Doral Financial

Doral Financial Corporation, or Doral Financial, was organized in 1972 under the laws of the Commonwealth of Puerto Rico and operates as a bank holding company. The Company's operations are mainly conducted in Puerto Rico and in the New York City metropolitan area. Doral Financial manages its business through four operating segments that are organized by legal entity and aggregated by line of business: banking, mortgage, insurance agency and institutional securities. Through its main banking subsidiary, Doral Bank, a Puerto Rico commercial bank or Doral Bank PR, Doral Financial accepts deposits from the general public and institutions, obtains borrowings, originates and invests in loans, invests in mortgage-backed securities as well as in other investment securities, and offers traditional banking services. Doral Bank PR operates 35 branch offices in Puerto Rico. Loans are mainly originated through the branch office network and centralized loan departments. Internal mortgage loan originations are also supplemented by wholesale loan purchases from third parties. Prior to 2007, the holding company and several of its subsidiaries were engaged in mortgage originations, securitization and related activities. As part of its business transformation effort, Doral Financial transferred its mortgage origination and servicing platforms, subject to certain exclusions, to Doral Bank PR. The Company's mortgage origination business is now conducted by Doral Mortgage, a wholly-owned subsidiary of Doral Bank PR, and the Company's mortgage servicing business is operated by Doral Bank PR. Doral Financial through its wholly-owned subsidiary, Doral Insurance Agency, Inc., offers property, casualty, life and title insurance as an insurance agency, mainly to its mortgage loan customers.