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COUNTRYWIDE MORTGAGE INVESTMENTS INC. REPORTS THIRD QUARTER EARNINGS -- DECLARES CASH DIVIDEND

 PASADENA, Calif., Oct. 21 /PRNewswire/ -- Countrywide Mortgage Investments Inc. (NYSE: CWM) today announced unaudited earnings of $564,000, or $0.03 per share, for the third quarter ended Sept. 30, 1993. Earnings per share for the comparable quarter last year were $1,681,000, or $0.12 per share. For the quarter ended June 30, 1993, earnings per share were $0.00.
 The company's board of directors declared a cash dividend of $0.12 per share for the quarter, payable Nov. 19, 1993, to shareholders of record on Nov. 2, 1993. The company paid a cash dividend of $0.12 per share for the comparable quarter in 1992.
 During 1993, Countrywide Mortgage initiated a new business plan under which it operates a nationwide mortgage conduit and a warehouse lending program for small and medium-size mortgage bankers. This new business plan has transformed Countrywide Mortgage from a passive investment company into a niche mortgage banker directed by a dedicated and experienced management team.
 Earnings from the new operations were $4,750,000, or $0.23 per share, for the third quarter ended Sept. 30, 1993. These earnings per share reflected the impact of the issuance of 10.2 million shares of common stock on July 29, 1993, as well as the recognition of all related operating expenses of the new operations. These operating expenses amounted to $992,000, an increase of $964,000 from the second quarter due to the exhaustion of the expense subsidy provided by the company's manager, Countrywide Asset Management Corp., pursuant to its management agreement with the company.
 "Third quarter profits from the new operations increased 25 percent from the second quarter," said Michael W. Perry, chief operating officer. "These results provide strong support for our new strategy."
 These profits were offset by losses of $0.18 per share from the portfolio of fixed-rate mortgages financed with collateralized mortgage obligations (CMOs) that were in existence prior to the implementation of the new business plan (the Pre-1993 CMO Portfolio). During the quarter ended Sept. 30, 1993, mortgage interest rates fell again to historically low levels, and mortgage refinancings continued to adversely impact the Pre-1993 CMO portfolio. The Pre-1993 CMO portfolio totaled $268 million as of Sept. 30, 1993, down significantly from the $337 million and $417 million as of June 30, 1993, and March 31, 1993, repectively.
 During the third quarter of 1993, the company and its subsidiaries purchased approximately $1 billion in loans under the new conduit program and settled four REMIC securities totaling approximately $850 million. All of these securities were primarily collateralized with, or represented ownership interests in, jumbo mortgage loans. In addition, the company currently provides 21 warehouse lines of credit to mortgage bankers with limits totaling approximately $134 million, of which approximately $65 million is outstanding.
 Countrywide Mortgage Investments Inc. is a real estate investment trust that operates a nationwide mortgage conduit and warehouse lending program. The conduit purchases jumbo and other non-conforming mortgages from mortgage bankers, banks, savings and loans, and other financial intermediaries who generally retain the mortgage loan servicing rights. The company then credit-enhances and sells the loans in the form of multiclass mortgage-backed securities (REMICs) or, alternatively, invests in the loans on a long-term basis using financing provided by CMOs. In addition, Countrywide has initiated a warehouse lending program for small and medium-size mortgage bankers. This program provides short-term revolving financing to mortgage originators to finance mortgage loans during the period beginning with the closing of the loan until it is sold to an investor.
 COUNTRYWIDE MORTGAGE INVESTMENTS INC.
 Financial Highlights
 (Unaudited)
 Third Quarter Ended
 Sept. 30,
 1993 1992
 Net earnings $564,000 $1,681,000
 Earnings per share $0.03 $0.12
 Dividend per share(a) $0.12 $0.12
 Weighted average number
 of shares outstanding 21,055,213 13,978,918
 Quarter Ended
 Sept. 30, June 30,
 1993 1993
 Net earnings $564,000 $54,000
 Earnings per share $0.03 $0.00
 Dividend per share(a) $0.12 $0.12
 Weighted average number
 of shares outstanding 21,055,213 13,981,423
 Nine Months Ended
 Sept. 30,
 1993 1992
 Net earnings $736,000 $4,589,000
 Earnings per share $0.04 $0.33
 Dividend per share(a) $0.36 $0.36
 Weighted average number
 of shares outstanding 16,369,689 13,978,267
 (a) Declared for earnings of the period.
 Third Quarter Ended
 Sept. 30, 1993
 Net Earnings EPS
 New operations $4,750 $0.23
 Pre-1993 CMO portfolio (3,808) (0.18)
 Fixed organizational
 expenses - CMI (378) (0.02)
 Net earnings $564 $0.03
 -0- 10/21/93
 /CONTACT: Karel Carnohan, 818-304-7523; or Catherine Zimring, 818-666-3843/
 (CWM)


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

NY-LS -- LA017 -- 4951 10/21/93 08:10 EDT
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Date:Oct 21, 1993
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