Paragon Home Lending - Wholesale Lending

This Brookfield, WI-based company (which is not Paragon Mortgage out of Tampa) seems to have shut down. Their web site is here, though no official word is posted there. However, numerous people have written in to point out that contacts have vanished and activity at the company seems to be nonexistent. Our prior attempts to confirm a non-implosion with the company went nowhere.

One of the many tips, received on Sept 25:

Paragon Home Lending - Brookfield, WI. Reps have been contacting brokers to close all loans by month end or they "won't fund". No longer accepting locks.

Recent rounds of layoffs have left only 20 employees, peak would have been about 100 employees. Peak volume $125 Million/month, Aug '07 = ~$18 Million, and rumors have Sept <$10 Million. Company has been in business 11 years and was licensed in 29 states, Conforming, Alt-A and B/C.

Another source wrote in on Sept. 27 with similar details:

I've learned that Paragon Home Lending, a Brookfield, WI. based company, is ceasing operations as of tomorrow Friday, September 28th. At its height Paragon employed approximately 120 people and in 2003 did over $1 billion in volume. Paragon did conforming, subprime and correspondent business. Paragon did the lion's share of its business in the midwest but had a branch office in Arizona for a short time and planned to open another in Georgia. Over time layoffs reduced the Brookfield staff to approximately 20 people, some of whom are eligible for employment with Paragon's former sister company GSF mortgage.

Note: Paragon Home Lending is not to be confused with Tampa, Florida-based Paragon Mortgage, Inc., a wholly separate entity.