Updated January 31, 2008
Statement from Countrywide Financial Regarding Florida Attorney General Subponena
Countrywide has received the subpoena from the Florida Attorney General and will cooperate fully with the State's investigation. As a matter of policy, Countrywide does not comment further on the status of pending investigations.
Statement from Countrywide Financial Regarding SRM Global Fund Filing
Countrywide is currently preparing proxy materials and meeting requirements set forth in securities regulations which are part of the shareholder approval process related to the announced acquisition of Countrywide by Bank of America. Information pertaining to the merger transaction will be contained in those materials and available to the public upon filing with the Securities and Exchange Commission.
Statement from Countrywide Financial Regarding Home Equity Lines of Credit
In keeping with its sound risk-management and responsible lending practices, Countrywide is reviewing and analyzing the home equity lines of credit in its servicing portfolio. Among the objectives of the analysis is a determination of the impact of lower property values on existing accounts. This analysis may result in the company suspending borrowers' future access to existing lines of credit. Customers affected by this analysis will be notified by mail. Customers who do not receive a letter may continue to use their home equity lines of credit. These measures do not impact the company's desire to originate new home equity lines of credit based on current property values and borrower qualifications.
Additional information:
- According to Regulation Z, Section 226.5b(f)(3)(vi)(A) , a creditor may prohibit additional extensions of credit during any period in which the value of the dwelling that secures the plan declines significantly below the dwelling's appraised value for the purposes of the plan.
- A total of approximately 122,000 customers have been impacted nationwide.
- Countrywide borrowers who have been affected by this may contact customer service at 800-669-6607 if they believe that there has not been a significant decline in the value of their home.