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Countrywide Reports Robust January Production Activity

Servicing Portfolio Reaches $342 Billion; Strong Performance From Diversification Initiatives

CALABASAS, Calif., Feb 8, 2002 /PRNewswire-FirstCall via COMTEX/ -- Countrywide Credit Industries, Inc. (CCR) , a diversified financial services provider, released operational data for the month ended January 31, 2002.

"Countrywide continued to leverage the opportunities presented by a favorable interest rate environment with fundings reaching $14.8 billion in January, the third best month in our history," noted Stanford L. Kurland, chief operating officer. "January fundings remain robust, closely matching levels previously reached in October 2001 and clearly indicating that we continue to realize the benefits of the refinance cycle.

"Purchase fundings remain our long-term strategic focus," Kurland continued. "Purchase fundings this month were 50 percent higher than last January when low rates had already stimulated production activity. Countrywide purchase applications in January reached $6.7 billion representing an increase of 17 percent from the prior month. The MBA purchase application index is up 29 percent from the lows of October 2001."

"Countrywide's loan pipeline at the close of January grew to an impressive $23 billion, up from $22 billion at December 31," said Kurland. "Average daily loan application volumes reached $947 million, a 19 percent increase over the prior month, and the third best month on record. Current strong performance is evidenced by our origination market share approaching 7 percent, up nearly one percent over last year. This production market position, combined with our current pipeline and average daily application volumes, indicate strong loan funding performance for the near future.

"While we expect continued strong performance from our production sector in the near term, it is important to note that Countrywide's counter-cyclical business model is strategically designed to enable the company to perform effectively in all mortgage interest rate environments," Kurland added. "Countrywide's servicing sector performs counter-cyclically to our production sector, thriving in a rising rate environment primarily as a result of decreased net mortgage servicing rights (MSR) amortization. We continued to meet our operational goal of growing fundings faster than prepayments to maintain uninterrupted growth in our servicing portfolio. Loan fundings exceeded prepayments by $6.3 billion in January. The servicing portfolio now stands at $342 billion at the end of January. While the past twelve months have challenged many of our competitors to sustain their portfolios, Countrywide fundings exceeded prepayments by $55.8 billion. Today, the servicing portfolio is better positioned than at any time in our history to deliver strong earnings to mitigate the expected decline in production earnings when the refinance-related earnings diminish.

"Countrywide's counter-cyclical business model has been strategically augmented by our diversification initiatives, which are less sensitive to mortgage interest rates. Our Insurance, Capital Markets, Banking and Global businesses all delivered consistently strong performance in January and are meeting their long-term strategic performance targets.

"Carrier monthly net written premiums in the insurance group reached a record $51 million, a 46 percent increase over the prior month's results. Agency annual premiums on policies-in-force also reached a new record of $276 million. Policies in force now stand at 574,000 in January, an increase of 14 percent over January 2001.

"Countrywide Capital Markets, our investment banking subsidiary, continued its impressive performance with securities trading volume reaching $146 billion in January, up 73 percent from January 2001. Treasury Bank assets now total $1.1 billion, up 29 percent from December. Global Home Loans, our European mortgage processing joint venture, processes over 15,000 loan originations per month and sub-services over $42 billion for over 760,000 borrowers in the United Kingdom.

"The superb performance of our core mortgage banking segment and the positive results delivered by our diversification initiatives indicate that we have positioned the company to thrive in a variety of interest rate environments," Kurland concluded. "Countrywide is better positioned today to manage interest rate cycles than at any other time in our history. Combined with the evolution of our diversification efforts, strategic changes have been made within our production sector to create a more variable cost structure. Interest rates on $9 billion of long-term debt were fixed at relatively low rates to improve overall performance as interest rates rise in the coming months. We remain optimistic about the prospects ahead for Countrywide and continue to focus our energies on delivering consistent earnings growth as a diversified financial services company."

(Dollars in Millions)

January January
2002 2001

Average Daily Loan Applications $947 $610
Total Mortgage Loan Pipeline (loans in process) $23,006 $12,860

Consumer Markets Division Fundings $4,088 $2,074
Wholesale Lending Division Fundings $4,232 $1,997
Correspondent Lending Division Fundings $6,518 $2,724
Total Loan Fundings $14,838 $6,795

Purchase Fundings $5,537 $3,697
Refinance Fundings $9,301 $3,098

Total e-Commerce Fundings (2) $6,952 $2,875
Home Equity Fundings $753 $387
Sub-prime Fundings $742 $371

Loan Closing Services (units)
Credit Reports 309,933 204,572
Appraisals 30,329 22,202
Title Reports 2,882 2,635
Flood Determinations 115,397 59,877

Servicing (3)
Volume $342,151 $290,394
Units 3,263,831 2,920,729
Prepayments in Full $8,558 $2,946
Bulk Servicing Acquisitions $396 $819
Portfolio Delinquency (%) - CHL (4) 4.98% 4.73%
Foreclosures Pending (%) - CHL (4) 0.62% 0.54%

(Dollars in Millions)

January January
2002 2001

Current Month Net Written Premium $51 $25
Annual Premium on Policies-in-Force $276 $222
Policies-in-Force (units) 574,446 504,687

Securities Trading Volume $146,182 $84,307

Assets held by Treasury Bank $1,084 --

Working Days 21 21

(1) The above data reflect current operating statistics and do not
constitute all factors impacting the quarterly andannual financial
results of the company. All figures are unaudited and monthly
figures may be adjusted in thereported 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) Includes loans originated through the Internet and telemarketing in
the Consumer Markets Division andFull Spectrum Lending Inc., and
loans purchased through the Internet by the Correspondent Lending
(3) Includes warehouse loans and loans under subservicing agreements for
other clients.
(4) Based on number of loans excluding subserviced loans for other
clients, GNMA rewarehouse loans sold intoa third party-owned
conduit and portfolios purchased at a discount due to their
nonperforming status.
(5) Treasury Bank was acquired May 18, 2001.
Founded in 1969, Countrywide Credit Industries, Inc. is a member of the S&P 500 and Forbes 500. The company provides mortgage banking and diversified financial services in domestic and international markets. Mortgage banking businesses include loan production and servicing primarily through Countrywide Home Loans, Inc., which originates, purchases, securitizes, sells, and services prime-quality loans. Also included in Countrywide's mortgage banking segment is the LandSafe group of companies that provide loan closing services. Diversified financial services encompass insurance, capital markets, global, and banking, largely through the activities of Balboa Life and Casualty, a national provider of property, liability, and life insurance; Second Charter, a captive mortgage reinsurance company; Countrywide Capital Markets, a mortgage-related investment banker; Treasury Bank, N.A., a banking entity offering customers CDs, money market accounts, and home loan products; and Global Home Loans, a European mortgage banking joint venture in which Countrywide holds a majority interest.

For more information about the company, visit Countrywide's website at www.countrywide.com .

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 which the company operates, valuation of our assets and effectiveness of our hedging activities under existing or future accounting standards, performance of individual securities, financial instruments and markets as a whole in response to world events, 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", "may", "could", "anticipated", "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.

Countrywide Credit Industries, Inc.

Jennifer Sandefur or Lisa Riordan of Countrywide Credit Industries, Inc.

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