Paul Financial, LLC - Wholesale

Peter Paul, former CEO of Headlands Mortgage and Greenpoint, announced Paul Financial is closing it's doors to Wholesale business. Started in 2003, Paul Financial funded 15-to-20 million per month in business.

From their web site:

"Effective Monday, November 26, 2007"

"After much deliberation, Paul Financial has decided to temporarily suspend the acceptance of new loan submissions effective Monday, November 26, 2007. All loans that are currently in process will be evaluated based on current underwriting guidelines, and completed as appropriate."

In an email to staff, Peter Paul makes it clear he will be back:

"We are NOT going bankrupt, closing our doors for good, or imploding. It is simply more economical for us to reduce staff to a small group of core people and ride out this market upheaval with zero volume than to maintain the staff necessary to fund conforming loans that carry such a small profit margin."

We understand about 50 people have been told that today (11-26-07) is their last day. A few people may stay on to process Reverse Mortgages. Last week a number of Underwriters walked out, and we are unsure if this was voluntary or not.

HUD Statistics show a volume of $3,759,876,000 for 2005, suggesting at one point the average monthly volume was about 300 million.

If you would like to add to this information regarding Paul Financial's operations, please let us know.