Countrywide Announces a $16 Billion Comprehensive Home Preservation Program

- Enhanced focus on rate resets will benefit more than 80,000 borrowers -

    CALABASAS, Calif., Oct. 23 /PRNewswire/ -- Countrywide Financial
 Corporation ( CFC) today announced a comprehensive home preservation
 program to reach out to borrowers at-risk of default. Countrywide will
 launch an outbound calling initiative to refinance or modify up to $16
 billion of Countrywide loans for borrowers who are facing an
 adjustable-rate mortgage reset through the end of 2008.
     "Countrywide is committed to helping its customers sustain
 homeownership," said David Sambol, President and Chief Operating Officer of
 Countrywide. "Unprecedented times call for unprecedented remedies. We are
 determined to assist borrowers who have the willingness and wherewithal to
 remain in their homes, but need a little help to do it."
     "Countrywide believes that none of our subprime borrowers that have
 demonstrated the ability to make payments should lose their home to
 foreclosure solely as a result of a rate reset," said Sambol. "This is yet
 another step in our continuing effort to identify and improve existing
 programs that assist our customers."
     Countrywide will offer tailored solutions to its borrowers to
 proactively address the rising foreclosure rate. Dedicated teams of
 Countrywide specialists will contact customers who are current in their
 payments and approaching a rate reset to ascertain the borrowers
 circumstances and advise them about refinance and home preservation
 options. Countrywide's new and enhanced programs include:
      Refinance Program
      --   For Countrywide borrowers currently in a subprime loan with a strong
           payment history, a special refinance unit has been created to
           contact approximately 52,000 borrowers to offer refinance options.
           The company has identified and will work to refinance approximately
           $10 billion of mortgages.  For this group, Countrywide will offer
           borrowers options to refinance into prime or FHA loans.  For those
           with credit issues, Countrywide will offer Fannie Mae or Freddie
           Mac's expanded criteria programs.  Countrywide has a strong track
           record of successfully transitioning borrowers from subprime
           products to prime loans.  Year-to-date, more than 31,000 borrowers
           have refinanced to prime fixed rate loans totaling more than $5
           billion.
 
      Modification Program
      --   Countrywide is working to identify and contact prime and subprime
           borrowers who are current but unable to qualify for a refinance and
           are likely to have difficulty affording an upcoming reset.
           Countrywide will supplement its early notification letter to
           borrowers by calling no later than three months prior to the reset
           to determine their financial circumstances and develop affordable
           solutions.  As a result of this initiative, Countrywide will
           successfully modify $4.0 billion in loans for approximately 20,000
           borrowers in an existing adjustable rate mortgage through the end of
           2008.
     Additionally, for subprime borrowers who are currently delinquent and
 are experiencing financial difficulties as a result of a recent reset,
 Countrywide has implemented a simplified loan modification process.
 Countrywide is in the process of sending letters to these borrowers
 offering a pre-determined, pre- approved rate reduction. It is anticipated
 that 10,000 additional borrowers, totaling $2.2 billion, will receive
 modifications through this initiative by year-end.
      Home Preservation Efforts
      So far this year, Countrywide's existing home preservation efforts have
      helped more than 40,000 borrowers stay in their homes including the
      completion of 20,000 loan modifications.  Countrywide's comprehensive
      efforts help borrowers facing financing difficulty. These include:
 
      --   2,700 highly-trained home retention specialists that work with
           delinquent borrowers by providing payment alternatives in order to
           help them retain their homes.
 
      --   Countrywide borrowers with an impending rate reset are sent a letter
           180, 90 and 45 days prior to the rate increase to ensure that
           borrowers understand their options.
 
      --   Outreach to distressed homeowners in their own communities by
           setting up face-to-face meetings through various means; hosting
           seminars around the country to help borrowers avoid foreclosure;
           participating in foreclosure prevention workshops, teaching them
           about possible foreclosure scams; and offering loan workouts on-
           site.
 
      --   Working with non-profit and community groups across the country to
           create grassroots efforts to contact and counsel distressed
           borrowers, particularly in communities that are experiencing
           unusually high foreclosure rates.
     Countrywide encourages consumers who face an increase in their mortgage
 payment or fear falling behind on their payments for any reason to call the
 Countrywide home retention team at 800-669-6650.
     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 residential and commercial
 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: increased cost of debt; reduced access to corporate
 debt markets; unforeseen cash or capital requirements; a reduction in
 secondary mortgage market investor demand; increased credit losses due to
 downward trends in the economy and in the real estate market; increases in
 the delinquency rates of borrowers; 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;
 reduction in government support of homeownership; the level and volatility
 of interest rates; changes in interest rate paths; changes in debt ratings;
 changes in generally accepted accounting principles or in the legal,
 regulatory and legislative environments in which Countrywide 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.
 
 

SOURCE Countrywide Financial Corporation