Countrywide Reports Record 2Q Profits

Countrywide Financial Corp., Calabasas, Calif., has reported record earnings of $383 million ($2.74 per share) for the second quarter, up 101% from $191 million ($1.48 per share) in the second quarter of last year.Countrywide said it was the company's ninth consecutive quarter of record earnings. Pretax earnings by the company's mortgage banking operations totaled $402 million in the second quarter, up 77% from that of a year earlier. "Mortgage banking results have been exceptional," said Angelo R. Mozilo, Countrywide's chairman and chief executive officer. "Year-to-date total fundings were $233 billion, which compares favorably to $252 billion in fundings for all of calendar 2002." Countrywide has expanded its servicing portfolio to $559 billion, nearly double the $282 billion as of the beginning of the refinance boom in November 2000, Mr. Mozilo said. "Our [mortgage servicing rights] capitalization rate now stands at 92 basis points," he said. "This low valuation level bodes well for servicing earnings performance after rates rise. Even if the entire $2.3 billion impairment reserve is recovered, the capitalization rate would still be below 140 basis points." The company can be found online at http://www.countrywide.com.