NovaStar Financial Inc., a residential mortgage lender and portfolio investor based in Kansas City, Mo., has announced that its subsidiaries NovaStar Certificates Financing Corp. and NovaStar Mortgage Inc. recently securitized $1.2 billion of nonconforming mortgage assets.The transaction, NovaStar Mortgage Funding Trust series 2006-MTA1, offered 14 rated classes of notes with a face value of approximately $1.18 billion, NovaStar reported. NovaStar Certificates Financing LLC, an affiliate of NovaStar Mortgage, retained the M-8 and M-9 notes as well as the M-10 notes, which were not covered by the prospectus. NovaStar Certificates Financing Corp. retained the class C certificates, which entitle it to overcollateralization amounts and excess spread, and the trust certificates, which are also not covered by the prospectus. Greenwich Capital was the underwriter of the securitization. NovaStar can be found online at http://www.novastarmortgage.com.

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