Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Thursday, May 23, 2024 | Back issues
Courthouse News Service Courthouse News Service

More Fallout From Mortgage Meltdown

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.

Follow @@joeharris_stl
Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...