Dorado Bank Seeks Fed Approval for Puerto Rico Lender
Dorado Bank Financial Holdings Corp., the parent company of a proposed Puerto Rico-based lender, has submitted an application to the Federal Reserve for permission to acquire the new bank. The application was published in the Federal Register on September 14 and is being reviewed by the Federal Reserve Bank of New York.
The proposed Dorado Bank plans to focus on lending to residential real estate projects in Puerto Rico, including single-family homes, multifamily properties, and rehabilitation projects. According to the application, the bank will rely largely on deposits from local customers and offer most services online or through a mobile app.
The organizers of the new bank are betting on the need for renovation of repossessed properties in urban areas, which they believe requires significant investment. They plan to finance developers and investors rehabilitating these properties with loans ranging from 36 to 60 months.