Archive for Wednesday, September 5, 2007

NovaStar pulls back amid mortgage slide

September 5, 2007

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Mortgage lender NovaStar Financial Inc. said Tuesday it was all but eliminating sales of new loans and will lay off more than 30 percent of its work force as it deals with continued deterioration in the mortgage market.

The Kansas City, Mo.-based company also said it pulled a $101 million stock offering because it wasn't able to file required reports with the SEC by the Aug. 30 deadline.

NovaStar shares fell $1.33, or 16 percent, to $7.16 Tuesday.

The company said it was restructuring to better focus on its current portfolio of mortgage securities and residential loans.

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