Puerto Rican Mortgage Lenders Settle With U.S. Regulators

Law360, New York (March 17, 2006, 12:00 AM EST) -- In the latest development in a scandal that has swept Puerto Rico’s financial scene, three of the country’s biggest mortgage lenders have agreed to cooperate with U.S. regulators in an investigation into the companies’ accounting practices and improper valuation of “strip” securities.

This week, Doral Financial Corp., First BanCorp and R&G Financial Corp. said in cease-and-desist orders with the Federal Reserve that they would hire independent consultants to review their books and would submit plans regarding their capital adequacy and liquidity.

The agreements, jointly made with...
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