NovaStar Starts Warehouse Biz

NovaStar Financial Inc., Kansas City, Mo., is entering the warehouse lending business through its NovaStar Capital Inc., Atlanta, subsidiary. Kenneth D. Logan, formerly the head of national warehouse lending at PCFS Financial Services, has joined NovaStar Capital as executive vice president and chief operating officer.There are two programs being offered through NovaStar Capital. NovaFund is a traditional warehouse line for correspondent lenders. It provides short-term funding for loans that may be delivered to NovaStar Mortgage or other approved investors. NovaFund Express is a managed line which facilitates warehouse financing for brokers with a lender's license by allowing them to use investor guarantees and approved service providers to fulfill requirements typically expected of a dedicated lender. In doing so, it eases the infrastructure needs of these emerging broker/bankers, the company said.