KANSAS CITY, Mo. (AP) - Mortgage lender NovaStar Financial says it lost more than $700 million last year.
Associated Press
The Kansas City-based company has been hit hard by the mortgage meltdown and says it may not generate enough revenue in coming months to stay in business.
Its 2007 loss of $733 million equals $78.55 a share. That [...]
American Interbanc Mortgage LLC has agreed to accept slightly more than $2 million to end its bid to force a unit of NovaStar Financial Inc. into involuntary bankruptcy.
American Interbanc filed an involuntary bankruptcy petition against NovaStar Home Mortgage in January in an attempt to collect a judgment against the unit. A California court ruled in [...]
NovaStar Financial Inc. announced Monday that it will not distribute a $157 million dividend related to its 2006 income.The Kansas City-based subprime mortgage lender (NYSE: NFI - News) operated as a Real Estate Investment Trust in 2006. In exchange for tax exemptions, the company was required to distribute at least 90 percent of its income in the form of dividends to shareholders.
In a release Monday, NovaStar said its decision to not declare a dividend for 2006 income causes its REIT status to be terminated retroactive to Jan. 1, 2006.
NovaStar stock closed at $8.24 on Monday, up 14 cents, or 1.73 percent.
NovaStar said it filed a consolidated tax return for the 2006 tax year on Monday, as a general “C” corporation instead of as a REIT. The company also filed a request for an extension to pay the required taxes.
“This provision should allow the company the right to offset the 2006 tax liability with the expected refund that will be generated by the carryback of the
NovaStar Financial Inc. reported a second-quarter loss after the market closed on Thursday.In a filing with the Securities and Exchange Commission, the Kansas City-based company (NYSE: NFI - News) reported a loss of $54.5 million available to shareholders, or $5.84 a share, for the quarter that ended June 30. This compares with earnings for common shareholders of $33.1 million, or $3.97 a share, last year.NovaStar reported a loss of $24.7 million in net interest income, compared with a gain of $61.5 million a year ago.Signs of the difficult subprime mortgage market showed throughout NovaStar's results for the quarter: Among the items that affected earnings in the second quarter were a $73.3 million provision for credit losses; a $22.6 million impairment on mortgage securities; $16 million for fair-value adjustments and a $4.4 million valuation adjustment on mortgage loans. Loan production for the quarter totaled $774 million, down 73 percent from the $2.8 billion reported for the
NovaStar Mortgage has just put in place a ”temporary suspension” on ALL LOANS that have NOT BEEN LOCKED in the NovaStar system.
For loans that are currently locked/approved/doc’d:
1. Locked Loans:
Loans currently locked must fund by Tuesday August 7, 2007.
2. Loans Locked and approved:
Loans currently approved must fund by Tuesday August 7, 2007.
3. Doc’d Loans:
Loans that have been doc’d will close and fund as scheduled.
For new apps:
New loan applications will continue to be accepted however will be held until the temporary suspension on loan approvals and fundings has been lifted.
Novastar has recently received funding from several outside investors so this is not a liquidity problem. This is a business decision/reaction to the recent ongoings in the industry…namely bankruptcy/closing of American Home Mortgage (parent of ABC) and others…to determine how NovaStars guidelines and pricing must be adjusted to ensure the secondary market will
One important rule for investors is don’t chase bad money with good. NovaStar Financial is having a challenging time getting out of the doldrums even after a $150 million booster shot it received...
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I've locked in some nice profits on NFI. I don't like the broad market condition at this moment... time take some long profits off the table and watch what happens. S&P 1500 battle going on right now. I would be surprised if it fell this quickly, but discipline approach when good sized profits on the table can't be bad. I am also long on some SPY puts, but ready to jump out of those if we
The two charts above are for comparative purposes - Novastar (NFI) and Freemont (FMT). Fremont soared last month after snagging a deal to sell its commercial lending division. Is the same thing about to happen with Novastar? On Friday, Dr. Jon Najarian from Optionmonster.com briefly mentioned the possibility that NFI could be a takeover candidate on CBOE TV for as much as $12.50 a share. Dr. J
NovaStar Financial, Inc. is laying off 350 workers, citing a need to align its organization with changing conditions in the mortgage market. The workforce reductions affect about 17 percent of the NovaStar’s workforce. The actions focus on NovaStar’s wholesale loan origination group and related functions, including employees at the NovaStar headquarters in Kansas City and at operation centers in California and Ohio. NovaStar’s loan servicing organization is not affected by the reduction. …Read More...
