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                                                                   EXHIBIT 10.37

                           DORAL FINANCIAL CORPORATION
                           1451 F.D. Roosevelt Avenue
                        San Juan, Puerto Rico 00920-2717

                                              As of February 24, 2004

Mr. David R. Levis
1159 F.D. Roosevelt Avenue
San Juan, Rico 00920

Dear Mr. Levis:

         We are pleased to detail herein below the provisions of your new
employment agreement with Doral Financial Corporation ("DFC").

         1.       TERMS OF EMPLOYMENT

                  The term of this Agreement shall be for a period commencing
retroactive to January 1, 2004 and ending on December 31, 2005, unless sooner
terminated as herein provided. With respect of any period of service after
December 31, 2003, this Agreement supersedes and cancels all prior employment,
personal service or similar agreements between you and DFC and its subsidiaries,
divisions and ventures.

         2.       POSITION AND RESPONSIBILITIES

                  You will serve as the President of the HF Mortgage Bankers
Division of DFC. By your acceptance of this Agreement, you undertake to accept
such employment and to devote your full time and attention to DFC, and to use
your best efforts, ability and fidelity in the performance of the duties
attaching to such employment. During the term of your employment hereunder, you
shall not perform any services for any other company, which services conflict in
any way with your obligations under the two preceding sentences of this Section
2, whether or not such company is competitive with the businesses of DFC,
provided, however, that nothing in this Agreement shall preclude you from
devoting reasonable periods required for

                           (i)      serving as a director or member of a
committee of any organization involving no conflict or potential conflict of
interest with the interests of DFC;

                           (ii)     delivering lectures, fulfilling speaking
engagements, teaching at educational institutions;

                           (iii)    engaging in charitable and community
activities; and

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Mr. David R. Levis
As of February 24, 2004
Page 2

                           (iv)     managing your personal and family
investments, provided that such activities do not interfere with the regular
performance of your duties and responsibilities under this Agreement.

                  You shall, at all times during the term hereof, be subject to
the supervision and direction of the Chairman of the Board and Chief Executive
Officer and the President of DFC with respect to your duties, responsibilities
and the exercise of your powers.

         3.       COMPENSATION

                  (a)      During the term of this Agreement you shall receive
an annual salary of $475,000 annually, payable no less often than monthly in
accordance with corporate policy.

                  (b)      You shall be entitled to receive stock options to
acquire 75,000 shares of DFC's Common Stock subject to the terms and conditions
of DFC's 1997 Employee Stock Option Plan.

                  (c)      You shall be entitled to participate in the other
benefit plans of DFC upon the terms and conditions on which such benefits are
made available to other officers of DFC. Nothing herein shall obligate DFC to
continue any existing benefit plan or to establish any replacement benefit plan.

                  (d)      You shall be entitled to reimbursement for reasonable
travel and entertainment expenses incurred in connection with the rendering of
your services hereunder in compliance with DFC policy. Nothing contained herein
shall authorize you to make any political contributions, including but not
limited to payments for dinners and advertising in any political party program
or any other payment to any person which might be deemed a bribe, kickback or
otherwise and improper payment under corporate policy or practice and no portion
of the compensation payable hereunder is for any such purpose.

                  (e)      Payments under this Agreement shall be subject to
reduction by the amount of any applicable federal, Commonwealth, state or
municipal income, withholding, social security, state disability insurance, or
similar or other taxes or other items which may be required or authorized to be
deducted by law or custom.

                  (f)      No additional compensation shall be due to you for
services performed or offices held in any subsidiary, division, affiliate, or
venture of DFC.

         4.       MISCELLANEOUS PROVISIONS RELATING TO THE BONUS AND OTHER
                  MATTERS

                  (a)      Your acceptance of this Agreement will confirm that
you understand and agree that the granting of the
stock options referred in Section 3(b), and any action thereunder, does not
involve any statement or representation of any kind by DFC as to its business,
affairs, earnings or assets, or as to the tax status of the stock options or the
tax consequences of any

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Mr. David R. Levis
As of February 24, 2004
Page 3

payment or exercise thereof, or otherwise. You further agree that any action at
any time taken by or on behalf of DFC or by its directors or any committee
thereof, which might or shall at any time adversely affect you or the value of
your stock options, may be freely taken notwithstanding any such adverse effect
without your being thereby or otherwise entitled to any right or claim against
DFC or any other person or party by reason thereof.

                  (b)      If and when questions arise from time to time as to
the intent, meaning or application of any one or more of the provisions hereof
such questions will be decided by the Compensation Committee of the Board of
Directors of DFC or any other Committee appointed to consider such matters, or,
in the event DFC is merged into or consolidated with any other corporation, by
the Board of Directors (or a Committee appointed by it) of the surviving or
resulting corporation, and the decision of such Board of Directors or Committee,
as the case may be, as to what is a fair and equitable settlement of each such
question or as to what is a fair and proper interpretation of any provision
hereof or thereof, whatever the effect of such a decision may be, beneficial or
adverse, upon the incentive compensation, shall be conclusive and binding.

         5.       RESTRICTIONS ON COMPETITION

                  During the term of this Agreement and for a period of one year
after you cease to be an employee of DFC or an affiliate of DFC, you will not,
without the prior written consent of DFC, (a) accept employment or render
service to any person, firm or corporation, directly or indirectly, in
competition with DFC, or any affiliate thereof for any purpose which would be
competitive with the business of DFC and its affiliates within the Commonwealth
of Puerto Rico or any other geographic area in which DFC or any affiliate of DFC
by which you were employed, conducted operations (the "Restricted Area") or any
business as to which studies or preparations relating to the entry into which
were made by DFC or any affiliate of DFC by which you were employed within one
year prior thereto (collectively, the "Restricted Businesses") or (b) directly
or indirectly, enter into or in any manner take part in or lend your name,
counsel or assistance to any venture, enterprise, business or endeavor, whether
as proprietor, principal, investor, partner, director, officer, employee,
consultant, adviser, agent, independent contractor or in any other capacity
whatsoever for any purpose which would be competitive with the Restricted
Businesses in the Restricted Area. An investment not exceeding 5% of the
outstanding stock in any corporation regularly traded on any national securities
exchange or in the over-the-counter market shall not be deemed to violate this
provision, provided that you shall not render any services for such corporation.

         6.       TERMINATION OF EMPLOYMENT

                  (c)      Your employment hereunder may be terminated for
dishonesty, death, incapacity, or inability to perform the duties of your
employment on a daily basis, resulting from physical or mental disability caused
by illness, accident or otherwise or refusal to perform the duties and
responsibilities of you employment hereunder, or breach of fidelity to DFC.

                  (d)      At any time following a "Change in Control" of DFC,
this Agreement may be terminated by DFC or you on 30 days' written notice to you
or DFC, as the case may be, such

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Mr. David R. Levis
As of February 24, 2004
Page 4

termination to be effective as of the end of the calendar year during which such
notice is given. As used herein, a "Change in Control" shall be deemed to have
occurred at such time as (i) any person or group becomes the beneficial owner of
more than 50% of the voting power of DFC's voting stock, or (ii) DFC
consolidates with or merges into any other corporation or conveys or otherwise
disposes of all or substantially all of its assets to any person.

                  (e)      If at any time you shall voluntarily terminate your
employment, then this Agreement, except for Section 5 hereof, shall terminate
and all further obligations of DFC hereunder shall cease, provided that in any
termination pursuant to subsection (b) of this Section 6 you shall be entitled
to receive all compensation due to pursuant to Section 3 hereof for the calendar
year in which such date of termination occurs.

                  You agree that this Section 6 shall create no additional
rights in you to direct the operations of DFC.

         7.       WAIVERS AND MODIFICATIONS

                  No waiver by either party of any breach by the other of any
provisions hereof shall be deemed to be a waiver of any later or other breach
thereof, or as a waiver of any such or other provision of this Agreement. This
Agreement sets forth all of the terms of the understandings between the parties
with reference to the subject matter set forth herein and may not be waived,
changed, discharged or terminated orally or by any course of dealing between the
parties, but only by an instrument in writing signed by the party against whom
any waiver, change, discharge or termination is sought.

         8.       SEVERABILITY

                  Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective under applicable law. In the event
that any provision, or any portion of any provision, of this Agreement shall be
held to be void and unenforceable, the remaining provisions of this Agreement,
and the remaining portion of any provision found void or unenforceable in part
only, shall continue in full force and effect.

         9.       ARBITRATION

                  Any dispute arising under this Agreement shall be submitted to
arbitration in San Juan, Puerto Rico under the rules of the American Arbitration
Association.

         10.      NOTICES

                  Any notice or communication required or permitted to be given
hereunder shall be deemed duly given if delivered personally or sent by
registered or certified mail, return receipt requested, to the address of the
intended recipient as herein set forth or to such other address as a party may
theretofore have specified in writing to the other by delivering or mailing in a
similar

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Mr. David R. Levis
As of February 24, 2004
Page 5

manner. Any notice or communication intended for DFC shall be addressed
to the attention of the Chairman of the Compensation Committee of DFC's Board of
Directors.

         11.      GOVERNING LAW

                  This Agreement shall be construed in accordance with the laws
of the Commonwealth of Puerto Rico.

         12.      MISCELLANEOUS

                  This Agreement shall be binding upon the successors and
assigns of DFC. This Agreement is personal to you, and you therefore may not
assign your duties under this Agreement. The headings of the sections of this
Agreement are inserted for convenience only and shall not be deemed to
constitute a part thereof or to affect the meaning hereof.

                  If the foregoing terms and conditions correctly embody your
mutual understanding with DFC, kindly endorse your acceptance and agreement
therewith in the space below provided, whereupon this shall become a binding
agreement.

                                              Very truly yours,

                                              DORAL FINANCIAL CORPORATION

                                              By:  /s/ Zoila Levis
                                                --------------------------------
                                              Name:  Zoila Levis
                                              Title: President and
                                                     Chief Operating Officer

Accepted and Agreed to as of the
date first above set forth:

       /s/ David R. Levis
--------------------------------
         David R. Levis