Countrywide Financial Corp Ex Q4

Morgagae banking segment revenue: 250 mil writedown: 400 mil pre-tax NI: -400 to -600 mil --net writedown 690, pipeline 41.5 bil MSRs retained interest impairment: writedown -30% in Q2, -40% in Q3 to 0.9, at most another 300 mil (-30% writedown) servicing earnings before valuation of retained interst: 600 mil impairment of credit sensitive retained interest: -300 mil pre-tax earning = 300 mil other drivers: 1.prepayment factor is not high 2.more portfoilio are filing for bankruptcy, driving up servicing fees Banking revenue: 550 mil provision: 256 mil (2x of net charge off) pre-tax earning : 200 mil other factors: 100 mil recoery Capital Mkt --trading asset valuation writedown -6% (300 mil / 4907 mil) pretax earning = -100 mil Insurance pre tax earning : 100 mil ----- -200 to 100 mil