Items Tagged with 'Novastar Financial Inc.'

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  • NovaStar Acquires Appraisal Management Company

    NovaStar Financial, Inc. said Thursday that it had acquired a majority interest in Indianapolis-based residential appraisal management company PipeFire, LLC. Going forward, the business will operate under the name StreetLinks National Appraisal Services, with offices in Indianapolis and Kansas City.
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  • NovaStar CEO, CFO Head for the Exits

    Once high-flying subprime specialist NovaStar Financial, Inc., reeling from a $598 million loss in the third quarter and struggling to stay solvent, will face its future without its current CEO and CFO.
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  • Saxon Mortgage to Buy Servicing Rights From NovaStar

    Troubled subprime lender NovaStar Financial, Inc. said late today that it will sell its entire servicing rights to Saxon Mortgage Services, Inc. in a bulk deal that pulls the rug out of NovaStar's sizeable servicing operation. The deal will see NovaStar's servicing rights sold for roughly $175 million in cash, and will lead to "substantial reductions in both its organization and workforce," the Kansas City-based mortgage company said. Novastar employs 300 in its servicing operations.
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  • NovaStar Admits it Will Fail to Pay Dividend, Terminates REIT Status

    Troubled subprime lender Novastar Financial, Inc. said today that it will not be able to pay a $156 million dividend based on 2006 taxable income, citing liquidity demands on the company's core operations -- thus costing the Kansas City-based outfit its REIT status and further clouding NovaStar's future. From the press release:
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  • Report: NovaStar Gets Pass From Wachovia

    American Banker reports on something that's been widely discussed behind the scenes late Friday and today (and was mentioned by commenter Patrick last week as well): Wachovia Corp. waived certain covenants with subprime lender NovaStar Financial Inc. in order to overlook a recent servicer downgrade by Moody's Investors Service.
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  • NovaStar Posts $54.5 Million Loss in Second Quarter

    NovaStar Financial, Inc. posted its second-quarter results late yesterday, and as expected, results showed a big loss. The company reported a net loss of $54.5 million during the second quarter, compared to $33.1 million in earnings during the year-ago period. Pre-tax writedowns totalled $116.9 million, including $73.3 in credit loss provisions.
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  • NovaStar Gets $100M Lifeline from Wachovia, Puts Itself on Auction Block

    NovaStar Financial, Inc. (NYSE:NFI), one of the nation's largest subprime lending operations, said late Wednesday that Wachovia Capital Markets, LLC has extended the embattled subprime lender $100 million in credit. Industry sources have characterized the funding arrangement as a "liquidity lifeline" needed to keep the company afloat. In conjunction with the financing commitment, NovaStar also said it will "explore a range of strategic alternatives" for the company. Such language usually refers to a decision to seek to sell the company, although NovaStar officials did not return calls Wednesday evening seeking clarification.
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  • NovaStar to Slash 17 Percent of Workforce

    NovaStar Financial, Inc. (NYSE:NFI) said Friday that it will lay off roughly 350 employees -- 17 percent of its workforce -- in a move it characterized as necessary to "align its organization with changing conditions in the mortgage market." In a press statement, the company said the layoff will largely focus on the company's wholesale loan origination group and related functions, including employees at the company's headquarters in Kansas City and at operation centers in California and Ohio. Subject to completion of the necessary legal notices and requirements, implementation of the reductions will begin immediately and conclude during the second quarter of 2007, NovaStar said.
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  • Falling Off a Cliff: NovaStar Q4 Earnings Drop 150 Percent

    NovaStar Financial, Inc. (NYSE:NFI), one the nation's largest subprime lending and servicing operations, said late yesterday that REIT lost $14.4 million during the fourth quarter of 2006, compared to a $26.4 million profit during the fourth quarter 2005. Annual net income for 2006 dropped nearly 50 percent, falling to $66.3 million from $132.5 million one year ago.
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