Supplement to Prospectus Supplement Dated February 23, 2007 (To prospectus dated June 16, 2006) _______________________ | |
NovaStar Mortgage Funding Trust, Series 2007-1 | $41,554,000 |
NovaStar Mortgage, Inc. Sponsor and Servicer | |
NovaStar Mortgage Funding Corporation Depositor _____________________ | NovaStar Home Equity Loan Asset-Backed Certificates, Series 2007-1 |
This supplement (the “Supplement”) updates the prospectus supplement dated February 23, 2007 to the prospectus dated June 16, 2006 (the “Prospectus Supplement”) that has been issued with respect to the sale of certain NovaStar Home Equity Loan Asset-Backed Certificates, Series 2007-1 (the “Certificates”), as described below.
Offering Information | Initial Aggregate Certificate Balance | Pass-Through Rate | Price to Public | Underwriting Discount | Proceeds to the Company | |
| Class M-6 Certificates | $19,833,000 | LIBOR + 0.75000%(1) | 95.156250% | N/A | $18,872,339 | |
| Class M-7 Certificates | $21,721,000 | LIBOR + 1.75000%(1) | 92.296875% | N/A | $20,047,804 | |
| Total | $41,554,000 | $38,920,143 |
| (1) | Subject to increase as described in the Prospectus Supplement and subject to a related available funds cap rate described therein and a maximum rate of 11%. |
Subject to the terms and conditions set forth in an underwriting agreement, dated February 23, 2007, among the sponsor, the depositor and the underwriter named below, the depositor has agreed to sell to the underwriter and the underwriter has agreed to purchase from the depositor, the principal amount of the Class M-6 and Class M-7 Certificates below:
Class M-6 Certificates | Class M-7 Certificates | |||
Underwriter | Principal Amount | Principal Amount | ||
| Deutsche Bank Securities, Inc. | $ 19,833,000 | $ 21,721,000 |
The Class M-6 and Class M-7 Certificates are being underwritten by the underwriter, and all references in the Prospectus Supplement to the “underwritten certificates” include the Class M-6 and Class M-7 Certificates.
Proceeds to the company from the sale of the Class M-6 and Class M-7 Certificates are expected to be approximately $38,920,143. The Class M-6 and Class M-7 Certificates will be purchased by the underwriter on or about March 29, 2007.
The depositor has been advised that the underwriter proposes to offer the Class M-6 and Class M-7 Certificates to the public at the offering price set forth above.
This Supplement does not contain complete information about the Class M-6 and Class M-7 Certificates. Additional information is contained in the Prospectus Supplement dated February 23, 2007 prepared in connection with the issuance of the Certificates and in the prospectus dated June 16, 2006. You are urged to read this Supplement, the Prospectus Supplement and the prospectus in full.
Deutsche Bank Securities |
| The date of this Supplement is March 29, 2007 |