Doral Reports Much-Reduced Loss

Doral Financial Inc., a San Juan, Puerto Rico-based mortgage lender, has reported a net loss of $2.3 million for the first quarter, a substantial improvement from the net loss of $37.3 million recorded in the first quarter of 2007. Doral said the improvement was driven chiefly by a 27.5% reduction in noninterest expenses, a 50% increase in noninterest income, and a rise in the company's net interest margin from 1.43% a year earlier to 1.80%. "We are starting to witness the results of the execution of our business plan, shown by the significant improvement in our fundamentals experienced in the first quarter," said Glen R. Wakeman, president and chief executive officer of Doral Financial. The company has been struggling since 2006, when it signed consent orders with the Federal Reserve Board, the Federal Deposit Insurance Corp., and the Commissioner of Financial Institutions of Puerto Rico restricting dividend payments and requiring the submission of plans to maintain capital adequacy. The orders arose from Doral's restatement of earnings for 2000-2004 to correct the accounting for mortgage loan sales and the valuation of interest-only strips. Doral can be found online at http://www.doralfinancial.com.