NovaStar Certificates Financing FWP Free writing prospectus

Filed Pursuant to Rule 433(d)

Registration Nos. 333-134461

and 333-134461-01

NovaStar Home Equity Loan Asset-Backed Certificates,

Series 2006-5

$630,619,000 (Approximate)

NovaStar Mortgage Funding Corporation

Depositor

NovaStar Mortgage, Inc.

Sponsor and Servicer

Co-Lead Underwriters

Greenwich Capital Contacts:

Mortgage Finance	Phone	E-mail Address
Prue Larocca	(203) 622-3868	laroccp@gcm.com
Vinu Phillips	(203) 622-5626	philliv@gcm.com
Ara Balabanian	(203) 618-2435	ara.balabanian@gcm.com
Erin Maxwell	(203) 618-6112	erin.maxwell@gcm.com
Sean Curran	(203) 618-2426	sean.curran@gcm.com
Trading	Phone	E-mail Address
Ron Weibye	(203) 625-6160	weibyer@gcm.com
Peter McMullin	(203) 625-6160	peter.mcmullin@gcm.com
Bob Pucel	(203) 625-6160	pucelr@gcm.com
Structuring	Phone	E-mail Address
Rob Shugrue	(203) 622-5625	shugrur@gcm.com
Collateral Analytics	Phone	E-mail Address
Todd Marr	(203) 618-6337	marrt@gcm.com
Rating Agency Contacts:
Standard & Poor’s	Phone	E-mail Address
Becky Cao	(212) 438-2595	Becky_Cao@standardandpoors.com
Dan Larkin	(212) 438-3014	daniel_larkin@standardandpoors.com
Justin Hansen	(212) 438-7334	justin_hansen@standardandpoors.com
Moody’s Investors Service	Phone	E-mail Address
Rachel Peng	(212) 553-3831	Rachel.Peng@moodys.com
Fitch	Phone	E-mail Address
Michele Patterson	(212) 908-0779	michele.patterson@fitchratings.com
Jaka Ismail	(212) 908-0275	jaka.ismail@fitchratings.com

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The issuer has filed a registration statement (including a base prospectus) with the SEC for the offering to which this free writing prospectus relates. Before you invest in this offering, you should read the base prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site atwww.sec.gov <http://www.sec.gov/>. Alternatively, RBS Greenwich Capital will arrange to send you the base prospectus at no charge if you request it by calling 1-866-884-2071 or emailingofferingmaterials@rbsgc.com.

This free writing prospectus is being delivered to you solely to provide you with information about the offering and to solicit an offer to purchase the offered securities. Any such offer to purchase made by you will not be accepted and will not constitute a contractual commitment by you to purchase any of the securities until we have accepted your offer to purchase such securities. Any such commitment shall be subject to the conditions specified below.

This free writing prospectus is not required to contain all of the information that is required to be included in the base prospectus and the prospectus supplement. The information in this free writing prospectus is preliminary and is subject to completion or change. The information in this free writing prospectus, if conveyed prior to the time of your commitment to purchase the offered securities, supersedes any prior version of this free writing prospectus and any information contained in any prior similar free writing prospectus relating to these securities. If a preliminary prospectus is conveyed to you prior to your commitment to purchase, that document supersedes all other information provided to you concerning the offered securities.

This free writing prospectus is not an offer to sell or a solicitation of an offer to buy these securities in any state where such offer, solicitation or sale is not permitted.

The securities referred to in this free writing prospectus are being offered when, as and if issued. The issuer is not obligated to issue any such securities or any similar securities, and all or a portion of the securities may not be issued that have the characteristics described herein. The underwriters’ obligation to deliver such securities is subject to the terms and conditions of the underwriting agreement with the issuer and the availability of the securities having the characteristics described herein. If, for any reason, the issuer does not deliver such securities, the underwriter will notify you, and neither the issuer nor any underwriter will have any obligation to you to deliver all or any portion of the securities which you have committed to purchase, and there will be no liability between us as a consequence of the non-delivery.

For asset-backed and mortgage-backed securities: Certain of the information contained herein may be based on numerous assumptions (including preliminary assumptions about the pool assets and structure), which may not be specifically identified as assumptions in the information. Any such information or assumptions are subject to change. The information in this free writing prospectus may reflect assumptions specifically requested by you. If so, prior to the time of your commitment to purchase, you should request updated information based on any assumptions specifically required by you.

Any legends, disclaimers or other notices that may appear below or on any electronic communication to which this free writing prospectus is attached which state that (1) these materials do not constitute an offer (or a solicitation of an offer), (2) no representation is made as to the accuracy or completeness of these materials and that these materials may not be updated or (3) these materials may be confidential are not applicable to this communication and should be disregarded. Such legends, disclaimers or other notices have been automatically generated as a result of this communication having been sent via Bloomberg or another system.

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Preliminary Term Sheet Date Prepared:September 19, 2006

$630,619,000 (Approximate)

Publicly Offered

NovaStar Home Equity Loan Asset-Backed Certificates, Series 2006-5

Class(1,2,3)	Principal Balance ($)		WAL (Years) Call/Mat (4)	Payment Window (Mths) Call/Mat(4)	Expected Rating S&P/Moody’s	Assumed Final Distribution Date	Certificate Type
Class A-1A	$	637,531,000	Not Marketed Hereby		AAA/Aaa	October 2036	Floating Rate Senior
Class A-2A	$	168,800,000	1.00 / 1.00	1-20 / 1-20	AAA/Aaa	October 2036	Floating Rate Seq. Senior
Class A-2B	$	120,500,000	2.00 / 2.00	20-28 /20-28	AAA/Aaa	October 2036	Floating Rate Seq. Senior
Class A-2C	$	97,300,000	3.45 / 3.45	28-72 /28-72	AAA/Aaa	October 2036	Floating Rate Seq. Senior
Class A-2D	$	30,169,000	6.07 / 8.36	72-73 /72-163	AAA/Aaa	October 2036	Floating Rate Seq. Senior
Class M-1	$	63,050,000	3.64 / 3.64	40-47 / 40-47	AA+/Aa1	October 2036	Floating Rate Subordinate
Class M-2	$	40,300,000	4.76 / 4.76	47-73 / 47-74	AA/Aa2	October 2036	Floating Rate Subordinate
Class M-3	$	24,050,000	6.08 / 8.29	73-73 / 74-139	AA/Aa3	October 2036	Floating Rate Subordinate
Class M-4	$	18,850,000	4.30 / 4.66	40-73 / 40-113	AA-/A1	October 2036	Floating Rate Subordinate
Class M-5	$	18,850,000	4.27 / 4.59	39-73 / 39-108	A+/A2	October 2036	Floating Rate Subordinate
Class M-6	$	14,950,000	4.26 / 4.54	38-73 / 38-101	A/A3	October 2036	Floating Rate Subordinate
Class M-7	$	11,050,000	4.23 / 4.46	38-73 / 38-94	A-/Baa1	October 2036	Floating Rate Subordinate
Class M-8	$	9,100,000	4.23 / 4.41	38-73 / 38-89	BBB+/Baa2	October 2036	Floating Rate Subordinate
Class M-9	$	13,650,000	4.22 / 4.29	37-73 / 37-83	BBB/Baa3	October 2036	Floating Rate Subordinate
Class M-10	$	11,700,000	Not Marketed Hereby		BBB-/NR	October 2036	Floating Rate Subordinate
Class M-11	$	6,500,000			BB+/NR	October 2036	Floating Rate Subordinate
Class M-12	$	6,500,000			BB/NR	October 2036	Floating Rate Subordinate
Total:	$	1,292,850,000

(1) The Class A-1A Certificates are backed primarily by the cash flow from the Group I Mortgage Loans (as defined herein). The Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates are backed primarily by the cash flow from the Group II Mortgage Loans (as defined herein). The Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 , Class M-11 and Class M-12 Certificates are backed by the cash flows from the Group I Mortgage Loans and Group II Mortgage Loans. The principal balance of each Class of Certificates (as defined herein) is subject to a 10% variance.

(2) The Class A-1A, Class A-2A, Class A-2B, Class A-2C, Class A-2D, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10, Class M-11 and Class M-12 Certificates are priced to call. The margins on the Class A-1A, Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates will double and the margins on the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 , Class M-11 and Class M-12 Certificates will increase to 1.5x after the clean-up call date.

(3) See “Available Funds Cap Rate” herein.

(4) See “Pricing Prepayment Speed” herein.

Depositor:	NovaStar Mortgage Funding Corporation.
Issuer:	NovaStar Mortgage Funding Trust, Series 2006-5.
Sponsor and Servicer:	NovaStar Mortgage, Inc. (“NovaStar”).
Co-Lead Underwriters:	Greenwich Capital Markets, Inc. (“RBS Greenwich Capital”), Deutsche Bank Securities Inc. (“Deutsche Bank”) and Wachovia Capital Markets, LLC (“Wachovia Securities”).
Trustee:	Deutsche Bank National Trust Company.
Custodian:	U.S. Bank, National Association.
Hedge Providers:	The Royal Bank of Scotland plc (“RBS”), Deutsche Bank AG (“Deutsche”), and Wachovia Bank, N.A. (“Wachovia”).

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Certificates:	The Class A-1A Certificates (the“Group I Certificates”), the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates (collectively, the“Group II Certificates”, and together with the Group I Certificates, the“Class A Certificates” or“Senior Certificates”), and the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10, Class M-11 and Class M-12 Certificates (collectively, the“Subordinate Certificates”). The Class A-2A, Class A-2B, Class A-2C, Class A-2D, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Certificates are referred to herein as the“Offered Certificates.” The Class M-10, Class M-11 and Class M-12 Certificates will not be publicly offered. The Senior and Subordinate Certificates are referred to herein as the“Certificates.”
Federal Tax Status:	The Certificates will represent, in part, ownership of REMIC regular interests for tax purposes.
Registration:	The Class A-1A and the Offered Certificates (the“Underwritten Certificates”) will be available in book-entry form through DTC, and only upon request through Clearstream, Luxembourg and the Euroclear System.
Cut-off Date:	For each Mortgage Loan, generally the later of (i) the close of business on September 1, 2006, and (ii) the date of origination of such Mortgage Loan, or such other date as specified in the related subsequent transfer instrument.
Expected Pricing Date:	On or about September [22], 2006.
Expected Closing Date:	On or about September 28, 2006.
Distribution Date:	The 25th day of each month (or if not a business day, the next succeeding business day) commencing in October 2006.
Accrued Interest:	The price to be paid by investors for the Certificates will not include accrued interest (settling flat).
Interest Accrual Period:	The interest accrual period for each Distribution Date with respect to the Certificates will be the period beginning with the previous Distribution Date (or, in the case of the first Distribution Date, the Closing Date) and ending on the day prior to such Distribution Date (on an actual/360 basis).
ERISA Eligibility:	After the end of the Pre-funding Period, the Underwritten Certificates are expected to be ERISA eligible provided that certain conditions are satisfied (as described in the free writing prospectus).
SMMEA Eligibility:	The Certificates are not expected to constitute “mortgage related securities” for purposes of SMMEA.
Denomination:	$25,000 minimum and multiples of $1,000 in excess thereafter.
Optional Termination:	The terms of the transaction allow for a clean-up call (the“Clean-up Call”) which may be exercised once the aggregate principal balance of the Mortgage Loans is less than or equal to 10% of the sum of (i) the aggregate principal balance of the Initial Mortgage Loans as of the Cut-off Date and (ii) the Pre-funding Amount on the Closing Date.
Pricing Prepayment Speed:	The Certificates will be priced based on the following collateral prepayment assumptions: FRM Loans (100% PPC): 2% - 25% CPR over 10 months, 25% CPR thereafter ARM Loans (100% PPC): 2% - 30% CPR over 12 months, 30% CPR months 13-22, 60% CPR months 23-28, 35% CPR month 29 and thereafter.

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Initial Mortgage Loans:	As of the Cut-off Date, the aggregate principal balance of the Initial Mortgage Loans was approximately $748,606,624, of which: (i) approximately $453,094,304 consisted of a pool of conforming balance fixed-rate and adjustable-rate, first-lien and second-lien, fully amortizing and balloon subprime mortgage loans (the“Group I Initial Mortgage Loans”), (ii) approximately $295,512,320 consisted of a pool of non-conforming balance fixed-rate and adjustable-rate, first-lien and second-lien, fully amortizing and balloon subprime mortgage loans (the“Group II Initial Mortgage Loans,” together with the Group I Initial Mortgage Loans, the“Initial Mortgage Loans”).
	With respect to approximately 21.03% of the Initial Mortgage Loans, NovaStar or another originator, originated a second lien mortgage loan simultaneously to the time of origination of the related first lien Mortgage Loan.
	On or prior to the Closing Date, certain of the Initial Mortgage Loans may be determined not to be eligible for inclusion in the final pool and certain other similar mortgage loans may be added to the trust.
Pre-funding Amount:	The Depositor will deposit up to approximately $551,393,376 (the“Pre-funding Amount”), which will consist of up to approximately $333,010,003 related to Group 1 and up to approximately $218,383,373 related to Group 2 into an account (the“Pre-funding Account”). Funds on deposit in the Pre-funding Account will be used from time to time to acquire“Subsequent Mortgage Loans” during the Pre-funding Period. It is expected that the composition and characteristics of the Subsequent Mortgage Loans will be similar to those of the Initial Mortgage Loans in all material respects.
	The“Pre-funding Period” commences on the Closing Date and ends on the earlier of (i) the date on which the amount on deposit in the Pre-funding Account is less than $10,000 and (ii) October 31, 2006.
	To the extent that the Issuer does not fully use amounts on deposit in the Pre-funding Account to purchase Subsequent Mortgage Loans by the end of the Pre-funding Period, the Issuer will apply the remaining amounts as a prepayment of principal to the related Notes on the Payment Date immediately following the end of the Pre-funding Period. Although no assurance is possible, it is not anticipated that a material amount of principal will be prepaid on the Notes from amounts in the Pre-funding Account.
Pass-Through Rate:	The“Pass-Through Rate” on each Class of Certificates will be equal to the lesser of (i) the related Formula Rate and (ii) the Available Funds Cap Rate.
Formula Rate:	The“Formula Rate” on each Class of Certificates (other than the Class A-2A Certificates) will be equal to the lesser of (i) One Month LIBOR plus the related margin for such Class and (ii) in the case of the Group I Certificates: 10.00%, in the case of the Class A-2B, Class A-2C, Class A-2D and Subordinate Certificates: 11.00%. The Formula Rate for the Class A-2A Certificates will be equal to One Month LIBOR plus the related margin for such Class.

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Available Funds Cap Rate:	The“Available Funds Cap Rate” for the Certificates on any Distribution Date is the percentage equivalent of a fraction, the numerator of which is (a) an amount equal to interest due on the Mortgage Loans, less the servicing fee, trustee fee, custodian fee, mortgage insurance fees allocable to the Mortgage Loans, the cap fixed rate payments owed to the Hedge Providers for such Distribution Date and any unpaid termination payment due to a Hedge Provider that is not due to an event of default or termination event with respect to which that Hedge Provider is the defaulting party or affected party, and the denominator of which is (b) the product of (i) the actual number of days in the related Interest Accrual Period divided by 360 and (ii) the aggregate principal balance of the Mortgage Loans and amounts on deposit in the Pre-funding Account, if any.
Available Funds Cap Shortfall:	On any Distribution Date, the“Available Funds Cap Shortfall” for each class is equal to the sum of (i) the excess of (a) the amount of interest that would have accrued on a class of certificates based on the related Formula Rate over (b) the amount of interest accrued on such class based on the Available Funds Cap Rate and (ii) the unpaid portion of any Available Funds Cap Shortfall from the prior Distribution Date together with accrued interest on such unpaid portion at the Formula Rate. Any Available Funds Cap Shortfall will be paid on such Distribution Date or future Distribution Dates to the extent of funds available.
Monthly Servicer Advances:	The Servicer is generally required to advance scheduled principal and interest (net of the servicing fee) for any delinquent mortgage loan, but is not required to make any advance that the Servicer deems to be non-recoverable.
Cap Agreements:	On the Closing Date, the Supplemental Interest Trust will enter into multiple“Cap Agreements” with an initial aggregate effective notional amount of $640,000,000. Under each Cap Agreement, the Supplemental Interest Trust shall make a payment to the related Hedge Provider equal to the product of (i) the fixed rate shown below, (ii) the related cap notional amount and (iii) 30/360 and the Supplemental Interest Trust will receive a payment from the related Hedge Provider, should One Month LIBOR exceed the related strike rate, equal to the product of (i) the excess of One Month LIBOR over the related strike rate, (ii) the related cap notional amount and (iii) the actual number of days in the related Interest Accrual Period divided by 360, on each Distribution Date, until the related cap is retired.

Hedge Provider	Notional Amount ($)	Fixed Rate	Strike Rate	Maturity Date
Wachovia	80,000,000	0.2230%	5.600%	July 2008
Wachovia	80,000,000	0.2225%	5.600%	July 2008
RBS	80,000,000	0.2310%	5.500%	August 2008
Wachovia	80,000,000	0.2450%	5.400%	August 2008
Wachovia	160,000,000	0.2080%	5.400%	August 2008
Deutsche Bank	20,000,000	0.3150%	5.400%	May 2009
Deutsche Bank	20,000,000	0.3120%	5.700%	July 2009
Wachovia	20,000,000	0.3050%	5.600%	July 2009
Wachovia	20,000,000	0.3140%	5.600%	July 2009
Wachovia	20,000,000	0.3120%	5.500%	August 2009
Wachovia	20,000,000	0.3310%	5.400%	August 2009
Wachovia	40,000,000	0.3060%	5.350%	August 2009

Although the notional amount of $640,000,000 is expected to be assigned to the trust by the end of the Pre-funding Period, the caps may not be assigned to the trust on the Closing Date.

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Shown below is an aggregate effective cap notional amount schedule, a weighted average cap fixed rate schedule and weighted average strike rate schedule, calculated by aggregating all the individual caps described previously.

Distribution Date	Notional Amount ($)	W.A. Fixed Rate	W.A. Strike Rate
October 2006	640,000,000	0.24534%	5.48438%
November 2006	640,000,000	0.24534%	5.48438%
December 2006	640,000,000	0.24534%	5.48438%
January 2007	640,000,000	0.24534%	5.48438%
February 2007	640,000,000	0.24534%	5.48438%
March 2007	640,000,000	0.24534%	5.48438%
April 2007	640,000,000	0.24534%	5.48438%
May 2007	640,000,000	0.24534%	5.48438%
June 2007	640,000,000	0.24534%	5.48438%
July 2007	640,000,000	0.24534%	5.48438%
August 2007	640,000,000	0.24534%	5.48438%
September 2007	640,000,000	0.24534%	5.48438%
October 2007	640,000,000	0.24534%	5.48438%
November 2007	640,000,000	0.24534%	5.48438%
December 2007	640,000,000	0.24534%	5.48438%
January 2008	640,000,000	0.24534%	5.48438%
February 2008	640,000,000	0.24534%	5.48438%
March 2008	640,000,000	0.24534%	5.48438%
April 2008	640,000,000	0.24534%	5.48438%
May 2008	640,000,000	0.24534%	5.48438%
June 2008	640,000,000	0.24534%	5.48438%
July 2008	640,000,000	0.24534%	5.48438%
August 2008	480,000,000	0.25288%	5.44583%
September 2008	160,000,000	0.31263%	5.48750%
October 2008	160,000,000	0.31263%	5.48750%
November 2008	160,000,000	0.31263%	5.48750%
December 2008	160,000,000	0.31263%	5.48750%
January 2009	160,000,000	0.31263%	5.48750%
February 2009	160,000,000	0.31263%	5.48750%
March 2009	160,000,000	0.31263%	5.48750%
April 2009	160,000,000	0.31263%	5.48750%
May 2009	160,000,000	0.31263%	5.48750%
June 2009	140,000,000	0.31229%	5.50000%
July 2009	140,000,000	0.31229%	5.50000%
August 2009	80,000,000	0.31375%	5.40000%

Credit Enhancement:	Consists of the following: 1)      Mortgage Insurance; 2)      Excess Cashflow; 3)      the Overcollateralization Amount; and 4)      Subordination
	The Issuing Entity will also have the benefit of any cap payments received from the Hedge Providers.

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Mortgage Insurance Policies:	Approximately 55.56% of the Initial Mortgage Loans are covered by a mortgage insurance policy issued by Mortgage Guaranty Insurance Corp. (“MGIC”) or PMI Mortgage Insurance Co. (“PMI”) (such loans are the“Insured Mortgage Loans”). Approximately 39.68% of the Initial Mortgage Loans have an original loan-to-value ratio in excess of 60% and are not insured. Additionally, approximately 4.75% of the Initial Mortgage Loans have an original loan-to-value ratio less than or equal to 60% and arenot insured.
	The mortgage insurance policies insure a portion of the loss on the related mortgage loan to a level where the uninsured exposure of the mortgage loan is reduced to an amount equal to 55%, of the original loan-to-value ratio of such mortgage loan.
	Claim payments, if any, under a mortgage insurance policy will be made to the Servicer, deposited in the collection account and treated in the same manner as a prepayment of the related mortgage loan.
	Certain of the Subsequent Mortgage Loans may be insured by Radian Guaranty Inc.
Credit Enhancement Percentages:

Class	Ratings (S/M/F)	Initial Credit Enhancement On Closing Date	Expected Credit Enhancement On or After Crossover Date
Class A	AAA/Aaa	18.90%	37.80%
Class M-1	AA+/Aa1	14.05%	28.10%
Class M-2	AA/Aa2	10.95%	21.90%
Class M-3	AA/Aa3	9.10%	18.20%
Class M-4	AA-/A1	7.65%	15.30%
Class M-5	A+/A2	6.20%	12.40%
Class M-6	A/A3	5.05%	10.10%
Class M-7	A-/Baa1	4.20%	8.40%
Class M-8	BBB+/Baa2	3.50%	7.00%
Class M-9	BBB/Baa3	2.45%	4.90%
Class M-10	BBB-/NR	1.55%	3.10%
Class M-11	BB+/NR	1.05%	2.10%
Class M-12	BB/NR	0.55%	1.10%

Excess Cashflow:

The“Excess Cashflow” for any Distribution Date will be equal to the sum of the funds remaining after priority 1) and 2) (excluding the Excess Cashflow component of 2)) under “Priority of Distributions.”

Overcollateralization Amount:

The “Overcollateralization Amount” is equal to the excess of (i) the aggregate principal balance of the Mortgage Loans and any outstanding Pre-funding Amount over (ii) the aggregate principal balance of the Certificates. On the Closing Date, the Overcollateralization Amount will be equal to approximately 0.55% of the sum of (i) the aggregate principal balance of the Initial Mortgage Loans as of the Cut-off Date and (ii) the Pre-funding Amount on the Closing Date. To the extent the Overcollateralization Amount is reduced below the Required Overcollateralization Amount, Excess Cashflow, if any, will be directed to build the Overcollateralization Amount until the Required Overcollateralization Amount is reached.

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Required Overcollateralization Amount:	On any Distribution Date, the“Required Overcollateralization Amount” is equal to:
	(i)     prior to the Crossover Date, 0.55% of the sum of (a) the aggregate principal balance of the Initial Mortgage Loans as of the Cut-off Date and (b) the Prefunding Amount on the Closing Date;
	(ii)    on or after the Crossover Date, if no Trigger Event has occurred or is continuing, the greater of:
	(a)    1.10% of the current principal balance of the Mortgage Loans;
	(b)    0.50% of the sum of (a) the aggregate principal balance of the Initial Mortgage Loans as of the Cut-off Date and (b) the Prefunding Amount on the Closing Date (the“OC Floor”); and
	(iii)  during the occurrence and continuation of a Trigger Event, the Required Overcollateralization Amount as of the previous Distribution Date.
Crossover Date:	The earlier to occur of:
	(i)     the Distribution Date after the Distribution Date on which the aggregate principal balance of the Class A Certificates has been reduced to zero, and
	(ii)    the later to occur of:
	a.      the Distribution Date occurring in October 2009; and
	b.      the first Distribution Date on which the Senior Credit Enhancement Percentage (calculated for this purpose only, after taking into account distributions on the mortgage loans) is greater than or equal to 37.80%.
Senior Credit Enhancement Percentage:	The“Senior Credit Enhancement Percentage” for a Distribution Date is equal to (i) the sum of (a) the aggregate principal balance of the Subordinate Certificates and (b) the Overcollateralization Amount divided by (ii) the aggregate principal balance of the Mortgage Loans, calculated prior to taking into account distributions of principal on the Mortgage Loans and prior to taking into account distributions on the related certificates on such Distribution Date.
Limited Cross-collateralization:	Under certain circumstances, to the extent available, if funds from one Group are insufficient to make a required payment of interest or principal on the related class or classes of Class A Certificates, then any remaining funds from the other Group (after paying such amounts to the related class or classes of Class A Certificates) may be used to make such required payments of interest and principal.

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Trigger Event: A “Trigger Event” is in effect on any Distribution Date on or after the Crossover Date, if either (i) the three month average 60+ day delinquency percentage exceeds 44.97% of the current Senior Credit Enhancement Percentage or (ii) cumulative realized losses for the related Distribution Date as a percentage of the sum of (a) the aggregate principal balance of the Initial Mortgage Loans as of the Cut-off Date and (b) the Pre-funding Amount as of the Closing Date are greater than:

Period	Losses	Period	Losses (%)	Period	Losses (%)	Period	Losses (%)
25	1.05%	38	2.41%	51	3.78%	64	4.79%
26	1.15%	39	2.52%	52	3.86%	65	4.83%
27	1.26%	40	2.63%	53	3.95%	66	4.88%
28	1.36%	41	2.73%	54	4.04%	67	4.93%
29	1.47%	42	2.84%	55	4.13%	68	4.97%
30	1.57%	43	2.95%	56	4.21%	69	5.02%
31	1.68%	44	3.06%	57	4.30%	70	5.06%
32	1.78%	45	3.17%	58	4.39%	71	5.11%
33	1.88%	46	3.28%	59	4.48%	72	5.15%
34	1.99%	47	3.38%	60	4.56%	73 and	5.20%
35	2.09%	48	3.49%	61	4.65%	thereafter
36	2.20%	49	3.60%	62	4.70%
37	2.30%	50	3.69%	63	4.74%

Realized Losses: If a Mortgage Loan becomes a liquidated loan, the net liquidation proceeds relating thereto may be less than the principal balance on such Mortgage Loan. The amount of such insufficiency is a“Realized Loss.” Realized Losses on the Mortgage Loans will be absorbed first, by the Excess Cashflow, and second, by the reduction of the Overcollateralization Amount. Following the reduction of any Overcollateralization Amount to zero, all allocable Realized Losses will be applied in reverse sequential order, first to the Class M-12 Certificates, then to the Class M-11 Certificates, then to the Class M-10 Certificates, then to the Class M-9 Certificates, then to the Class M-8 Certificates, then to the Class M-7 Certificates, then to the Class M-6 Certificates, then to the Class M-5 Certificates, then to the Class M-4 Certificates, then to the Class M-3 Certificates, then to the Class M-2 Certificates, and lastly, to the Class M-1 Certificates. Realized Losses will not be allocated to any of the Class A Certificates.

11

Priority of Distributions:	Available funds from the Mortgage Loans will be distributed as follows:
	1)      Interest funds, as follows: first to pay servicing fees, trustee fees, custodian fee and mortgage insurance fees, second, to the Supplemental Interest Trust, cap fixed rate payments owed to the Hedge Providers and any unpaid termination payment not due to a Hedge Provider trigger event (as defined below), third, monthly interest plus any previously unpaid interest to the Class A-1A, Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates (pro-rata among the classes in each group), generally from interest collected in the related loan group, fourth, monthly interest plus any previously unpaid interest to the Class M-1 Certificates, fifth, monthly interest plus any previously unpaid interest to the Class M-2 Certificates, sixth, monthly interest plus any previously unpaid interest to the Class M-3 Certificates, seventh, monthly interest plus any previously unpaid interest to the Class M-4 Certificates, eighth, monthly interest plus any previously unpaid interest to the Class M-5 Certificates, ninth, monthly interest plus any previously unpaid interest to the Class M-6 Certificates, tenth, monthly interest plus any previously unpaid interest to the Class M-7 Certificates, eleventh, monthly interest plus any previously unpaid interest to the Class M-8 Certificates, twelfth, monthly interest plus any previously unpaid interest to the Class M-9 Certificates, thirteenth, monthly interest plus any previously unpaid interest to the Class M-10 Certificates, fourteenth, monthly interest plus any previously unpaid interest to the Class M-11 Certificates, and fifteenth, monthly interest plus any previously unpaid interest to the Class M-12 Certificates.. Any remaining interest funds will be distributed as part of Excess Cashflow pursuant to 2) and 3) below.
	2)      Principal funds (including any amounts required to be taken from Excess Cashflow to the extent necessary to increase the Overcollateralization Amount to the Required Overcollateralization Amount), as follows: monthly principal to the Class A-1A, Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, generally based on principal collected in the related loan group, as described under “Principal Paydown”, then monthly principal sequentially, to the Class M-1, Class M-2 and Class M-3 Certificates as described under “Principal Paydown,” then monthly principal to the Class M-4 Certificates as described under “Principal Paydown,” then monthly principal to the Class M-5 Certificates as described under “Principal Paydown,” then monthly principal to the Class M-6 Certificates as described under “Principal Paydown,” then monthly principal to the Class M-7 Certificates as described under “Principal Paydown,” then monthly principal to the Class M-8 Certificates as described under “Principal Paydown,” then monthly principal to the Class M-9 Certificates as described under “Principal Paydown,” then monthly principal to the Class M-10 Certificates as described under “Principal Paydown,” then monthly principal to the Class M-11 Certificates as described under “Principal Paydown,” and then monthly principal to the Class M-12 Certificates as described under “Principal Paydown.”
	3)      Any remaining Excess Cashflow to be deposited in the Supplemental Interest Trust.

12

Principal Paydown:	The share of principal allocable to the Group II Certificates will be distributed sequentially: to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, in that order, until their respective certificate principal balances are reduced to zero. However, if all of the Subordinate Certificates are written down to zero, the share of the principal allocable to the Group II Certificates will be distributed pro rata, based on current certificate principal balance until their certificate principal balances are paid to zero.
	Prior to the Crossover Date or if a Trigger Event is in effect, 100% of principal (including Excess Cashflow used to pay principal) will be paid to the Group I and Group II Certificates generallypro-rata, based on the principal collected in the related loan group, provided, however, that if the Group I and Group II Certificates have been retired, principal will be applied sequentially in the following order of priority: (1) Class M-1 Certificates, (2) Class M-2 Certificates, (3) Class M-3 Certificates, (4) Class M-4 Certificates, (5) Class M-5 Certificates, (6) Class M-6 Certificates, (7) Class M-7 Certificates, (8) Class M-8 Certificates, (9) Class M-9 Certificates , (10) Class M-10 Certificates, (11) Class M-11 Certificates and (12) Class M-12 Certificates.
	On or after the Crossover Date and if a Trigger Event is not in effect, the Certificates will be entitled to receive payments of principal (including Excess Cashflow used to pay principal) in the following order of priority: first to the Group I and Group II Certificates, generallypro-rata based on the principal collected in the related loan group, such that the Class A Certificates will have at least 37.80% credit enhancement, second to the Class M-1, Class M-2 and Class M-3 Certificates, sequentially, such that the Class M-1, Class M-2 and Class M-3 Certificates together will have at least 18.20% credit enhancement, third to the Class M-4 Certificates such that the Class M-4 Certificates will have at least 15.30% credit enhancement, fourth to the Class M-5 Certificates such that the Class M-5 Certificates will have at least 12.40% credit enhancement, fifth to the Class M-6 Certificates such that the Class M-6 Certificates will have at least 10.10% credit enhancement, sixth to the Class M-7 Certificates such that the Class M-7 Certificates will have at least 8.40% credit enhancement, seventh to the Class M-8 Certificates such that the Class M-8 Certificates will have at least 7.00% credit enhancement, eighth to the Class M-9 Certificates such that the Class M-9 Certificates will have at least 4.90% credit enhancement, ninth to the Class M-10 Certificates such that the Class M-10 Certificates will have at least 3.10% credit enhancement, tenth to the Class M-11 Certificates such that the Class M-11 Certificates will have at least 2.10% credit enhancement, and eleventh to the Class M-12 Certificates such that the Class M-12 Certificates will have at least 1.10% credit enhancement (subject, in each case, to any overcollateralization floors), in each case until the related certificate principal balance is reduced to zero.

13

Supplemental Interest Trust:	Funds deposited into the Supplemental Interest Trust on a Distribution Date will include:
	(i)     the cap fixed rate payments owed to the Hedge Providers for such Distribution Date,
	(ii)    any cap floating rate payments received from the Hedge Providers for such Distribution Date, and
	(iii)  Excess Cashflow deposited therein pursuant to 3) of “Priority of Distributions.”
	Funds in the Supplemental Interest Trust will be distributed in the following order of priority:
	1)      To the Hedge Providers, any unpaid termination payment due to a Hedge Provider that is not due to an event of default or termination event with respect to which that Hedge Provider is the defaulting party or affected party (any such event a “Hedge Provider trigger event”).
	2)      To the Hedge Providers, cap fixed rate payments owed for such Distribution Date, if any.
	3)  ��   The amount necessary, if any, to increase the Overcollateralization Amount to the Required Overcollateralization Amount, after taking into account any Excess Cashflow previously applied to such purpose on such Distribution Date.
	4)      Any Available Funds Cap Shortfall,pro-rata to the Senior and Subordinate Certificates (excluding any such Certificates owned by NovaStar or an affiliate) based on certificate principal balance.
	5)      To the Hedge Providers, any unpaid termination payment due to any Hedge Provider as a result of a Hedge Provider trigger event.
	6)      To the holders of the non-offered residual certificates, any remaining amounts.

14

NovaStar Mortgage Loan Funding Trust, Series 2006-5

Aggregate Initial Mortgage Loans

				Minimum			Maximum
Scheduled Principal Balance	$	748,606,624		$	14,600		$	1,500,000
Average Scheduled Principal Balance	$	165,401
Number of Mortgage Loans		4,526
Weighted Average Gross Coupon		9.363	%		5.990	%		13.700	%
Weighted Average FICO Score		616			421			816
Weighted Average Combined Original LTV		83.01	%		10.53	%		100.00	%
Weighted Average Original Term		351 months			180 months			360 months
Weighted Average Stated Remaining Term		350 months			107 months			360 months
Weighted Average Seasoning		1 month			0 months			80 months
Weighted Average Gross Margin		5.811	%		3.450	%		8.000	%
Weighted Average Minimum Interest Rate		9.300	%		5.800	%		13.700	%
Weighted Average Maximum Interest Rate		16.300	%		12.850	%		20.700	%
Weighted Average Initial Rate Cap		2.999	%		1.500	%		3.000	%
Weighted Average Subsequent Rate Cap		1.000	%		1.000	%		1.500	%
Weighted Average Months to Roll		24 months			1 month			60 months
Maturity Date					Aug. 1, 2015			Sep. 1, 2036
Maximum Zip Code Concentration		0.39	%		33411
ARM		81.02	%
Fixed Rate Loan		18.98	%
2/28 6 MO LIBOR IO		11.22	%
2/28 6 Mo LIBOR ARM		50.52	%
2/28 6 Month LIBOR ARM 40/30 Balloon		17.44	%
3/27 6 MO LIBOR IO		0.34	%
3/27 6 Mo LIBOR ARM		0.75	%
3/27 6 Month LIBOR ARM 40/30 Balloon		0.22	%
5/25 6 MO LIBOR		0.21	%
5/25 6 MO LIBOR IO		0.16	%
5/25 6 Month LIBOR ARM 40/30 Balloon		0.15	%
Fixed Rate		12.49	%
Fixed Rate Balloon 30/15		4.19	%
Fixed Rate Balloon 40/30		1.92	%
Fixed Rate IO		0.38	%
Interest Only		12.11	%
Not Interest Only		87.89	%
Prepay Penalty: 0 months		37.57	%
Prepay Penalty: 12 months		0.37	%
Prepay Penalty: 24 months		31.52	%
Prepay Penalty: 36 months		30.46	%
Prepay Penalty: 60 months		0.09	%
First Lien		95.32	%
Second Lien		4.68	%
Full Documentation		45.54	%
Limited Documentation		0.58	%
No Documentation		7.26	%
Stated Income		46.62	%
Cash Out Refinance		54.57	%
Purchase		41.77	%
Rate/Term Refinance		3.66	%
Condo		6.48	%
Manufactured Housing		0.02	%
Multi-Unit		4.21	%
PUD		15.99	%
Single Family Residence		73.30	%
Investment (Non-Owner Occupied)		4.30	%
Primary		92.26	%
Secondary Home		3.44	%
Top 5 States:
Florida		23.35	%
California		10.62	%
Maryland		6.45	%
New York		4.10	%
Texas		3.87	%
Top 5 Zips:
33411		0.39	%
20744		0.37	%
33186		0.35	%
20735		0.34	%
20874		0.32	%
Top 5 Cities:
MIAMI		3.60	%
ORLANDO		1.24	%
LAS VEGAS		0.98	%
LOS ANGELES		0.96	%
TAMPA		0.73	%

15

Current Principal Balance ($)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
0.01 - 50,000.00	495	$	16,383,710.77	2.19	%	11.364	%	192	97.33	%	633
50,000.01 - 100,000.00	1,031		78,405,047.23	10.47		10.053		322	84.45		608
100,000.01 - 150,000.00	1,104		137,095,822.17	18.31		9.506		354	82.92		596
150,000.01 - 200,000.00	711		123,192,192.58	16.46		9.292		358	81.92		606
200,000.01 - 250,000.00	437		98,073,528.57	13.10		9.056		357	81.09		621
250,000.01 - 300,000.00	244		66,397,146.01	8.87		9.081		358	81.45		626
300,000.01 - 350,000.00	160		51,968,693.31	6.94		8.848		359	81.64		617
350,000.01 - 400,000.00	120		44,882,560.18	6.00		9.235		359	84.61		612
400,000.01 - 450,000.00	67		28,453,982.01	3.80		9.147		359	83.87		639
450,000.01 - 500,000.00	43		20,300,451.23	2.71		9.361		359	84.57		630
500,000.01 - 550,000.00	28		14,660,156.58	1.96		9.130		359	83.58		642
550,000.01 - 600,000.00	21		12,090,961.90	1.62		9.441		351	85.40		625
600,000.01 - 650,000.00	6		3,702,545.25	0.49		9.161		359	89.06		632
650,000.01 - 700,000.00	9		6,022,629.01	0.80		9.264		359	86.93		627
700,000.01 - 750,000.00	5		3,601,778.17	0.48		9.115		360	79.87		660
750,000.01 - 800,000.00	7		5,391,708.74	0.72		9.774		359	86.45		635
800,000.01 - 850,000.00	7		5,749,289.15	0.77		9.257		359	80.64		631
850,000.01 - 900,000.00	8		7,019,084.63	0.94		9.380		359	83.67		634
900,000.01 - 950,000.00	3		2,809,597.72	0.38		10.336		359	98.31		700
950,000.01 - 1,000,000.00	3		2,997,114.52	0.40		8.477		359	75.14		698
1,000,000.01+	17		19,408,624.28	2.59		9.007		360	79.44		657
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Current Gross Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
5.500 - 5.999	1	$	124,943.66	0.02	%	5.990	%	348	52.27	%	491
6.000 - 6.499	5		1,020,487.98	0.14		6.308		357	70.54		603
6.500 - 6.999	28		5,973,858.84	0.80		6.846		359	73.59		620
7.000 - 7.499	64		15,560,327.99	2.08		7.289		359	75.55		643
7.500 - 7.999	378		77,735,596.34	10.38		7.814		358	75.59		639
8.000 - 8.499	466		95,356,331.99	12.74		8.273		359	77.91		636
8.500 - 8.999	752		151,590,017.16	20.25		8.764		358	80.79		629
9.000 - 9.499	439		74,940,043.57	10.01		9.259		358	82.48		606
9.500 - 9.999	736		126,440,082.90	16.89		9.760		354	84.94		601
10.000 -10.499	344		57,186,227.78	7.64		10.251		351	88.07		605
10.500 -10.999	465		66,072,575.23	8.83		10.728		347	88.68		594
11.000 -11.499	230		27,148,267.15	3.63		11.246		329	90.10		589
11.500 -11.999	313		29,271,594.68	3.91		11.738		302	92.71		595
12.000 -12.499	168		11,935,578.46	1.59		12.231		259	94.99		613
12.500 -12.999	127		7,316,990.56	0.98		12.697		249	94.73		618
13.000 -13.499	9		883,709.47	0.12		13.223		294	96.27		600
13.500 -13.999	1		49,990.25	0.01		13.700		359	94.34		531
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616

16

FICO	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
400-499	84	$	12,722,681.40	1.70	%	9.584	%	356	78.04	%	488
500-524	281		43,524,913.73	5.81		9.948		355	77.50		515
525-549	519		79,745,757.36	10.65		9.846		356	79.17		537
550-574	574		87,341,436.53	11.67		9.588		353	80.91		563
575-599	652		100,379,957.31	13.41		9.527		352	82.46		587
600-624	586		101,935,842.31	13.62		9.195		353	83.29		613
625-649	589		99,166,445.66	13.25		9.163		349	85.33		637
650-674	441		81,511,636.01	10.89		9.129		344	84.83		661
675-699	309		50,518,888.38	6.75		8.909		344	85.42		686
700+	491		91,759,065.32	12.26		9.104		342	86.47		734
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Original LTV (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
0.01- 49.99	85	$	12,270,682.35	1.64	%	8.719	%	353	42.45	%	594
50.00- 54.99	50		8,211,087.59	1.10		8.447		357	52.66		579
55.00- 59.99	79		12,716,693.93	1.70		8.652		360	57.19		587
60.00- 64.99	118		22,457,700.36	3.00		8.604		358	62.54		585
65.00- 69.99	161		30,606,031.52	4.09		8.828		358	67.06		578
70.00- 74.99	208		39,953,181.61	5.34		8.933		355	71.93		585
75.00- 79.99	305		57,770,684.60	7.72		9.022		358	76.64		594
80.00	987		189,873,812.45	25.36		8.844		359	80.00		639
80.01- 84.99	113		22,969,466.76	3.07		8.860		357	83.27		612
85.00- 89.99	357		68,860,252.34	9.20		9.333		358	86.22		596
90.00- 94.99	739		129,733,500.89	17.33		9.696		358	90.24		604
95.00- 99.99	392		75,133,720.31	10.04		9.965		356	95.16		626
100.00	932		78,049,809.30	10.43		10.883		283	100.00		658
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Original Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
180	750	$	38,129,394.78	5.09	%	11.335	%	179	97.39	%	650
240	12		1,531,128.09	0.20		9.188		240	79.77		591
300	1		81,907.28	0.01		7.550		299	71.55		676
360	3,763		708,864,193.86	94.69		9.258		359	82.24		614
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616

17

Stated Remaining Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
61-120	1	$	91,579.67	0.01	%	9.750	%	107	85.04	%	554
121-180	749		38,037,815.11	5.08		11.339		179	97.42		650
181-240	12		1,531,128.09	0.20		9.188		240	79.77		591
241-300	9		716,311.12	0.10		9.882		289	83.45		575
301-360	3,755		708,229,790.02	94.61		9.257		359	82.24		614
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
FRM/ARM	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
ARM	3,078	$	606,491,334.08	81.02	%	9.300	%	359	82.82	%	615
Fixed Rate Loan	1,448		142,115,289.93	18.98		9.634		310	83.82		622
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Interest Only	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Interest Only	310	$	90,637,570.53	12.11	%	8.583	%	359	81.69	%	657
Not Interest Only	4,216		657,969,053.48	87.89		9.471		349	83.19		610
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Prepayment Penalty Original Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
N/A	1,697	$	281,284,684.84	37.57	%	9.536	%	346	83.51	%	624
12	11		2,732,593.05	0.37		9.249		352	78.00		597
24	1,422		235,953,145.59	31.52		9.401		352	82.58		612
36	1,390		227,998,465.40	30.46		9.116		353	82.89		610
60	6		637,735.13	0.09		8.510		276	82.57		593
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Lien	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
First Lien	3,797	$	713,557,012.17	95.32	%	9.258	%	358	82.19	%	614
Second Lien	729		35,049,611.84	4.68		11.504		181	99.66		655
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616

18

Documentation Type	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Full Documentation	2,471	$	340,911,989.15	45.54	%	9.263	%	351	83.22	%	586
Limited Documentation	24		4,313,764.29	0.58		9.251		358	82.63		611
No Documentation	277		54,350,537.43	7.26		9.239		349	84.48		706
Stated Income	1,754		349,030,333.14	46.62		9.482		349	82.58		631
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Loan Purpose	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Cash Out Refinance	2,218	$	408,515,209.71	54.57	%	9.188	%	356	79.57	%	598
Purchase	2,129		312,717,075.46	41.77		9.599		342	87.53		640
Rate/Term Refinance	179		27,374,338.84	3.66		9.287		353	82.71		603
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Property Type	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Condo	297	$	48,482,023.82	6.48	%	9.355	%	344	84.92	%	640
Manufactured Housing	2		138,141.36	0.02		10.382		169	83.34		556
Multi-Unit	142		31,531,723.28	4.21		9.643		354	83.49		647
PUD	607		119,690,778.87	15.99		9.284		347	84.39		629
Single Family Residence	3,478		548,763,956.68	73.30		9.365		351	82.51		609
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
Occupancy Status	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Investment (Non-Owner Occupied)	192	$	32,227,356.82	4.30	%	9.593	%	355	80.66	%	656
Primary	4,223		690,663,293.90	92.26		9.353		350	83.08		612
Secondary Home	111		25,715,973.29	3.44		9.361		352	84.10		672
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616

19

State	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Alabama	84	$	11,134,779.96	1.49	%	10.535	%	354	89.52	%	591
Arizona	111		21,352,379.50	2.85		9.063		348	81.08		635
Arkansas	35		3,285,274.58	0.44		9.910		348	87.89		597
California	277		79,481,671.00	10.62		8.855		349	79.84		629
Colorado	41		6,339,965.58	0.85		9.605		346	86.03		604
Connecticut	76		13,834,948.56	1.85		9.426		351	83.03		622
Delaware	10		1,829,985.01	0.24		9.355		345	81.58		633
District of Columbia	16		4,682,974.81	0.63		9.592		352	78.48		656
Florida	958		174,830,445.36	23.35		9.175		350	81.92		622
Georgia	165		22,160,214.26	2.96		9.736		349	84.06		620
Idaho	21		2,907,856.60	0.39		8.655		353	84.17		627
Illinois	87		12,553,538.71	1.68		9.286		355	83.21		600
Indiana	52		5,549,437.75	0.74		9.960		351	88.87		586
Iowa	14		1,457,355.99	0.19		10.201		356	89.88		577
Kansas	26		2,928,469.21	0.39		9.908		350	89.10		598
Kentucky	42		4,280,806.21	0.57		9.527		350	85.07		586
Louisiana	91		11,184,444.02	1.49		9.437		354	84.37		607
Maine	24		2,807,711.50	0.38		9.257		347	76.35		608
Maryland	219		48,274,332.93	6.45		8.965		348	81.21		618
Massachusetts	62		13,145,234.35	1.76		9.552		355	80.35		594
Michigan	236		27,956,883.36	3.73		9.832		354	85.91		608
Minnesota	54		10,997,124.24	1.47		9.407		340	84.25		632
Mississippi	42		4,197,472.85	0.56		9.726		346	83.35		591
Missouri	96		11,593,923.76	1.55		9.857		354	83.00		602
Montana	5		1,503,145.11	0.20		9.135		359	92.83		631
Nebraska	13		985,830.63	0.13		10.215		340	87.60		566
Nevada	52		9,844,232.49	1.32		8.961		341	82.05		633
New Hampshire	26		5,038,996.58	0.67		9.476		352	83.85		597
New Jersey	126		28,342,497.72	3.79		9.377		355	82.59		606
New Mexico	9		1,179,690.08	0.16		9.939		359	82.64		567
New York	120		30,697,473.61	4.10		9.416		354	80.86		616
North Carolina	185		22,427,930.79	3.00		9.973		349	85.28		606
North Dakota	2		245,410.00	0.03		10.245		360	82.26		586
Ohio	150		16,043,291.79	2.14		9.688		352	87.22		607
Oklahoma	17		1,474,367.32	0.20		9.891		325	91.77		618
Oregon	13		2,261,459.95	0.30		9.385		351	82.04		587
Pennsylvania	156		18,776,541.25	2.51		9.786		358	86.79		604
Rhode Island	11		2,306,053.37	0.31		9.515		348	84.35		605
South Carolina	145		17,720,986.47	2.37		9.509		347	84.58		600
South Dakota	1		148,000.00	0.02		8.650		360	80.00		543
Tennessee	119		12,449,550.62	1.66		9.692		347	86.33		594
Texas	256		28,985,658.82	3.87		9.685		343	85.00		599
Utah	55		10,107,405.86	1.35		9.248		343	85.66		660
Vermont	4		606,900.92	0.08		9.402		359	85.11		593
Virginia	123		23,018,636.14	3.07		9.385		348	84.20		631
Washington	45		8,519,319.29	1.14		9.076		350	82.89		624
West Virginia	15		1,886,427.34	0.25		9.817		360	79.56		600
Wisconsin	30		3,950,289.68	0.53		10.027		356	87.68		600
Wyoming	9		1,319,298.08	0.18		9.744		351	80.42		578
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616

20

Gross Margin (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
3.000 - 3.499	1	$	120,000.00	0.02	%	7.650	%	360	79.47	%	718
3.500 - 3.999	2		283,465.19	0.05		7.784		358	51.65		593
4.000 - 4.499	41		9,261,675.79	1.53		7.882		360	73.86		694
4.500 - 4.999	328		79,653,543.34	13.13		8.224		360	78.23		671
5.000 - 5.499	532		109,852,693.73	18.11		8.509		360	78.76		639
5.500 - 5.999	762		156,411,529.41	25.79		9.152		359	83.99		620
6.000 - 6.499	733		137,487,134.60	22.67		9.853		359	86.11		591
6.500 - 6.999	437		75,220,162.71	12.40		10.521		359	86.55		567
7.000 - 7.499	232		35,981,337.46	5.93		10.444		359	82.53		561
7.500 - 7.999	9		2,119,833.78	0.35		9.490		357	81.83		595
8.000 - 8.499	1		99,958.07	0.02		10.250		359	69.44		510
Total	3,078	$	606,491,334.08	100.00	%	9.300	%	359	82.82	%	615
Minimum Interest Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
5.500 - 5.999	1	$	56,900.86	0.01	%	6.000	%	341	72.50	%	673
6.000 - 6.499	3		876,800.00	0.14		6.358		360	69.48		613
6.500 - 6.999	27		5,856,957.92	0.97		6.845		359	73.52		621
7.000 - 7.499	55		13,806,989.05	2.28		7.286		359	75.45		640
7.500 - 7.999	272		58,775,770.22	9.69		7.816		359	76.85		640
8.000 - 8.499	349		76,965,897.92	12.69		8.274		360	78.49		638
8.500 - 8.999	582		128,191,976.93	21.14		8.765		359	80.89		632
9.000 - 9.499	357		64,453,120.14	10.63		9.260		359	82.91		607
9.500 - 9.999	544		106,624,601.78	17.58		9.757		360	85.42		601
10.000 -10.499	259		49,792,964.22	8.21		10.250		359	87.84		603
10.500 -10.999	320		54,101,218.89	8.92		10.721		359	88.16		590
11.000 -11.499	125		20,927,217.20	3.45		11.253		360	88.08		577
11.500 -11.999	128		18,225,081.25	3.01		11.705		359	89.76		567
12.000 -12.499	31		4,497,803.95	0.74		12.231		359	88.05		569
12.500 -12.999	22		2,723,794.03	0.45		12.612		360	86.31		561
13.000 -13.499	2		564,249.47	0.09		13.350		359	94.16		580
13.500 -13.999	1		49,990.25	0.01		13.700		359	94.34		531
Total	3,078	$	606,491,334.08	100.00	%	9.300	%	359	82.82	%	615

21

Maximum Interest Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
12.500 -12.999	1	$	361,183.79	0.06	%	6.850	%	348	82.95	%	448
13.000 -13.499	3		876,800.00	0.14		6.358		360	69.48		613
13.500 -13.999	26		5,495,774.13	0.91		6.845		359	72.90		632
14.000 -14.499	55		13,806,989.05	2.28		7.286		359	75.45		640
14.500 -14.999	272		58,775,770.22	9.69		7.816		359	76.85		640
15.000 -15.499	349		76,965,897.92	12.69		8.274		360	78.49		638
15.500 -15.999	582		128,173,690.67	21.13		8.764		359	80.88		632
16.000 -16.499	357		64,453,120.14	10.63		9.260		359	82.91		607
16.500 -16.999	544		106,624,601.78	17.58		9.757		360	85.42		601
17.000 -17.499	259		49,792,964.22	8.21		10.250		359	87.84		603
17.500 -17.999	320		54,101,218.89	8.92		10.721		359	88.16		590
18.000 -18.499	126		21,002,404.32	3.46		11.243		359	88.07		576
18.500 -18.999	128		18,225,081.25	3.01		11.705		359	89.76		567
19.000 -19.499	31		4,497,803.95	0.74		12.231		359	88.05		569
19.500 -19.999	22		2,723,794.03	0.45		12.612		360	86.31		561
20.000 -20.499	2		564,249.47	0.09		13.350		359	94.16		580
20.500 -20.999	1		49,990.25	0.01		13.700		359	94.34		531
Total	3,078	$	606,491,334.08	100.00	%	9.300	%	359	82.82	%	615
Initial Periodic Rate Cap (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
1.500	1	$	391,083.26	0.06	%	8.725	%	356	80.00	%	518
3.000	3,077		606,100,250.82	99.94		9.300		359	82.82		615
Total	3,078	$	606,491,334.08	100.00	%	9.300	%	359	82.82	%	615
Subsequent Periodic Rate Cap (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
1.000	3,077	$	606,100,250.82	99.94	%	9.300	%	359	82.82	%	615
1.500	1		391,083.26	0.06		8.725		356	80.00		518
Total	3,078	$	606,491,334.08	100.00	%	9.300	%	359	82.82	%	615

22

Next Rate Change Date	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
10/01/06	1	$	64,166.49	0.01	%	11.000	%	289	87.89	%	651
11/01/06	2		219,420.99	0.04		11.067		290	85.45		565
12/01/06	3		189,416.58	0.03		10.051		311	87.18		530
01/01/07	2		121,748.81	0.02		9.695		288	83.09		516
02/01/07	1		56,900.86	0.01		6.000		341	72.50		673
08/01/07	4		783,207.89	0.13		7.477		347	88.47		536
09/01/07	4		645,720.90	0.11		7.815		348	83.13		496
12/01/07	3		298,372.02	0.05		8.710		351	83.80		493
01/01/08	2		303,362.09	0.05		7.996		352	80.00		607
02/01/08	6		1,410,938.95	0.23		8.478		353	83.93		626
03/01/08	9		1,832,468.16	0.30		8.927		354	85.53		635
04/01/08	27		4,139,812.54	0.68		9.601		355	83.68		573
05/01/08	41		6,296,898.01	1.04		9.427		356	86.82		579
06/01/08	108		18,097,587.92	2.98		9.658		357	86.42		590
07/01/08	75		14,855,499.54	2.45		9.363		358	83.06		603
08/01/08	632		133,133,727.89	21.95		9.278		359	82.29		612
09/01/08	2,094		409,401,769.05	67.50		9.310		360	82.88		618
09/02/08	1		562,500.00	0.09		9.950		360	90.00		578
09/10/08	1		450,000.00	0.07		11.990		360	75.00		540
07/01/09	2		466,554.32	0.08		9.663		358	58.31		560
08/01/09	15		3,317,366.24	0.55		8.399		359	79.53		617
09/01/09	29		5,905,156.00	0.97		8.762		360	80.78		621
08/01/11	3		479,578.83	0.08		7.792		359	68.82		616
09/01/11	13		3,459,160.00	0.57		8.924		360	75.93		625
Total	3,078	$	606,491,334.08	100.00	%	9.300	%	359	82.82	%	615
Grade	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
M1	2,619	$	406,980,803.72	54.37	%	9.285	%	349	84.15	%	613
M2	816		149,285,061.03	19.94		9.751		358	81.81		577
M3	150		25,216,043.59	3.37		9.847		357	73.30		543
M4	118		20,593,560.72	2.75		9.873		359	67.62		557
Alt-A	810		145,192,224.40	19.39		9.024		341	84.86		685
AA	4		313,173.76	0.04		9.888		236	82.67		563
A+	1		207,828.97	0.03		7.900		316	80.00		676
A	2		253,461.08	0.03		9.769		285	87.36		534
A -	2		158,844.93	0.02		11.209		303	89.15		619
B	2		281,066.62	0.04		10.012		303	88.10		607
FICO Enhanced	1		41,694.67	0.01		11.500		285	90.00		545
N.S. FICO	1		82,860.52	0.01		9.700		324	90.00		636
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616
IO Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
N/A	4,216	$	657,969,053.48	87.89	%	9.471	%	349	83.19	%	610
60	288		86,564,255.58	11.56		8.573		359	81.96		656
120	22		4,073,314.95	0.54		8.778		360	75.92		671
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616

23

MI Company	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
MGIC	2,197	$	415,231,401.61	55.47	%	9.241	%	358	84.93	%	620
NO MI	2,320		332,649,238.89	44.44		9.514		340	80.61		611
PMI	9		725,983.51	0.10		10.129		264	84.99		561
Total	4,526	$	748,606,624.01	100.00	%	9.363	%	350	83.01	%	616

24

NovaStar Mortgage Loan Funding Trust, Series 2006-5

Group 1 Initial Mortgage Loans

				Minimum			Maximum
Scheduled Principal Balance	$	453,094,304		$	14,980		$	519,701
Average Scheduled Principal Balance	$	147,780
Number of Mortgage Loans		3,066
Weighted Average Gross Coupon		9.328	%		6.300	%		13.100	%
Weighted Average FICO Score		600			443			816
Weighted Average Combined Original LTV		81.24	%		10.53	%		100.00	%
Weighted Average Original Term		355 months			180 months			360 months
Weighted Average Stated Remaining Term		355 months			169 months			360 months
Weighted Average Seasoning		0 months			0 months			11 months
Weighted Average Gross Margin		5.927	%		3.450	%		8.000	%
Weighted Average Minimum Interest Rate		9.367	%		6.300	%		13.100	%
Weighted Average Maximum Interest Rate		16.367	%		13.300	%		20.100	%
Weighted Average Initial Rate Cap		2.998	%		1.500	%		3.000	%
Weighted Average Subsequent Rate Cap		1.001	%		1.000	%		1.500	%
Weighted Average Months to Roll		24 months			15 months			60 months
Maturity Date					Oct. 1, 2020			Sep. 1, 2036
Maximum Zip Code Concentration		0.37	%		33411
ARM		77.73	%
Fixed Rate Loan		22.27	%
2/28 6 MO LIBOR IO		7.43	%
2/28 6 Mo LIBOR ARM		52.42	%
2/28 6 Month LIBOR ARM 40/30 Balloon		15.66	%
3/27 6 MO LIBOR IO		0.51	%
3/27 6 Mo LIBOR ARM		0.90	%
3/27 6 Month LIBOR ARM 40/30 Balloon		0.25	%
5/25 6 MO LIBOR		0.32	%
5/25 6 MO LIBOR IO		0.25	%
Fixed Rate		17.38	%
Fixed Rate Balloon 30/15		1.71	%
Fixed Rate Balloon 40/30		2.74	%
Fixed Rate IO		0.44	%
Interest Only		8.63	%
Not Interest Only		91.37	%
Prepay Penalty: 0 months		35.67	%
Prepay Penalty: 12 months		0.46	%
Prepay Penalty: 24 months		28.41	%
Prepay Penalty: 36 months		35.45	%
First Lien		98.12	%
Second Lien		1.88	%
Full Documentation		53.50	%
Limited Documentation		0.85	%
No Documentation		5.05	%
Stated Income		40.61	%
Cash Out Refinance		75.26	%
Purchase		19.20	%
Rate/Term Refinance		5.54	%
Condo		4.81	%
Multi-Unit		4.34	%
PUD		12.26	%
Single Family Residence		78.60	%
Investment (Non-Owner Occupied)		6.50	%
Primary		89.46	%
Secondary Home		4.03	%
Top 5 States:
Florida		21.93	%
California		7.11	%
Maryland		6.14	%
New Jersey		4.63	%
Michigan		4.56	%
Top 5 Zips:
33411		0.37	%
20735		0.35	%
92553		0.32	%
20743		0.32	%
20748		0.31	%
Top 5 Cities:
MIAMI		2.83	%
ORLANDO		0.96	%
KISSIMMEE		0.93	%
JACKSONVILLE		0.91	%
CHICAGO		0.91	%

25

Current Principal Balance ($)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
0.01 - 50,000.00	240	$	7,400,163.04	1.63	%	11.185	%	199	94.83	%	625
50,000.01 - 100,000.00	755		58,764,640.61	12.97		9.789		348	81.29		597
100,000.01 - 150,000.00	854		105,825,171.15	23.36		9.419		358	81.57		591
150,000.01 - 200,000.00	534		92,159,625.20	20.34		9.277		359	80.53		596
200,000.01 - 250,000.00	289		64,718,298.89	14.28		9.082		359	79.82		609
250,000.01 - 300,000.00	182		49,361,535.85	10.89		9.110		357	80.48		612
300,000.01 - 350,000.00	113		36,618,950.27	8.08		8.841		360	80.52		604
350,000.01 - 400,000.00	80		30,013,485.47	6.62		9.341		360	84.44		603
400,000.01 - 450,000.00	14		5,785,583.87	1.28		9.106		359	80.85		606
450,000.01 - 500,000.00	3		1,414,748.85	0.31		9.552		359	83.33		641
500,000.01 - 550,000.00	2		1,032,100.83	0.23		8.899		359	68.76		632
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Current Gross Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
6.000 - 6.499	3	$	876,800.00	0.19	%	6.358	%	360	69.48	%	613
6.500 - 6.999	21		4,017,491.50	0.89		6.848		359	70.21		612
7.000 - 7.499	47		10,298,337.46	2.27		7.284		359	72.28		630
7.500 - 7.999	279		50,072,832.54	11.05		7.797		358	73.30		629
8.000 - 8.499	318		54,913,481.41	12.12		8.277		359	76.69		618
8.500 - 8.999	513		83,334,461.46	18.39		8.766		357	80.14		611
9.000 - 9.499	345		53,603,221.32	11.83		9.266		359	81.73		596
9.500 - 9.999	540		79,758,729.58	17.60		9.766		356	83.23		588
10.000 -10.499	246		33,786,118.90	7.46		10.255		354	86.22		592
10.500 -10.999	331		42,962,409.37	9.48		10.730		351	86.41		576
11.000 -11.499	141		16,196,493.72	3.57		11.248		344	87.82		571
11.500 -11.999	154		15,531,966.54	3.43		11.716		340	89.67		568
12.000 -12.499	77		4,947,135.88	1.09		12.232		306	90.89		580
12.500 -12.999	49		2,678,524.35	0.59		12.616		296	90.47		580
13.000 -13.499	2		116,300.00	0.03		13.081		326	91.87		567
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
FICO	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
400-499	62	$	8,882,772.62	1.96	%	9.754	%	358	77.21	%	490
500-524	230		34,723,930.41	7.66		9.938		357	76.37		515
525-549	435		64,296,262.33	14.19		9.844		357	78.86		537
550-574	434		62,642,613.46	13.83		9.469		356	79.48		562
575-599	494		69,600,221.62	15.36		9.408		356	81.25		587
600-624	431		67,260,927.83	14.84		9.038		355	81.99		613
625-649	350		51,566,112.64	11.38		8.997		354	83.62		637
650-674	244		33,817,672.14	7.46		9.133		349	83.90		661
675-699	177		27,085,329.27	5.98		8.818		351	84.34		686
700+	209		33,218,461.71	7.33		8.865		353	84.89		728
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600

26

Original LTV (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
0.01- 49.99	80	$	10,337,246.88	2.28	%	8.603	%	352	41.59	%	592
50.00- 54.99	47		6,798,372.49	1.50		8.488		357	52.54		591
55.00- 59.99	75		11,744,593.93	2.59		8.644		360	57.23		583
60.00- 64.99	113		18,552,652.71	4.09		8.592		357	62.30		583
65.00- 69.99	150		25,545,261.62	5.64		8.746		358	67.11		576
70.00- 74.99	187		30,526,397.77	6.74		8.962		357	71.71		580
75.00- 79.99	279		44,937,845.56	9.92		9.104		358	76.46		581
80.00	494		75,904,528.55	16.75		9.067		358	80.00		617
80.01- 84.99	103		17,660,005.53	3.90		8.917		357	83.21		608
85.00- 89.99	310		51,926,494.47	11.46		9.412		359	86.17		592
90.00- 94.99	579		89,867,607.96	19.83		9.670		358	90.25		601
95.00- 99.99	266		41,555,312.37	9.17		9.953		357	95.19		616
100.00	383		27,737,984.19	6.12		10.668		307	100.00		642
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Original Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
180	279	$	11,069,459.70	2.44	%	10.893	%	179	93.51	%	628
240	12		1,531,128.09	0.34		9.188		240	79.77		591
300	1		81,907.28	0.02		7.550		299	71.55		676
360	2,774		440,411,808.96	97.20		9.290		360	80.94		600
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Stated Remaining Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
121-180	279	$	11,069,459.70	2.44	%	10.893	%	179	93.51	%	628
181-240	12		1,531,128.09	0.34		9.188		240	79.77		591
241-300	1		81,907.28	0.02		7.550		299	71.55		676
301-360	2,774		440,411,808.96	97.20		9.290		360	80.94		600
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
FRM/ARM	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
ARM	2,146	$	352,206,598.01	77.73	%	9.367	%	359	81.58	%	597
Fixed Rate Loan	920		100,887,706.02	22.27		9.195		338	80.07		611
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Interest Only	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Interest Only	173	$	39,093,289.05	8.63	%	8.561	%	360	82.26	%	652
Not Interest Only	2,893		414,001,014.98	91.37		9.401		354	81.15		596
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600

27

Prepayment Penalty Original Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
N/A	1,100	$	161,630,952.81	35.67	%	9.481	%	352	81.11	%	602
12	9		2,096,283.87	0.46		9.485		355	80.86		613
24	862		128,723,713.09	28.41		9.438		356	80.62		597
36	1,095		160,643,354.26	35.45		9.085		356	81.88		601
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Lien	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
First Lien	2,812	$	444,579,157.93	98.12	%	9.291	%	358	80.90	%	600
Second Lien	254		8,515,146.10	1.88		11.300		182	99.38		638
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Documentation Type	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Full Documentation	1,842	$	242,413,832.57	53.50	%	9.193	%	354	81.85	%	581
Limited Documentation	23		3,835,964.29	0.85		9.076		358	81.09		611
No Documentation	134		22,861,818.01	5.05		8.945		357	79.33		682
Stated Income	1,067		183,982,689.16	40.61		9.560		355	80.69		615
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Loan Purpose	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Cash Out Refinance	2,087	$	341,003,390.06	75.26	%	9.200	%	356	79.36	%	594
Purchase	806		86,992,263.84	19.20		9.816		349	88.11		627
Rate/Term Refinance	173		25,098,650.13	5.54		9.389		354	82.99		597
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Property Type	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Condo	158	$	21,772,687.92	4.81	%	9.275	%	353	81.88	%	621
Multi-Unit	102		19,671,307.51	4.34		9.590		356	78.42		625
PUD	292		55,535,366.88	12.26		9.136		355	82.43		613
Single Family Residence	2,514		356,114,941.72	78.60		9.347		355	81.17		596
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
Occupancy Status	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Investment (Non-Owner Occupied)	185	$	29,460,066.89	6.50	%	9.600	%	358	80.27	%	656
Primary	2,793		405,353,810.70	89.46		9.314		354	81.23		594
Secondary Home	88		18,280,426.44	4.03		9.202		359	83.17		664
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600

28

State	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Alabama	67	$	7,240,833.79	1.60	%	10.352	%	354	87.92	%	579
Arizona	69		12,175,237.62	2.69		8.957		355	79.72		613
Arkansas	21		1,941,297.82	0.43		9.996		357	87.45		604
California	127		32,205,484.30	7.11		8.611		358	73.16		606
Colorado	31		4,334,610.74	0.96		9.754		346	85.76		602
Connecticut	63		11,119,670.34	2.45		9.284		354	81.34		618
Delaware	7		1,044,120.85	0.23		9.237		360	77.49		577
District of Columbia	10		2,425,974.81	0.54		9.252		360	66.67		588
Florida	575		99,352,685.94	21.93		9.016		356	79.19		606
Georgia	122		15,001,814.11	3.31		9.804		355	84.04		594
Idaho	16		2,425,556.60	0.54		8.489		356	83.88		636
Illinois	77		10,917,516.28	2.41		9.230		356	82.07		596
Indiana	35		3,732,364.93	0.82		10.066		357	89.72		582
Iowa	12		1,244,855.99	0.27		10.208		355	88.15		584
Kansas	17		1,722,556.37	0.38		9.752		352	85.61		572
Kentucky	38		3,850,506.21	0.85		9.542		350	84.27		582
Louisiana	71		8,902,945.57	1.96		9.339		357	83.58		609
Maine	22		2,707,365.68	0.60		9.185		353	75.47		605
Maryland	136		27,840,700.68	6.14		9.003		354	79.74		596
Massachusetts	53		10,983,223.01	2.42		9.373		356	79.81		590
Michigan	197		20,650,769.56	4.56		9.801		354	84.90		598
Minnesota	36		5,851,315.03	1.29		9.604		356	84.37		605
Mississippi	35		3,493,951.11	0.77		9.803		347	82.81		581
Missouri	76		7,693,615.62	1.70		10.163		354	84.71		581
Montana	3		432,244.27	0.10		8.526		359	87.46		614
Nebraska	13		985,830.63	0.22		10.215		340	87.60		566
Nevada	27		4,568,579.16	1.01		8.855		352	80.36		618
New Hampshire	22		3,870,662.75	0.85		9.565		352	81.50		579
New Jersey	98		20,973,701.14	4.63		9.277		358	80.13		595
New Mexico	9		1,179,690.08	0.26		9.939		359	82.64		567
New York	79		15,821,597.46	3.49		9.369		355	77.05		593
North Carolina	126		14,346,278.49	3.17		9.994		352	84.80		601
North Dakota	1		115,000.00	0.03		9.900		360	73.48		636
Ohio	115		11,586,054.40	2.56		9.661		356	88.50		609
Oklahoma	15		1,260,367.32	0.28		9.617		319	90.79		621
Oregon	12		1,816,260.65	0.40		9.516		350	80.09		591
Pennsylvania	117		13,975,825.40	3.08		9.723		358	85.75		598
Rhode Island	7		1,625,053.37	0.36		9.067		359	80.67		559
South Carolina	95		10,089,790.03	2.23		9.593		347	84.44		595
Tennessee	81		8,521,412.72	1.88		9.637		354	85.96		590
Texas	147		14,170,698.82	3.13		9.643		343	83.62		593
Utah	30		4,554,093.13	1.01		9.002		351	82.98		627
Vermont	3		424,900.92	0.09		8.975		358	78.73		597
Virginia	76		12,213,626.39	2.70		9.349		354	82.73		611
Washington	31		5,679,429.29	1.25		9.013		355	79.31		614
West Virginia	13		1,757,446.89	0.39		9.664		360	78.06		599
Wisconsin	26		3,122,489.68	0.69		10.038		357	85.59		597
Wyoming	7		1,144,298.08	0.25		9.913		355	79.87		581
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600

29

Gross Margin (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
3.000 - 3.499	1	$	120,000.00	0.03	%	7.650	%	360	79.47	%	718
3.500 - 3.999	2		283,465.19	0.08		7.784		358	51.65		593
4.000 - 4.499	22		3,924,085.89	1.11		7.876		360	70.01		650
4.500 - 4.999	168		31,640,474.98	8.98		8.131		360	77.01		657
5.000 - 5.499	352		61,250,491.24	17.39		8.460		360	77.40		623
5.500 - 5.999	506		86,170,724.13	24.47		9.162		360	82.48		610
6.000 - 6.499	531		84,601,930.65	24.02		9.745		359	83.89		580
6.500 - 6.999	362		54,308,040.07	15.42		10.473		359	85.11		559
7.000 - 7.499	197		29,281,248.64	8.31		10.258		359	81.31		559
7.500 - 7.999	4		526,179.15	0.15		10.365		359	78.47		575
8.000 - 8.499	1		99,958.07	0.03		10.250		359	69.44		510
Total	2,146	$	352,206,598.01	100.00	%	9.367	%	359	81.58	%	597
Minimum Interest Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
6.000 - 6.499	3	$	876,800.00	0.25	%	6.358	%	360	69.48	%	613
6.500 - 6.999	20		3,900,590.58	1.11		6.847		359	69.99		612
7.000 - 7.499	38		8,544,998.52	2.43		7.279		360	71.45		623
7.500 - 7.999	179		33,743,313.92	9.58		7.793		360	74.67		628
8.000 - 8.499	211		38,608,398.90	10.96		8.279		360	77.47		617
8.500 - 8.999	356		62,280,654.14	17.68		8.766		359	80.18		611
9.000 - 9.499	273		44,718,113.26	12.70		9.266		360	82.15		593
9.500 - 9.999	402		65,481,632.45	18.59		9.766		359	83.58		588
10.000 -10.499	188		27,896,067.56	7.92		10.250		359	86.07		588
10.500 -10.999	247		35,979,457.07	10.22		10.727		359	86.28		574
11.000 -11.499	94		13,385,486.60	3.80		11.251		360	86.39		566
11.500 -11.999	92		12,270,411.07	3.48		11.711		360	88.74		561
12.000 -12.499	26		2,705,724.95	0.77		12.238		360	85.48		550
12.500 -12.999	16		1,720,448.99	0.49		12.559		360	85.23		562
13.000 -13.499	1		94,500.00	0.03		13.100		360	90.00		547
Total	2,146	$	352,206,598.01	100.00	%	9.367	%	359	81.58	%	597

30

Maximum Interest Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
13.000 -13.499	3	$	876,800.00	0.25	%	6.358	%	360	69.48	%	613
13.500 -13.999	20		3,900,590.58	1.11		6.847		359	69.99		612
14.000 -14.499	38		8,544,998.52	2.43		7.279		360	71.45		623
14.500 -14.999	179		33,743,313.92	9.58		7.793		360	74.67		628
15.000 -15.499	211		38,608,398.90	10.96		8.279		360	77.47		617
15.500 -15.999	356		62,280,654.14	17.68		8.766		359	80.18		611
16.000 -16.499	273		44,718,113.26	12.70		9.266		360	82.15		593
16.500 -16.999	402		65,481,632.45	18.59		9.766		359	83.58		588
17.000 -17.499	188		27,896,067.56	7.92		10.250		359	86.07		588
17.500 -17.999	247		35,979,457.07	10.22		10.727		359	86.28		574
18.000 -18.499	94		13,385,486.60	3.80		11.251		360	86.39		566
18.500 -18.999	92		12,270,411.07	3.48		11.711		360	88.74		561
19.000 -19.499	26		2,705,724.95	0.77		12.238		360	85.48		550
19.500 -19.999	16		1,720,448.99	0.49		12.559		360	85.23		562
20.000 -20.499	1		94,500.00	0.03		13.100		360	90.00		547
Total	2,146	$	352,206,598.01	100.00	%	9.367	%	359	81.58	%	597
Initial Periodic Rate Cap (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
1.500	1	$	391,083.26	0.11	%	8.725	%	356	80.00	%	518
3.000	2,145		351,815,514.75	99.89		9.367		359	81.58		597
Total	2,146	$	352,206,598.01	100.00	%	9.367	%	359	81.58	%	597
Subsequent Periodic Rate Cap (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
1.000	2,145	$	351,815,514.75	99.89	%	9.367	%	359	81.58	%	597
1.500	1		391,083.26	0.11		8.725		356	80.00		518
Total	2,146	$	352,206,598.01	100.00	%	9.367	%	359	81.58	%	597

31

Next Rate Change Date	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
12/01/07	2	$	127,366.86	0.04	%	9.126	%	351	88.90	%	451
02/01/08	5		931,238.95	0.26		8.750		353	77.74		614
03/01/08	7		1,214,799.13	0.34		9.101		354	88.35		599
04/01/08	20		2,544,090.50	0.72		9.944		355	84.54		546
05/01/08	38		5,232,609.02	1.49		9.490		356	86.13		560
06/01/08	89		10,823,635.70	3.07		9.848		357	85.99		571
07/01/08	55		7,753,680.75	2.20		9.574		358	82.78		573
08/01/08	464		78,520,247.04	22.29		9.289		359	81.15		598
09/01/08	1,414		234,513,617.25	66.58		9.376		360	81.43		600
09/10/08	1		450,000.00	0.13		11.990		360	75.00		540
07/01/09	2		466,554.32	0.13		9.663		358	58.31		560
08/01/09	14		2,993,537.66	0.85		8.464		359	79.48		611
09/01/09	22		4,073,592.00	1.16		8.960		360	83.34		616
08/01/11	3		479,578.83	0.14		7.792		359	68.82		616
09/01/11	10		2,082,050.00	0.59		9.172		360	78.95		634
Total	2,146	$	352,206,598.01	100.00	%	9.367	%	359	81.58	%	597
Grade	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
M1	1,764	$	248,173,648.36	54.77	%	9.187	%	354	83.10	%	607
M2	696		108,151,510.35	23.87		9.704		358	80.56		570
M3	142		23,864,616.42	5.27		9.850		358	73.30		542
M4	115		19,188,222.02	4.23		9.856		359	67.85		557
Alt-A	349		53,716,306.88	11.86		8.806		351	82.35		673
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
IO Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
N/A	2,893	$	414,001,014.98	91.37	%	9.401	%	354	81.15	%	596
60	154		35,985,574.10	7.94		8.542		359	82.90		652
120	19		3,107,714.95	0.69		8.791		360	74.86		650
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600
MI Company	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
MGIC	1,567	$	260,706,461.46	57.54	%	9.226	%	358	84.39	%	611
NO MI	1,499		192,387,842.57	42.46		9.467		351	76.98		586
Total	3,066	$	453,094,304.03	100.00	%	9.328	%	355	81.24	%	600

32

NovaStar Mortgage Loan Funding Trust, Series 2006-5

Group 2 Initial Mortgage Loans

				Minimum			Maximum
Scheduled Principal Balance	$	295,512,320		$	14,600		$	1,500,000
Average Scheduled Principal Balance	$	202,406
Number of Mortgage Loans		1,460
Weighted Average Gross Coupon		9.417	%		5.990	%		13.700	%
Weighted Average FICO Score		640			421			811
Weighted Average Combined Original LTV		85.71	%		39.02	%		100.00	%
Weighted Average Original Term		344 months			180 months			360 months
Weighted Average Stated Remaining Term		343 months			107 months			360 months
Weighted Average Seasoning		1 month			0 months			80 months
Weighted Average Gross Margin		5.650	%		4.250	%		7.990	%
Weighted Average Minimum Interest Rate		9.207	%		5.800	%		13.700	%
Weighted Average Maximum Interest Rate		16.207	%		12.850	%		20.700	%
Weighted Average Initial Rate Cap		3.000	%		3.000	%		3.000	%
Weighted Average Subsequent Rate Cap		1.000	%		1.000	%		1.000	%
Weighted Average Months to Roll		24 months			1 month			60 months
Maturity Date					Aug. 1, 2015			Sep. 1, 2036
Maximum Zip Code Concentration		0.54	%		34786
ARM		86.05	%
Fixed Rate Loan		13.95	%
2/28 6 MO LIBOR IO		17.04	%
2/28 6 Mo LIBOR ARM		47.61	%
2/28 6 Month LIBOR ARM 40/30 Balloon		20.17	%
3/27 6 MO LIBOR IO		0.08	%
3/27 6 Mo LIBOR ARM		0.51	%
3/27 6 Month LIBOR ARM 40/30 Balloon		0.18	%
5/25 6 MO LIBOR		0.04	%
5/25 6 MO LIBOR IO		0.04	%
5/25 6 Month LIBOR ARM 40/30 Balloon		0.39	%
Fixed Rate		5.01	%
Fixed Rate Balloon 30/15		7.98	%
Fixed Rate Balloon 40/30		0.67	%
Fixed Rate IO		0.29	%
Interest Only		17.44	%
Not Interest Only		82.56	%
Prepay Penalty: 0 months		40.49	%
Prepay Penalty: 12 months		0.22	%
Prepay Penalty: 24 months		36.29	%
Prepay Penalty: 36 months		22.79	%
Prepay Penalty: 60 months		0.22	%
First Lien		91.02	%
Second Lien		8.98	%
Full Documentation		33.33	%
Limited Documentation		0.16	%
No Documentation		10.66	%
Stated Income		55.85	%
Cash Out Refinance		22.85	%
Purchase		76.38	%
Rate/Term Refinance		0.77	%
Condo		9.04	%
Manufactured Housing		0.05	%
Multi-Unit		4.01	%
PUD		21.71	%
Single Family Residence		65.19	%
Investment (Non-Owner Occupied)		0.94	%
Primary		96.55	%
Secondary Home		2.52	%
Top 5 States:
Florida		25.54	%
California		16.00	%
Maryland		6.91	%
New York		5.03	%
Texas		5.01	%
Top 5 Zips:
34786		0.54	%
11221		0.53	%
29401		0.51	%
91910		0.50	%
20744		0.50	%
Top 5 Cities:
MIAMI		4.78	%
ORLANDO		1.66	%
LAS VEGAS		1.38	%
BROOKLYN		1.20	%
LOS ANGELES		1.16	%

33

Current Principal Balance ($)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term		Weighted Average Original LTV		Weighted Average FICO
0.01 - 50,000.00	255	$	8,983,547.73	3.04	%	11.511	%	186		99.40	%	640
50,000.01 - 100,000.00	276		19,640,406.62	6.65		10.840		243		93.93		641
100,000.01 - 150,000.00	250		31,270,651.02	10.58		9.802		338		87.49		614
150,000.01 - 200,000.00	177		31,032,567.38	10.50		9.334		354		86.05		637
200,000.01 - 250,000.00	148		33,355,229.68	11.29		9.005		354		83.54		643
250,000.01 - 300,000.00	62		17,035,610.16	5.76		8.998		360		84.28		666
300,000.01 - 350,000.00	47		15,349,743.04	5.19		8.867		359		84.32		648
350,000.01 - 400,000.00	40		14,869,074.71	5.03		9.020		359		84.93		629
400,000.01 - 450,000.00	53		22,668,398.14	7.67		9.158		359		84.64		648
450,000.01 - 500,000.00	40		18,885,702.38	6.39		9.347		360		84.66		629
500,000.01 - 550,000.00	26		13,628,055.75	4.61		9.148		359		84.71		643
550,000.01 - 600,000.00	21		12,090,961.90	4.09		9.441		351		85.40		625
600,000.01 - 650,000.00	6		3,702,545.25	1.25		9.161		359		89.06		632
650,000.01 - 700,000.00	9		6,022,629.01	2.04		9.264		359		86.93		627
700,000.01 - 750,000.00	5		3,601,778.17	1.22		9.115		360		79.87		660
750,000.01 - 800,000.00	7		5,391,708.74	1.82		9.774		359		86.45		635
800,000.01 - 850,000.00	7		5,749,289.15	1.95		9.257		359		80.64		631
850,000.01 - 900,000.00	8		7,019,084.63	2.38		9.380		359		83.67		634
900,000.01 - 950,000.00	3		2,809,597.72	0.95		10.336		359		98.31		700
950,000.01 - 1,000,000.00	3		2,997,114.52	1.01		8.477		359		75.14		698
1,000,000.01+	17		19,408,624.28	6.57		9.007		360		79.44		657
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343		85.71	%	640
Current Gross Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term		Weighted Average Original LTV		Weighted Average FICO
5.500 - 5.999	1	$	124,943.66	0.04	%	5.990	%	348		52.27	%	491
6.000 - 6.499	2		143,687.98	0.05		6.000		336		77.03		543
6.500 - 6.999	7		1,956,367.34	0.66		6.843		358		80.54		637
7.000 - 7.499	17		5,261,990.53	1.78		7.297		358		81.95		668
7.500 - 7.999	99		27,662,763.80	9.36		7.846		359		79.73		657
8.000 - 8.499	148		40,442,850.58	13.69		8.268		359		79.57		660
8.500 - 8.999	239		68,255,555.70	23.10		8.762		359		81.59		651
9.000 - 9.499	94		21,336,822.25	7.22		9.241		356		84.36		633
9.500 - 9.999	196		46,681,353.32	15.80		9.748		349	��	87.86		621
10.000 -10.499	98		23,400,108.88	7.92		10.245		347		90.76		625
10.500 -10.999	134		23,110,165.86	7.82		10.723		339		92.89		626
11.000 -11.499	89		10,951,773.43	3.71		11.242		308		93.47		616
11.500 -11.999	159		13,739,628.14	4.65		11.763		259		96.14		626
12.000 -12.499	91		6,988,442.58	2.36		12.230		226		97.89		637
12.500 -12.999	78		4,638,466.21	1.57		12.744		222		97.18		639
13.000 -13.499	7		767,409.47	0.26		13.245		290		96.94		605
13.500 -13.999	1		49,990.25	0.02		13.700		359		94.34		531
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343		85.71	%	640

34

FICO	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance			Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
400-499	22	$	3,839,908.78	1.30	%		9.191	%	351	79.97	%	483
500-524	51		8,800,983.32	2.98			9.990		348	81.95		514
525-549	84		15,449,495.03	5.23			9.857		354	80.44		538
550-574	140		24,698,823.07	8.36			9.889		345	84.55		563
575-599	158		30,779,735.69	10.42			9.796		344	85.20		587
600-624	155		34,674,914.48	11.73			9.499		349	85.80		612
625-649	239		47,600,333.02	16.11			9.342		343	87.18		638
650-674	197		47,693,963.87	16.14			9.127		341	85.48		662
675-699	132		23,433,559.11	7.93			9.014		336	86.67		687
700+	282		58,540,603.61	19.81			9.240		337	87.37		737
Total	1,460	$	295,512,319.98	100.00	%		9.417	%	343	85.71	%	640
Original LTV (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance			Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
0.01- 49.99	5	$	1,933,435.47	0.65	%		9.339	%	354	47.09	%	602
50.00- 54.99	3		1,412,715.10	0.48			8.248		358	53.21		521
55.00- 59.99	4		972,100.00	0.33		��	8.751		360	56.68		637
60.00- 64.99	5		3,905,047.65	1.32			8.663		359	63.65		595
65.00- 69.99	11		5,060,769.90	1.71			9.243		360	66.78		585
70.00- 74.99	21		9,426,783.84	3.19			8.842		348	72.66		600
75.00- 79.99	26		12,832,839.04	4.34			8.736		360	77.26		639
80.00	493		113,969,283.90	38.57			8.695		359	80.00		654
80.01- 84.99	10		5,309,461.23	1.80			8.669		358	83.45		626
85.00- 89.99	47		16,933,757.87	5.73			9.091		357	86.35		609
90.00- 94.99	160		39,865,892.93	13.49			9.756		357	90.22		611
95.00- 99.99	126		33,578,407.94	11.36			9.980		355	95.13		638
100.00	549		50,311,825.11	17.03			11.002		270	100.00		666
Total	1,460	$	295,512,319.98	100.00	%		9.417	%	343	85.71	%	640
Original Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance			Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
180	471	$	27,059,935.08	9.16	%		11.516	%	179	98.97	%	659
360	989		268,452,384.90	90.84			9.205		359	84.38		638
Total	1,460	$	295,512,319.98	100.00	%		9.417	%	343	85.71	%	640
Stated Remaining Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance			Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
61-120	1	$	91,579.67	0.03	%		9.750	%	107	85.04	%	554
121-180	470		26,968,355.41	9.13			11.522		179	99.02		659
241-300	8		634,403.84	0.21			10.183		287	84.99		562
301-360	981		267,817,981.06	90.63			9.203		359	84.37		638
Total	1,460	$	295,512,319.98	100.00	%		9.417	%	343	85.71	%	640

35

FRM/ARM	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
ARM	932	$	254,284,736.07	86.05	%	9.208	%	359	84.53	%	639
Fixed Rate Loan	528		41,227,583.91	13.95		10.707		240	92.98		648
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640
Interest Only	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Interest Only	137	$	51,544,281.48	17.44	%	8.599	%	359	81.26	%	660
Not Interest Only	1,323		243,968,038.50	82.56		9.590		339	86.65		636
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640
Prepayment Penalty Original Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
N/A	597	$	119,653,732.03	40.49	%	9.610	%	338	86.76	%	655
12	2		636,309.18	0.22		8.473		340	68.56		545
24	560		107,229,432.50	36.29		9.356		346	84.93		630
36	295		67,355,111.14	22.79		9.188		346	85.29		630
60	6		637,735.13	0.22		8.510		276	82.57		593
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640
Lien	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
First Lien	985	$	268,977,854.24	91.02	%	9.205	%	359	84.33	%	638
Second Lien	475		26,534,465.74	8.98		11.569		181	99.75		660
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640
Documentation Type	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Full Documentation	629	$	98,498,156.58	33.33	%	9.434	%	343	86.60	%	598
Limited Documentation	1		477,800.00	0.16		10.650		360	94.99		615
No Documentation	143		31,488,719.42	10.66		9.453		343	88.22		723
Stated Income	687		165,047,643.98	55.85		9.396		343	84.68		649
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640
Loan Purpose	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Cash Out Refinance	131	$	67,511,819.65	22.85	%	9.130	%	354	80.60	%	621
Purchase	1,323		225,724,811.62	76.38		9.515		339	87.30		645
Rate/Term Refinance	6		2,275,688.71	0.77		8.165		344	79.70		680
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640

36

Property Type	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Condo	139	$	26,709,335.90	9.04	%	9.420	%	337	87.41	%	656
Manufactured Housing	2		138,141.36	0.05		10.382		169	83.34		556
Multi-Unit	40		11,860,415.77	4.01		9.731		349	91.90		685
PUD	315		64,155,411.99	21.71		9.412		340	86.08		642
Single Family Residence	964		192,649,014.96	65.19		9.398		344	84.98		634
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640
Occupancy Status	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Investment (Non-Owner Occupied)	7	$	2,767,289.93	0.94	%	9.513	%	320	84.76	%	662
Primary	1,430		285,309,483.20	96.55		9.407		343	85.70		638
Secondary Home	23		7,435,546.85	2.52		9.751		337	86.39		693
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640

37

State	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
Alabama	17	$	3,893,946.17	1.32	%	10.873	%	354	92.49	%	613
Arizona	42		9,177,141.88	3.11		9.204		339	82.88		664
Arkansas	14		1,343,976.76	0.45		9.786		336	88.51		586
California	150		47,276,186.70	16.00		9.020		343	84.40		644
Colorado	10		2,005,354.84	0.68		9.285		346	86.61		610
Connecticut	13		2,715,278.22	0.92		10.010		338	89.94		636
Delaware	3		785,864.16	0.27		9.512		326	87.02		706
District of Columbia	6		2,257,000.00	0.76		9.957		344	91.17		730
Florida	383		75,477,759.42	25.54		9.385		341	85.52		644
Georgia	43		7,158,400.15	2.42		9.592		335	84.09		674
Idaho	5		482,300.00	0.16		9.490		334	85.62		582
Illinois	10		1,636,022.43	0.55		9.654		349	90.82		627
Indiana	17		1,817,072.82	0.61		9.742		338	87.10		594
Iowa	2		212,500.00	0.07		10.163		360	100.00		537
Kansas	9		1,205,912.84	0.41		10.131		347	94.09		635
Kentucky	4		430,300.00	0.15		9.398		349	92.15		619
Louisiana	20		2,281,498.45	0.77		9.820		345	87.46		599
Maine	2		100,345.82	0.03		11.212		176	100.00		674
Maryland	83		20,433,632.25	6.91		8.914		340	83.21		648
Massachusetts	9		2,162,011.34	0.73		10.463		354	83.10		615
Michigan	39		7,306,113.80	2.47		9.920		353	88.76		637
Minnesota	18		5,145,809.21	1.74		9.184		323	84.12		664
Mississippi	7		703,521.74	0.24		9.348		343	86.01		640
Missouri	20		3,900,308.14	1.32		9.254		354	79.65		643
Montana	2		1,070,900.84	0.36		9.380		359	95.00		639
Nevada	25		5,275,653.33	1.79		9.053		332	83.51		646
New Hampshire	4		1,168,333.83	0.40		9.180		353	91.66		655
New Jersey	28		7,368,796.58	2.49		9.663		349	89.58		637
New York	41		14,875,876.15	5.03		9.466		353	84.90		640
North Carolina	59		8,081,652.30	2.73		9.934		343	86.14		615
North Dakota	1		130,410.00	0.04		10.550		360	90.00		541
Ohio	35		4,457,237.39	1.51		9.755		342	83.90		601
Oklahoma	2		214,000.00	0.07		11.506		360	97.56		598
Oregon	1		445,199.30	0.15		8.850		357	90.00		572
Pennsylvania	39		4,800,715.85	1.62		9.967		356	89.81		621
Rhode Island	4		681,000.00	0.23		10.585		322	93.14		714
South Carolina	50		7,631,196.44	2.58		9.397		346	84.76		608
South Dakota	1		148,000.00	0.05		8.650		360	80.00		543
Tennessee	38		3,928,137.90	1.33		9.810		332	87.13		602
Texas	109		14,814,960.00	5.01		9.726		342	86.32		605
Utah	25		5,553,312.73	1.88		9.450		337	87.85		687
Vermont	1		182,000.00	0.06		10.400		360	100.00		584
Virginia	47		10,805,009.75	3.66		9.425		342	85.86		653
Washington	14		2,839,890.00	0.96		9.202		340	90.04		643
West Virginia	2		128,980.45	0.04		11.894		359	100.00		626
Wisconsin	4		827,800.00	0.28		9.987		353	95.59		615
Wyoming	2		175,000.00	0.06		8.638		324	84.00		558
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640

38

Gross Margin (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
4.000 - 4.499	19	$	5,337,589.90	2.10	%	7.886	%	360	76.69	%	726
4.500 - 4.999	160		48,013,068.36	18.88		8.286		360	79.04		680
5.000 - 5.499	180		48,602,202.49	19.11		8.571		359	80.49		660
5.500 - 5.999	256		70,240,805.28	27.62		9.139		359	85.83		633
6.000 - 6.499	202		52,885,203.95	20.80		10.026		359	89.66		610
6.500 - 6.999	75		20,912,122.64	8.22		10.647		360	90.29		589
7.000 - 7.499	35		6,700,088.82	2.63		11.259		359	87.86		568
7.500 - 7.999	5		1,593,654.63	0.63		9.201		357	82.94		602
Total	932	$	254,284,736.07	100.00	%	9.208	%	359	84.53	%	639
Minimum Interest Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
5.500 - 5.999	1	$	56,900.86	0.02	%	6.000	%	341	72.50	%	673
6.500 - 6.999	7		1,956,367.34	0.77		6.843		358	80.54		637
7.000 - 7.499	17		5,261,990.53	2.07		7.297		358	81.95		668
7.500 - 7.999	93		25,032,456.30	9.84		7.847		359	79.80		655
8.000 - 8.499	138		38,357,499.02	15.08		8.270		360	79.52		660
8.500 - 8.999	226		65,911,322.79	25.92		8.763		359	81.55		651
9.000 - 9.499	84		19,735,006.88	7.76		9.247		359	84.63		638
9.500 - 9.999	142		41,142,969.33	16.18		9.744		360	88.35		622
10.000 -10.499	71		21,896,896.66	8.61		10.249		359	90.09		622
10.500 -10.999	73		18,121,761.82	7.13		10.708		360	91.90		621
11.000 -11.499	31		7,541,730.60	2.97		11.258		360	91.09		595
11.500 -11.999	36		5,954,670.18	2.34		11.691		357	91.86		578
12.000 -12.499	5		1,792,079.00	0.70		12.221		359	91.94		596
12.500 -12.999	6		1,003,345.04	0.39		12.703		360	88.16		558
13.000 -13.499	1		469,749.47	0.18		13.400		359	95.00		587
13.500 -13.999	1		49,990.25	0.02		13.700		359	94.34		531
Total	932	$	254,284,736.07	100.00	%	9.208	%	359	84.53	%	639

39

Maximum Interest Rate (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
12.500 -12.999	1	$	361,183.79	0.14	%	6.850	%	348	82.95	%	448
13.500 -13.999	6		1,595,183.55	0.63		6.841		360	80.00		680
14.000 -14.499	17		5,261,990.53	2.07		7.297		358	81.95		668
14.500 -14.999	93		25,032,456.30	9.84		7.847		359	79.80		655
15.000 -15.499	138		38,357,499.02	15.08		8.270		360	79.52		660
15.500 -15.999	226		65,893,036.53	25.91		8.761		360	81.54		652
16.000 -16.499	84		19,735,006.88	7.76		9.247		359	84.63		638
16.500 -16.999	142		41,142,969.33	16.18		9.744		360	88.35		622
17.000 -17.499	71		21,896,896.66	8.61		10.249		359	90.09		622
17.500 -17.999	73		18,121,761.82	7.13		10.708		360	91.90		621
18.000 -18.499	32		7,616,917.72	3.00		11.231		359	91.03		594
18.500 -18.999	36		5,954,670.18	2.34		11.691		357	91.86		578
19.000 -19.499	5		1,792,079.00	0.70		12.221		359	91.94		596
19.500 -19.999	6		1,003,345.04	0.39		12.703		360	88.16		558
20.000 -20.499	1		469,749.47	0.18		13.400		359	95.00		587
20.500 -20.999	1		49,990.25	0.02		13.700		359	94.34		531
Total	932	$	254,284,736.07	100.00	%	9.208	%	359	84.53	%	639
Initial Periodic Rate Cap (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
3.000	932	$	254,284,736.07	100.00	%	9.208	%	359	84.53	%	639
Total	932	$	254,284,736.07	100.00	%	9.208	%	359	84.53	%	639
Subsequent Periodic Rate Cap (%)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
1.000	932	$	254,284,736.07	100.00	%	9.208	%	359	84.53	%	639
Total	932	$	254,284,736.07	100.00	%	9.208	%	359	84.53	%	639

40

Next Rate Change Date	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
10/01/06	1	$	64,166.49	0.03	%	11.000	%	289	87.89	%	651
11/01/06	2		219,420.99	0.09		11.067		290	85.45		565
12/01/06	3		189,416.58	0.07		10.051		311	87.18		530
01/01/07	2		121,748.81	0.05		9.695		288	83.09		516
02/01/07	1		56,900.86	0.02		6.000		341	72.50		673
08/01/07	4		783,207.89	0.31		7.477		347	88.47		536
09/01/07	4		645,720.90	0.25		7.815		348	83.13		496
12/01/07	1		171,005.16	0.07		8.400		351	80.00		524
01/01/08	2		303,362.09	0.12		7.996		352	80.00		607
02/01/08	1		479,700.00	0.19		7.950		353	95.94		647
03/01/08	2		617,669.03	0.24		8.585		354	80.00		704
04/01/08	7		1,595,722.04	0.63		9.054		355	82.33		616
05/01/08	3		1,064,288.99	0.42		9.113		356	90.23		672
06/01/08	19		7,273,952.22	2.86		9.376		357	87.07		617
07/01/08	20		7,101,818.79	2.79		9.134		358	83.37		636
08/01/08	168		54,613,480.85	21.48		9.262		359	83.94		633
09/01/08	680		174,888,151.80	68.78		9.222		360	84.83		643
09/02/08	1		562,500.00	0.22		9.950		360	90.00		578
08/01/09	1		323,828.58	0.13		7.800		359	80.00		668
09/01/09	7		1,831,564.00	0.72		8.322		360	75.10		633
09/01/11	3		1,377,110.00	0.54		8.548		360	71.36		612
Total	932	$	254,284,736.07	100.00	%	9.208	%	359	84.53	%	639
Grade	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
M1	855	$	158,807,155.36	53.74	%	9.439	%	343	85.80	%	623
M2	120		41,133,550.68	13.92		9.874		359	85.12		596
M3	8		1,351,427.17	0.46		9.784		350	73.23		552
M4	3		1,405,338.70	0.48		10.099		360	64.49		553
Alt-A	461		91,475,917.52	30.96		9.152		336	86.34		692
AA	4		313,173.76	0.11		9.888		236	82.67		563
A+	1		207,828.97	0.07		7.900		316	80.00		676
A	2		253,461.08	0.09		9.769		285	87.36		534
A-	2		158,844.93	0.05		11.209		303	89.15		619
B	2		281,066.62	0.10		10.012		303	88.10		607
FICO Enhanced	1		41,694.67	0.01		11.500		285	90.00		545
N.S. FICO	1		82,860.52	0.03		9.700		324	90.00		636
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640
IO Term (months)	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
N/A	1,323	$	243,968,038.50	82.56	%	9.590	%	339	86.65	%	636
60	134		50,578,681.48	17.12		8.596		359	81.30		659
120	3		965,600.00	0.33		8.738		360	79.35		738
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640

41

MI Company	# of Loans	Current Principal Balance ($)		Percent by Current Principal Balance		Weighted Average Gross Coupon		Weighted Average Stated Remaining Term	Weighted Average Original LTV		Weighted Average FICO
MGIC	630	$	154,524,940.15	52.29	%	9.267	%	360	85.83	%	636
NO MI	821		140,261,396.32	47.46		9.578		324	85.59		644
PMI	9		725,983.51	0.25		10.129		264	84.99		561
Total	1,460	$	295,512,319.98	100.00	%	9.417	%	343	85.71	%	640

42

NovaStar Home Equity Loan Asset-Backed Certificates,

Series 2006-5

$630,619,000 (Approximate)

NovaStar Mortgage Funding Corporation

Depositor

NovaStar Mortgage, Inc.

Sponsor and Servicer

Co-Lead Underwriters

The issuer has filed a registration statement (including a base prospectus) with the SEC for the offering to which this free writing prospectus relates. Before you invest in this offering, you should read the base prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site atwww.sec.gov <http://www.sec.gov/>. Alternatively, RBS Greenwich Capital will arrange to send you the base prospectus at no charge if you request it by calling 1-866-884-2071 or emailingofferingmaterials@rbsgc.com.

This free writing prospectus is being delivered to you solely to provide you with information about the offering and to solicit an offer to purchase the offered securities. Any such offer to purchase made by you will not be accepted and will not constitute a contractual commitment by you to purchase any of the securities until we have accepted your offer to purchase such securities. Any such commitment shall be subject to the conditions specified below.

This free writing prospectus is not required to contain all of the information that is required to be included in the base prospectus and the prospectus supplement. The information in this free writing prospectus is preliminary and is subject to completion or change. The information in this free writing prospectus, if conveyed prior to the time of your commitment to purchase the offered securities, supercedes any prior version of this free writing prospectus and any information contained in any prior similar free writing prospectus relating to these securities. If a preliminary prospectus is conveyed to you prior to your commitment to purchase, that document supersedes all other information provided to you concerning the offered securities.

This free writing prospectus is not an offer to sell or a solicitation of an offer to buy these securities in any state where such offer, solicitation or sale is not permitted.

The securities referred to in this free writing prospectus are being offered when, as and if issued. The issuer is not obligated to issue any such securities or any similar securities, and all or a portion of the securities may not be issued that have the characteristics described herein. The underwriters’ obligation to deliver such securities is subject to the terms and conditions of the underwriting agreement with the issuer and the availability of the securities having the characteristics described herein. If, for any reason, the issuer does not deliver such securities, the underwriter will notify you, and neither the issuer nor any underwriter will have any obligation to you to deliver all or any portion of the securities which you have committed to purchase, and there will be no liability between us as a consequence of the non-delivery.

For asset-backed and mortgage-backed securities: Certain of the information contained herein may be based on numerous assumptions (including preliminary assumptions about the pool assets and structure), which may not be specifically identified as assumptions in the information. Any such information or assumptions are subject to change. The information in this free writing prospectus may reflect assumptions specifically requested by you. If so, prior to the time of your commitment to purchase, you should request updated information based on any assumptions specifically required by you.

Any legends, disclaimers or other notices that may appear below or on any electronic communication to which this free writing prospectus is attached which state that (1) these materials do not constitute an offer (or a solicitation of an offer), (2) no representation is made as to the accuracy or completeness of these materials and that these materials may not be updated or (3) these materials may be confidential are not applicable to this communication and should be disregarded. Such legends, disclaimers or other notices have been automatically generated as a result of this communication having been sent via Bloomberg or another system.

1

Breakeven Losses

Class	M-1	M-2	M-3	M-4	M-5
Rating (S/M)	AA+/Aa1	AA/Aa2	AA/Aa3	AA-/A1	A+/A2
Loss Severity	15%	15%	15%	15%	15%
Default	98.76 CDR	68.84 CDR	53.96 CDR	44.46 CDR	36.42 CDR
Collateral Loss	14.65%	12.65%	11.32%	10.25%	9.17%
Loss Severity	25%	25%	25%	25%	25%
Default	42.93 CDR	32.22 CDR	26.88 CDR	23.12 CDR	19.68 CDR
Collateral Loss	16.77%	14.20%	12.66%	11.44%	10.21%
Loss Severity	35%	35%	35%	35%	35%
Default	26.74 CDR	20.93 CDR	17.84 CDR	15.58 CDR	13.46 CDR
Collateral Loss	17.66%	14.94%	13.31%	12.02%	10.73%

Class	M-6	M-7	M-8	M-9
Rating (S/M/F)	A/A3	A-/Baa1	BBB+/Baa2	BBB/Baa3
Loss Severity	15%	15%	15%	15%
Default	30.86 CDR	27.05 CDR	24.09 CDR	19.75 CDR
Collateral Loss	8.30%	7.63%	7.06%	6.14%
Loss Severity	25%	25%	25%	25%
Default	17.14 CDR	15.31 CDR	13.82 CDR	11.54 CDR
Collateral Loss	9.23%	8.47%	7.83%	6.78%
Loss Severity	35%	35%	35%	35%
Default	11.84 CDR	10.66 CDR	9.68 CDR	8.14 CDR
Collateral Loss	9.69%	8.89%	8.21%	7.09%

Assumptions:

1) Run at the Pricing Speed to Maturity

2) Forward LIBOR

3) Triggers are failing after the Crossover Date

4) 12 month liquidation lag

5) “Break” is the CDR that creates the first dollar of principal loss on the related bond

6) Defaults are in addition to prepayments

2

Weighted Average Life Tables

Class A-2A To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	1.51	1.20	1.00	0.87	0.78
MDUR (yr)	1.41	1.13	0.95	0.83	0.75
First Prin Pay	1	1	1	1	1
Last Prin Pay	29	24	20	17	15
Class A-2ATo Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	1.51	1.20	1.00	0.87	0.78
MDUR (yr)	1.41	1.13	0.95	0.83	0.75
First Prin Pay	1	1	1	1	1
Last Prin Pay	29	24	20	17	15
Class A-2B To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	3.55	2.42	2.00	1.76	1.55
MDUR (yr)	3.13	2.20	1.85	1.63	1.45
First Prin Pay	29	24	20	17	15
Last Prin Pay	62	41	28	25	23
Class A-2B To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	3.55	2.42	2.00	1.76	1.55
MDUR (yr)	3.13	2.20	1.85	1.63	1.45
First Prin Pay	29	24	20	17	15
Last Prin Pay	62	41	28	25	23

Class A-2C To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.10	5.31	3.45	2.28	2.03
MDUR (yr)	6.29	4.45	3.03	2.09	1.87
First Prin Pay	62	41	28	25	23
Last Prin Pay	152	100	72	32	26

Class A-2C To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.10	5.31	3.45	2.28	2.03
MDUR (yr)	6.29	4.45	3.03	2.09	1.87
First Prin Pay	62	41	28	25	23
Last Prin Pay	152	100	72	32	26

3

Weighted Average Life Tables

Class A-2D To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	12.66	8.33	6.07	3.39	2.26
MDUR (yr)	8.81	6.47	5.01	2.99	2.07
First Prin Pay	152	100	72	32	26
Last Prin Pay	152	100	73	55	28
Class A-2D To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	16.56	11.39	8.36	4.53	2.26
MDUR (yr)	10.38	8.11	6.43	3.76	2.07
First Prin Pay	152	100	72	32	26
Last Prin Pay	298	208	163	125	28

Class M-1 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	5.70	3.82	3.64	4.13	3.27
MDUR (yr)	4.73	3.34	3.20	3.59	2.90
First Prin Pay	49	37	40	44	29
Last Prin Pay	93	61	47	55	41
Class M-1 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	5.70	3.82	3.64	4.13	3.51
MDUR (yr)	4.73	3.34	3.20	3.59	3.10
First Prin Pay	49	37	40	44	29
Last Prin Pay	93	61	47	56	51

Class M-2 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	9.93	6.53	4.76	4.58	3.41
MDUR (yr)	7.35	5.29	4.05	3.92	3.02
First Prin Pay	93	61	47	55	41
Last Prin Pay	152	100	73	55	41
Class M-2 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	9.93	6.53	4.76	5.10	4.91
MDUR (yr)	7.35	5.30	4.05	4.31	4.16
First Prin Pay	93	61	47	56	51
Last Prin Pay	155	103	74	68	70

4

Weighted Average Life Tables

Class M-3 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	12.66	8.33	6.08	4.58	3.41
MDUR (yr)	8.76	6.44	4.99	3.92	3.01
First Prin Pay	152	100	73	55	41
Last Prin Pay	152	100	73	55	41
Class M-3 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	16.65	11.38	8.29	6.69	6.83
MDUR (yr)	10.36	8.08	6.38	5.39	5.48
First Prin Pay	155	103	74	68	70
Last Prin Pay	269	187	139	107	103

Class M-4 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.35	5.51	4.30	3.86	3.19
MDUR (yr)	6.29	4.52	3.68	3.37	2.84
First Prin Pay	49	37	40	43	37
Last Prin Pay	152	100	73	55	41
Class M-4 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	9.00	6.01	4.66	4.14	3.42
MDUR (yr)	6.56	4.79	3.91	3.57	3.01
First Prin Pay	49	37	40	43	37
Last Prin Pay	224	155	113	86	67
Class M-5 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.35	5.51	4.27	3.78	3.06
MDUR (yr)	6.28	4.51	3.65	3.29	2.73
First Prin Pay	49	37	39	41	35
Last Prin Pay	152	100	73	55	41
Class M-5 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.94	5.97	4.59	4.03	3.27
MDUR (yr)	6.52	4.76	3.86	3.47	2.89
First Prin Pay	49	37	39	41	35
Last Prin Pay	214	148	108	82	63

5

Weighted Average Life Tables

Class M-6 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.35	5.51	4.26	3.71	2.98
MDUR (yr)	6.26	4.50	3.63	3.24	2.66
First Prin Pay	49	37	38	40	34
Last Prin Pay	152	100	73	55	41
Class M-6 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.85	5.91	4.54	3.93	3.16
MDUR (yr)	6.48	4.73	3.82	3.39	2.80
First Prin Pay	49	37	38	40	34
Last Prin Pay	202	139	101	77	59

Class M-7 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.35	5.51	4.23	3.67	2.91
MDUR (yr)	6.16	4.45	3.58	3.18	2.59
First Prin Pay	49	37	38	39	33
Last Prin Pay	152	100	73	55	41
Class M-7 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.76	5.84	4.46	3.85	3.06
MDUR (yr)	6.33	4.63	3.73	3.31	2.70
First Prin Pay	49	37	38	39	33
Last Prin Pay	189	130	94	72	55
Class M-8 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.35	5.51	4.23	3.62	2.87
MDUR (yr)	6.12	4.43	3.57	3.13	2.55
First Prin Pay	49	37	38	39	32
Last Prin Pay	152	100	73	55	41
Class M-8 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.69	5.77	4.41	3.76	2.99
MDUR (yr)	6.26	4.57	3.68	3.23	2.63
First Prin Pay	49	37	38	39	32
Last Prin Pay	181	122	89	67	51

6

Weighted Average Life Tables

Class M-9 To Call

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.35	5.51	4.22	3.59	2.83
MDUR (yr)	5.85	4.29	3.47	3.04	2.47
First Prin Pay	49	37	37	38	31
Last Prin Pay	152	100	73	55	41
Class M-9 To Maturity

	50% PPC	75% PPC	100% PPC	125% PPC	150% PPC
WAL (yr)	8.50	5.63	4.29	3.65	2.88
MDUR (yr)	5.90	4.34	3.51	3.08	2.50
First Prin Pay	49	37	37	38	31
Last Prin Pay	172	115	83	63	48

7

Effective Available Funds Cap Rate Schedule⁽¹⁾⁽²⁾

To 10% Optional Termination at the Pricing Assumptions.

The Effective Available Funds Cap Rate shown below are for are for illustrative purposes only.

The Class A-1A Certificates will be subject to a hard cap of 10.00%.

The Class A-2B, Class A-2C, Class A-2D and Subordinate Certificates will be subject to a hard cap of 11.00%.

The Class A-2A Certificates will not be subject to a hard cap and will follow the schedule below.

Period	Effective AFC Rate (%)	Period	Effective AFC Rate (%)	Period	Effective AFC Rate (%)
1	N/A	31	14.64	61	12.63
2	14.73	32	15.43	62	12.21
3	15.01	33	14.64	63	12.60
4	14.80	34	15.12	64	12.18
5	14.87	35	13.02	65	12.16
6	15.75	36	10.63	66	12.99
7	15.04	37	11.20	67	12.13
8	15.41	38	11.15	68	12.52
9	15.30	39	11.51	69	12.10
10	15.72	40	11.13	70	12.49
11	15.65	41	11.12	71	12.07
12	15.87	42	12.49	72	12.05
13	16.35	43	11.48	73	12.44
14	16.35	44	12.16
15	16.86	45	11.76
16	16.88	46	12.14
17	17.15	47	11.73
18	17.95	48	11.89
19	17.73	49	12.49
20	18.28	50	12.36
21	18.34	51	12.76
22	18.90	52	12.33
23	16.25	53	12.32
24	11.20	54	13.62
25	12.37	55	12.29
26	13.28	56	12.69
27	13.81	57	12.27
28	13.71	58	12.66
29	13.91	59	12.24
30	15.34	60	12.22

⁽¹⁾ Derived assuming indices constant at 20.00% for 1-Month LIBOR and 6-Month LIBOR, using 100% PPC.

⁽²⁾ Includes cap floating rate payments received by the trust from the Hedge Providers.

8

Excess Spread Schedule- Forward LIBOR

To 10% Optional Termination at the Pricing Assumptions

Period	1 Month LIBOR (%)	6 Month LIBOR (%)	Excess Spread (%)	Period	1 Month LIBOR (%)	6 Month LIBOR (%)	Excess Spread (%)	Period	1 Month LIBOR (%)	6 Month LIBOR (%)	Excess Spread (%)
1	5.33000	5.46100	NA	31	5.05900	5.12800	3.42	61	5.27500	5.35100	3.77
2	5.36600	5.46500	2.03	32	5.06600	5.13400	3.60	62	5.28200	5.35600	3.60
3	5.43100	5.45700	2.16	33	5.07300	5.14100	3.41	63	5.28900	5.36200	3.78
4	5.42700	5.43100	1.98	34	5.07800	5.15000	3.57	64	5.29500	5.36600	3.60
5	5.43600	5.40000	1.97	35	5.08100	5.16200	3.42	65	5.30000	5.37000	3.60
6	5.40500	5.36300	2.55	36	5.08200	5.17500	3.48	66	5.30500	5.37300	3.96
7	5.35400	5.32700	2.04	37	5.09100	5.19100	3.67	67	5.30900	5.37500	3.61
8	5.31700	5.29700	2.25	38	5.11000	5.20700	3.55	68	5.31300	5.37700	3.80
9	5.28000	5.26800	2.10	39	5.12800	5.22100	3.74	69	5.31500	5.37900	3.62
10	5.24500	5.23900	2.31	40	5.14500	5.23300	3.55	70	5.31700	5.38000	3.80
11	5.21700	5.21100	2.16	41	5.16000	5.24400	3.54	71	5.31800	5.38200	3.63
12	5.19800	5.18400	2.17	42	5.17400	5.25100	4.09	72	5.31800	5.38400	3.64
13	5.17700	5.15500	2.36	43	5.18500	5.25600	3.55	73	5.31900	5.38700	3.83
14	5.14400	5.12600	2.21	44	5.19400	5.25900	3.74
15	5.11200	5.10000	2.41	45	5.20100	5.26200	3.56
16	5.08200	5.07800	2.26	46	5.20400	5.26500	3.74
17	5.05400	5.06000	2.28	47	5.20400	5.26900	3.56
18	5.02900	5.04700	2.65	48	5.20100	5.27500	3.57
19	5.00800	5.04100	2.31	49	5.20300	5.28200	3.76
20	4.99200	5.03900	2.49	50	5.21200	5.29000	3.58
21	4.98100	5.04300	2.32	51	5.22100	5.29800	3.75
22	4.97700	5.04900	2.49	52	5.22900	5.30500	3.57
23	4.97900	5.05800	2.35	53	5.23700	5.31100	3.56
24	4.98900	5.06900	2.73	54	5.24400	5.31600	4.11
25	5.00100	5.07900	3.22	55	5.25000	5.32100	3.57
26	5.01000	5.08900	3.56	56	5.25600	5.32500	3.76
27	5.02000	5.09800	3.70	57	5.26100	5.32900	3.57
28	5.03000	5.10700	3.49	58	5.26500	5.33400	3.76
29	5.04000	5.11500	3.45	59	5.26800	5.33900	3.57
30	5.05000	5.12200	3.97	60	5.27000	5.34500	3.58

9