ST. LOUIS (CN) – In a ruling stemming from the nation’s mortgage fiasco, a federal judge has ordered Paragon Home Lending to pay $1.6 million to CitiMortgage in a default judgment.
CitiMortgage sued Paragon in August 2007, claiming Paragon breached an agreement by delivering a number of loans to CitiMortgage that did not meet the requirements of the agreement.
Paragon’s counsel withdrew in December after the company told its attorney that it was closing. On Dec. 27, the court ordered Paragon to retain new counsel or face a default judgment in Citimortgage’s favor.
U.S. District Judge Charles Shaw ruled after Paragon failed to respond. Shaw also awarded CitiMortgage $2,400 in costs and $50,000 in attorney’s fees.