Printer Friendly

COUNTRYWIDE MORTGAGE INVESTMENTS INC. REPORTS CASH DIVIDEND, ADOPTS NEW BUSINESS PLAN

 PASADENA, Calif., Feb. 5 /PRNewswire/ -- The board of directors of Countywide Mortgage Investments Inc. (NYSE: CWM) today announced the declaration of a cash dividend of $0.12 per share payable on March 4, 1993, to stockholders of record on Feb. 17, 1993. In addition, the company announced unaudited net earnings of $398,000, or $0.03 per share, for the fourth quarter ended Dec. 31, 1992. The comparable year-ago quarter produced net earnings of $2,414,000, or $0.17 per share.
 For 1992, unaudited net earnings were $4,987,000, or $0.36 per share based on 13,978,683 weighted average shares outstanding. In 1991, net earnings totaled $10,867,000, or $0.78 per share.
 Adoption of New Business Plan
 The company also announced the commencement of a new business strategy that will involve the operation of a mortgage loan conduit which will purchase jumbo mortgage loans from sellers who, in general, will retain servicing rights. As loans are accumulated, the company will finance the mortgage loans through short-term credit facilities such as reverse-repurchase agreements. Once a sufficient quantity of loans has been accumulated, the company will sell the loans primarily in the form of private label multiclass mortgage- backed securities.
 Alternatively, the company may invest in the mortgage loans on a long-term basis using financing provided by collateralized mortgage obligations ("CMOs"). The activities of the new business plan will be operated primarily out of a new financial subsidiary, Countrywide Mortgage Conduit (the "conduit").
 The new business strategy is designed to generate income from net interest earned during the warehouse period prior to the settlement of mortgage-backed securities, fees associated with purchase activities and gain upon the sale of the mortgage loans in the form of mortgage-backed securities. In addition, the company may finance loans to maturity using CMOs and, as a result, may earn net interest income associated with such transactions. The company's competitors will include Capstead Mortgage Corp. (NYSE: CMO) and Resource Mortgage Capital Inc. (NYSE: RMR).
 The company has accumulated the majority of the capital necessary to begin the new business strategy through the sale of the company's adjustable rate mortgage-backed securities portfolio ("ARM portfolio"). Accordingly, the company has approximately $64,000,000 in unencumbered liquidity, which the company plans to invest in the new business strategy.
 As a result of the sale of the company's ARM portfolio and the temporary investment, at short-term yields, of the associated equity pending the full implementation of the new business plan, the company's earnings for the fourth quarter were impacted adversely. While the company is in the process of re-deploying its available capital in the new business plan, the company's earnings may be impacted until the capital is fully deployed. Since the fourth quarter's earnings were impacted by the temporary investment of proceeds that will be used in the new plan, the board of directors declared a dividend of $0.12 per share payable Feb. 26, 1993, which is in excess of the earnings for the fourth quarter.
 "We have evaluated various alternative business strategies for Countrywide Mortgage. We believe the adoption of the new business plan will provide a solid source of business and will be a viable strategy for the future," said David S. Loeb, chairman.
 The management of the new operation will be provided by Countrywide Asset Management Corp., an affiliate of Countrywide Funding Corp., the nation's largest mortgage lender. Michael Perry will head up the management team. Perry has nine years of mortgage- banking experience. Prior to joining the company, Perry was senior executive vice president of Commerce Security Bank in charge of its mortgage banking operations and a certified public accountant at KPMG Peat Marwick. Perry graduated with honors from California State University, Sacramento. Perry will be advised by a group of senior executives of Countrywide Funding Corp.
 In conjunction with the new operations, the company is considering other mortgage banking related activities including providing warehouse facilities to mortgage originators and providing a private label mortgage-backed securities issuance capability to other originators.
 Appointment of New Member to the Board of Directors
 On Jan. 24, 1993, the board approved the appointment of Lyle E. Gramley to Countrywide Mortgage's board of directors. Gramley, 66, is a consulting economist with the Mortgage Bankers Association of America (MBA). He joined the MBA in September 1985, Previously, Gramley was one of seven governors of the Federal Reserve Board and served on the President's Council of Economic Advisors. Gramley received his bachelor of arts from Beloit College and his master of arts and Ph.D. in economics from Indiana University.
 Robert J. Donato recently resigned from the board of Countrywide Mortgage Investments Inc. to join Countrywide Credit Industries Inc. Subsequently, the board voted to decrease the board of directors from six to five.
 Members of the board of directors of Countrywide Mortgage wish to express their sadness over the death of their highly respected colleague and former board member Jack W. Carlson.
 Countrywide Mortgage Investments Inc., a real estate investment trust, currently invests in single-family, first-lien residential mortgages and other related investments. Countrywide Credit Industries Inc. (NYSE: CCR), through its subsidiary Countrywide Asset Management Corp., provides Countrywide Mortgage with management and administrative services.
 COUNTRYWIDE MORTGAGE INVESTMENTS INC.
 Financial Highlights
 Fourth Quarter Ended
 Dec. 31,
 1992(a) 1991(a)
 Net earnings $398,000 $2,414,000
 Earnings per share $0.03 $0.17
 Dividend per share $0.12 $0.17
 Weighted average number
 of shares outstanding 13,979,376 13,976,375
 Quarter Ended
 Dec. 31, SeptEarnings per share
 $0.03 $0.12
 Dividend per share $0.12 $0.12
 Weighted average number
 of shares outstanding 13,979,376 13,978,918
 Year Ended
 Dec. 31,
 1992(a) 1991
 Net earnings $4,987,000 $10,867,000
 Earnings per share(b) $0.36 $0.78
 Dividend per share $0.48 $0.78
 Weighted average number
 of shares outstanding 13,978,683 13,924,326
 (a) Unaudited.
 (b) Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year.
 -0- 2/5/93
 /CONTACT: Karel Carnohan, 818-304-7523, or Laura Lippman, 818-304-4422, both of Countrywide/
 (CWM CCR)


CO: Countrywide Mortgage Investments Inc.; Countrywide Credit
 Industries Inc. ST: California IN: FIN SU: ERN


KJ-JB -- LA013 -- 3348 02/05/93 08:01 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 5, 1993
Words:1057
Previous Article:HONDO ANNOUNCES PLANS FOR ALASKAN-MACKENZIE PIPELINE SYSTEM
Next Article:UNITED HEALTHCARE CORPORATION REPORTS HEALTH PLAN, SPECIALTY ENROLLMENT GAINS
Topics:


Related Articles
COUNTRYWIDE ISSUES STATEMENT REGARDING TODAY'S MARKET ACTIVITY
COUNTRYWIDE MORTGAGE INVESTMENTS INC. REPORTS CASH DIVIDEND
COUNTRYWIDE MORTGAGE INVESTMENTS INC. DECLARES CASH DIVIDEND
COUNTRYWIDE MORTGAGE INVESTMENTS INC. ANNOUNCES THIRD QUARTER EARNINGS; DECLARES CASH DIVIDEND
COUNTRYWIDE MORTGAGE INVESTMENTS INC. TO OFFER 9 MILLION ADDITIONAL SHARES OF COMMON STOCK
COUNTRYWIDE MORTGAGE INVESTMENTS INC. DECLARES CASH DIVIDEND
COUNTRYWIDE MORTGAGE INVESTMENTS INC. FILES PRELIMINARY PROXY STATEMENT
COUNTRYWIDE MORTGAGE INVESTMENTS INC. REPORTS FOURTH QUARTER EARNINGS, DECLARES CASH DIVIDEND
COUNTRYWIDE MORTGAGE INVESTMENTS INC. ANNOUNCES FIRST QUARTER EARNINGS, DECLARES CASH DIVIDEND
CWM Mortgage Holdings, Inc. Announces A 21 Percent Increase In Annual Earnings;

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters