NovaStar to Resume Wholesale Funding

NovaStar Financial Inc., Kansas City, Mo., has issued a statement saying it will again fund loans in the wholesale channel starting on Aug. 7.On Aug. 3, the company suspended issuing new commitments for wholesale production, blaming disruptions in the secondary market. "Based on a re-evaluation of current conditions in the secondary market, NovaStar is adjusting its pricing and guidelines and expects to return to committing on new loans in the wholesale channel and funding those loans, effective Tuesday Aug. 7," the company said. "Meanwhile, NovaStar has continued to honor all existing commitments and fund all loans that have already been approved and committed for closing." NovaStar said its retail channel has continued to make loans, using guidelines that are "evolving to meet changing needs of the secondary market." NovaStar can be found online at http://www.novastarmortgage.com.