NovaStar Financial Company Description
NovaStar Financial hopes to avoid the black hole that has claimed so many others in the subprime mortgage market. Before 2008, the company originated, invested in, and serviced nonconforming residential mortgages and invested in mortgage-backed securities. In light of the troubles facing the mortgage banking industry including increased delinquencies and reduced liquidity, NovaStar Financial sold its servicing rights (to Saxon Mortgage for $155 million) and stopped originating new loans. It also sold off much of its loan portfolio and cut about 1,600 jobs in 2007 and 2008. NovaStar Financial dropped its status as a real estate investment trust (REIT) after it wasn't able to pay its required dividends for 2006.
View the Comprehensive Company Description for NovaStar Financial
The Company Description provides a historical perspective of NovaStar Financial's organization from inception to current status.
Produced by Hoover's in-house editorial team, the Company Description tracks ownership transitions, company progress via mergers and acquisitions, major growth milestones, and strategic initiatives, to provide a holistic view of NovaStar Financial's evolution in the marketplace.
