Countrywide Credit Industries, Inc. Delivers Record Third Quarter
Results In All Key Measures

- Diluted Earnings Per Share Reach $1.74, Up 45 Percent - - Fourth
Quarter Earnings Guidance Increased To Range Of $1.75 - $1.90 -

Cash Dividend Increases To $0.12 From $0.11

CALABASAS, Calif., Oct. 24 /PRNewswire-FirstCall/ -- Countrywide Credit
Industries, Inc. (NYSE: CCR), a diversified financial services provider,
announced today unaudited net earnings for the third calendar quarter ended
September 30, 2002. Countrywide began reporting its financial results on a
calendar year basis effective January 1, 2002. Accordingly, the comparable
prior year quarter for the third calendar quarter of 2002 is the quarter ended
August 31, 2001. Third quarter highlights include record breaking performance
in the following key metrics:
-- Net earnings reached $228 million, a 53 percent increase over last
year's $149 million;
-- Earnings per share of $1.74 are up 45 percent over last year's $1.20,
marking the Company's sixth consecutive quarter reporting record EPS;
-- Mortgage banking pre-tax earnings hit $256 million, a 39 percent
increase over last year's $185 million, reflecting the Company's
success in capitalizing on the unprecedented mortgage funding
environment;
-- Diversification pre-tax earnings nearly doubled from last year,
reaching $108 million -- fueled by strong growth in the capital
markets, banking and insurance businesses -- and now represent
30 percent of total pre-tax earnings;
-- Loan fundings advanced to $64 billion, up 90 percent over the
$34 billion produced during last year's August quarter; September's
pipeline closed at a record $51 billion indicating strong near term
production performance; and,
-- The servicing portfolio reached $406 billion, an increase of
29 percent over last year's $314 billion, reflecting the Company's
consistent ability to grow the portfolio and defend the servicing
asset in one of the most challenging interest rate environments in its
history.

"Countrywide's record earnings performance in the third quarter clearly
demonstrates the success of our mortgage banking business model coupled with
the maturation of our diversification initiatives," said Angelo R. Mozilo,
Chairman, Chief Executive Officer and President. "This past quarter's record
mortgage banking performance illustrates the effectiveness of our macro hedge
strategy in the midst of an unprecedented interest rate and loan prepayment
environment. The mortgage banking operation has been strategically designed
to balance the counter-cyclical nature of our production and servicing
businesses. The balance of the macro-hedge is evident in the third quarter
results as record production earnings and hedge gains more than offset the
losses in servicing earnings resulting from the impairment of mortgage
servicing rights. Key to the success of our mortgage banking business is the
flexible infrastructure in place to ensure that adequate capacity, technology
and resources exist within the production sector during high funding volume
periods such as those experienced in the third quarter. This effective
infrastructure has enabled the Company to produce highly profitable new loans,
replace loans refinancing from the portfolio and ultimately create a more
valuable long-term servicing asset. Record fundings in the third quarter more
than offset increased prepayments by $31 billion, driving the uninterrupted
growth in the servicing portfolio to $406 billion at September 30, 2002. The
portfolio is now comprised of 3.7 million customers with a weighted average
mortgage rate of 7.1 percent, compared to 7.6 percent a year ago. Production
earnings were boosted by record purchase fundings of $24 billion in the third
quarter, up 61 percent from the three months ended August 31, 2001. Total
year-to-date purchase volume has reached a record $61 billion. Our
achievements in the purchase market are notable in light of the relatively
stable nature of this component of the mortgage origination business.

"The consistent growth in our diversification earnings highlight
Countrywide's ability to optimize its core competencies in mortgage banking,
leverage its technology across all business platforms, and capitalize on the
intellectual assets and entrepreneurial spirit that have elevated this Company
to its position as a market leader," Mozilo continued. "This demonstrates our
ability to leverage our core competencies for the benefit of our shareholders.
In the current quarter, diversification earnings totaled $108 million and
represented 30 percent of total pre-tax earnings, up from 23 percent in the
comparable prior year period. Our capital markets group delivered $55 million
in pre-tax earnings for the quarter, up 109 percent from last year, primarily
fueled by a 61 percent increase in trading volume at our broker-dealer.
Insurance segment pre-tax earnings were up 24 percent over last year, reaching
$28 million for the third quarter. The banking segment continues to evolve as
a growing contributor to our diversification initiatives as pre-tax earnings
reached $22 million this quarter and represented 20 percent of diversified
earnings, up from only 9 percent in the year ago period.

"As we look ahead, we are confident that Countrywide is better positioned
today than at any time in our history," Mozilo concluded. "We have
established a solid platform from which to build future growth and shareholder
value. We continue to demonstrate the effectiveness of our core mortgage
banking business model and the successful implementation of our
diversification initiatives designed to augment our macro hedge strategy to
minimize earnings volatility. We have a seasoned and proven management team
empowered with a business model that has once again demonstrated its
effectiveness in a challenging interest rate environment. Our balance sheet
is stronger than any other time in our history, with highly liquid mortgage
inventory and a valuable servicing asset which is well positioned to generate
future earnings as interest rates rise. We have the necessary liquidity to
support the strong future production volumes reflected in our robust mortgage
loan pipeline. Countrywide has capitalized on the extraordinary third quarter
interest rate environment to continue our history of delivering long-term
fundamental earnings growth for our shareholders."

Given the intensity and duration of the current refinance boom and the
expected performance indicative of the unprecedented September pipeline of $51
billion, management has revised earnings guidance upward for the fourth
quarter. The Company expects to report diluted earnings per share within a
range of $1.75 to $1.90 for its fourth quarter ended December 31, 2002. This
equates to a range of $6.30 to $6.45 for the 2002 calendar year. These
estimates should be considered forward-looking statements and readers are
directed to the information contained in the disclaimer provided herein.

Countrywide's Board of Directors declared a $0.12 cash dividend per common
share for the third quarter, payable November 29, 2002 to shareholders of
record on November 12, 2002.

MORTGAGE BANKING

Countrywide's mortgage banking segment (production, servicing, and closing
services) contributed pre-tax earnings of $256 million for the third quarter
and $674 million for the nine months, up 39 percent and 46 percent,
respectively, from the comparable prior year periods. The production sector
is comprised of four distribution channels: Consumer-direct lending through
Countrywide's 400-branch retail system, telemarketing operations and the
Internet; loans sourced through a network of approximately 28,000 mortgage
brokers; correspondent lending which buys loans from other financial
institutions such as banks, savings and loans, credit unions and insurance
companies; and Full Spectrum Lending, Inc., a consumer-direct sub-prime lender
with over 50 branches.

The production sector contributed $667 million in pre-tax earnings for the
quarter ended September 30, 2002 and $1.5 billion for the nine months. This
represents increases of 195 percent and 184 percent, respectively, over last
year. Total loan fundings in the production sector (excluding Treasury Bank)
for the third quarter were $63 billion, up 89 percent from the $34 billion
reported in the comparable quarter ended August 31, 2001. For the nine
months, loan fundings were $149 billion, up 77 percent from the nine months
ended August 31, 2001. Record loan fundings were driven by historically low
interest rates, Countrywide's flexible infrastructure designed to capitalize
on these opportunities in all production channels, and increasing market share
in the growing and relatively stable purchase market.

The servicing sector includes activities related to the mortgage servicing
rights (MSRs) associated with Countrywide's owned portfolio and other retained
interests. Since the MSRs perform optimally in higher interest rate
environments, earnings from these assets act as a natural counter-balance
against production earnings, which typically outperform in lower rate
environments. In low rate environments, production operations provide
substantial earnings to reduce the impact of impairment on MSRs. Impairment
represents the change in value of the MSR asset as a result of increased
prepayment speeds associated with lower interest rates. Driven by the
historically low interest rate environment experienced in the third quarter
ended September 30, 2002, impairment of MSRs and other retained interests
totaled $2.1 billion in addition to normal amortization of the asset of $297
million. The servicing sector's financial hedge performed as designed to
offset impairment by $1.6 billion during the quarter. After taking into
account the negative impact of impairment and amortization of the MSRs and the
hedge gain, the servicing sector sustained a pre-tax loss of $427 million.
Production sector earnings more than offset the net loss in the servicing
business. Production fundings exceeded loan prepayments in the servicing
portfolio by a record $31 billion this quarter, demonstrating the significant
impact of production efforts on the replenishment of the servicing portfolio.
The exceptional performance of the Company's production business drove
Countrywide's servicing portfolio to a new record high of $406 billion at
September 30, 2002.

Loan closing services are comprised of Countrywide's LandSafe companies,
which provide credit reports, appraisals, title reports and flood
determinations to Countrywide's production sector as well as to third parties.
LandSafe companies continue to be an important contributor to mortgage banking
earnings, with pre-tax earnings totaling $16 million in the third quarter and
$45 million for the nine months. This compares to $15 million and $41
million, respectively, for the three and nine months ended August 31, 2001.
LandSafe is strategically focused on supporting internally generated business
as well as expanding its reach externally.
DIVERSIFIED BUSINESSES
Capital Markets

Capital markets activities include a securities broker-dealer, a broker of
mortgage servicing rights, and a distressed-asset manager. Earnings
performance within the capital markets group is primarily fueled by the
broker-dealer, Countrywide Securities Corporation (CSC). The driver for the
broker-dealer performance is securities trading volume, which exceeded $545
billion for the quarter ended September 30, 2002, a 61 percent increase over
trading volume for the comparable quarter ended August 31, 2001. Benefiting
from the historical level of activity in the secondary mortgage market,
pre-tax earnings for the total capital markets segment in the third quarter
were $55 million, an increase of 109 percent over the $26 million reported for
the quarter ended August 31, 2001. For the nine months, pre-tax earnings grew
104 percent, reaching $132 million at September 30, 2002. CSC remains the
largest contributor to this segment, with pre-tax earnings representing 81
percent of total capital markets pre-tax earnings for the quarter ended
September 30, 2002.

Insurance

Countrywide's insurance segment includes Balboa Life and Casualty Group,
whose companies are national providers of property, life and liability
insurance; Balboa Reinsurance Company, a captive mortgage reinsurance company;
and Countrywide Insurance Services, Inc., a national insurance agency offering
home-related insurance products. For the third quarter, total policies-in-
force increased 28 percent over the prior year to 4.0 million units. For the
quarter ended September 30, 2002, pre-tax earnings for this segment reached
$28 million, a 24 percent increase over the quarter ended August 31, 2001. For
the nine months, pre-tax earnings rose 21 percent to $78 million. In
accordance with Countrywide's strategy to leverage relationships with its
mortgage customers and capitalize on cross-selling opportunities, the Company
has reorganized its insurance business to improve profitability and support
Countrywide's overall diversification strategy. Specifically, Countrywide's
insurance agency will now focus on its core products and service competencies
by concentrating on homeowners and life insurance products. It will also
benefit from process improvement programs being instituted within the
insurance group.

Banking

Banking represents a synergistic diversification initiative within the
organization to leverage core competencies developed within the mortgage
banking business. This segment includes Treasury Bank, N.A., as well as a
separate mortgage warehouse lending division. Treasury Bank is expected to
enhance the Company's relationship with mortgage customers and to provide
portfolio lending capabilities, diversified funding sources, and enable the
in-sourcing of certain bank-related services. Major determinants of the
bank's performance will be the size, composition, and quality of its assets.
At quarter end, the bank's total assets were $4.5 billion, compared to $696
million at August 31, 2001, with growth meeting management's expectations.
Pre-tax earnings for the banking segment were $22 million and $48 million,
respectively, for the three months and nine months ended September 30, 2002.

Global

The principal component of global operations is Global Home Loans, the
Company's European mortgage banking joint venture, organized to process
originations and service loans on behalf of third parties. Today, Global Home
Loans services approximately 800,000 loans with outstanding balances of over
$60 billion. Other companies included in global operations engage in
consulting services, property valuation, broker-dealer services, and
technology services. Global Home Loan's modest profits in the third quarter
reflect the impact of recent enhancements made to the company's infrastructure
which are expected to drive future earnings growth in this segment.

Founded in 1969, Countrywide Credit Industries, Inc. is a member of the S&P
500, Forbes 500 and Fortune 500. The Company provides mortgage banking and
diversified financial services in domestic and international markets. Mortgage
banking businesses include loan production and servicing principally through
Countrywide Home Loans, Inc., which originates, purchases, securitizes, sells,
and services primarily prime-quality loans. Also included in Countrywide's
mortgage banking segment is the LandSafe group of companies that provide loan
closing services. Diversified financial services encompass insurance, capital
markets, banking, and global, largely through the activities of Balboa Life
and Casualty Group, whose companies are national providers of property,
liability, and life insurance; Balboa Reinsurance, a captive mortgage
reinsurance company; Countrywide Capital Markets, a mortgage- related
investment banker; Treasury Bank, N.A., a banking entity offering customers
CDs, money market accounts, and home loan products; and Global Home Loans, a
European mortgage banking joint venture in which Countrywide holds the
majority interest.

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

This Press Release may contain forward-looking statements. These
discussions include 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 future
operations. 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: loss of
investment grade rating; severe real estate recession; significant reduction
in government support of homeownership; loss of access to debt and equity
markets; the level of, and direction of changes in interest rates; competitive
and general economic conditions in each of our business segments; general
economic conditions in the United States and abroad and in the domestic and
international areas in which we do business; the availability of secondary
markets for the Company's mortgage loan products; ineffectiveness of our
hedging activities; the legal, regulatory and legislative environments in the
markets in which the company operates; performance of the Company's
securities, financial instruments and markets as a whole in response to world
events; loss in the value of unhedged assets; other risks detailed in
documents filed by Countrywide with the Securities and Exchange Commission
from time to time.

Words like "believe", "expect", "should", "may", "could", "anticipated",
" promising" and other expressions that indicate future events and trends
identify forward-looking statements. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.

For further information, please contact Jennifer Sandefur or Lisa Riordan of
Countrywide Credit Industries, Inc., +1-818-225-3550.

The Company will host a live, telephonic management discussion of the
quarter's results today at 11:00 AM EDT.

The dial-in number for the conference call is (888) 423-3272 (U.S.) or (612)
288-0329 (International). The management discussion will be available for
replay through midnight EST on Friday, November 8, 2002. The replay dial-in
numbers and access code are (800) 475-6701 (U.S.) / (320) 365-3844
(International) and 655323, respectively.

An accompanying slide presentation is available on Countrywide's website
(www.countrywide.com), by clicking on "Investor Relations" on the website main
page and choosing "Presentations" and "Quarterly Earnings & Performance
Reports." Management strongly recommends that participants have access to
this presentation while listening to the management discussion.

/CONTACT: Jennifer Sandefur or Lisa Riordan of Countrywide Credit Industries, Inc.,
+1-818-225-3550/ 08:00 EDT
12:00 GMT