      22,359     146,714     120,996
          Total Mortgage
           Loan Fundings       $45,263     $43,431    $245,127    $224,041

    Mortgage Loan Fundings
     by Product (2):
      Government Fundings      $2,216      $1,161      $9,224      $6,192
      ARM Fundings            $12,599     $21,159     $75,648    $111,892
      Home Equity Fundings     $3,734      $5,619     $21,135     $25,241
      Nonprime Fundings        $1,853      $4,107     $13,602     $20,411

  MORTGAGE LOAN SERVICING (5)
    Volume                  $1,415,472  $1,196,720
    Units                    8,737,534   7,757,724
    Subservicing
     Volume (6)                $16,263     $21,975
    Subservicing Units         168,026     209,564
    Prepayments in Full        $18,577     $19,685    $117,632    $102,265
    Bulk Servicing
     Acquisitions               $2,401         $29     $20,450        $172
    Servicing Portfolio
     Performance - CHL (7)
     Delinquency as a
      percentage of:
        unpaid principal
         balance                 4.77%        3.40%
        number of loans
         serviced                4.98%        3.92%
     Foreclosures Pending
      as a percentage of:
        unpaid principal
         balance                 0.96%        0.45%
        number of loans
         serviced                0.74%        0.47%

  LOAN CLOSING SERVICES
   (units)
    Credit Reports           1,026,845     893,541   5,863,751   5,183,317
    Flood Determinations       293,131     316,722   1,772,963   1,761,144
    Appraisals                 126,686     119,292     704,340     614,866
    Automated Property
     Valuation Services        698,273     488,613   4,707,209   4,120,625
    Other                       27,245      17,203     151,439      98,151
          Total Units        2,172,180   1,835,371  13,199,702  11,778,103

  CAPITAL MARKETS
    Securities Trading
     Volume(8)                $450,200    $320,842  $2,107,686  $1,912,691

  BANKING
    Banking Operations
     Assets (in billions)          $90         $84

  INSURANCE
    Net Premiums Earned:
      Carrier                   $102.0       $83.1      $557.9      $457.1
      Reinsurance                 22.6        18.6       128.7       107.0
          Total Net Premiums
           Earned               $124.6      $101.7      $686.6      $564.1


  Period-end Rates
    10-Year U.S. Treasury
     Yield                        5.03%       5.15%
    FNMA 30-Year Fixed Rate
     MBS Coupon                   6.26%       6.37%


  (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 processed for Countrywide Bank by the Company's
      Mortgage Banking production divisions and Countrywide Commercial Real
      Estate Finance, Inc., purchased from non-affiliates or originated by
      Countrywide Bank and are included in "Total Loan Fundings" above. The
      amounts include loans funded for both investment and for sale and
      commercial real estate loans processed by Countrywide Bank. 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.