NovaStar CEO/Founder Resigns

The ailing NovaStar Financial, one of the last of the remaining subprime shops, says its co-founder, chief executive, and chairman Scott Hartman will resign effective Jan. 3.Also departing is Greg Metz, senior vice president and chief financial officer. Lance Anderson, another co-founder who serves as president and chief operating officer, will assume the CEO and chairman duties. Vice president Rodney Schwatken will assume the CFO duties. Messrs. Hartman and Anderson founded the publicly traded real estate investment trust in 1996. NovaStar recently sold its $15 billion servicing portfolio (estimated) to an affiliate of Morgan Stanley & Co. for $175 million in cash. NovaStar is no longer funding subprime loans and, like many nonconforming funders, has laid off most of its production staff. It can be found online at http://www.novastarmortgage.com.