NovaStar Shuts Retail Brokering Biz

NovaStar Financial Inc., Kansas City, Mo., may have taken one step closer to the end of the line, as the company shuts its retail mortgage brokering business. In a Securities and Exchange Commission filing, NovaStar said it could no longer meet minimum licensing requirements because of the net worth and financial condition of the company. It is firing 170 employees, leaving it with just 30 to handle its mortgage portfolio management operations. NovaStar said it will take a charge of $1.3 million to $1.8 million as a result, most of which should be booked in the first quarter. Separately, NovaStar announced that its common and preferred stock listings on the New York Stock Exchange would be suspended prior to the opening of the market on Jan. 17. An appeal by the company of the original delisting notice in October was denied based on NovaStar's termination of its real estate investment trust status and its failure to qualify for original listing as a corporation. As of Jan. 17, NovaStar will trade on the pink sheets. The company can be found online at http://www.novastarmortgage.com.