Another Chapter in the Slow Death of Nova Star

Nova Star today reported nearly $600 million in losses for the 3rd quarter due to the deteriorating mortgage environment said representatives of the much beleaguered subprime originator. From Market Watch: NovaStar has been hit hard by rising delinquencies on subprime mortgages, which are offered to less creditworthy borrowers. It was a top-20 subprime mortgage lender last year, originating more than $10 billion in loans, according to industry publication Inside Mortgage Finance. The company has lost more than 95% of its market value so far this year. NovaStar said on Wednesday that subprime lending fundamentals and the secondary mortgage market have continued to deteriorate. "As the mortgage environment has grown progressively worse through 2007, we have greatly reduced our business ac