Doral Financial Corporation

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Doral Financial Corporation

Type	Public (NYSE: DRL)
Founded	San Juan, Puerto Rico; 1972
Headquarters	San Juan, Puerto Rico
Key people	Dennis G. Buchert, Chairman Glen Wakeman, President, CEO, & COO
Industry	Finance and Insurance
Products	Banking Checking Accounts Insurance Stock Brokerage Investment Bank Asset-Based Lending Consumer finance
Revenue	US$ 1.02 billion (2005)^[1]
Net income	US$ 207.88 million (2005)^[1]
Employees	2,598 (2005)^[1]
Website	www.doralfinancial.com

Doral Financial Corporation is a financial holding company located in San Juan, Puerto Rico which offers a full range of financial services in Puerto Rico and the New York City metropolitan area through its wholly owned subsidiaries. Its main subsidiaries, Doral Mortgage and HF Mortgage, are two of the largest mortgage companies in Puerto Rico. It also owns Doral Bank, a business and consumer financial services company offering banking services and various types of commercial and consumer loans. Its headquarters are located at 1451 F.D. Roosevelt Avenue, near the Golden Mile District of Hato Rey, San Juan.

Doral Financial’s chief assets are its residential mortgage loans, with its main source of income arising from the origination, purchase, sale, and servicing of those mortgage loans. It offers Federal Housing Administration and Veterans Administration loans, Rural Housing Service loans, conforming conventional loans, nonconforming loans, second mortgage loans, home equity mortgage loans, and other mortgage loans. Other assets consist of commercial real estate loans, construction loans, and consumer loans (such as auto loans, personal loans and credit card loans). It also issues and sells various types of mortgage-backed securities and other investment securities. The company operates through a network of 58 mortgage branches (2005) in Puerto Rico and one branch office in New York City.

1 Recent problems and woes
2 Stats
3 Subsidiaries
4 Competitors (in Puerto Rico)
5 References
6 External links

[edit] Recent problems and woes

In 2006, Doral was subject to various investigations by credit agencies and the SEC regarding certain loan transactions with other banks. As a result, Doral was forced to restate prior-year financial statements and SEC reports, which in turn caused its stock price declined by more than 70%. In recent filings, Doral reported losses of $62.5 million in the first nine months of 2006 because of the investigations, reestatements, and internal reorganization. Also, as of January 2007, Doral Financial's faces a refinancing problem because of $625 million in floating notes that will mature in July 2007. Most analysts believe that Doral will be unable to meet its obligation. ^[2]

Disagreements between John C. Ward III, the former chairman and CEO, and Doral's board of directors led to Ward's resignation from his position on 2 January 2007. The board favored a private equity deal to refinance and save the company, but Ward objected to this plan, arguing that it would dilute the value of the company's shares. He advocated a straight buy-out of the company by another undisclosed financial firm.^[3] Ward was replaced by Dennis G. Buchert, a former independent director of Doral's board. ^[4]

[edit] Stats

Ranked the 701st and 1,502nd Largest Company In The World by Forbes, by total Assets and Profits, respectively (2006).^[1]
Has over $19.2 billion in assets (2005).^[1]
Approx. 2,598 employees.
Symbol: DRL (NYSE)