NovaStar Flames Out
The news comes just two weeks after shares in NovaStar rival New Century (NEW Quote) blew up after the company warned it was experiencing similar problems.
Hartman said the company's current reserves are "adequate to cover the repurchase risk for all loans sold to date." NovaStar is also considering whether it should retain the company's real estate investment trust status, it says. As a REIT, NovaStar is required to pay 90% of its taxable income as dividends to shareholders. NovaStar says it expects to "recognize little if any taxable income" through 2011. Shares fell $6.66 to $10.90 early Wednesday.- Loading Comments...
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