Countrywide Reports Positive Trends in December 2007 Results

Although average daily mortgage loan applications and the pipeline of mortgage loans-in-process decreased from November, this reflected a seasonal decline typically seen this time of year.

"Our mortgage loan servicing portfolio is approaching $1.5 trillion, representing approximately 9 million loans," Sambol continued. "Prepayment speeds continued to decline throughout the quarter, which has enhanced the economic value of our mortgage servicing rights asset.

"Banking Operations' assets were $113 billion at December 31, 2007, with total deposits reaching $61 billion at the end of December. Retail deposits alone increased $2.3 billion during the month and $7.7 billion for the quarter to $33 billion. The Bank continued to make progress in opening its Financial Centers during the month, with 194 in operation at year-end. Our Insurance segment also produced solid operating results, with continued growth and net premiums earned reaching a record $1.5 billion for 2007.

"Management is pleased with the progress we have made in positioning the Company to navigate the current challenging environment," Sambol concluded.

A summary of the Company's key operating statistics is included below:

-- Total loan fundings for the month of December 2007 were $24 billion, up one percent from November 2007.

-- Average daily mortgage loan application activity for December 2007 was $1.5 billion, which compares to $1.9 billion for November 2007. The mortgage loan pipeline was $35 billion at December 31, 2007, as compared to $43 billion for November 2007.

-- The mortgage loan servicing portfolio continued to grow, reaching $1.48 trillion at December 31, 2007, up $5.4 billion from November 30, 2007 and $178 billion from December 31, 2006.

-- Banking Operations' assets were $113 billion at December 31, 2007, which compares to $109 billion at November 30, 2007 and $83 billion at December 31, 2006.

-- Securities trading volume in the Capital Markets segment was $315 billion for December 2007 as compared to $294 billion for November 2007 and $362 billion for December 2006.

-- Net earned premiums from the Insurance segment were $164 million in December 2007, up 12 percent from November 2007 and up 55 percent from December 2006.

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. For more information about the Company, visit Countrywide's website at http://www.countrywide.com.