twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


Bankruptcy Possible at NovaStar

$598 million 3rd quarter loss

November 15, 2007

By MortgageDaily.com staff


NovaStar Financial Inc., which has become a mortgage broker, had a quarterly loss of more than $500 million -- wiping out all stockholder equity. The company acknowledged bankruptcy is a possibility.

The former real estate investment trust Wednesday reported a third quarter loss of $598.0 million, soaring from a $54.5 million loss during the second quarter. A year earlier, NovaStar reported a $25.3 million profit.

Over $245 million of the third quarter 2007 loss was a tax charge related to its REIT revocation retroactive to January 2006, while $99 million was a provision for credit losses and $74 million was a valuation adjustment on mortgage loans, the Kansas City, Mo.-based company noted.

NovaStar referred to itself as a "nonconforming residential mortgage portfolio manager and retail broker," noting it is currently "not engaged in mortgage banking activities, but is brokering loans for other lenders."

As of Sept. 30, stockholder equity was a negative $80.7 million, NovaStar said in a separate filing with the Securities and Exchange Commission.

A sale of $300.5 million in mortgage loans for 92 cents on the dollar to Wachovia was recorded on Sept. 30 as a financing transaction, the report said. Another sale for $664.8 million at a price of 92.7 percent of par was completed on Tuesday. Servicing rights and advances on securitized loans were sold to Saxon Mortgage Services Inc. during the fourth quarter, with net proceeds standing at around $147 million.

A waiver for a breach of a credit line agreement with Wachovia will expire at the end of this month, "and there can be no assurance that the company will be able to obtain additional waivers or amendments from Wachovia or that it will be able to repay its outstanding indebtedness to Wachovia," the report said.

"If the Company cannot obtain additional waivers or amendments, there can be no assurance Wachovia would not issue an event of default and cause the outstanding borrowings to become due and payable immediately which also could cause the company to file bankruptcy," NovaStar stated in the SEC filing.

NovaStar expects to be de-listed from the New York Stock Exchange and is looking at trading on the OTCBB.

The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.



Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.


Mortgage Broker News | Originator Newsletter
Stories about mortgage brokering and broker programs. Profiles of successful mortgage brokers. Articles about mortgage brokers who excel at other activities. Broker lawsuits and criminal broker activity.


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders