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NovaStar Closes $1.4 Billion Asset Backed Securitization Tuesday June 5, 2:44 pm ET
KANSAS CITY, Mo., June 5 /PRNewswire-FirstCall/ -- NovaStar Financial, Inc. (NYSE: NFI - News), a residential mortgage lender and portfolio investor, announced today that its subsidiary, NovaStar Mortgage, Inc., securitized $1.4 billion of non-conforming mortgage assets. ADVERTISEMENT
Lead managers RBS Greenwich Capital, Wachovia Securities and Deutsche Bank Securities underwrote NovaStar Mortgage Funding Trust, Series 2007-2, which closed June 1, 2007. The transaction was structured into 15 rated classes of certificates with a face value of $1,340,500,000.
NovaStar retained the class C certificates. Class C has a notional amount of $1,400,000,000, entitles NovaStar to excess interest and prepayment penalty fee cash flow from the underlying loan collateral and serves as overcollateralization. Other than prepayment penalty fee cash flow, Class C is subordinated to the other classes.
About NovaStar
NovaStar Financial, Inc. (NYSE: NFI - News) is a specialty finance company that originates, purchases, securitizes, sells and invests in nonconforming loans and mortgage-backed securities. The Company also services a large portfolio of residential nonconforming loans. NovaStar specializes in single-family mortgages, involving borrowers whose loan size, credit details or other circumstances fall outside conventional mortgage agency guidelines. Founded in 1996, NovaStar efficiently brings together the capital markets, a nationwide network of independent mortgage brokers and American families financing their homes. NovaStar is headquartered in Kansas City, Missouri, and has lending operations nationwide.
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They are looking for a buyer. This will be bought out soon. That loan is huge. It’s also an asset back loan.
Posts: 4381 | From: houston | Registered: Mar 2006
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Bottom line, you have 4 of the largest banks betting on this company. Over 30 sub prime comp. went bankrupt. Who do you think is going to reap the rewards? If this doesn’t get bought out, it will certainly be a very strong company.
Posts: 4381 | From: houston | Registered: Mar 2006
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The housing #'s this morning were terrible. That doesn’t mean there isn't a buyout coming. This company isn’t just a sub-prime lender.
Posts: 4381 | From: houston | Registered: Mar 2006
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quote:Originally posted by toothpick: ooo this hurt my pocket.
any hope in recovery in the near future invester?
They actually broke even. They have massive assets, not just a sub-prime lender. They also have the backing of 4 huge banks. This will either be bought out, or be in the $20 range in a year.
Posts: 4381 | From: houston | Registered: Mar 2006
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i sure hope it happens soon! every time i check it just keeps getting deeper in the red!
thanks for your advice invester! please keep me informed about NFI if you here anything. cheers!
Posts: 202 | From: Hong Kong/Birmingham | Registered: Jun 2007
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