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Countrywide Reports Strong Production Activity for February; Servicing Portfolio Reaches $348 Billion

Countrywide Reports Strong Production Activity for February; Servicing Portfolio Reaches $348 BillionRobust Performance From Diversification Initiatives

CALABASAS, CA (March 8, 2002) — Countrywide Credit Industries, Inc. (CCR) , a diversified financial services provider, released operational data for the month ended February 28, 2002.

“February represented another exceptional month for Countrywide, with strong performance from our core mortgage business and diversification activities,” noted Stanford L. Kurland, chief operating officer. “Average daily loan applications increased 11 percent over last month to $1.05 billion, a level exceeded only at the peak of the current refinance boom. Countrywide’s pipeline of loans in process grew 5 percent over January and reached $24 billion. Current application volume and pipeline levels indicate continued strong loan funding performance for the near future. Despite having only 19 working days in February, total loan fundings were $14 billion with average daily fundings of $736 million, up modestly from daily fundings volume of $706 million in January.

“Home purchase loans remain our strategic focus due to the stable growth in that market,” Kurland continued. “Countrywide’s purchase loan fundings for February reached $5.9 billion, an increase of 6 percent over the prior month and 82 percent higher than the prior year performance. We now also have a commissioned sales force of over 2,000 supporting our goal of growing our purchase market share.

“Countrywide’s servicing portfolio continued its uninterrupted growth and reached $348 billion in February,” Kurland added. “Countrywide’s counter- cyclical production and servicing operations are strategically designed to provide continuous growth of the servicing portfolio. The success of our efforts was evident in February, as loan fundings exceeded prepayments by a record $6.7 billion. This compares favorably to $2.8 billion for the same period last year.

“Countrywide’s business model has been enhanced to include businesses less sensitive to mortgage interest rate cycles,” Kurland added. “The evolution of our Insurance, Capital Markets, Banking and Global businesses are strategically designed to minimize the impact of mortgage interest rate cyclicality on the company today and in the future. Solid performance by our diversification initiatives in February indicates that the businesses are well positioned to meet our expectations for the future.

“Carrier monthly net written premiums were $35 million, an increase of 84 percent over the same month last year. Policies-in-force at our insurance agency were up 12 percent from the prior year and surpassed 574,000. Agency annual premiums on policies-in-force of $279 million were up 23 percent over last year.

“Countrywide Capital Markets, our investment banking subsidiary, had trading volume of $138 billion, up 39 percent over the same period last year. Banking is our newest diversification effort and also affords the greatest growth opportunities. Assets held by Treasury Bank at February 28th were $2.7 billion. We expect banking to provide 25 percent of our consolidated earnings within five years. 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.

“Countrywide’s strong performance in February in both our mortgage-centric and diversified businesses provide further evidence of the effectiveness of our business model to deliver shareholder value today and in the future,” Kurland concluded. “Countrywide is strategically focused on synergistically leveraging our relationships, expertise and technology to maximize earnings and mitigate the impact of interest rate cycles.”


                           OPERATING STATISTICS (1)

                            (Dollars in Millions)


                                             February      February    Fiscal

                                               2002          2001       YTD




              Average Daily Loan

               Applications                    $1,053         $666     $1,010

              Total Mortgage Loan

               Pipeline (loans in

               process)                       $24,238      $15,423


              Consumer Markets Division

               Fundings                        $3,665       $2,456     $7,753

              Wholesale Lending Division

               Fundings                        $4,244       $2,339     $8,476

              Correspondent Lending

               Division Fundings               $6,082       $2,635    $12,600

                   Total Loan Fundings        $13,991       $7,430    $28,829


              Purchase Fundings                $5,867       $3,223    $11,404

              Refinance Fundings               $8,124       $4,207    $17,425


              Total e-Commerce Fundings (2)    $6,479       $3,335    $13,431

              Home Equity Fundings               $757         $367     $1,510

              Sub-prime Fundings                 $565         $489     $1,307


         Loan Closing Services (units)

              Credit Reports                  299,178      181,541    609,111

              Appraisals                       26,776       25,125     57,105

              Title Reports                     2,950        2,881      5,832

              Flood Determinations            122,933       65,954    238,330


         Servicing (3)

              Volume                         $348,306     $293,600

              Units                         3,303,824    2,947,927

              Prepayments in Full              $7,262       $4,678    $15,820

              Bulk Servicing Acquisitions        $349         $701       $745

              Portfolio Delinquency (%) -

               CHL (4)                          4.76%        4.68%

              Foreclosures Pending (%) -

               CHL (4)                          0.61%        0.54%




            Current Month Net Written

             Premium                             $35          $19         $86


              Annual Premium on

               Policies-in-Force                $279         $227

              Policies-in-Force (units)      574,402      514,454



         Securities Trading Volume          $137,564      $99,142    $283,746


    BANKING (5)

         Assets held by Treasury Bank         $2,713           --


    Working Days                                  19           19          40



    (1) The above data reflect 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


    (2) Includes loans originated through the Internet and telemarketing in

        the Consumer Markets Division and Full 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 into a third party-owned conduit

        and portfolios purchased at a discount due to their nonperforming


    (5) Treasury Bank was acquired May 18, 2001.           

SOURCE: Countrywide Credit Industries, Inc.

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