Countrywide Applauds Mortgage Freeze Plan

- Company's $16 Billion Home Preservation Program Inline with New National
Program -

CALABASAS, Calif., Dec. 6 /PRNewswire/ -- Countrywide Financial
Corporation (NYSE: CFC) applauds the Administration's endorsement of the
industry's HOPE NOW initiative to provide loan modification assistance to
borrowers at risk of delinquency due to interest rate resets. The company
particularly acknowledges Treasury Secretary Paulson for the leadership he has
demonstrated in seeking ways that many interests can work together on a
solution to assist many of the borrowers who are facing challenges in
unprecedented numbers today.
Countrywide is a founding member and strong advocate of the HOPE NOW
Alliance of servicers, investors and counseling groups convened by Secretary
Paulson.
"Countrywide is committed to being part of the solution and we strongly
support a systematic approach to serving borrowers who may face difficulty in
making mortgage payments," said Steve Bailey, Senior Managing Director, Loan
Administration. "Secretary Paulson has listened to all parties with an open
mind and has shown keen interest in finding suitable and workable solutions
that address the needs of at-risk borrowers, preserve homeownership, and help
stabilize neighborhoods."
Countrywide, like other HOPE NOW Alliance members, has taken part in
discussions with Secretary Paulson and other regulators, and fully briefed the
Secretary and his staff at the Treasury Department on efforts the company is
making, on its own and in partnerships with government and non-profit
organizations, that serve the HOPE NOW goal.
The HOPE NOW initiative aligns with facets of Countrywide's own
$16 billion home preservation plan announced in October. Countrywide's
program includes loan modifications and other approaches for borrowers who are
making payments on time but may be at risk at the time the interest rate
resets, as well as borrowers who have become delinquent as the result of a
recent rate adjustment. The Company already has begun reaching out to these
customers.
Countrywide analyzed its loan portfolio of borrowers facing a rate reset
through 2008 to determine how many mortgages could benefit from the
$16 billion home preservation program. Through this process, the company has
identified 82,000 borrowers that will be eligible for assistance in a
systematic and streamlined approach through refinancing or loan modifications.
"Streamlining loan modifications for these at-risk borrowers with strong
payment records and certain identifiable situations will allow Countrywide's
3,000-member Home Retention team to concentrate more attention on borrowers
who may be facing delinquency for other reasons and provide individualized
counseling and solutions," Bailey said.
Countrywide encourages borrowers who face payment difficulties to call our
Home Retention Division at 800-669-6650, or the HOPE NOW hotline operated by
the Home Preservation Foundation at 888-995-HOPE.
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

media, Countrywide Financial Corporation, 1-800-796-8448,
pressroom@countrywide.com, or investors, Investor Relations of Countrywide
Financial Corporation, +1-818-225-3550