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Countrywide Credit Industries, Inc. Reports Record Earnings
and Fundings For First Fiscal Quarter and Gives Second
Quarter Guidance

CALABASAS, Calif., June 21 /PRNewswire/ -- Countrywide Credit Industries,
(NYSE: CCR news), a diversified financial services provider, announced today
that unaudited net earnings for the first fiscal quarter ended May 31, 2001
were $123.1 million, an 18 percent increase compared to earnings of
$104.2 million in the prior quarter. Earnings for the quarter increased
47 percent compared to earnings of $83.5 million for the fiscal quarter ended
May 31, 2000. Basic and diluted earnings per share for the first quarter were
$1.04 and $1.00, respectively, as compared to earnings of $0.89 and
$0.85 per basic and diluted share, respectively, for the prior quarter. Basic
and diluted earnings per share for the first quarter last year were $0.73 and
$0.72, respectively.

Countrywide's Board of Directors declared a cash dividend of
$0.10 per common share for the first quarter, payable July 31, 2001 to
shareholders of record on July 13, 2001.

"Countrywide opened its Fiscal Year 2002 with the strongest quarter in our
history, shattering previous company records for earnings and fundings while
our servicing portfolio surpassed the $300 billion milestone," said Angelo R.
Mozilo, chairman, chief executive officer and president. "Net earnings were
$123.1 million, or $1.00 per diluted share, breaking the old marks of
$106.5 million and $0.91 per diluted share, set in the second quarter of
fiscal 2000.

"In the first quarter the company capitalized on continued strength in the
refinance market to post record fundings of $30.6 billion," Mozilo continued.
"This represents an increase of 50 percent over the prior quarter and
110 percent over the first quarter of fiscal 2001. Despite a slight increase
in interest rates since the beginning of the quarter, the market outlook
remains strong for both home purchase mortgages and refinances. Average daily
applications for the quarter surged to $691 million, which pushed the pipeline
of loans in process to $18.2 billion, up 18 percent from last quarter and an
89 percent increase from a year ago. Our loan servicing portfolio stands at
$302 billion. Our institutional business sectors, which include processing
and technology, capital markets and B2B insurance, now account for 51 percent
of total earnings, versus 47 percent last quarter and 32 percent in last
year's first quarter.

"The outlook for the upcoming second fiscal quarter is extremely
positive," Mozilo added. "Average daily applications for the month of June
thus far are $737 million, a pace comparable to the previous monthly record of
$734 million set in March. Based on the continued strength of the market as
well as the outstanding performance of our core businesses and diversification
initiatives, Countrywide management expects the company will report record
diluted earnings per share within a range of $1.15 to $1.20 in its second
fiscal quarter ending August 31, 2001. This estimated range assumes no
extraordinary impact from FAS 133. This estimate should be considered a
forward-looking statement as described in the disclaimer below."

Consumer Businesses
Countrywide's two mortgage-related consumer business sectors collectively
contributed pre-tax earnings of $96.5 million or 49 percent of total pre-tax
earnings, compared to $89.7 million or 69 percent in the first quarter last
year. The consumer mortgage origination sector led the way, with
record-breaking fundings and solid margins generating $187.3 million in
pre-tax earnings. This surge in origination profits more than offset the
increased amortization expense which was reflected in the mortgage-related
investment sector.

"Once again, Countrywide effectively managed the counterbalance between
these business sectors," said Mozilo. "In this extraordinarily robust market,
the high levels of origination profits more than compensate for the temporary
increase in amortization expense. Meanwhile, we continue to add new,
low-coupon servicing to our portfolio, driving down the weighted average
coupon which will benefit the company over the long term throughout various
interest rate cycles."

The consumer mortgage origination sector includes consumer-direct lending
through our branch system, telemarketing operations and the Internet; mortgage
broker originations through a network of over 15,000 mortgage brokers; Full
Spectrum Lending, Inc.
, a consumer-direct sub-prime lender with 42 branches;
LandSafe, Inc., a national provider of loan closing services; and other
mortgage origination activities. The level of funding activity principally
drives mortgage origination performance. Consumer mortgage fundings were
$19.6 billion this quarter compared to $8.5 billion in the first quarter last
year. LandSafe achieved substantial increases in all major products compared
to last year's first quarter, with the volume of credit reports and appraisals
up 69 percent and 56 percent respectively.
The mortgage-related investments sector includes mortgage servicing rights
and related hedge assets, and home equity and sub-prime residuals, among other
assets. Earnings from these investments act as a natural counter-balance
against mortgage origination earnings. Actual and expected prepayment
activity that determines the level of servicing asset amortization and
impairment primarily drives the performance of mortgage-related investments.
Annualized actual prepayment speeds were 28 percent for this quarter, compared
to 14 percent last quarter and 9 percent for the first quarter last year.
Amortization and impairment, net of servicing hedge, was $308 million compared
to $203 million last quarter and $118 million in last year's first quarter.

The third consumer business sector, B2C insurance, involves
consumer-direct sales of a full menu of insurance products through our
national insurance agency, Countrywide Insurance Services, Inc. Over the long
term, the number of policies-in-force principally drives B2C insurance
performance. Policies-in-force amounted to 528,000 at May 31, 2001 and
457,000 at May 31, 2000.

Countrywide continues to expand its consumer product offerings. During
the quarter, Countrywide received regulatory approval and completed its
acquisition of a federally chartered bank. This charter will position
Countrywide to improve its portfolio retention through a more complete product
menu and increased brand awareness; to offer more competitive adjustable-rate
products; to bring certain outsourced bank functions in-house; and to
diversify its funding sources.

Institutional Businesses
Processing and technology provided 10 percent of earnings in the first
quarter compared to 8 percent in the first quarter last year. Processing and
technology activities include the subservicing of Countrywide's own customer
base; subservicing and processing for other domestic financial institutions;
and international mortgage activities, notably Global Home Loans, our European
mortgage banking joint venture. A key objective of our processing and
technology businesses is to market Countrywide's vast intellectual assets
(processing expertise and technology) to third parties as a fee-based
processor. The principal amount of subserviced loans and the revenues and
expenses related thereto essentially drive performance in processing and
technology. The domestic subservicing portfolio, including subservicing for
others, was $302 billion at May 31, 2001 and $262 billion at May 31, 2000.
Global Home Loans currently subservices the equivalent of over $40 billion in
the UK.

Capital markets provided 31 percent of earnings in this quarter compared
to 13 percent in the first quarter last year. A substantial portion of this
increase resulted from correspondent mortgage lending activities, which
benefited from favorable market conditions. Capital markets activities
include correspondent lending through a network of over 1,800 financial
institutions; a securities broker-dealer; a broker of mortgage servicing
rights; and a distressed-asset manager. The level of correspondent loan
fundings and securities trading volume are key drivers of capital markets
performance. Correspondent loan fundings amounted to $11 billion in the first
quarter and $6 billion in the first quarter last year. Securities trading
volume was $332 billion this quarter and $145 billion in the first quarter
last year.

B2B insurance provided 10 percent of earnings this quarter compared to
11 percent in the first quarter last year. B2B insurance businesses include
Balboa Life and Casualty, a national provider of property, life and liability
insurance and Second Charter, a captive mortgage reinsurance company. The
amount of net written premium and the level of mortgage reinsurance activity
primarily drive B2B insurance performance. Net written premium for Balboa
Life and Casualty was $67 million this quarter, compared to $49 million in
last year's first quarter.

Consolidated Operational Statistics
Consolidated mortgage fundings were $30.6 billion this quarter compared to
$14.5 billion in the first quarter last year. Purchase mortgage fundings were
$13.2 billion this quarter compared to $11.6 billion in the first quarter last
year, an increase of 14 percent. Refinance fundings were $17.4 billion
compared to $2.9 billion in the first quarter last year. Consolidated
e-commerce fundings amounted to $14.2 billion this quarter, or 46 percent of
total fundings, compared to $3.6 billion in the first quarter last year, or
25 percent of total fundings.

"This record-breaking quarter demonstrates Countrywide's strength in all
aspects of our business model," Mozilo concluded. "In the near term, we are
well-positioned to continue capitalizing on the ongoing strength of the
mortgage market. Over the longer term, our institutional businesses and other
diversification efforts are becoming an increasingly powerful driver of growth
and profitability."

Countrywide Credit Industries, Inc. CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) Three Months Ended May 31, (Dollar amounts in thousands, except share data) 2001 2000 % Change Revenues Loan origination fees $198,676 $84,294 136% Gain on sale of loans 257,609 133,154 93% Loan production revenue 456,285 217,448 110% Interest earned 505,674 258,594 96% Interest charges (448,942) (261,474) 72% Net interest 56,732 (2,880) 2070% Loan servicing revenues 351,944 272,203 29% Amortization & impairment/ recovery of mortgage servicing rights, net of servicing hedge (308,199) (118,159) 161% Net loan administration revenue 43,745 154,044 (72%) Net premiums earned 87,624 62,005 41% Commissions, fees and other revenue 40,144 43,949 (9%) Total revenues 684,530 474,566 44% Expenses Salaries and related expenses 261,466 171,531 52% Occupancy and other office expenses 90,230 66,518 36% Marketing expenses 15,554 19,759 (21%) Insurance net losses 34,666 25,638 35% Other operating expenses 86,207 60,195 43% Total expenses 488,123 343,641 42% Earnings before income taxes 196,407 130,925 50% Provision for income taxes 73,357 47,466 55% NET EARNINGS $123,050 $83,459 47% Earnings per Share Basic $1.04 $0.73 42% Diluted $1.00 $0.72 39% Weighted Average Shares Outstanding Basic 118,469,000 113,792,000 4% Diluted 122,688,000 116,108,000 6% Countrywide Credit Industries, Inc. CONSOLIDATED BALANCE SHEETS (unaudited) May 31, February 28, (Dollar amounts in thousands, 2001 2001 except share data) Assets Cash $235,978 $126,496 Mortgage loans and mortgage-backed securities held for sale 3,120,478 1,964,018 Trading securities, at market value 5,299,167 4,050,082 Mortgage servicing rights, net 6,315,136 5,767,748 Investments in other financial instruments 2,814,884 4,160,314 Securities purchased under agreements to resell 4,501,724 3,109,556 Property, equipment and leasehold improvements, at cost - net of accumulated depreciation and amortization 399,446 396,943 Other assets 3,490,484 3,380,350 Total assets $26,177,297 $22,955,507 Liabilities and Shareholders' Equity Notes payable $12,671,979 $11,402,791 Securities sold under agreements to repurchase 4,866,249 3,541,230 Drafts payable issued in connection with mortgage loan closings 831,403 932,931 Accounts payable, accrued liabilities and other 2,149,675 1,449,288 Deferred income taxes 1,572,782 1,570,003 Total liabilities 22,092,088 18,896,243 Commitments and contingencies -- -- Company-obligated mandatorily redeemable capital trust pass- through securities of subsidiary trusts holding solely Company guaranteed related subordinated debt 500,000 500,000 Shareholders' equity Preferred stock - authorized, 1,500,000 share of $0.05 par value; issued and outstanding, none -- -- Common stock - authorized, 240,000,000 shares of $0.05 par value; issued and outstanding, 118,835,746 shares at May 31, 2001 and 117,732,249 shares at February 28, 2001 5,942 5,887 Additional paid-in capital 1,348,130 1,307,679 Accumulated other comprehensive income 46,572 173,249 Retained earnings 2,184,565 2,072,449 Total shareholders' equity 3,585,209 3,559,264 Total liabilities and shareholders' equity $26,177,297 $22,955,507 Countrywide Credit Industries, Inc. SELECTED OPERATING DATA (unaudited) (Dollar amounts in millions) Three Months Ended May 31, 2001 2000 % Change Volume of loans produced $30,619 $14,546 110% Number of loans produced 248,288 139,789 78% Volume of e-commerce loans produced $14,162 $3,639 289% Loan closing services: credit reports, appraisals, title reports and flood determinations processed 1,043,885 593,756 76% Consumer insurance policies-in-force 528,214 457,069 16% Capital markets securities trading volume $331,550 $144,908 129% B2B insurance net written premium $67 $49 37% At May 31, 2001 2000 % Change Pipeline of loans-in-process $18,238 $9,635 89% Loan servicing portfolio * $301,815 $261,888 15% Number of loans serviced * 2,998,057 2,663,833 13% * Includes warehoused loans and loans under subservicing agreements. Countrywide Credit Industries, Inc. QUARTERLY SECTOR ANALYSIS (unaudited) Three Months Ended May 31, 2001 Consumer Businesses Mortgage- (Dollar amounts Mortgage Related B2C in thousands) Originations Investments Insurance Total Loan production revenue (1) $379,916 $-- $-- $379,916 Net interest 42,845 (25,980) 97 16,962 Net loan admin revenue (2) -- (36,609) -- (36,609) Net premiums earned (3) -- -- -- -- Commissions, fees & other (4) 31,661 (26,445) 10,854 16,070 Total revenues 454,422 (89,034) 10,951 376,339 Expenses 267,076 1,798 9,683 278,557 Earnings before income taxes $187,346 $(90,832) $1,268 $97,782 Institutional Businesses Processing and Capital B2B (Dollar amounts Technology Markets Insurance Total in thousands) Loan production revenue (1) $66 $76,301 $-- $76,367 Net interest 731 32,199 5,939 38,869 Net loan admin revenue (2) 80,319 35 -- 80,354 Net premiums earned (3) -- -- 87,624 87,624 Commissions, fees & other (4) 15,139 4,953 4,280 24,372 Total revenues 96,255 113,488 97,843 307,586 Expenses 76,929 53,373 77,417 207,719 Earnings before income taxes $19,326 $60,115 $20,426 $99,867 (Dollar amounts Grand in thousands) Other Total Loan production revenue (1) $2 $456,285 Net interest 901 56,732 Net loan admin revenue (2) -- 43,745 Net premiums earned (3) -- 87,624 Commissions, fees & other (4) (298) 40,144 Total revenues 605 684,530 Expenses 1,847 488,123 Earnings before income taxes $(1,242) $196,407 Three Months Ended May 31, 2000 Consumer Businesses Mortgage- (Dollar amounts Mortgage Related B2C in thousands) Originations Investments Insurance Total Loan production revenue (1) $179,561 $-- $-- $179,561 Net interest 15,832 (36,142) 70 (20,240) Net loan admin revenue (2) -- 91,734 -- 91,734 Net premiums earned (3) -- -- -- -- Commissions, fees & other (4) 15,160 8,363 9,331 32,854 Total revenues 210,553 63,955 9,401 283,909 Expenses 182,999 1,789 8,341 193,129 Earnings before income taxes $27,554 $62,166 $1,060 $90,780 Institutional Businesses (Dollar amounts Processing and Capital B2B in thousands) Technology Markets Insurance Total Loan production revenue (1) $-- $37,885 $-- $37,885 Net interest 248 11,705 5,957 17,910 Net loan admin revenue (2) 62,275 35 -- 62,310 Net premiums earned (3) -- -- 62,005 62,005 Commissions, fees & other (4) 7,551 3,354 407 11,312 Total revenues 70,074 52,979 68,369 191,422 Expenses 59,569 36,078 54,121 149,768 Earnings before income taxes $10,505 $16,901 $14,248 $41,654 (Dollar amounts Grand in thousands) Other Total Loan production revenue (1) $2 $217,448 Net interest (550) (2,880) Net loan admin revenue (2) -- 154,044 Net premiums earned (3) -- 62,005 Commissions, fees & other (4) (217) 43,949 Total revenues (765) 474,566 Expenses 744 343,641 Earnings before income taxes $(1,509) $130,925 (1) Consists primarily of loan origination fees and gain on sale of loans. (2) Consists primarily of fees earned for servicing mortgage loans, related ancillary fees and income on residual interests, net of amortization and impairment/recovery of MSRs and net servicing hedge. (3) Consists of insurance premiums earned. (4) Consists primarily of revenues from ancillary products and services, including title, escrow, appraisal, credit reporting and home inspection services, and insurance agency commissions.

Founded in 1969, Countrywide Credit Industries, Inc. is a member of the
S&P 500 and Forbes 500. The company provides consumer and
business-to-business financial services in domestic and international markets.
Consumer businesses include mortgages, consumer insurance and other financial
products. Business-to-business activities encompass processing and
technology, capital markets and B2B insurance.

Principal subsidiaries include Countrywide Home Loans, Inc., which
originates, purchases, securitizes, sells and services home loans; Full
Spectrum Lending, Inc., a sub-prime residential lender; LandSafe, Inc., a
provider of loan closing services; Countrywide Insurance Services, Inc., a
full service insurance agency; Countrywide Capital Markets, a mortgage-related
investment banker; and Balboa Life and Casualty, a national provider of
property, liability and life insurance. In addition, Countrywide owns
50 percent of Global Home Loans, a European mortgage banking joint venture.

For more information about the company, visit Countrywide's website at

Certain of the information included in this press release may contain
forward-looking statements. These forward-looking statements are subject to
certain risks and uncertainties, which could cause actual results to differ
materially from historical results or those anticipated due to a number of
factors such as the direction and level of interest rates, competitive and
general economic conditions in each of our business sectors, expense and loss
levels in our mortgage, insurance and other business sectors, general economic
conditions in the United States and abroad and in the domestic and
international areas in which we do business, the legal, regulatory and
legislative environments in the markets in which the company operates, changes
in accounting and financial reporting standards, decisions by the company to
change its business mix, and other risks detailed in documents filed by the
company with the Securities and Exchange Commission from time to time. Words
like "believe", "expect", "should", "promising" and other expressions which
indicate future events and trends identify forward-looking statements. The
company undertakes no obligation to publicly update or revise any
forward-looking statements.

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