The $1 Trillion We House America Challenge
Back in February 2003, Countrywide Chairman Angelo Mozilo announced in a speech to the Harvard Joint Center for Housing Studies and the National Housing Endowment that the company would extend its previous One Hundred Billion Dollar Challenge, begun in 2001, to increase homeownership among minorities, lower-income individuals and individuals who live in under-served communities. The extended commitment sought to fund $600 billion in home loans to previously underserved Americans through the end of the decade. By the end of 2004, the Challenge had funded more than $341 billion--more than half of its goal.

Always looking to set the bar higher, establishing new goals and issuing new challenges, on January 14, 2005, Chairman Mozilo announced that Countrywide had expanded its commitment to closing the homeownership gap for minority and lower-income families and communities. On that date, he issued the $1 Trillion We House America Challenge. The goal of the $1 Trillion We House America Challenge is to fund $1 trillion in home loans to minorities and lower-income borrowers, and to borrowers in lower-income communities, between 2001 and 2010.

As part of the Challenge, the company will continue to offer loan programs with flexible loan qualifying guidelines. In addition, it intends to expand partnerships with nonprofit and community-based organizations that seek to increase homeownership and participate in home-buying fairs, seminars and various outreach activities, among many other activities.

Creation of House America
In 1992, the company launched a formal affordable lending program called House America. The program offers loan products specifically designed to meet the needs of low- and moderate-income borrowers. These loans have flexible underwriting guidelines that enable more people to qualify for home loans by allowing lower down payment, income and cash reserve requirements. Credit and employment histories are also more flexible. Today, our commitment to fair and affordable lending to minority individuals and low-income families is stronger than ever.

Down Payment and Closing Costs Assistance
In addition to special loan products, down payment and closing cost assistance programs are offered in an effort to lower barriers to buying a home. The company is approved to participate in more than 1,200 programs offered by state, county and city agencies, municipalities, and non-profit organizations to assist with down payments and closing costs. The assistance may be in the form of grants or second-lien mortgages.

House America Offices
In 1993, Countrywide opened four House America home loan offices. Since that time, the House America offices have grown to serve 30 major metropolitan areas. To ensure the offices are knowledgeable and supportive of the local community, the company staffs the offices with home loan professionals who live in the communities they serve.

The House America Counseling Center
Since 1993, the House America Counseling Center has provided a comfortable, no-cost, no-obligation environment for individuals to obtain accurate, relevant and useful information about home buying in English or in Spanish. Knowledgeable experts qualified to address questions about homeownership and the loan application process answer toll-free calls to the Center. The counselors can determine home loan eligibility, identify assistance programs and help with other issues, enabling callers to plan for homeownership.

Education and Outreach
The company devotes significant resources to providing home buyer education and community outreach:

• Comprehensive on-line consumer education program in English and Spanish at www.HomeByCountrywide.com.
  
• Spanish-language information and assistance by telephone is also available. Booklets and other educational printed materials are available in English and Spanish.
  
• The company organizes or participates in local home buyer fairs across the country. At these fairs, company personnel discuss loan programs, provide pre-qualifications and distribute credit counseling and home buyer educational materials.
  
• Countrywide offers Community Lending Workshops to real estate and mortgage professionals in order to raise awareness of the many affordable home loan products that are available. These workshops are held throughout the nation, and are also scheduled for metropolitan areas in which we participate in faith-based partnerships.
  

Countrywide supports many efforts to enhance financial literacy among consumers. One excellent example is Countrywides support for the U.S. Conference of Mayors Dollar Wi$e Campaign.

In January 2005, Countrywide announced a $1 million donation to the U.S. Conference of Mayors (USCM) National Dollar Wi$e Campaign. The Campaign encourages the development and expansion of local financial literacy strategies to educate citizens about personal financial issues. The initiative was launched in March 2004 by the USCM and its Council for the New American.

Relationships with Faith-Based Organizations
Countrywide Home Loans has agreements with faith-based organizations to provide:

• First-time home buyer seminars and financial literacy education.
  
• One-on-one telephone counseling for potential homeowners through Countrywide's House America Counseling Center.
  
• Identification and utilization of Community Seconds and down payment assistance programs.

Our intent is to reach a variety of communities to provide information regarding the homeownership process and to communicate the message that owning a home is an attainable goal and an empowering step toward wealth creation. Complementing the faith-based homeownership programs is our increased outreach efforts to nonprofit organizations and to Multicultural professional organizations in the real estate and mortgage finance industries.

Employment Opportunities
Countrywide also reaches out to minorities through its employment diversification efforts. In 2002, the company launched its Multicultural Markets initiative, providing outreach and other efforts that increase diversity among customers, business partners and employees. The company has reached the mid-point in its goal to hire 1,000 home loan consultants who are in the field--a sales force that spends its time in neighborhoods and communities rather than behind desks. Our Countrywide University program focuses on diversifying our managerial workforce by recruiting from colleges and universities with diverse student bodies, including traditionally African-American colleges and universities, among others.

Fair Lending Training
All Countrywide loan production employees are required to participate in our fair lending training program, entitled Perceptions: Fair Lending Insights and Delivering Good Customer Service.