Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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NovaStar completes sale of mortgage-servicing rights
Kansas City Star, MO - Nov 7, 2007 - By DAN MARGOLIES
 
NovaStar Financial Inc. said Wednesday that it had completed the sale of
its mortgage-servicing rights to Saxon Mortgage Services of Fort Worth,
Texas, for $147.1 million net cash.


In a regulatory filing, the Kansas City-based subprime mortgage lender said it
had retained $21.5 million for working capital purposes and used the rest to
pay down debt.

NovaStar will get an additional $7.9 million, which also will be used to reduce
debt, upon delivery of all closing documents.

The beleaguered company announced in October that it was selling its
mortgage-servicing rights to Saxon, a unit of Morgan Stanley, for
approximately $175 million. The $147.1 million figure represents net proceeds
after various expenses.

Saxon will take over the collection, customer service and other servicing
activities
related to approximately $15.5 billion in “securitized” loans
originated by NovaStar.

In connection with the Saxon deal, NovaStar said it had paid off $80 million
to a division of Deutsche Bank and $60 million to affiliates of Wachovia
Bank.

The assets sold to Saxon secured loans from those two lenders.

NovaStar disclosed that it had paid a $50,000 bonus to Greg Metz, its chief
financial officer, related to the deal.

To reach Dan Margolies, call 816-234-4481 or send e-mail to dmargolies@kcstar.com.

NovaStar sells mortgage servicing rights for $155M
Bizjournals.com, NC -
Nov 7, 2007

In a filing with the Securities and Exchange Commission after the market closed
on Wednesday, NovaStar said it received $147.1 million when the transaction
closed on Nov. 1. The company retained $21.5 million to use as working
capital and used the balance to reduce debt.
 
NovaStar will receive an additional $7.9 million in cash upon delivery of all the
closing documents. The company said it will use the money to pay down debt.
 
NovaStar paid in full an $80 million servicing advance facility with
Deutsche Bank Structured Products Inc. and a $60 million servicing rights
facility with affiliates of Wachovia Bank.

We know all to well what is meant by other servicing activities. 
Yet another Christmas present homeowners don't want or need!

 

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