NovaStar Exits Georgia

NovaStar Mortgage Inc., Kansas City, Mo., has announced that the company has ceased doing business in Georgia, including conforming and nonconforming loans.The action was prompted by the recent decision by Standard & Poor’s to refuse to assign ratings to structured finance transactions that include home loans from the state of Georgia, the company said. “Mortgage securities with collateral originated in Georgia will be unrated by Standard & Poor’s and, therefore, will not be marketable,” the company said. NovaStar Mortgage’s parent company, NovaStar Financial Inc., is a real estate investment trust that invests in mortgage securities collateralized by loans originated by NovaStar Mortgage. The company's website address is http://www.novastaris.com.