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Chart 1 - Interest Rate Representations
Pre Closing
Closing
July 14, 2000 July 26, 2000
8.375% 10.5%
CWR232 & CWR144
Chart 2 -Truth in Lending Representations
Pre Closing
Closing
Post-Closing
July 14, 2000 July 26, 2000 Jan. 14, 2004
12.899%
14.350%
15.11%
CWR121 & CWR231
Chart 3 - Monthly Payment
Pre Closing
Closing
Post-Closing
July 14, 2000 July 26, 2000 2000-2004
$353.43
$472.01 $526.90
CWR231, CWR232, CWR121 & 9a Exhibit Payment/Escrow Detail - 3134022
Chart 4 - Interest Rate Comparison
“Good Faith Estimate” vs. “Actual”
18.000%
16.000%
14.000%
12.000%
10.000%
8.000%
6.000%
4.000%
2.000%
0.000%
Faith
8.375%
“Teaser Rate”
TILDS
14.350%
“Bait and Switch”
Actual
“Approximately Double
15.711%
8% to16%
Note: Actual = Includes fees, force placed insurance (home and flood) and misc…
“Bait and Switch” - almost doubled the interest rate (difference of 7.336%)
Chart 5 - Finance Charge Comparison
“Good Faith Estimate” vs. “Truth in Lending
Disclosure Statement”
$200,000.00
$180,000.00
$160,000.00
$140,000.00
$120,000.00
$100,000.00
$80,000.00
$60,000.00
$40,000.00
$20,000.00
$-
Faith $79,996 “Teaser Rate”
TILDS
“Bait and Switch”
$163,982.67
Nearly, $100,000
Actual
difference in total
$174,652.64
Finance Charge
“Bait and Switch” – difference in cash finance charge over the life of the loan
Faith to TILDS $83,986.67 & Faith to Actual $173,108.61-$79,996= $93,112.61”
Chart 6 - Monthly Payment
“Good Faith Estimate” vs. “Truth in Lending Statement”
700.00
600.00
500.00
400.00
300.00
200.00
100.00
0.00
Faith
$353.43mo
.
TILDS
$526.90mo
.
Actual
$609mo.
“8.375% , 14.350% and 15.711%
“Bait and Switch” - Monthly charge Difference of Good Faith to TILDS $173.47
and Good Faith to Actual $353.43- $609.00= $255.57”
Chart 7 – 29 Payment History
July 14, 2000
January 2004
$353.42 $526.90
$10,249.47 $24,593.78
CWR232 CWR144
Chart 8 – Payment History (29)
Principal payments made
Note: no pre-payment penalty
Jan 2004
$42,124.96
Feb. 14, 2005
$6,282.97
“Prepaid Note in Full”
$54,684.31 Total
-51,573.00 Payoff
$3,111.31 Over-Payment
Reversal of fees, force placed insurance
(home and flood) and misc…
$6,282.97
“Note: 29 payment 00-04 =Total $24,593.78 added to 54,684.31= $79,278.09
Chart 9 - Dates range 7/14/00 to
Fees, Misc. Posting and Insurance Flood/Home
1. $160.05 (Good Faith)
14. $245.20 (Misc. Posting)
2. $14.84 (Misc. Posting)
15. $305.82 (Misc. Posting)
3. $494.01 (Flood Ins.)
16. $411.00
(Homeowners Ins pmt)
4. $638.00
17. $609.82 (Misc. Posting)
(Homeowners Ins pmt)
5. $47.20 (Misc. Posting) 18. $438.00 (Flood
Ins.)
6. $54.89 (Misc. Posting) 19. $0.01 (Late Charge
.adj)
Chart 2a
7. $472.01 (Misc. Posting)
20. $311.00
(Homeowners Ins pmt)
8. $45.02 (Misc. Posting)
21. $1,476.33 (county tax)
9. $493.54 (Flood Ins.)
23. $446.26 (Flood Ins.)
10. $638.00
24. $317.22
(Homeowners Ins pmt)
11. $925.59 (Misc.
12/5/03
Total Misc., Fees & Insurance
$18,000.00
$16,000.00
$14,000.00
$12,000.00
$10,000.00
$8,000.00
$6,000.00
$4,000.00
$2,000.00
$-
Interest
$15,467.84
Fees...
$9,125.94
(Homeowners Ins pmt)
25. $264.72 (county tax)
Posting)
12. $245.20 (Misc.
Posting)
13. $72.21
(Escrow Shortage pmt)
= $9,125.94
Note: 353.43*29=$10,249.47
Total of Interest, Insurance,
Misc. and Fees $24,593.78
Chart 10 – Present Value of Damages
Due to Displacement and Loss of Use
Option 1
(insurance view)
– $20 per day
– Amount of time
June 5, 2003-April
5, 2011 & overpayment (2,225
days)=$67,611.31
– Interest rate 8.375%
– Financed for 30
years
– Hardship for living
in a burnt home
(Range of 80,000 to
150,000)
Total = $183,242.00$333,242.00
Option 2 (central view)
– Rent $750 per
month
– Amount of time June
5, 2003-April 5, 2011
& over-payment
(106 Months) =
$82,611.31
– Interest rate 10.5%
– Financed for 30
years
– Hardship for living in
a burnt home (Range
of 80,000 to 150,000)
Total = $272,043.00$422,043.00
Option 3 (punitive view)
– Rent $950 per month
includes utilities
– Amount of time June
5, 2003-April 5, 2011
& over-payment (106
Months) =
$100,700
– Interest rate 15.711%
– Financed for 30 years
– Hardship for living in a
burnt home (Range of
80,000 to 150,000)
Total = $493,863.00$643,863.00
Chart 11 - Countrywide Financial
Highlights
• Countrywide Home Loans
accounts for 48% of
Countrywide Financial
• Net Earning 2.67 Billion in
2006
• Servicing 1.5 trillion in loans
• No. #2 in loan serving
• Insurance Business quote,
“we are taking steps to
improve our penetration of
the existing Countrywide
customer base through the
loan servicing portfolio in our
Mortgage Banking segment”
• No. #1 home lender in
America avg. “nearly 2 billion
in loans per day”
• 200 billion in total assets
• 38 years in business
• Net Earning growth 01-06
• 2000 = $486 million
• 2001 = $842 million
• 2002 = $2.373 billion
• 2004 = $2.198 billion
• 2005 = $2.528 billion
• 2006 = $2.675 billion
Annual Report 2006 - 10K
Chart 12 - Overview Countrywide
Financial 2007
WORKFORCE
Mortgage Banking:
Loan Production:
Retail Lending:
Consumer Markets
Full Spectrum Lending
15,103
4,074
19,177
Wholesale Lending
2,221
Correspondent Lending
1,151
Total Loan Production
22,549
Loan Servicing
8,854
Loan Closing Services
1,854
Banking
2,708
Capital Markets
855
Insurance
2,611
Global Operations
4,847
Corporate Administration and Other
6,322
Total
50,600
Chart 13 – Countrywide Financial
Businesses at a Glance
Mortgage Banking
– Countrywide Home Loans
(CHL)
•
• Consumer Markets
Division (CMD)
• Full Spectrum Leading
Division (FSLD)
• Wholesale Division
•
(WLD)
• Correspondent Lending
Division (CLD)
– Servicing
• Countrywide Home
Loans
• Countrywide Servicing
LP
– Closing Services
• LandSafe
Banking
– Countrywide Bank (FSB)
– Countrywide Warehouse
Lending (CWL)
Insurance
– Balboa Reinsurance
– Balboa Insurance Group
– Countrywide Insurance
Services
•
•
Capital Markets
– Countrywide Securities
Corporation (CSC)
– Countrywide Commercial
Real Estate Finance (CRF)
– Countrywide Asset
Management (CAM)
– Countrywide Servicing
Exchange (CSE)
Global Operations
– CFC International, India
Services
– Countrywide International
Technology Holdings, Ltd.
Chart 14 - Countrywide Financial
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
2007
2006
(in thousands, except share data)
ASSETS
Cash
Mortgage loans held for sale
Trading securities owned, at fair value
Trading securities pledged as collateral, at fair value
$
Securities purchased under agreements to resell, securities borrowed
and federal funds sold
Loans held for investment, net of allowance for loan losses of
$2,399,491 and $326,817, respectively
Investments in other financial instruments, at fair value
Mortgage servicing rights, at fair value
Premises and equipment, net
Other assets
Total assets
LIABILITIES
Deposit liabilities
Securities sold under agreements to repurchase
Trading securities sold, not yet purchased, at fair value
Notes payable
Accounts payable and accrued liabilities
Income taxes payable
Total liabilities
Commitments and contingencies
8,810,399 $
11,681,274
14,988,780
6,838,044
1,407,000
31,272,630
20,036,668
1,465,517
9,640,879
27,269,897
98,000,713
28,173,281
18,958,180
1,564,438
13,074,073
78,019,994
12,769,451
16,172,064
1,625,456
9,907,553
$
211,730,061 $
199,946,230
$
60,200,599 $
18,218,162
4,092,374
97,227,413
13,152,099
4,183,543
55,578,682
42,113,501
3,325,249
71,487,584
8,187,605
4,935,763
197,074,190
185,628,384
—
—
Chart 15 - Countrywide Financial
SHAREHOLDERS' EQUITY
Preferred stock, par value $0.05—authorized, 1,500,000 shares;
issued and outstanding at December 31, 2007, 20,000 shares of
7.25% Series B non-voting convertible cumulative shares with a
total liquidation preference of $2,000,000
Common stock, par value $0.05—authorized, 1,000,000,000
shares; issued, 578,881,566 shares and 585,466,719 shares at
December 31, 2007 and 2006, respectively; outstanding,
578,434,243 shares and 585,182,298 shares at December 31,
2007 and 2006, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
1
Total shareholders' equity
Total liabilities and shareholders' equity
$
—
28,944
4,155,724
10,644,511
(173,309)
29,273
2,154,438
12,151,691
(17,556)
14,655,871
14,317,846
211,730,061 $
199,946,230
$14,655,871,000 in 2007
Chart 16 - Countrywide Financial
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31,
2007
2006
2005
(in thousands, except per share data)
Revenues
Gain on sale of loans and securities
Interest income
Interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan
losses
Loan servicing fees and other income from
mortgage servicing rights and retained interests
Realization of expected cash flows from mortgage
servicing rights
Amortization of mortgage servicing rights
Change in fair value of mortgage servicing rights
Recovery of mortgage servicing rights
Impairment of retained interests
Servicing Hedge gains (losses)
Net loan servicing fees and other income from
mortgage servicing rights and retained interests
Net insurance premiums earned
Other
Total revenues
$
2,434,723 $
13,161,865
(10,287,800)
5,681,847 $
12,056,043
(9,133,682)
4,861,780
7,970,045
(5,616,425)
2,874,065
(2,286,183)
2,922,361
(233,847)
2,353,620
(115,685)
587,882
2,688,514
2,237,935
5,716,443
4,960,550
4,281,254
(3,012,336)
—
(1,085,419)
—
(2,380,876)
1,671,937
(2,932,741)
—
171,242
—
(284,690)
(613,706)
—
(2,288,354)
—
387,851
(364,506)
(523,078)
909,749
1,300,655
1,493,167
1,523,534
605,549
1,171,433
574,679
953,647
470,179
6,061,437
11,417,128
10,016,708
$6,061,437,000 in 2007
Chart 17 - COUNTRYWIDE FINANCIAL
CORPORATION AND SUBSIDIARIES 10k SEC
(http://www.secinfo.com/dVut2.t21n.htm#1n92y)
CONSOLIDATED STATEMENTS OF CASH FLOWS
2007
2006
2005
Cash at end of year $ 8,810,399,000 $ 1,407,000,000 $ 1,031,108,000